M&A Transactions: A Prime Target for Hackers
Mergers and Acquisitions (M&A) often involve significant financial transactions, making them attractive targets for cybercriminals. According to Jerry Bessette, COO at Cyber Defense Labs, who has a 24-year history with the FBI, there are "millions and millions of dollars" at stake for hackers seeking to exploit these deals.
Why M&A is Attractive to Hackers
The allure for hackers in targeting the M&A industry lies in two main factors: money and digital presence. Large organizations often spend vast sums on cybersecurity, yet remain vulnerable to attacks. Bessette highlights that every day since 2016, the FBI has reported 4,000 cyberattacks, not all of which make headlines but significantly impact businesses.
The Importance of Incident Response Readiness
Companies must have an incident response plan in place, emphasizing the need for management commitment from the CEO down to every employee. This plan should detail steps for identifying and responding to breaches, assessing their impact, and assigning roles. For example, incidents might be categorized as "yellow" or "red," indicating different levels of urgency.
The Role of Various Departments
There's a common misconception that the IT department will handle all incidents. In reality, other departments, such as finance, often play crucial roles. Bessette notes, "the CFO might manage an incident," emphasizing the need for clear responsibility allocation.
Communication and Containment
Following a breach, it's vital to manage communications with customers and partners. News of a cyber incident can quickly spread, leading to severed connections with suppliers and financial losses. Bessette warns that "banks and partners might cut ties," exacerbating the situation.
Detailed Plans and Regular Drills
Having a detailed plan, including contacts such as the FBI, legal teams, and insurance, is essential. Companies should maintain paper copies of these plans, ensuring access even during network lockdowns. Moreover, more than one person should be trained to lead responses, considering scenarios where primary contacts are unreachable.
Regular Practice Sessions
Practicing incident response plans is crucial. These drills help identify weaknesses and ensure all team members know their roles. Bessette likens this preparation to "a World Series or Super Bowl," where readiness is key to minimizing damage during an actual attack.
Caution in Mergers and Acquisitions
For companies with growth strategies that include acquisitions, integrating new entities cautiously is vital. Before integrating, ensure the acquired company's cybersecurity measures meet required standards. Assess whether they have multi-factor authentication (MFA), endpoint detection systems, and a dedicated information security officer. Such due diligence prevents potential breaches from spreading within the broader organization.
Bessette advises against rushing integration, highlighting the importance of understanding and verifying the cybersecurity stance of newly acquired companies. By doing so, organizations can protect themselves from cascading cyber vulnerabilities.
