Hooked with Spear Phishing Bait

XO Legal, a small legal firm with an entirely distributed team, was lured into an insidious spear phishing snare by a seemingly harmless email.  The attack targeted the firm with carefully crafted emails that appeared to come from legitimate and trusted internal sources.  This sleight of email was virtually undetectable.  XO Legal had no idea how to pick up the pieces because they didn’t know what the pieces were.

Spear phishing involves targeting specific individuals or organizations with personalized and convincing messages designed to trick the recipient into taking a particular action or providing sensitive information.

Anatomy of a Spear Phishing Attack

Spear Phishing Prey

The Setting

The law firm had four attorneys and two paralegals, all of whom worked remotely.  Client files were stored in an encryped cloud account.  All six could upload and download files, which meant that all six individuals had credentials necessary to allow them to access the account at some level.

The Bait

Once the phisher had decided on a law firm target, XO Legal, they did what any highly-skilled phisher would do:  They patiently researched the firm, its employees, clients, and ongoing cases to gather information that would make their phishing email(s) appear authentic and relevant.

Excellent dossiers were created on all the firm’s employees. From the information acquired, partners Xavier Otero and Rogelio Tejada seemed to be the most potentially profitable targets.  The phisher decided to reference a high-profile client as part of the deception.  They had learned that there was a hearing the following week, which provided the opportunity to introduce urgency and authenticity into an email.

It was this meticulous preparation that enabled the phisher to craft the personalized emails that would become the bait and make this plot so successful.  Their chances of success were greatly improved because the plot was entirely specific to the XO Legal firm.

Hooked by Spear Phishing Bait: An Easy Catch Case Study Download

The Hook

An email was sent to one of the paralegals, Ana Mathieson, from Xavier Otero.  The email made reference to an upcoming hearing the next day, for which Xavier Otero was the lead attorney.  It requested that she look for a file in the client’s folder.  If it was there, he needed the link to it right away. He was on his smartphone right now and had no way to access the file.  The email contained details about the hearing that she knew to be true.  She hesitated but the first one was followed by two other emails, each more frantic than the last.  Ana found the file and sent the link to the folder.

The Aftermath

This spear phisher was content with access to this one client’s information.  What they wanted was enough information to enable identity theft.  There was plenty of information in the file to allow them to do that.  XO Legal was forced to pay for all of the client’s identity theft remediation, lost the client (which was a substantial part of their revenue).  And in the end, they still did not know if any other client information had been breached.  But, it could have been far worse and far more costly.

Our Role in The Spear Phishing Recovery

A Roadmap to Zero Trust

From Trust to Zero Trust

Protecting client data–whether dictated by law or not–was of paramount concern at XO Legal.  But, as with many firms, the intention of the staff to guard the sanctity of client data was not enough.  Transformation into a team with a zero trust mindset was essential.   So, XO Legal closed the gaping voids in their security protocols with the following actions (non-inclusive):

• Incident Response Plan based on ABA Formal Opinion No. 483, which defines the lawyer’s ethical and legal obligations to be prepared to protect against and respond to a cyber security incident.
• Written Information Security Plan (WISP) to define what the firm’s information assets are and how they will be protected–including the policies and procedures that will be used.
• Standard Operating Procedures were created for the Incident Response Plan and Written Information Security Plan, as required.  One of the first ones written is how internal communications were treated, no matter who wrote them.
• Ongoing Evaluation of Access and Authentication Protocols to ensure that permissions are appropriate and are updated, as necessary.
• User and Device Security is enforced by ensuring that all users and devices (including mobile devices) have the same level of protection as they access resources, regardless of location.
• Multifactor Authentication is mandatory for all staff who access files.  In this case, fingerprint identification is used.
• DMARC (Domain-based Message Authentication, Reporting, and Conformance) email authentication protocol is used to protect against email phishing.
• Application and Data Security is used to prevent unauthorized access within app environments no matter where they are hosted.

The Way Forward

The Zero Trust mindset is a new one for this firm because it is so small and the staff knows one another so well.  But, now they know that zero trust is critical if they are going to protect themselves and their clients.

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