Case Assignment Background On Internal Controls LLC

Case Assignmentbackgroundno Internal Controls Llc Is A Mid Sized Pha

Background: No-Internal-Controls, LLC is a mid-sized pharmaceutical sales company in the Midwest of the US employing around 150 personnel. It has grown over the past decade by merging with other pharmaceutical sales companies and purchasing smaller firms. Recently, No-Internal-Controls, LLC suffered a ransomware attack. The company was able to recover from the attack with the assistance of a third-party IT Services Company.

Attack Analysis: After collecting evidence and analyzing the attack, the third party was able to recreate the attack. No-Internal-Controls, LLC has a number of PCs configured for employee training that use generic logins such as “training1”, “training2”, etc., with passwords matching the login names. The logins were not subject to lockout after incorrect password attempts. One of the firms purchased by No-Internal-Controls, LLC allowed Remote Desktop connections from the Internet through the firewall to the internal network for remote employees. Due to high employee turnover and lack of documentation, none of the IT staff were aware of the legacy remote access. The main office has only a single firewall and no DMZ or bastion host to mediate incoming remote connections. The internal network utilized a flat architecture. An attacker discovered the access via port scan and used a dictionary attack to access a training computer. The attacker ran a script to elevate privileges to administrator, installed tools to scan the network, and identified network shares. The attacker copied ransomware into network shares for the accounting department, allowing it to spread and encrypt files. Critical files were backed up and recovered, but some incidental files and personal data were lost.

Paper For Above instruction

Question 1: Suggest a password policy for No-Internal-Controls. Include an example of a technical control and an administrative control. Also include examples of a preventative control and a detective control. Explain how this will mitigate against similar attacks.

Implementing a robust password policy is fundamental to strengthening the organization’s cybersecurity posture. A strong password policy mandates complex, unique passwords that are changed regularly, minimizing the risk of unauthorized access. For example, requiring passwords to be at least 12 characters long, incorporating uppercase and lowercase letters, numbers, and special characters enhances password complexity. Additionally, regularly updating passwords reduces the window of opportunity for attackers following a breach.

One technical control is enforcing password complexity through automated password policies in Active Directory or similar systems. This control ensures users create complex passwords and prevents the use of common or easily guessable passwords. An administrative control is conducting periodic security training sessions to educate employees on the importance of strong passwords, recognizing phishing attempts, and avoiding password reuse across platforms.

A preventative control includes the use of multi-factor authentication (MFA), which adds an extra layer of security even if passwords are compromised. Detective controls, such as login attempt monitoring with alerts for multiple failed attempts, enable early detection of potential brute-force attacks.

These controls collectively mitigate similar attacks by making it significantly harder for attackers to gain access via stolen or weak credentials. Enforcing complex passwords reduces the risk of dictionary attacks, while MFA prevents unauthorized access even if passwords are compromised. Monitoring login attempts helps detect attack patterns early, allowing for prompt response and investigation.

Question 2: Suggest a physical security policy for No-Internal-Controls that addresses vulnerabilities at each location, including warehouses, main office, regional office, and data center.

A comprehensive physical security policy must be tailored to protect each facility’s unique vulnerabilities.

• Warehouses: Implement controlled access with biometric or card-based entry systems. All arrivals and departures of pharmaceuticals should be logged using electronic inventory management systems, with real-time audit trails. Surveillance cameras should monitor all entry points and storage areas. Regular security patrols during and after business hours are essential to deter theft and vandalism.
• High-Regulation Narcotics Room: Enforce strict access controls such as biometric authentication, dual-authentication requirements, and alarm systems. Only authorized personnel should have access, with logs maintained for all entries and exits. External monitoring with CCTV cameras should record all activity.
• Main Office: Maintain a secure reception area staffed with security personnel to vet visitors. Guest access should be limited to designated conference rooms; visitor logs should be maintained. Protect sensitive areas with badge-controlled access systems. Install surveillance cameras covering public lobbies, conference rooms, and sensitive corridors.
• Urban Regional Office: Reinforce physical barriers, ensure entry points are secured with locking mechanisms, and install surveillance systems. Implement patrol routines especially in evening hours to deter vandalism and petty crimes. Encourage personnel to secure personal and sensitive data and valuables.
• Data Center: Secure access with biometric or card readers on all doors. Enforce strict access logs and restrict entry to authorized IT personnel only. Position surveillance cameras at all entry points, including internal doors from the Network Admin’s office and hallway. Consider environmental controls, fire suppression, and warning systems to protect hardware. Ensure backup power supplies are in place.

Overall, policies should include key elements such as access restrictions, logging, surveillance, environmental controls, and incident response strategies specific to each facility’s threat profile.

Question 3: Recommend which project No-Internal-Controls should fund first based on limited budget considerations.

Given the organization’s limited budget and the criticality of cybersecurity and data protection, the first project to fund should be the third-party network penetration test. This initiative provides valuable insights into existing vulnerabilities that could be exploited by attackers, including weaknesses in network architecture, configurations, and security controls.

A comprehensive penetration test is essential because it enables the organization to understand exposures across its entire network perimeter and internal infrastructure. The results can inform prioritized remediation efforts, including strengthening firewall rules, implementing intrusion detection/prevention systems (IDPS), and refining access controls. Identifying vulnerabilities early allows for targeted investments, making other security projects more effective when they are eventually funded.

While the other projects—upgrading firewalls and deploying remote access solutions or investing in new storage and backup infrastructure—are important, they do not address immediate vulnerabilities exposed by active testing and reconnaissance. A penetration test’s insights enable strategic planning for subsequent security controls and investments, reducing the risk of data breaches and ransomware attacks in the future.

Therefore, the recommended first project is the third-party penetration test, followed by implementing firewalls and NIDS, and finally investing in advanced storage and backup solutions.

Question 4:

A) To ensure collected digital evidence remains authentic, accurate, and complete, organizations should follow proper evidence handling procedures aligned with chain of custody principles. Document every step: who collected the evidence, when and where it was collected, and how it was stored and transferred. Use tamper-evident seals and secure storage media. Digital evidence should be acquired using write-blockers to prevent alterations. Employ validated forensic tools to analyze data, and generate detailed reports. Consulting with digital forensics experts and requesting documentation from the IT services company that conducted the initial investigation is essential. This documentation demonstrates transparency, supports legal standards, and helps verify the integrity of the evidence if disputes arise.

B) During the attack, remote employees likely used ports and protocols such as RDP (Remote Desktop Protocol) over TCP port 3389, which is the standard port for RDP connections. Unauthorized or unencrypted remote access via RDP posed a significant vulnerability that attackers exploited through port scanning and dictionary attacks, leading to initial access and privilege escalation.

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