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AI Takes on Polymorphic Malware | Episode 130

The bad guys keep getting better at what they do, and so must we, the defenders. Gary Southwell of Aria Cyber joins us to look at using AI to get ahead of constantly-changing malware.

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OT Security podcast episode 130 - Andrew Ginter and Nate

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“We use a reactive AI in our methodology to actually pick the right counter measure which blocks the technique that the attacker is using that in that moment in time.”

About Gary Southwell and ARIA Cybersecurity Solutions

Gary Southwell of ARIA Cybersecurity Gary Southwell is a cybersecurity veteran who worked on deploying some of the first Checkpoint firewalls back in the late 90’s. He has worked at Juniper Networks as an IDS Product director before going on to co-found Seceon, an early leader in the use of AI to find and stop cyberattacks. Today, he is the executive officer responsible for running ARIA Cybersecurity Solutions. Besides managing existing lines of business, his focus has been on leveraging his AI experience to develop simple to deploy and operate solutions which help manufacturers secure both their IT and their OT environments. His vision is to make it easy to automatically stop today’s most devastating cyberattacks before they can do harm.

ARIA Cybersecurity Solutions (LinkedIn Company Page) provides new ways for monitoring internal traffic, while capturing the right mix of analytics to security tools like SIEMs, or their ARIA ADR application, to substantially improve threat detection and surgically disrupt cyberattacks and data exfiltrations. Customers in a range of industries rely on ARIA’s solutions to improve their security posture—no matter their environment. ARIA Cybersecurity Solutions is a business of CSPi and includes ARIA Software-Defined Security (SDS), Myricom network adapters, and nVoy Security appliances. ARIA has a proven track record in supporting the Department of Defense and many intelligence agencies in their war on terror, and an award-winning portfolio of security solutions, 

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Transcript of podcast episode #130
AI Takes on Polymorphic Malware | Episode 130

Please note: This transcript was auto-generated and then edited by a person. In the case of any inconsistencies, please refer to the recording as the source.

Nathaniel Nelson
Welcome, everyone, to the Industrial Security Podcast. My name is Nate Nelson. I’m here with Andrew Ginter, the Vice President of Industrial Security at Waterfall Security Solutions, who’s going to introduce the subject and the guest of our show today, Andrew. How’s it going?

Andrew Ginter
I’m very well. Thank you, Nate. Our guest today is Gary Southwell. He is the General Manager and Vice President at ARIA Cybersecurity Solutions. And we’re going to be talking about AI, a new use for AI in protecting critical infrastructure.

Nathaniel Nelson
Then without further ado, here’s your conversation with Gary Southwell.

Andrew Ginter
Hello Gary and thank you for joining us before we get started can I ask you to you know say a few words about yourself for our listeners and say a few words about the good work that you’re doing at Aria CyberSecurity.

Gary Southwell
Well thank you? Yeah, a little bit about me so my background I’ve been in cybersecurity really since the early days I was a system engineer in the 90’s working on some of the initial checkpoint deployments as firewalls. Spent a lot of time at Juniper Networks trying to improve the way we did network security with more of intrusion detection prevention systems moved on into a company called Seceon where we worked on adding artificial intelligence to a SIEM product so that we could do more advanced managed detection response solutions for MSSP’s and really over the last seven years I’ve been here at Aria CyberSecurity and we’ve really looked at how do we actually stop the attacks that we’re seeing in the news and if you date back. The attacks we’re talking about are the ones that are really going after the critical assets that are out there. Everything from the Colonial Pipeline on, we want to make sure that we’ve got a better way to actually go in utilize our artificial intelligence properly to find and stop these types of attacks.

Andrew Ginter
Thanks for that and our topic today is using AI to protect critical infrastructure and my understanding of the way that you folks use AI. Outfits like Juniper and others have used AI in their firewalls for a long time to look at the messages coming through and try and figure out do these things – are these things attacks? You’re doing something different is my understanding. You’re not focused on the firewalls. You’re focused on the hosts. So we already have in a sense antivirus on the hosts we have white listing on the hosts. What is the problem you guys are trying to solve? And why isn’t it already solved with with antivirus and whitelisting?

Gary Southwell
All great questions here. So we believe you want to actually stop the attacks at the point where they’re actually attacking their critical applications which is what drives your critical infrastructure. So the challenge with solutions. We call these active solutions that they’re going on the host. Is that if you look at traditional antivirus that’s been around with us for 20 years is that they are looking for files typically that land on the device and they have a known bad signature that’s calculated off of looking at the file you can calculate a hash and it comes up with a value – matches something bad that I’ve been told about I can block it from running. It’s a great concept. The problem is malware of all kinds including ranomware. The signatures are now polymorphic really over the last five years so you get a different value every time it lands on a different device so that type of. Antivirus really is not got an excuse me that approach really isn’t effective anymore as we’ve entered this decade the other approach as you mentioned is whitelisting it kind of got a bad name because it’s been difficult to use but whitelisting just means or we call it access control these days is it says I can delineate which application should be running on this device I can check their certs and then make sure that it is that application and then allow it to run.

And by default I’ll block everything else. So these are good approaches if we can make them work in today’s environments so we start there, we’re saying we need to make sure that the applications. The critical applications can run and anything else that would land. Like a file-based malware ransomware would not run. That’s just your very basics the challenges with these zero day attacks as I said before is that the can’t detect them with signatures so the industry kind of evolved over the last five years to looking at patterns. Ah, behavior or what we really call as industry indicators of compromise when something bad lands on a device. It does this and then this and then this through the killchain we can identify the pattern once we know the pattern if we have a way to then block one of those steps we can disable the attack. Call that next generation antivirus so vendors like Crowdstrike sentinel one do a really good job. With those types of of of approaches. However, when we get into what are the rest of the attacks. These are more sophisticated level attacks like the ones we’ve seen in the industry starting with.

Solarwinds where you’ve actually got humans behind the attacks they may use some form of credential use or deposit software through a legit channel like they did with SolarWinds. And then they progress and attack once they get in get a foothold and they begin to take additional steps so we’ve got a myriad of attacks so bringing this back to how do we use AI we want an approach that can actually detect the various attack techniques that are happening. And if they are somehow adulterating an application trying to to deposit a new one on the device or they’re coming in and using existing processes against themselves. We used to call those advanced persistent threats. They’re more generic. Very specific ones are like living off the land where they’re using the actual os processes against the actual device we need to be able to detect that and apply the right measure to stop that type of attack and this is what we believe is the role of AI on the device. It’s not your generative AI just make sure you understand that the technically massive horsepower. This is the opposite. We use a reactive AI in our methodology to actually pick the right counter measure which blocks the technique that the attacker is using that in that moment in time.

Nathaniel Nelson
Andrew, I would just like to second a lot of the points that Gary has made here. It feels like we might have crossed some sort of vague threshold in recent years where traditional detection antivirus has started to work a little bit less. I mean, as he mentioned, the number of variants and samples out there of your typical malware can get really crazy. I mean, only in recent months I recall a report about mobile malware. I think this was published by, I forget the vendor.

Where you you wouldn’t think of mobile malware as necessarily quite as subject to security analysis as traditional PC malware and yet so many malware families that target mobile devices these days have hundreds or thousands of samples out there. There’s a malware called Godfather with well over 1,000, Nexus, Sederit, Pix Pirate. So those kinds of solutions that would have picked up based on traditional fingerprints may not suffice anymore, even in the mobile realm, let alone PCs where we would expect it. And there’s also the fact he highlighted briefly their behavioral indicators of compromise. This to me seems like where cybersecurity across IT and OT has been going lately. Traditional indicators of compromise can help, but I recently came across a report from Mandiant about Chinese ORB, they call them, networks, ORB being short for operational relay box networks. It’s not an entirely new concept, but basically, in China, there is an entire economy of folks who provide infrastructure to threat actors across the Chinese spectrum.

And so where once we might have been able to say, look out for these servers, they’ve been used by this group. Well, now those same servers are being used by all kinds of groups. And so it’s less helpful now. So the way that we are adapting is by tracking behaviors of threat actors rather than static indicators like that. So this is a very long way to say that I agree with all of the points that Gary has made.

Andrew Ginter
Yeah, and you’re talking about polymorphic. These are are viruses that change frequently. Either the bad guys change them frequently, so there’s thousands of variants out there, or they change themselves. They self-evolve. So again, there’s thousands of variants out there, so that signature-based solutions have a hard time keeping track, publishing enough signatures fast enough to to track things as they change. The traditional sort of alternative to signature-based antivirus in the industrial space has been whitelisting or application control, some people call it, or allow listing. What it is is a list of programs that’s allowed to run on your industrial computer and blocks everything else. So it doesn’t matter what the latest signature of the virus is, if it isn’t allowed, if it’s not on the list of a allowed, then it’s blocked.

But that class of solution, allow listing, is itself limited. So for example, when you install software updates, you have to update the list of allowed applications because you’ve just changed a whole bunch of your applications. You’ve changed their signatures, you’ve changed their their sizes and their So having changed all that, that’s a vulnerability. If the bad guys can get in there and hack the update process, they can get their nasty listed as an allowed executable and they’re off to the races. Other ways that allow listing is is limited, everything is limited. I’m not knocking a allow listing. It’s a useful solution.

But be bear in mind that it tends to focus entirely on executable code. So, .dll’s, .exe’s, .com’s are coming off the hard drive into memory and that’s when they apply their checks. If your malware is scripted, well, I’m sorry, the Perl.exe is allowed because the operating system needs it or the the control system needs it. Python.exe might be allowed and now you’re loading a nasty as text off the drive and allow listing is kind of blind to that. They don’t really check text files. And, another class of application that that are of bad stuff that, allow listing is blind to is in memory attacks. So if you can compromise something and start executing with a buffer overflow or something and start executing your own code and inject, insert the malware into memory, again, allow us to look at things coming off the disk. It doesn’t look at what’s happening in memory. so yeah we need As malware becomes more sophisticated. We need more sophisticated tools to diagnose it and deal with it. And here’s a new kind of tool. And And these are some examples of why we are always looking for sort of the next step in these tools.

– OT Security Commercial Break  –

This portion of this episode of the Industrial Security Podcast has an inserted audio commercial on the topic of OT Security that may vary from region to region, or may be omitted completely. If you’d like to find out how Waterfall might help you with your OT security needs, please set up a call with one of our OT Security Architects at a time that works best for you. 

– OT Security Commercial Break  ends and the industrial security  podcast continues… –

Andrew Ginter
So that makes sense and I followed some of it. I know what a polymorphic virus is but and you talked about sort of attacks that that can defeat the the access control as well. Can you go into a little more detail. we’re we’re going to talk about AI in a second but can we nail down what is sort of a a modern advanced piece of malware. What’s it look like and and can you sort of not comprehens it not every kind of malware that come after us can you give us sort of one example of the kind of thing that existing antivirus and access control might struggle with.

Gary Southwell
Yeah I could probably pick one example that’ll let you read the audience get really significant. Let me pick one example to let the audience get their heads around the use of advanced malware and what do I mean by a sophisticated level of attack. So one comes to mind I mentioned it a minute ago. and this was the type of attack that really set the industry kind of on its ear. So I’ll date myself back to January 2021. This is when the discovery of the solar winds attack was happening. This was a nation state backed attack and if I step into it a minute. It was very very clever. The way they they did it. It was called a sunburst attack it used malware. But the way they decided to get in was to actually go into SolarWinds infrastructure and as they were packaging their Orion software for an update. They actually put in what we call a shim form of malware inside that update very very small so that would go through and. Not be easily detected. You didn’t want to like be doubling the size of the update that might get picked off so it’s very very thin and its so objective was to get in and as they Orion software update was initiated. It would be ready to do its one task.

And that’s one task was to call back out of the location back to a command and control location where the rest of the attack had happened. Okay, so this is very very small piece of malware. Actually being embedded is one of the tool sets inside of the Orion update was clever, but they also made it what we call polymorphic. So as it deposited inside there it slightly modified itself. So that. If you were to calculate a signature, it would be slightly different for each form of deposit this makes it a lot harder for us to go and say we can pick it off and because it’s now embedded in a toolset that makes it very difficult because most of today’s more sophisticated solutions weren’t looking at that level, trying to figure out what was happening and only really exhibited one behavior. It did a callback what happened next though was after the callback the attack actually had 12 more steps and the callback brought in another form of malware and that was more what I would call the business end of the attack so that had more capabilities inside of it to launch and step up the attack to allow it to figure out what was on and then its other role was then to attempt to spread inside the environment if it could and then pull back information. And that’s when humans would get involved and then would begin to take additional steps so that’s an example of polymorphic malware enabling the beginning of a sophisticated attack that would get by most of the protections we have today as an industry so the next part of the attack as it began to evolve had multiple steps and one of the steps that was in the attack and this was brought up in the senate hearings where they brought in some of the industry’s leaders Palo Alto and Crowdstrike of course Microsoft and SolarWinds were in the panel and they said to them and they all agreed it’s like.

And some of the situations you were present on these devices when this attack was occurring. I’m trying to quote Marco Rubio asked the question it was reported that you were bypassed and everyone in the panel said yes, that was in fact, the case. So bypass just means that in effect they either couldn’t see the attack or more likely, the attackers are actually able to have control of the system and basically disable them at the task master location at least temporarily they probably come back right? Up and boot up. But it then lets them get by if they’re doing something else that they might might see an attack so these were fundamentally new sets of challenges that the industry now had to face that you could use basic tools like malware but in the hands of sophisticated actors.

It could do an awful lot of harm and as we saw with SolarWinds it went on for almost a year without actually being detected. It was it was fortunate enough that firear actually saw some of their tools actually leaving their environment and that was the first time that was ever picked up since then we’ve had a series of similar. Think the industry the OT industry itself from last count had about 700 of these types of attacks actually happening not all from the same actor by the way but other actors because once the formula was figured out sophisticated attackers could then utilize some of these same techniques. So this has been so the the ones right after it were the Colonial Pipeline that was a simplified variant of what we just heard about but there’s other types of attacks that have gone over the years are you picking up that dog in the background.

Andrew Ginter
So thanks for that that that makes sense. Can we talk about AI where this is the the topic here if we had a magic AI sitting in our our industrial control system hosts. What would that AI do how would it detect attacks like this?

Gary Southwell
OT Security AI faceThat’s the part. That’s the most challenging and that’s why you need some form of AI. There are very different techniques that are being applied. By the attack type some cases. It’s just recognizing that. There’s foreign code that’s appeared here in other cases. It’s like I’ve got to understand that there’s an abnormal operation happening in conjunction with this legitimate application. There’s some form I will call adulteration going on here. And other cases. It’s the application is running fine, but for some reason it’s going from a user level trying to escalate itself to a system level that allows them to get control of the application or. It’s trying to use processes inside the os that are not affiliated with an application or it’s a spoofed application variant. That’s actually trying to initiate the processes on the OS some of these I’ll bring that up is that came out in the pool party attacks at the last black hat and. The Uk they showed 8 different forms of thread processes that are available from the os for the applications to use that attackers could easily take advantage of so I’ve really described three different types of techniques.

And inside there’s a variety of combinations. So this makes it very difficult to figure out how to stop all forms of attack if I want to make sure that we’re doing the best job we can at the host to stop. Whatever may be happening whether it’s a zero day form of. Malware or ransomware that we haven’t seen before we haven’t seen the IOC patterns and it’s trying to just do its thing or it’s one of these variations of attacks that these sophisticated typically nation state back. But now it’s cyber crime backed attacks that are out there that. These kits are out there and they can vary their attacks. So the AI really needs to make sure it’s saying I can pick off what’s happening and then what do I do about it just like a human would I’ve identified. It’s a sophisticated attack. Someone’s using a privilege escalation I’m going to apply this countermeasure to block it I’ve discovered this is an interesting piece of code that’s arrived here and I need to block it I recognize that this application is no longer working the way it should. It’s actually. Copying things off into buffer spaces that it normally doesn’t do I need to stop that from happening and block that operation or I’ve got unattached processes from the os that and should not be running I need to make sure I can block them at this moment in time.

This is where the the AI comes into play from our experience here in industry.

Andrew Ginter
Okay, so let’s get specific here. We’ve been talking about the problem sort of in the abstract and we’re drifting into you folks have this stuff can you give us just a quick rundown. What do you have? How does it work? why do people deploy it? what are we talking about here?

Gary Southwell
Right? So in our particular application of this technology is we built a very lightweight agent and it’s different from your typical agents. We are going in at if you understand kernels especially in the Windows environment. Or Linux environment where we play is we attach at ring 0 right? at the kernel level. The reason we do that is we want to see everything that’s going on as far as processes from applications that are leveraging what’s happening into the kernel and vice versa. The other thing that we do that makes us fairly unique. We actually have some patents on this so we’re hoping it’ll stay unique is that we actually watch device memory continuously this is the way that we can actually pick off some of these techniques. When you’ve got abnormable use of buffer memory or you’re actually seeing some process kicking off where something’s being written over here into Notepad and that’s now being imported into the application because it’s probably giving them access to some form of change to the application that they want to to leverage. We do that inside our our our agent the markets we’ve chosen to go after though have a variety of requirements. We’re typically talking about operational technology environments.

And there’s many of them. If you think about manufacturing we’re talking about manufacturing floors. We think about utilities. We’re in the process devices out there that have an OS on them that are helping them run and control electrical generation and distribution. You’re talking about oil and gas same way, you’re dealing with the processes. So these are environments. We chose to go after because they are high value targets as we saw what the Colonial Pipeline is a good example when we get into these environments. We also find that you have got other constraints. Typically there’s not continuous internet connectivity. In fact, they purposely tried to limit that as one of the protections they often have limited processing power available left to anything else that’s going to run besides the production applications in some cases some of these devices that are old. or they’re running what I would call old versions of the OS because they’ve been trying to sweat that asset for many many years you know? For example, we’re deployed in a large pharmaceutical around the world in different locations. We’ll have devices. That are in these various lines and you’ll see oh I see Windows Server 2008 over here in some locations. We actually see Windows XP typically Service Pack 2 which is nice because it’s got nice controls and they’re still using that asset because they built their applications on top of that.

And everything just runs and in typical OT fashion if it works don’t change it and then their hope was let’s wall off the environment using passive protections from the networks if we can. And yet what they found is supply chain attacks get around the network protections. So what we did is made sure that our application could run on these older operating systems. It could run with very very limited amounts of cpu. And limited amounts of memory so that we could perform and not impact the performance of the production applications.

So the benefit of this approach is that we can go on to a myriad of these devices with many many different forms of applications and I’ll go one step further here is when we’re deploying in these environments. We expect to see tens of applications. In fact, in some cases we actually see upwards of 1000 of these applications. So our approach as we deploy is to prevent the adulteration of applications. 1 of the side benefits is in these environments is that. When you have this many applications you’re going to have known vulnerabilities inside those applications is by published by cbes and the chance of ever forever having in them all continuously patched even in IT environment is almost no and when you only have a chance to patch. Maybe once a quarter at the fastest and more likely in this pharmaceutical company. It’s once a year you’re never going to be patched. So one of the side benefits was because we go in and protect these applications from adulteration the ability to exploit these vulnerabilities. Become significantly less I won’t say zero but we can go down to a 99 % chance that we are going to block the exploit of these applications and this then becomes a real benefit because now you’ve dramatically improve the likelihood.

Gary Southwell
That we can keep these operations operational even during an attack because we will continuously block those attackers. That’s that’s the benefit when people went through the risk analysis they’re saying okay I can look at it. The cost of my line if it goes down for x number of hours is thousands of dollars and if it goes down for a month. It’s millions of dollars and if you’ve taken down my risk by a factor of 99% I can actually calculate a value to that. So these are the benefits that we’re offering now the challenge really that is you’ve got all these applications. How do we actually make it. Easy for these operators to use this technology. Do you want me to go into this or should I hold off on that is my question to you.

Andrew Ginter
So there was a lot of stuff there, Nate. Let me come back to the SolarWinds example. The Gary said the malware came in as part of the SolarWinds security update. So that would have defeated the the whitelisting, the the application control I was talking about, because it would have come in saying, hey, here’s a new authorized executable. And the malware would have been flagged as as authorized.

And then What the malware was, was something that phoned home. They called out to the Internet and said, hey, boss, I got a live one here, and did not much else. It was very thin. It was small. It was benign looking. A lot of malware phones home to the vendor, not not just malware, a lot of legit software phones home to the vendor and says, here’s what’s going on because the vendor is helping manage the software. So it’s not that suspicious, that the malware is phoning out to the Internet.

The alarming thing is that what it got on the internet was here’s another whole bunch of code and it copied the code that it got from the internet into memory and started executing it and at that point it became dangerous it really started doing nasty stuff and so again whitelisting would have missed it as part of the software update would have missed it as in memory pulling stuff off the internet or often after the the the the socket, the connection out to the internet and inserting it into memory and starting to execute it.

This is where we need sort of a deeper insight into execution. so I think that that one example sort of hit all the marks there.

Andrew Ginter
Okay, so so you’re doing things that that antivirus and access control don’t can I ask just a clarifying question when. When your stuff is deployed. Do you tend to see it deployed in addition to Antivirus or whitelisting access control or are you deployed sort of instead of that.

Gary Southwell
We’ve seen it both ways we designed it so it would run in parallel with some of these AV solutions that are out there because again we’re trying to go in there and say we’re not disrupting your existing infrastructure if you have a reason to keep running that great. We’ll just come in and and run alongside. we’ve never gone in and they’ve kept an application whitelisting solution. There. They’ve typically just moved to us so in many cases they’ll be running things like windows defender and we’re running in addition to that.

Andrew Ginter
Digging deeper – your stuff is installed in the kernel. In my experience, there’s long-standing reluctance to deploy any kind of security technology on existing hosts in existing OT networks existing Systems. The vendors sometimes push back and say no, no, no, you’ve installed somebody else’s software on my system I don’t support this anymore. You’re on your own there’s vendor support agreements. There’s legal agreements. It gets complicated. can you talk about that? How how has this technology been received in an environment that just doesn’t want to change anything.

Gary Southwell
Well, that’s an excellent point that you’re making and it is one of the inhibitors we we see but it is changing the the industrial automation vendors that typically which you speak are recognizing that there’s problems here and they can either be. Yeah, part of a solution or they can be held liable. It’s part of the problem and you’re seeing a movement there you know. For instance, we’ve just gone public with a relationship with Rockwell and they’re bringing us now in as part of their solution to solve these types of problems where appropriate. Um. We’re having these discussions with these other other vendors in some cases. They are very very regimented and others are much more open to provide more modern approaches if you will to stopping these threats because they are happening and they’re starting to happen in increasing fashion. So they can’t just. Tell the customer my leave agreement with you says you can’t run protection that I haven’t approved on your system and then find out that their system was compromised because their applications had vulnerabilities in them that were exploited so you can see the challenge is there. So these vendors are now starting to move and it is something that really has just really happened over the last couple of years.

Andrew Ginter
Another clarifying question comes to mind. You were talking about bad stuff shims that download other bad stuff. The shim looks benign but it winds up downloading code and and actually executing code. That’s not so benign just thinking about it. This is what happens in browsers. Browsers download javascript routinely they execute the code routinely. If your AI forbids downloaded code, does it break the browser? How do you work with browsers.

Gary Southwell
Yeah, so that’s that’s interesting point. So when we get into OT environments. You don’t typically see these types of behaviors happening so they’re not downloading apps through browsers and dynamically executing code. So that’s not your typical. Behavior that you’re going to see. We do have certain countermeasures though to all always to deal with things like malicious Javascripts running and picking off those those types of techniques because that may be running independent of your typical browser download. So we do stop that.

Andrew Ginter
And sort of another another thing that occurs to me. There’s a lot of applications in an IT environment and a lot of people surprised there’s a lot of applications in OT and industrial control system environment as Well. You might imagine that there’s fewer control systems in the world than it networks. but there’s still a huge diversity of applications of software of even hardware out there. Is it possible for you guys to learn all of those applications and keep track of them as vendors release new security updates? Do you do this sort of centrally? How do you manage that diversity?

Gary Southwell
There are multiple ways to do this and and we do try to work with the large and industrial automation vendors in advance to get as many of these as we can but we realized early on that we couldn’t depend on that. So we built our product so that once our agent became active on the device it would quickly inventory everything it found running on the host and they would slowly also look at everything that was over on the the disk again. The word slowly is there because we’re trying to make sure we stay within operational parameters. We don’t slow down the device at all. So when we do that we can inventory everything in some cases will let’s say we find a hundred applications. we’ll build that that list on the device. And each of our individual agents on all devices will build a list now to make it easy on the operator we can come up in a mode. We call prevent mode where we say okay, we’re going to assume that all the applications we just built.

Artificial IntelligenceAre good right? Chances are that probably the the situation and then we have these additional countermeasures that are going to watch and see if anything else happens which is not good. One of these attempt techniques and then those will then trigger us. To stop those techniques and zero it in on the application. So that that can be explored so this allows the vendors to deploy our agents out on the devices and just say okay, you come up and prevent you allow everything that’s running to run you turn on your countermeasures to look for bad techniques. And then what they do is they communicate to a centralized application that’s running inside this customer site typically and it could be right down on these manufacturing lands in some cases we’ve actually running an air-gapped environment factory floors as we speak. So they don’t have normal connectivity to the outside world but the hundred devices in a manufacturing floor communicate everything that they’ve learned on their devices and it builds the central manifest and then now you’ve got in a depopulate stuff you like. But now you’ve actually got an inventory of every single application. On which devices or which lines because it’ll actually give you that capability to name the lines and we found that’s of extreme use to a lot of these manufacturers because a lot of things they don’t know all the applications or the application variances that are running there on each of their OS platforms. So it gives them visibility of that.

And then they can say okay, this is a great I can now have an approved level of manifest and if something goes wrong I can look through that and take out those those bad applications or I can say what I’m looking through this list and I really don’t like that notepad is running on these applications because that’s something that could be used by an attacker. So I’m going to say I want to block that to the centralized control system or we call our trust center can then send an update out and and say block the use of those notepad so it’s a way for you to control the policies in which you allow certain applications to run. So. This was well received because I said we have this large global manufacturer and they were like this is good because the people on the sites trying to run these things don’t have time to go figure everything out they need something. That’s simple. But then when we’re looking and doing some periodic reviews. We can sit there and say okay we can examine what we have here we can decide what we don’t like running and we also can get an an indication of all the different variants of these various applications so that we can do better planning going forward. In the meantime they’re fully protected from these types of attacks that they’re most concerned with everything from the zero day ransomware malware all way up to these very sophisticated nation state back attacks. They’re typically coming in through their supply chain by the way.

Andrew Ginter
That struck me as as interesting, Nate. A lot of people have been on the show talking about asset inventory. You can only protect what you have. But asset inventory in most implementations, in my understanding, tends to focus on what kind of devices are there. There’s PLCs, there’s RTUs, there’s protective relays, there’s Windows machines, there’s Linux machines. What version what OS are they running? What patch level are they running? What software has been installed? Has the software been patched? What these folks are doing is sort of coming at it, I assume all of that and they’re going through and making a long list of all of the executables that are installed on the machine, which is sort of the next level of detail. I mean, he mentioned the example of Notepad. Therthere’s nothing in the the list of installed software that says Notepad’s installed. It installs when you install the OS. It’s not a separate install. so Having that sort of more detailed asset inventory is to me is interesting. It strikes me as potentially useful in terms of of additional hardening that you can apply to these machines.

Nathaniel Nelson
I’m not sure that this was the point of what you just said there, but you mentioned Notepad and he mentioned Notepad. I’m wondering, why is Notepad coming into any of this? That’s just the application that I never use on my computer.

Andrew Ginter
Yeah, it’s an application I never use either. It’s an application that lets you edit text files. And if you have a README file, nobody wants to edit it. They want to read it. You can read it in lots of things. The browser will let you read it. Notepad lets you create text files as well. And it’s one of the tools that attackers tend to use more than regular users because the attackers always need to put some script file down so you can execute it or put a stolen license key into a text file so it can be imported and so on. So I guess this is, again, one of the tools that that owners and operators might look at and say, I never use that. We don’t need that.

The only people that are going to use that are the bad guys. Take it off the machine. We had an episode, I think, recently talking about living off the land when touched on it briefly, the using tools that are part of the operating system to to launch attacks. This sounds like one of those tools that never really occurred to me. But yeah, when you say it, I never use Notepad either. So if if it’s only the bad guys doing it, that’s a a candidate to to take off the machine.

Andrew Ginter
Something you said triggered me a second ago. What about what you you were talking about the ability to run in sort of an advisory mode versus an enforcing mode. Um. Is this relevant to let’s call it upset conditions I mean how often do you start the plant from scratch. Maybe once a year and everything behaves a little bit differently during startup how often do you do an emergency shutdown hopefully no more than every few years. And in an emergency shutdown. Everything is different. Everything is changing. do you do you make make sort of provision make make exceptions in those cases?

Gary Southwell
Yeah, absolutely So. We’ll run in a mode where we’ve got prevent mode is our normal mode. But when we go into these. Let’s call them updates. Usually it’s maintenance windows emergency Shutdowns. We Just ask that the operators turn us into detect mode. that way the product keeps running but as they make these changes. We’re not going to try to get in the way of things happening especially like you see when there’s an emergency going on or you’re just getting a ah. Batch of updates coming in. Yeah from patches to new revisions of of applications coming in across the board then once things settle down you can look at what we detected as showing alerts or not it depends on what they want to do it depends on the situation. Of course. And then if you see everything is fine from what we reported you just accept all those changes you can say these are okay to run as is I basically start fresh and move back into prevent Mode. So All the changes have been accepted. And we run from there So That’s the way that we we deal with that and we find it works out pretty well because it’s just simple toggling of a switch and then toggling it back on once everything is stabilized and you still have an ability to track everything that happened during that mode where you were doing all those changes so we have all these wonderful operational logs that tell you about exactly what happened so in a lot of these environments that are definitely under a lot of scrutiny compliance reasons Now you now have a complete history of what’s happened. And we provide that for.

Andrew Ginter
Well, this has been great Gary. Thank you for joining us. before I let you go can I ask you to sum up for us. What should you know? what should we be be thinking about when we’re thinking about this space.

Gary Southwell
Well as I started off, you’ve got to make sure you’ve got a solution that has an ability to stop all these different variations of attack. It doesn’t help if you’re only covering 20% of the attacks out there. You’ve got to cover the full level of attacks in order to have a solution with efficacy.

The other point I think we want to briefly touch on is that you can have the best solutions out there. But if they’re not easy to actually implement and deploy and update. Then the solution will not be successful. It’s got to be that simple that operators with minimal training can figure out how to deploy it they can come up and then deal with this as they go through their normal operations as they run it. Or are going through a period when they’ve got a maintenance window running and they’re making updates to all their applications in their environment I would say there’s a call to action going on right here because for so long the industry has tried to stick with the old ways. In the old ways in the OT world where we’re trying to use passive defenses as much as possible air gap which means there’s no internet connectivity as much as possible and yet the attacks keep coming the problem is there’s the human element. The. Industrial automation vendors I don’t want to pick on them but they have to update their applications at some point.

So either they’re bringing in people or they’ve got third parties that are coming in or the customer has third parties coming in and that’s when we have people walking past the network and then plugging into these devices often with USB sticks or maintenance laptops and the updates happen and so do the problems so you can’t be myopic and think we can get away with approaches that worked in the last decade when there’s actually ways that defeat them every day in our environments. So. I would say the takeaway is you’re going to look at a solution. You’ve got to find one that that will work will drastically reduce your risk. That’s easy to deploy and then can deal with these situations where traditional defenses just don’t cover the problem.

Nathaniel Nelson
So Andrew, to close out here, Gary’s talking a lot about choosing the right solutions, which solution is a tricky word, right? Are we really solving something here or are we iterating on a long history of what we’ve been doing prior?

Andrew Ginter
That’s a good question. I would use the word innovating rather than iterating. The bad guys keep getting better at what they’re doing. They keep inventing new and different and subtler ways of of attacking us. And so our defenses need to become more capable as time goes by as well as the threat environment changes. And here’s an innovation, here’s a way to address a kind of attack that is becoming more widely used by the the sophisticated, the high end of the of the attack spectrum. putting something benign looking into a software update, putting something benign looking on a machine, and then loading the nasty in memory into that benign looking thing. This is this is the the world we live in. This is starting to happen reasonably regularly. We need technology that’s going to address this threat. the The bad guys innovate. We need to as well.

Nathaniel Nelson
Well, thank you to Gary Southwell for speaking with you, Andrew. And Andrew, as always, thank you for speaking with me.

Andrew Ginter
It’s always a pleasure. Thank you, Nate.

Nathaniel Nelson
This has been the Industrial Security Podcast from Waterfall. Thank you to everybody out there listening.

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The Art of AI-Generated OT Payloads: From Mischief to Existential Threat https://waterfall-security.com/ot-insights-center/ot-cybersecurity-insights-center/the-art-of-ai-generated-ot-payloads-from-mischief-to-existential-threat/ Tue, 20 Aug 2024 12:38:40 +0000 https://waterfall-security.com/?p=26252 Almost 10 years ago, I managed to take control of every appliance in a 200-room hotel. I could raise the blinds in each room, change the TV channels, adjust the outside lighting, modify the temperature settings, and more. I had complete control. In the years since, to my surprise, the number one question I was asked wasn't "How did you do it?" but rather "With the control you had, what's the worst thing you could have done?"

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The Art of AI-Generated OT Payloads: From Mischief to Existential Threat

Nearly 10 years ago, I managed to take control of every appliance in a 200-room hotel. In the years since, to my surprise, the number one question I was asked wasn't "How did you do it?" but rather "With the control you had, what's the worst thing you could have done?" Since the spread of AI, the answer to that question has grown significantly.
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Dr. Jesus Molina

AI Generated OT Payloads - Jesus Molina Blog

Hacked hotel in TokyoAlmost 10 years ago, I managed to take control of every appliance in a 200-room hotel. I could raise the blinds in each room, change the TV channels, adjust the outside lighting, modify the temperature settings, and more. I had complete control. I did this by sending commands utilizing the KNX protocol through an unprotected wireless network at the hotel.

In the years since, to my surprise, the number one question I was asked wasn’t “How did you do it?” but rather “With the control you had, what’s the worst thing you could have done?” For those curious about the  “how”, I documented the process in a white paper presented at the BlackHat conference in 2014, which you can access here. Let’s revisit and expand on the second question, that “what,” with and without the help of generative AI.

Almost 10 years ago, I managed to take control of every appliance in a 200-room hotel….In the years since, to my surprise, the number one question I was asked was…”With the control you had, what’s the worst thing you could have done?”

Mischief

KNX Protocol that was exploited in the hotel hackBefore the advent of modern generative AI, my response to the question “what’s the worst you could have done?” was fairly typical: I could have disabled the controllers and then demanded payment to reverse the damage. This is akin to encrypting files, denying access to them, and demanding  a ransom. In fact, a similar tactic was recently employed by KNXlock, which exploited the KNX protocol’s cryptographic key insecurities to brick the KNX devices and demand ransom from the victims, as discussed in this article by Limes Security. By the way, I raised my voice almost 10 years ago on KNX insecurities in hopes the disclosure would prompt security improvements, and unfortunately it seems little has changed since then, with the Cybersecurity and Infrastructure Security Agency CISA releasing a new security advisory including a new CVE.

As reporters keep bringing up the “What’s the worst that could happen?” question, my imagination took flight. In the realm of mischief, I imagined myself dressed as Magneto, theatrically raising all the blinds simultaneously with a dramatic hand gesture. I suggested that I could have programmed the TVs to turn on every morning at 9 AM. I even suggested the idea of crafting a ghost story and bringing it to life by orchestrating eerie patterns with the exterior lights. One thing is clear: today’s cyberattacks lack creativity. Viruses of the past showcased more ingenuity. Take, for example, the 90’s Cascade virus that made letters fall down to the bottom of the screen, a spectacle that mesmerized many, including a 15-year-old version of myself. Back then, the primary objective of these attacks was attention, and not monetary gain. And garnering attention demands creativity.

Now enter the realm of generative AI, exemplified by platforms like ChatGPT, Bard and Stable Diffusion. I decided to revisit my previous attack. I still have the Wireshark traces from back then, as well as the Python program I coded to control the hotel. I tasked ChatGPT with creating a KNX client after feeding it the same scenario and input data, and the results were unsurprising: it accomplished in a mere 2 minutes what had taken me several hours years ago. And when I asked it  about the worst that could happen? ChatGPT’s responses closely mirrored my own, and even offered some additional possibilities:

AI Hacker possibilities

Existential Threat

Today, the majority of cyberattacks employ two primary payloads: data exfiltration and data encryption. These tactics prove effective as attackers can extort money either by threatening to release the compromised data or demanding payment for its decryption. These attacks display malice, but only to a degree. Their goal is not to cause significant harm to people, but there are instances where attackers went further.

Truly novel and inventive payloads are a rarity in modern cyber warfare. A notable example is the Stuxnet malware, an autonomous worm that discreetly sabotaged machines in Iran used for uranium processing. Others include BlackEnergy and Industroyer malware deployed in the2015 and 2016 cyberattacks that targeted Ukrainian substations, causing blackouts. More recently, the Khuzestan steel mill in Iran reportedly caught fire due to a cyberattack, suggesting the payload’s objective was to ignite a blaze. Such developments underscore the evolving nature of cyber threats. Where some attacks are starting to show physical consequences in the real world Most recently, there has been a shortage of Clorox product due to a cyberattack.

And there is another data point: We’re witnessing a significant uptick in cyberattacks with physical consequences to industry and critical infrastructure. The frequency of such attacks has doubled every year since 2020, a stark contrast to the mere 15 instances in the previous decade. However, these physical repercussions often arise not from innovative payloads but from generic encryption techniques that incapacitate machines integral to physical processes.

Cyberattacks with Physical Consequences
Attacks with Physical consequences. Source: 2024 Threat Report – OT Cyberattacks with Physical Consequences

 

Offensive AI

In cinematic fiction, we often witness AI performing a myriad of impressive actions, from manipulating traffic lights to accelerating train speeds. Most of this is created by humans for humans, in the context of fictional entertainment and not reality. So, we know what we are capable of dreaming up when cybersecurity breaks down. If AI had complete cyber control over an environment, such as a Building Management System, what could it achieve? To explore this, I engaged in a conversation with a generative AI model on possible attack scenarios on a hypothetical water treatment plant equipped with Siemens controls, and a common deployment. While many of its responses were anticipated, some were very precise, such a falsa data injection. The problem is that once an attacker has a basic idea of what impact they wish to achieve they can develop it further, in a very efficient way, using generative AI as a research assistant.

AI offensive cybersecurity

Robert M. Lee, a renowned cybersecurity expert, meticulously detailed the phases of an OT (Operational Technology) cyberattack in his seminal paper, “The ICS Cyber Kill Chain.” Within, he categorizes attacks on Industrial Control Systems (ICS) into two distinct stages. The first stage aligns closely with familiar IT attack methodologies and culminates in the more specialized Stage 2, which is specific to OT intrusions.

The ICS Kill Chain
 Example ICS Kill Chain: Stage 1 in Blue and Stage 2 in yellow

Generative AI has notably transformed the initial compromise phase, which predominantly targets human vulnerabilities. This includes tactics ranging from voice cloning to the crafting of persuasive phishing emails. However, the true untapped potential of offensive AI emerges in Stage 2.

In these OT scenarios, attackers frequently stumble with the challenge of designing payloads suited to distinct operational contexts, especially those that necessitate the coordination of Programmable Logic Controllers and other servers tailored to specific physical processes. While many attackers can navigate past conventional defenses, they often fall short when confronted with specialized domains such as water management or manufacturing.

Generative AI promises to reshape this dynamic, equipping the attacker with the capability to produce complex, adaptive payloads. These can encompass code sequences potentially capable of damaging machinery or endangering human lives. Actions in Lee’s papers such as “Low confidence equipment effect” will transition from being difficult to execute to relatively straightforward. In essence, the entire landscape of the Stage 2 attack scale is radically transformed due to generative AI.

Is Security Engineering Our New Safety Net Against AI?

Defenders have utilized AI for years, but the democratization of AI will complicate the defense against system misconfigurations and stolen credentials. In OT, the stakes are even higher in Phase II. Encrypting a file is vastly different from destroying machinery. Traditional defense systems, vulnerable to bypassing, might prove inadequate against these emerging threats. However, there’s a silver lining.

The engineering profession boasts robust tools to counteract OT cyber risks posed by AI. Mechanical over-pressure valves, for instance, safeguard against pressure vessel explosions. As these systems do not have a CPUs, they’re immune to hacking. Similarly, torque-limiting clutches protect turbines from damage, and unidirectional gateways prevent the passage of attack information in one direction utilizing optical systems. These tools, often overlooked due to their lack of IT security counterparts, might soon become indispensable. As AI continues to evolve, the fusion of information with OT systems, combined with the creation of imaginative payloads that could jeopardize human safety or critical infrastructure, demands foolproof defenses. These defenses, grounded in physical elements, remain impervious even to the most advanced AI, ensuring our safety in an increasingly digital world. And maybe, they could deter even the most advanced AI systems for years to come.

Want to learn how to best protect industrial systems against cyberthreats? Get a complimentary copy of Andrew Ginter’s latest book –> Engineering-Grade OT Security: A manager’s guide discusses these tools in detail.

About the author
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Dr. Jesus Molina

Jesus Molina is Waterfall’s Director of Industrial Security. He is a security expert in both OT and IT security. A former hacker, his research on offensive security in industrial systems has been echoed by many publications and media, including Wired and NPR. Mr. Molina has acted as chair of several security organizations, including the Trusted Computing Group and the IoT Internet Consortium. He is the co-writer of the Industrial Internet Security Framework and the author of several security-related patents and academic research papers. Mr. Molina holds a M.S. and a Ph.D from the University of Maryland.
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AI and Industrial Security in the Energy Transition | Episode 125 https://waterfall-security.com/ot-insights-center/ot-cybersecurity-insights-center/ai-and-industrial-security-in-the-energy-transition-episode-125/ Sun, 21 Apr 2024 08:56:53 +0000 https://waterfall-security.com/?p=22318 Leo Simonovich, VP & Global Head of Industrial Cyber and Digital Security at Siemens Energy, joins us to discuss AI and the industrial cyber risks and threats it poses to the digital transformation of the energy industry.​

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AI and Industrial Security in the Energy Transition | Episode 125

Leo Simonovich, VP & Global Head of Industrial Cyber and Digital Security at Siemens Energy, joins us to discuss AI and the industrial cyber risks and threats it poses to the digital transformation of the energy industry.

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Waterfall team

AI and Industrial Security in the Energy Transition

“…we have to apply a mix of different technologies including Cyber technologies. to begin shaving off our carbon foot print. So we work with customers to help them rationalize what they do with their existing fleets and how they can maximize efficiency.”

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About Leo Simonovich and Siemens Energy

Leo Simonovich VP Siemens EnergyLeo Simonovich is VP and Global Head of Industrial Cyber and Digital Security at Siemens Energy. He is responsible for setting the strategic direction for Siemens’ industrial cyber security business worldwide. He identifies emerging market trends, works with customers and Siemens businesses to provide best-in-class cyber offers, and contributes to the company’s thought leadership on the topic. He is particularly focused on solving the cyber security challenge in the oil and gas and power sectors by bringing unique solutions to customers looking to address a growing and costly operational security risk. He frequently speaks on such topics as cyber governance, risk management, and organizational transformation in operational environments. Prior to joining Siemens, Leo led the cyber risk analytics practice area at the management consulting firm, Booz Allen Hamilton. He refined his expertise through his work with large government and commercial customers to improve their cyber risk posture. While at Booz Allen, Leo created an industry recognized methodology to evaluate the financial benefits of investment in cyber security. Leo holds both a Masters in Global Finance and a Masters of Business Administration from the University of Denver.

Siemens Energy is located in 90 countries and operates across the whole energy landscape including conventional and renewable power, grid technology, energy storage, and electrifying complex industrial processes. Their stated mission is to “support companies and countries with what they need to reduce greenhouse gas emissions and make energy reliable, affordable, and more sustainable.”

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Transcript of this podcast episode #125: 
AI and Industrial Security in the Energy Transition | Episode 125

Please note: This transcript was auto-generated and then edited by a person. In the case of any inconsistencies, please refer to the recording as the source.

Nathaniel Nelson
Welcome. Everyone to the industrial security podcast. My name’s Nate Nelson I’m here with Andrew Ginter the vice president of industrial security at waterfall security solutions who’s going to introduce the subjects and guest of our show today Andrew how are you.

Andrew Ginter
I’m very well. Thank you Nate our guest today is Leo Simanovic he is the vice president and global head of industrial cyber and digital security at Siemens Energy and our topic is AI in the energy transition.

Nathaniel Nelson
Then without further ado here’s your interview with Leo.

Andrew Ginter
Hello Leo and welcome to the podcast. Before we get going can I ask you to say a few words about yourself and about the good work that you’re doing at Siemens Energy?

Leo Simonovich
Andrew it’s great to be with you. Thanks so much for the opportunity. At Siemens Energy I lead the industrial cyber practice. and I’ve spent building I spent about 10 years building this business It’s been a wild ride. A lot has changed in the space. and we’ve innovated broad. Awesome products to market. and and before that I was with a large consulting firm who was Alan Hamilton where I did cyber risk analytics for large utilities.

siemensSiemens Energy is has been on the journey we became a standalone energy technology company covering the energy value chain. As a spinout of larger Siemens and we’re hyper focused on the energy transition and at the core of that transition is the need to decarbonize digitize and decentralize and the. That is all enabled by digital technologies and of course getting cybersecurity right? So we as a company have built a practice focused on operational technologies and industrial cyber and it is a practice that helps our customers. Get a better handle on on their industrial cyber programs and helps them get a better understanding of their risk. and helps them ultimately reduce that risk because it is just too important. if we don’t get it right. The the consequences for the environment but also for operations and abilities deliver energy are just too great.

Andrew Ginter
Sweet, um, and our topic today is artificial intelligence and of course industrial security in the energy transition. Can you start us at the beginning? I mean everybody vaguely understands the the need to decarbonize. What does What does the energy transition mean to you and and to you folks?

Leo Simonovich
Yeah for for us as a company and for me personally um, it is an existential challenge. We talk about the need to decarbonize and the abstract. We know that we need to reduce carbon footprint. But what does it really mean? Well we have a world out there. That’s pretty Complex. You got a bunch of old stuff that is aging and that’s built on Fossil Generation. You have renewables and then of course you you have the push to electrify everything and what that means is that we have to apply a mix of different technologies including Cyber technologies. to begin shaving off our carbon foot print. So we work with customers to help them rationalize what they do with their existing fleets and how they can maximize efficiency how they can install additional capacity that is cleaner.

And ultimately Innovative Technologies like hydrogen that are going to be groundbreaking. It’s an above kind of it’s an all of the above approach that that we need to take to go off to this problem and it really requires a partnership between us and and our customers.

Andrew Ginter
So that makes sense sort of, in the abstract. Can you give me some examples of  what kind of physical technology systems are are you folks working with?

Leo Simonovich
Yeah, the way to think about it is by looking at different parts of the energy Valley chain. So There’s oil and gas. There’s power generation and then there’s the transport and of course distribution of energy. We play in in all the parts of the of the energy value chain in Upstream where oil gets taken out of the ground we need to do a better job of not. Releasing carbon into the atmosphere. and there one of the big challenges of course is is the flaring of gas. The other is what happens with onsite power Generation. So our technologies help capture the carbon also produce. Onsite generation. So We’re not, burning diesel fuel For example, we can install small wind micro-grids that can produce energy right? there on site. We can combine an offshore platform with wind together and we do that in the North sea in in Midstream Of course it’s It’s about a more efficient way of transporting right and delivering electricity and oil and gas.

Leo Simonovich
And there we got to we are delivering next generation compression equipment. and ultimately energy’s got to get to homes. and we we have to have a grid that doesn’t lose power. Ah, as as that electricity gets gets transported. So We deliver software we deliver transformers. and we deliver metering equipment to help our customers utilize their electricity in in a more efficient Way. So when the sun shines. It’s great. and we we can deliver electricity straight to homes and the wind blows. but sometimes the the weather doesn’t just doesn’t cooperate so we are. we have capture electricity through storage by applying the latest and greatest battery battery applications to help capture electricity and use it when it’s needed most.

Andrew Ginter
I had assumed that Siemens Energy was all about the power grid and windmills and solar panels and and it is all that but the examples that that he gave here were also in oil and gas. Oil isn’t found in convenient locations. It’s found generally far away and and off the grid and so you need power out there. So they’re talking about about windmills and solar panels and whatnot out in the boonies to support these remote installations. In addition to all of sort of the the expected so it was broader than I expected.

Andrew Ginter
industrial systemsSo that all makes sense. and our topic is AI and eventually industrial security in the energy transition. Can you talk about? AI I mean there’s chatGpt has been all the buzz I have a ChatGpt account myself I’ve been playing with it. Is that what we’re talking about when we’re talking about AI or is is AI a bigger picture?

Leo Simonovich
Yeah, you’re right? There’s so much hype around AI for for a very short word. There’s so much that so much confusion comes with it. I think for your listeners, they probably know AI as the latest and greatest innovation which is ChatGpt. we all use it to ask a question. We all use it to plan our dinner menus. The reality is that in industrial context artificial intelligence has been used for some time to do things like help us find the the biggest reservoir of oil out there or to help us deal with the problem that I talked about around kind of weather patterns and anticipating what those look like and optimizing the energy system to store electricity. Those applications of artificial intelligence which is which is all about control and dispatch of energy have been around for some time they’ve been narrow and very specialized. What’s different?

Leo Simonovich
Well, with with scalability of compute which is getting cheaper and cheaper with advances in large language Models. We can now drive optimization in that energy system which is getting more complex. We talked about it being old. We talked about it being new. We talked about it being more complex. We talked about the need for energy increasing especially in the developing world right? So that’s it that complexity now needs to be optimized.

So that you as a consumer get the best price for your kilowatt hour and commercial and industrial companies are able to utilize energy when they need it. At the best rates artificial intelligence can do that now from a security perspective AI has a ton of problems tell you end I’ve seen the explosion of companies capabilities.

Andrew Ginter
All right, and we are the industrial security podcast can you can you connect the dots for us. What what are we worried about security wise if we’re using AI to manage demand, to manage to manage power.

Leo Simonovich
From a security perspective. there are 2 lenses through which we need to look at AI the first is AI from a business perspective. An operational perspective. What is it doing to deliver electricity. But the other is how can that AI be manipulated and what can the bad guys do to cause damage in the old world much of energy production was air gapped. But increasingly with the need to digitize and drive better efficiency Better asset management right? what we have seen is an explosion of connectivity.

And some that connectivity of course can can be managed smartly with data diodes companies such as waterfall which have an excellent product but some of it needs to be managed in a very different way.

And this is where artificial intelligence comes in the bad guys are using it to craft malware that is smarter and can cause more damage they’re using it Also to. Get into energy systems and this is a product of nation states. it makes subtle changes here’s what fundamentally and this is very important for listeners to hear here’s what fundamentally is different. How the game is changed. Malware used to be all about digital manipulation of Networks or endpoints now physical world commands are combined with digital commands and guess what happens. You can create a piece of malware that tells a turbine to spin faster or tells electricity to flow in a different direction and if you could do that at scale across multiple points in the system.

That leads to those safety in catastrophic events that we all have feared. We’ve seen some of this come out in news lately with with hackers getting into the us grid using the latest latest and greatest malware. which we have not seen previously before and I bet a lot of it was crafted using AI.

Nathaniel Nelson
Andrew in theory I can imagine AI playing an important part in cyber attacks. But the point that Leo’s making there. It doesn’t necessarily seem contingent on AI that one would make say a highly spreadable malware that causes physical consequences.

Andrew Ginter
Yeah I mean back in the day, this was thirteen or fourteen years ago, stuxnet hit. It was the big news back then far as I know that kind of code would have been written by hand. And common wisdom back then and even today is that writing that kind of code is very difficult. It takes it takes an expert. in in sort of stepping back for a moment in terms of of attacking industrial sites.  The sort of the common terminology is there’s stage one attacks and stage 2 attacks. Stage one is where you get into the IT network with a phishing attack or with a fake website or something. AIs like chatGpt have been described by researchers as a useful tool for generating phishing emails, for generating credible written content to deceive victims. That’s stage 1. Stage 2 is producing the code that’s going to connect to the PLC and create a new firmware for the PLC that bricks the PLC. That’s being seen as as much harder and there’s research going on in the space.

Andrew Ginter
I cannot name names at this point but I have been talking to people in in private. who are looking at using AI for stage, 2 attacks and the question they’re asking is bluntly can a script kitty someone who knows almost nothing but knows how to use AI can a script kitty produce. Let’s say Stuxnet is the question and thus far the answer seems to be no, you actually have to know what you’re doing but the bad so that’s the good news. The bad news is that the research thus far suggests that. If what you’re doing AI can speed up the process of creating a credible stage to attack enormously. We’re talking huge advantages for the for the adversary here.

Nathaniel Nelson
It’s a tricky thing because on one hand it just seems so obvious that in the near future attackers will be able to write that stage two malware using AI but on the other hand at least from what I’m hearing and I’m not out in the field every day. Practicing this stuff so I can’t say but AI has been a thousand percent more useful for cyber defenders thus far I mean whether it be antivirus detection response. What have you? we’ve been using ai in a way that attackers just haven’t for a while. So the notion that. This is some big problem that’s awaiting us sort of it’s it’s the reality versus the the theory for me am I wrong.

Andrew Ginter
Um, no, there’s there’s all sorts of stuff going on. fundamentally in the stage 2 world. The the question is one of writing code and there’s a huge industry out there in the world for writing good code. Writing word processors writing operating systems writing web servers. so there’s a huge industry focused on producing and optimizing AI that will produce code more efficiently for all of the world’s software vendors. Um. And again I haven’t been tracking this but just to give you sort of 1 example, a taste of what’s possible. I’m aware of chat gp has its limitations like I said I’ve been using chat gpt it it makes stuff up. It’s it. It has limitations but here’s the thing. Um. There’s a lot of different Ais in the world and what we’re seeing increasingly is these Ais in a sense daisy chain together now again I I haven’t done this so to a degree I’m making this up but imagine an ai that’s focused on understanding. written documents about you know. Plc communication protocols and turning them into code and it produces crappy code and then you pump that code into an ai who’s that’s focused on detecting common programming errors and then you pump the output of that.

Andrew Ginter
You know into an an AI that’s focused on using that knowledge to correct the programming errors given the original specifications and you pump that into an AI that’s focused on it’s optimized for packaging code into modules into downloadable components. And you pump those modules into an AI that’s focused on integrating the components into a comprehensive. this is happening. this kind of thing is happening and these Ais are not static. Chat Gpt is not the end. It’s the beginning and so in my estimation. The job of creating stage 2 attacks is getting much easier over time.

Andrew Ginter
So so that’s scary stuff. I know there’s a lot of researchers out there playing with the stuff and if the good guys are playing with it. You can be sure the bad guys are playing with it. can you go a little deeper What what’s possible.

Leo Simonovich
Yeah, well your imagination can can run wild but what we have seen in working with our customers is the use of Ai. Um. To develop malware that it is frankly smarter more attuned but that combines different elements of the attack leading to consequences faster and what I mean by that is if you can begin to um. Ah, manipulate a particular process or a particular piece of equipment a valve a Plc right? and you can use do that using digital commands ran and you can combine to your point about. Kind of using multiple dimensions of attack combine multiple processes together. The damage can be can can occur at greater scale and can occur much faster believe it or not It’s easy to trip a power plant. It is and have determined shutdown There are a lot of safety mechanisms to to manage human error. For example, it’s a lot harder to manipulate a turbine or or an oil refinery.

Leo Simonovich
To cause a boom event or a safety event right? I’m tricking those safety mechanisms is what AI is really good at because it it now is able to play the chess game.

On not just on kind of a one dimensional level or two dimensional level you can play it on on a 3 dimensional level moving multiple pieces all at the same time.

Andrew Ginter
So very very nasty stuff I mean like I said I’ve been tracking some of this stuff. It’s it’s worrying. how are we doing on the defensive side. What are we doing about this? What should we be doing about this?

Leo Simonovich
Yeah, the the the consequences are real and unfortunately we will not only see more and more attacks but we will see those attacks futureuring it an AI element and this worriesries. Well. Both customers and regulators that I talk to they recognize that the playing field is changing that this technology in the industrial context again. We’re not talking about Chad Gbt is accelerating. Um. And because of that we need to get a better handle on it. So the White House. with its latest AI guidance and its cyber security strategy had specifically called out.

Leo Simonovich
the dangers of AI when applied to industrial control systems more broadly. There’s recognition for for.

Leo Simonovich
Better visibility in better tooling on the defensive side. So The Regulators now are saying what used to be that cloud in operational context was was a dirty work. How can you take operational data out. But. If we’re gonna compete with the bad guys then we need to have the same levels of compute and so the regulators are now issuing guidance around Cloud and emerging technologies and specifically the thing that they’re calling out and this is we where we Siemens Energy have been hyper Focuseds. They’re calling out the need for visibility. This is very important because if you don’t have basic visibility and understanding of your environment then it’s very very hard to know a whether you’re being attacked. B going after those attacks at speed and then C being able to recover from them and what we know for a fact is that AI is going to crease the the speed of the attacks. And we on the defensive side need to increase the speed of our response. We just need to play faster.

Andrew Ginter
So it I mean it sounds like if the if the threat is increasing because of AI basically we should expect most cyber attacks to become more capable or expect the high end to become more capable and sort of everything trickle down.

Andrew Ginter
it sounds I interpret what you said correct me if I’m wrong as we need our defenses to become more capable pretty much across the board and I have heard recently I think SANS put out in 22 a top 5 security controls for for industrial control systems sort of the not here’s everything you have to do but here are the biggest gaps on average and one of them was incident. Response. It does no good to detect incidents if you can’t respond. Ah, it has some value preventing the incidentds but you can’t always prevent everything and so you need a detection capability. You need a response capability and it’s important that we get all this right. We got to fill in the gaps to make our systems more capable. I’m putting words in your mouth but is is that what. Is that what we’re hearing here.

Leo Simonovich
For sure. we have chased the capability of detection for some time. Our approach at Siemens energy has been different. We recognize a long time ago. That you need to look both at the physical and the digital world together as a unified threat stream that there needs to be context and smarter and more proportionate response. so our our approach has been.

Leo Simonovich
To get out the context you need to get it operational data. The challenge of course has been that when you have operational data what to do with it. IT teams are not well prepared to interpret that data to to know.

Leo Simonovich
What’s a threat and what’s not a threat to understand when to take action or recommend action to the plan operators so being able to translate between the it world and the operational technology world. In a way that helps explain consequences is key because shutting down a plant is very very expensive. and yet the cost of an average industrial cyber attack in the energy sector can. Can be from when you were from a million to six million a day. It’s a lot of money and so we have to somehow play this balancing act between taking proportionate response and taking smarter response that’s informed by operational context. Right? and getting more speed I had been able to detect and recover so what else all we’re talking about it AI Andrew and but what does this all all this mean for AI right? and and what it means is that actually AI is. Really good at finding the needle in haystack in our world. we built a platform that does monitoring detection is really good when we and we have large scale models that help detect that that that subtle change.

Leo Simonovich
In the process and correlated against your NetFlow data to say some. We see something is weird. but what to do about it right? How consequential is it. We have to understand how that potential particular thread could cascade through the environment and at a system level what the impacts could be. So this is where AI can have a really important role to play because we can look at. multiple misfirings as you may call them or multiple alerts at different parts of the system or how quickly something is propagating so AI can be really powerful in all in all this contexts but taking the right approach that combines the physical and the digital world together right. Using AI smartly is key and yet let me just let me pause in just a second. and yet we have energy companies right? They’re just getting basic visibility. They’re just getting their asset inventories. They’re just beginning to pipe data into into their SOCs whereas the bad guys right? have have built a full stack of of of malware factories that are AI driven. We have to get faster.

Leo Simonovich
At becoming more mature around this topic of detection.

Andrew Ginter
So Leo’s been talking sort of at ah, a very abstract level here. he’s talked about he’s talked about finding a needle in a haystack and I like I like that analogy. we have had. Other guests on talking about anomaly based intrusion detection and correlation of alarms and using Ais in all of that. So we’ve actually had people on talking about Ais but using different words if you have. I don’t know a gigabit per second of network packets in an industrial network that you’re watching. There’s a haystack this is a gazillion package coming by every second and the AI is asking. The question are any of these messages are any of these patterns of messages. Indicative of an attack and you can do it signature-based you can say I recognize that message that message is always an attack and raise an alarm or you can do it anomaly based which is looking at sort of patterns of messages and saying this is an unusual pattern. No idea what it is raise an alarm. It might be an attack because it’s different because it’s unusual so this kind of AI has been used forever. The same thing’s been used in in sems in security information and event management systems in your your security operation centers. They get millions of alerts of you know.

Andrew Ginter
Syslog messages millions of messages per day. from 150 of your plants and again they’re looking at this haystack and saying do any of these messages add up to an attack I mean some of them are obvious you are under attack exclamation Mark. out of 1 of your intrusion detection systems but others are Fred here just logged in from India he lives in North America and he logged in 10 minutes ago from North America as well and you can put together. weirdness like this. So um. we’ve been talking about this for for some time now. We’ve never gone into detail I would I would welcome a guest coming on talking about how the AI under the hood of correlation engines and anomaly detection engines actually work I mean I’ve heard words like Bayesian and I have no idea what they mean um. So I’d I’d love to have people on someday explaining how those ais work but the whole the whole concept of Ais on the defensive side finding needles in the haystack. Yeah, this is this has been done for a while and and it’s it’s going to get bigger. There’s going to be more of this.

Andrew Ginter
So that’s a great introduction. we we see the the application we see the problem. we see some some hints towards solutions. let me let’s get specific I mean Siemens energy is active in this space. Can you say a few words. What do you guys have? What do you guys? do? what? what can people call on you for in this in this problem area.

Leo Simonovich
Well, we’ve we’ve been on a journey in our thinking around operational technology AI has really evolved a a bit of self-reflection.

We siemens it was our plcs that were impacted by Stuxnet. We saw the subtle manipulation of process. and that event was a wakeup call for us to get serious about.

Industrial cyber and operational technology. This was a while back of course a lot of water under the bridge. yes, we had to get serious about product security and we we we hired almost 2000 people around the world to to support us product security managers folks in incident response. Folks that deal with vulnerabilities and guess what the world around us at the same time was changing and it’s changed a lot. it’s become more digital as we’ve talked about it’s become more interconnected we become more dependent on our customers.

And we recognized that it wasn’t just about securing the box What we needed to do was secure the operating environment the whole operating environment whether it was our stuff or somebody else’s stuff. the customer just needed help and. They were figuring things out at the same time as we were. We just had a little bit of a head start so we developed a practice in industrial cyber security focused on this problem of visibility that I’ve talked to you about we recognize that that. Going after the visibility problem from a technology perspective doesn’t necessarily make us safer because everybody talks about their latest and greatest Silver bullet or or their best detection box What we saw is that there was also a human capital challenge. In this space that there were not enough folks cross-trained in control systems and networking Insec security and now increasingly data science Those folks. Are still very rare. So What we’ve done is we built a business and a practice in this space. what we offer to customers is fundamentally. Um.

We are the trusted advisor. We don’t know when I have all the answers. but we’ll figure it out together and we’ll be there with you along for the ride because as digital technologies get introduced as there’s a lot of hype around AI as the threat landscape changes and the number of attacks increases exponentially we will be there as we have for one hundred and twenty years and so we’ve built a consulting practice a managed service practice. we built some proprietary technology around around detection but ultimately what we do is we build bridges between it teams and o team teams to work with one another because it it is going to take that into disciplinary approach and we hope to be in the center of it with our customers.

Andrew Ginter
Thanks for that. can I ask you? sort of a basic question. We’ve talked about the problem we’ve talked about some solutions if we’re starting at zero – I mean we’ve we’ve got an energy customer. Do these customers. Know how much AI they’re using. Do they know how much AI is coming after them. do they know how much trouble they’re in from from both ends of it and whether they don’t or not sort of what are the first steps. How do they get started dealing with this this new threat?

Leo Simonovich
Well AI, there’s a lot of hype around it and I think there’s general awareness now within security teams both on the I t side and the ot side that AI holds a lot of promise. but could also be used for very very bad things. on the ot side in particular I said there’s a lot of skepticism. And the reason is is because the plan operators need to. Ah. Ah, be able to unlock the black box that AI think to understand it. Maybe it’s an engineering approach and engineers. You need to kind of understand what’s happening you need to be able to understand the methods you need to be built to kind of. Trace the logic and so when I talk to security folks within implants they’re they’re skeptical of the latest and greatest tools. and they want to know how do you detect something? What is his Bayesian belief sounds very fancy. But if I can’t even do the basics. Why should I go after this problem so there’s both skepticism and desire and there’s one more thing which is the chief digital officers chief innovation officers the boards.

Are telling security teams. You gotta you gotta give me use cases around AI both on my business side and the security side and I know some customers that need to deliver a use case a week to the board. That’s how closely to be monitor if you think about that. Um. so sleepy giants are that have been doing things the same old way extracting pumping oil the gown the last fifty years the same old way are now being called to innovate in this space and then there’s kind of the middle of the pack folks that are, that fear they’re gonna be left behind and and then there’s the small, the small guys and by the way those represent if you look at the United States right 3500 utilities once you get outside the 2 top 200. Everybody’s small kind of mom and pop.

Community distribution facilities power plants those folks don’t even know how to get started and to get to your question of how you get started I think. The basic question that one should be asking is first and foremost what is important to me. What are the assets that are key that I need to get a handle on be able to understand the risk understand the vulnerability understand the exposure. Monitor it and then build an AI layer around it by the way those 2 things are very closely correlated. The the assets that are really important to be monitored assets that could benefit from applications of AI assets that attract. The bad guys and assets were a security AI use case is really valuable. So the first step is asking. What’s important the second step is figuring out what data needs to travel to be able to get a basic context and then the third step is the step that I call kind of advanced detection where AI needs to play a role in understanding.

Not just basic characteristics of a particular process or particular asset but kind of 3 dimensional behavior of of production right? And the manipulation of that to cause that boom event that you and I Andrew talked about.

Andrew Ginter
So Leo this has been enlightening a little distressing but but enlightening thank you for joining us up before we let you go can I ask you to sum up for our listeners. What what should we be taking away from all this complicated space.

Leo Simonovich
Yeah, well first of all, it’s not. It’s not all doom and gloom. There’s a lot of anxiety around this topic. but it’s definitely a journey there trust the partners that can help you don’t get wrapped up in the hype and the chase for the use cases just because the board is asking take a more measured approach to get a basic handle of your environment. AI will come. Wait. There’s steps that you can take both around the business side the operational side and the security side to to measure whether AI can benefit you. It’s not a that the it’s not a down the line thing. However.

Most folks will say I’m not mature enough and therefore I should not dabble that the reality is this technology is getting too good and the gap between the defenders and the attackers is really widening and so time is short. So don’t wait till you get. other aspects of your Ot Cyber Security program I begin to dip your toes into this space start by building some of these detection models start by picking assets that are important to you and. Getting a better understanding of of their behavior. And then ultimately look out for the regulation that’s coming down the pipe and work with your suppliers. To make sure that you can demonstrate that you are taking smart steps to better prepare yourself for what’s going to be an exciting future. in one where I think ultimately the good guys will win.

Nathaniel Nelson
Andrew that was your interview with Leo Sooneovic AI is a big topic in cyber security everywhere today. do you have any final thoughts about the subjects to close out our episode.

Andrew Ginter
Yeah I mean thinking about this a couple of things 1 is that that historically five years ago AI was sort of the anomaly. There was a little AI in the detection algorithm there was a little bit of AI sprinkled here and there increasingly you know. AI is everywhere. and in the industrial space I think we all need to get used to the thought that AI is our future. what is what’s the number 1 investment that people make routinely in industrial processes. But that engineering teams make routinely they make investments to make the process more efficient. One of the ways you make processes more efficient is that you make decision making about the process more efficient, more accurate more effective faster I think AI is essential. In that process AI is going to be essential to all of us to be making our processes more efficient and this is just on the the in a sense the mechanical side just doing things on the cybersecurity side. the bad guys I’m sorry they’re investing in making their attacks more efficient. As well and so on the defensive side. Yeah, we’ve been doing stuff in sort of intrusion detection for a long time I think we need to get used to. We need to invent ways to use AI to make our defenses more efficient. everyone.

You know, bad guys and good are using AI to make everything more efficient I don’t think we can ignore this anymore I think this is this is this has to become sort of the the common language the common wisdom of the space going forward. So I’m I’m grateful to Leo and I look forward. Fortunately, or unfortunately to thinking about AI a lot more in the years ahead

Nathaniel Nelson
Yeah, it feels like a topic that we might have more episodes about in the next few years than we have in the past few even though we have covered it at times anyway, thank you to Leo for bringing that up with us and Andrew is always thank you for speaking with me.

Andrew Ginter
It’s always a pleasure. Thank you Nate.

Nathaniel Nelson
This has been the industrial security podcast from waterfall. Thanks to everybody out there listening.

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The post AI and Industrial Security in the Energy Transition | Episode 125 appeared first on Waterfall Security Solutions.

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