How Malwarebytes was founded PT2

How the Malwarebytes company started and grew.

How the Malwarebytes company started and grew.

What made Mrs Kleczynski initially more alarmed was that her teenage son had launched the business with a man in his 30s called Bruce Harrison. Marcin and Bruce had been writing software together for more than a year, after they first started talking on anti-virus forums.

“Here’s this 17-year-old kid… he’s this 35-year-old man. Imagine telling your mum?…” says Marcin.

Marcin and Bruce hadn’t actually met in person at the time. Bruce was a computer repairman in Massachusetts, and Marcin was at home in Chicago. They didn’t in fact see each other in the flesh until Malwarebytes was more than 12 months old.

“We didn’t meet until we made our first million about a year after we launched the product,” says Marcin. “Even that was kind of anti-climatic. It was just, ‘Hey, Bruce!’ – We had a handshake and moved on.”

Today Bruce, who is head of research, still lives and works on the US east coast, while Marcin is based in the head office in Silicon Valley. The company now has more than 750 employees, and overseas offices in the Republic of Ireland, Singapore and Estonia. Since 2014 it has secured $80m of investment funding.

Malwarebytes says its software now performs 187 million virus scans every month for individuals and businesses, and is installed more than 247,000 times every day. Like many antivirus companies it operates a “freemium” business model – the basic version is free, but you can then pay for more advanced protection.

While the company has consistently grown strongly, Marcin has learned some hard lessons along the way. The most difficult time was navigating the business through an almost catastrophic period in 2014 where the product glitched on a huge scale.

“We had a false positive which means we detected a piece of malicious software that wasn’t actually malicious at all,” he says.

“Our software ended up mistakenly bringing down hundreds of thousands of computers. We had 911 emergency centres go down, hospitals go down, it was bad. This has happened to every anti-virus company, by the way, but these mistakes can be company killing because you lose trust.

“But we fixed it and got through it. Even today, the system that we created to prevent this from happening again is called ‘The Malwarebytes Extinction Prevention System’ – our engineers have a great sense of humour.”

Carl Gottlieb, a cyber security podcaster, says that despite operating in the “notoriously hostile” antivirus industry “Malwarebytes is thriving”.

“With so many competing vendors, brand awareness is key, and that step which Malwarebytes took to offer a free product years ago is paying dividends, with so many customers knowing the name and already using it in their homes. What Marcin and his team have achieved is impressive to see.”

Still only 29, Marcin says his young age has been an advantage. He encourages other budding teen entrepreneurs to start their own business.

“You’ve heard my story, I started the company when I was living with my parents,” he says. “And then even at college, it was all paid for on a student loan, so I was getting fed. If you’re in college now, instead of going out and getting drunk with your friends, maybe take one night a week just to see if there’s anything you want to work on personally.”

He admits that his university years were harder than his friends’, that he barely passed his degree, and his social life no doubt suffered. However, he’s glad his mum forced him to go. “For one thing, I met my wife there,” he says.

How Malwarebytes was founded PT1

A lot of entrepreneurs have “a moment”. A moment that makes them realise they’re on to something.

start-up company Malwarebytes was less than a year old back in late 2008, but already gaining a good reputation in the cyber security world.

For Marcin Kleczynski it came while he was discreetly working on his antivirus software business from his student digs.

His start-up company Malwarebytes was less than a year old back in late 2008, but already gaining a good reputation in the cyber security world.

Marcin, then only 18, was just about managing to juggle running his start-up with participating in student life at the University of Illinois when he hit a snag.

“I was having some real trouble analysing the latest computer virus, when all of a sudden I get a white page on my screen that says ‘you’ve been banned from the school network due to malicious activity on your desktop’,” he says.

“They’d obviously detected that I had a virus on my computer, but didn’t realise it was deliberate. So I call the university IT helpline, and they send a kid, no older than me. He sits down at my computer and looks at it and says ‘boy you’ve really screwed this thing up’.

“Then, right in front of me, he logs onto my website and downloads Malwarebytes. I didn’t say anything, I stood behind him and watched him fix my computer with my software to get me back online. He left never knowing who I was, but to this day I love that moment.”

By the time Marcin graduated with a degree in computer science in 2012, he had quietly grown Malwarebytes into a business earning a few million dollars a year. All without any of his lecturers having any idea what was taking up his time, and pushing his grades down.

Today the company has an annual turnover of more than $126m, and millions of customers around the world.

Born in Poland in 1989, Marcin moved to the US with his family when he was three, settling in Chicago.

As a gaming-obsessed teenager, he’d accidentally got a virus when he was 14, and learned everything he needed to know about computer bugs from internet forums and a “For Dummies” book.

Formally launching Malwarebytes in January 2008 when he was just 18, it grew quickly, and he decided that starting university in September of that year would just slow him down. His mother had other thoughts.

“The business was becoming real, and so I went sheepishly to my mum and said ‘I don’t think I’m going to go to school’,” says Marcin. “Fifteen seconds later we were packing my stuff and I was going to school.”

CYBER 139 PASSED PDSC ASSESSMENT

CYBER 139 are very pleased to have passed the PDSC Assessment.

Cyber 139 have demonstrated that we have implemented measures that are appropriate to own level of risk. Applicants are assessed by certified cyber security professionals through BSI.

Organisations who choose to participate in the new scheme will be able to obtain a certificate. These certificates are endorsed by the Police and BSI.

Cyber crime is a growing threat to organisations with over a third having suffered at least one cyber attack or breach in the past 12 months. The good news however, is that the overwhelming majority of cyber crime can be prevented by taking a few simple steps.

To help reduce your vulnerability to cyber crime, the Police Digital Security Centre (PDSC) and the British Standards Institution (BSI) have developed a new certification scheme to help your organisation understand where it is at risk and what you can do to protect yourself, your customers and suppliers.

If you want to save yourself stress, money and a damaged reputation from a cyber incident – for a cyber security incident prevention, protection and training please ring us now on 03333 393 139 or email [email protected] or complete the form on our contact page NOWContact Cyber 139

Nearly half of UK firms hit by cyber phishing attacks

Nearly  half of UK businesses have been compromised in the past two years using phishing attacks, despite high levels of cyber awareness and training.

Nearly  half of UK businesses have been compromised in the past two years using phishing attacks, despite high levels of cyber awareness and training.

Phishing attacks aimed at stealing legitimate user credentials have been used in the past 24 months to compromise 45% of UK organisations, according to research on behalf of cyber security firm Sophos.

Just over half (54%) of more than 900 IT directors polled in Western Europe said they had identified instances of employees replying to unsolicited emails or clicking on links contained within them, revealed a poll conducted by Sapio Research.

The study revealed that larger businesses are most likely to have been compromised by phishing attacks, despite also being most likely to conduct phishing and cyber threat awareness training.

Although businesses in the UK fell victim to phishing attacks at a similar rate to those in France (49%) and the Netherlands (44%), those in Ireland performed significantly better. Just 25% of Irish respondents said they had fallen victim to phishing in the past two years.

Across all respondents, 56% of companies employing between 500 and 750 people were identified as phishing victims in the past two years, while two-thirds (65%) had identified instances of employees replying to unsolicited emails or clicking on links contained within them.

By comparison, just 25% firms with fewer than 250 people and 36% of organisations with between 250 and 499 employees had been compromised by phishing in the same period.

Half of firms with fewer than 250 people offered training to help employees spot attacks, compared with 78% of those with between 500 and 1,000 people. And 79% of UK companies conduct regular cyber threat awareness training already, while 18% said they plan to offer it in the future.

Adam Bradley, UK managing director at Sophos, said criminals are adept at using social engineering to exploit human weakness, so while well-trained employees are an excellent deterrent, even the best user can slip up.

According to Bradley, phishing is one of the most common routes of entry for cyber criminals. As organisations grow, their risk of becoming a victim also increases as they become more lucrative targets and provide hackers with more potential points of failure.

Given the frequency of these attacks, organisations that don’t have basic infrastructure in place to spot people engaging with potentially harmful emails and whether their systems are compromised are likely to encounter some really significant problems.

Organisations should block malicious links, attachments and imposters before they reach users’ inboxes, said Bradley, and use the latest cyber security tools to stop ransomware and other advanced threats from running on devices even if a user clicks a malicious link or opens an infected attachment.

If you want to save yourself stress, money and a damaged reputation from a cyber incident – for a cyber security incident prevention, protection and training please ring us now on 03333 393 139 or email [email protected] or complete the form on our contact page NOWContact Cyber 139

Businesses warned to prepare for cyber security extortion campaigns

Directors, lawyers and doctors are the top extortion targets of cyber criminals, researchers tracking  sextortion attempts reveals.

Directors, lawyers and doctors are the top extortion targets of cyber criminals, researchers tracking  sextortion attempts reveals.

Cyber criminal groups are promising rewards of £276,300 a year on average to accomplices who help them target high-worth individuals with extortion scams research reports.

The reward promises are even higher for accomplices with network management, penetration testing and programming skills, according to researchers at risk protection firm Digital Shadows.

One threat actor, the report said, was offering £600,000 a year, with add-ons and a final salary after the second year of £840,000.

The main method of cyber security extortion where criminals deem potential victims to be particularly vulnerable is so-called “sextortion”.

Digital Shadows tracked a sample of sextortion campaigns and found that from July 2018 to February 2019 over 89,000 unique recipients faced around 792,000 extortion attempts.

An analysis of bitcoin wallets associated with these scams found that sextortionists could be reaping an average of £414 per victim.

The campaigns follow a similar pattern, the researcher found, in which the extortionist provides the target with a known password as “proof” of compromise, then claims to have video footage of the victim watching adult content online, and finally urges them to pay a ransom to a specified bitcoin address.

However, the researchers said other campaigns can be even more sinister, with one spam campaign from December 2018 claiming that recipients will be “killed” if they did not pay.

Extortion is in part being fuelled by the number of ready made extortion materials readily available on criminal forums, the researchers said, adding that these are lowering the barriers to entry for wannabe criminals with sensitive corporate documents, intellectual property and extortion manuals being sold on by more experienced criminals to service aspiring extortionists for less than £10.

In one example, seen by Digital Shadows, the guide specifically focuses on a sextortion tactic whereby the threat actor begins an online relationship with a married man and then threatens to reveal details of the affair to his partner unless a ransom is paid.

The guide claims this extortion method is the easiest for “novice”’ threat actors to start with, suggesting they could earn between £230 and £380 per extortion attempt. Dedicated subsections exist on criminal forums for this type of dating scam.

Even greater levels of sophistication could be around the corner, the researchers warn, if so-called “crowd-funding” schemes take off.

In April 2018, threat actor “thedarkoverlord” stole documents belonging to the insurance provider, Hiscox, including files related to the 9/11 attacks in the US. The threat actor hoped to play on the public’s appetite for 9/11-related controversy and encourages people to raise funds to view the documents. Currently this campaign has amassed around £8,904.

Crowdfunding models such as this, the researchers said, allow extortionists to raise funds from the general public rather than relying on victims giving in to ransom demands. Organisations dealing with inflammatory or sensational information should therefore consider how they would respond if an attacker opts for this course of action, they said.

If you want to save yourself stress, money and a damaged reputation from a cyber incident – for a cyber security incident prevention, protection and training please ring us now on 01242 521967 or email [email protected] or complete the form on our contact page NOWContact Cyber 139

Use of Cyber Security Insurance increasing

The use of cyber security insurance is growing – but one in three companies is still ignoring the benefits.

Use of Cyber Security Insurance increasing

Cyber security insurance adoption is expected to continue to grow, but only 38% of companies polled in the US and Europe have active cyber insurance policies in place, a study has revealed.

Of those insured organisations, 45% purchased cyber security  cover in the past two years, 32% purchased their policy three to four years ago, and only 24% have been covered for more than five years, according to the study by IT industry networking organisation Spiceworks.

Despite the fact that the adoption of cyber security insurance policies to offset the recovery costs associated with security incidents continues to grow, the survey of nearly 600 organisations revealed that many organisations are still not sold on the benefits of cyber insurance and are hesitant to purchase a policy.

However, according to a separate poll in the Spiceworks Community, 11% of organisations without coverage plan to purchase a cyber insurance policy within the next two years.

Cyber security insurance drivers

The study shows that increased priority on security is a top driver of cyber insurance adoption, with 71% of organisations purchasing cyber insurance as a precautionary measure, while 44% cited an increased priority on cyber security as the reason they bought a policy.

The risk of managing large volumes of personal data also drove 39% of organisations to purchase cyber insurance. This is likely to be linked to the growing number of data protection requirements around the world, such as the EU’s General Data Protection Regulation (GDPR). However, less than 15% purchased a policy due to a recent security incident or data breach.

When comparing the prevalence of cyber security insurance policies in North America and Europe, the regulatory environment and impact of new regulations such as GDPR become apparent, the report said.

Only 4% of organisations in North America purchased cyber security insurance because of new data protection regulations, compared with 43% in Europe.

Across both regions, 52% of companies with cyber security insurance have a coverage limit between $1m and $5m, 19% have a coverage limit between $6m and $10m, and 16% are covered for more than $10m. However, the results showed only 7% had ever filed a claim with their cyber insurance provider.

Among the companies that do not carry cyber insurance, the lack of knowledge about cyber insurance was found to be one of the top three reasons why they have not purchased a policy. Some 36% of IT professionals said their organisation was not covered due to a lack of knowledge about cyber insurance, while 41% said it was not a priority at their organisation, and 40% said they didn’t have budget for it.

Additionally, 33% of organisations have not purchased a policy because they are not sold on the benefits, and 20% reported insufficient use cases for cyber insurance, while 12% said they were not confident claims would be paid out.

If you want to save yourself stress, money and a damaged reputation from a cyber incident – for a cyber security incident prevention, protection and training please ring us now on 01242 521967 or email [email protected] or complete the form on our contact page NOWContact Cyber 139

O2 crash proves that humans are the weakest link in cyber security

The O2 mobile network failure that took out data access for some 30 million people recently was caused by an expired software certificate.

The O2 mobile network failure that took out data access for some 30 million people recently was caused by an expired software certificate

No programming error, no undiscovered bug, no malicious interference, but one of the most basic systems administration mistakes you can imagine. Someone somewhere just forgot to renew a certificate.

As a wise voice once said, there’s no patch for stupidity. And herein lies the great unspoken conundrum at the heart of the digital revolution.

Computers go wrong.

Why? Because they’re designed, manufactured, programmed, configured, secured and operated by the most fallible, unpredictable and unreliable resource in the technology world – people.

Of course, it’s those same people who every day ensure that the IT systems supporting every company and government in the world work mostly as intended, who keep the internet running and protect the vast majority of our personal data.

That’s because people are pretty good at computers these days. But we’ll never be perfect.

The job of running IT systems is becoming increasingly abstracted from the technology – virtualisation, cloud, containers, serverless, orchestration, all these trends aim to remove that human fallibility from everyday tasks. Not forgetting that it still takes another human somewhere to make those technologies work in the first place.

Much as artificial intelligence (AI) and automation are replacing or augmenting corporate jobs, so the IT department will see further dramatic change as more of its responsibilities are taken over by software robots. Of course, those software robots were created and programmed by humans too.

And they aren’t exactly perfect – as the Amazon workers in a New Jersey warehouse found out this week, when a robot accidentally punctured a can of bear repellent, sending 24 staff to hospital.

There is, correctly, much debate about ethics in AI and technology, not least the need to prevent human bias from becoming too infused in the algorithms they rely on.

People outside IT are taking more of an interest in the workings of IT than ever before. It’s fair to assume those non-IT types are pretty fallible too.

The outage was a small reminder of how reliant most of us have become on technology.

When O2 went down, there was much humour taken from the sight of people trying to consult paper maps to find their way around, and attempted insights from those who found a whole new world beyond the smartphone they’d been glued to until then.

For all the great advances of recent decades, it’s going to be a long time before we no longer see headlines screaming “computer crash”. Whether through malice or simple error, human fallibility is a part of our digital future too.

If you want to save yourself stress, money and a damaged reputation from a cyber incident – for a cyber security incident prevention, protection and training please ring us now on 01242 521967 or email [email protected] or complete the form on our contact page NOWContact Cyber 139

GCHQ warns of cyber security scams on Black Friday

GCHQ has issued an warning of cyber security scams on Black Friday.

GCHQ has issued an warning of cyber security scams on Black Friday.

Black Friday sales could be targeted as easy pickings for cyber-crime, according to Cheltenham-based GCHQ.

The National Cyber Security Centre, part of GCHQ, is advising shoppers of the risk of online threats. It is the first such official cyber security warning in the run up to Christmas.

GCHQ wants to start a “national cyber-chat” today (Black Friday), when billions are spent online. Known for working in secret, the agency wants to be open and engage with the public over the seriousness of the threat.

The National Cyber Security Centre has tackled more than 550 significant cyber incidents over the past year, and has taken down almost 140,000 “phishing” websites.

The National Cyber Security Centre (NCSC) is giving tips for shoppers to avoid cyber-crime – and for the first time it will be publishing answers to questions from the public on Twitter.

The agency recently warned of a serious and sustained threat from elite hackers in other countries, which could include the theft of millions from retailers and attacks on the financial networks the shops depend on.

The British Retail Consortium is backing the calls for better cyber security during the Christmas shopping season, and retailers continue to invest heavily in protecting themselves against cyber-threats.

The National Cyber Security Centre’s advice to reduce the risk of cyber crime is:

  • Install the latest software and app updates
  • Type in a shop’s website address rather than clicking on links in emails
  • Choose strong and separate passwords for accounts
  • Keep an eye on bank accounts for unrecognised payments
  • Avoid over-sharing unnecessary information with shops, even if they ask
  • Make sure all your home gadgets are secure

If you want to save yourself stress, money and a damaged reputation from a cyber incident – for a cyber security incident prevention, protection and training please ring us now on 01242 521967 or email [email protected] or complete the form on our contact page NOWContact Cyber 139

UK business in the dark on impact of cyber security attacks

UK businesses so not understand the resilience required to withstand cyber security threats, a study shows.

UK business in the dark on impact of cyber security attacks

While 99% of UK business leaders believe that making technology resilient to business disruptions is important, only 54% claim their organisation is as resilient as it needs to be, a study has revealed.

In recent years, the security industry has increasingly recognised the importance of focusing on resilience to ensure that when defences are breached, organisations are able to reduce the impact on the business.

A fifth of more than 1,000 UK business decision makers polled by security firm Tanium admitted they would not be able to calculate indirect costs from lost revenue and productivity following a cyber attack.

The Tanium resilience gap study also found that there are more barriers to achieving the resilience that 97% of respondents believe to be important, with 38% of respondents blaming their organisation’s growing complexity as one of the biggest barriers to building business resilience, while 21% blame siloed business units.

Asked about their team and tools, 35% of respondent said the issue lies with the hackers being more sophisticated than IT teams, 21% claim that they do not have the skills needed within the company to detect cyber breaches accurately in real time, and 27% said poor visibility of entry points is a barrier to resilience.

Business resilience is fundamental to any strategy for long-term growth, yet the findings suggest that many UK businesses still have a long way to go.

The study also revealed gaps in accountability and trust across organisations.

One of the main reasons organisations are unable to achieve business resilience against disruptions such as cyber threats is due to growing confusion internally on where the responsibility for resilience lies.

More than a quarter (28%) believe it should be the responsibility of the CIO or head of IT, the same proportion said every employee should be responsible, while 13% said full responsibility lies with the CEO alone. One in 10 (11%) believe it falls to senior leadership.

Businesses are becoming entirely dependent on their technology platforms. But if that technology stops running, the business will too, with potentially serious consequences for sales, customer confidence, and brand equity, not to mention productivity.

To deliver resilience, a new discipline needs to be instilled across governments and enterprise organisations. This discipline is more than prevention. It’s more than recovery. It’s a shared practice that should unite IT, operations and security teams to ensure strong security fundamentals are embedded across the entire company network. Only then can organisations act and react in real time to threats.

If you want to save yourself stress, money and a damaged reputation from a cyber incident – for a cyber security incident prevention, protection and training please ring us now on 01242 521967 or email [email protected] or complete the form on our contact page NOWContact Cyber 139

NSCS warns about business’s third party cyber security risks

GCHQ’s NCSC warns that third party suppliers may be businesses’ biggest cyber security risk.

GCHQ's NCSC warns that third party suppliers may be businesses' biggest cyber security risk.

Despite spending millions on cyber security enhancements and compliance around the General Data Protection Regulation (GDPR), organisations remain reluctant to address the weakest link in their IT security environment – their supply chain and associated third-party relationships.

A report in October from the UK National Cyber Security Centre revealed that the GCHQ offshoot had stopped almost 1,200 attacks in the past two years and is fighting off around 10 attacks every week.

Addressing third party cyber security risks are challenging and significant.

For larger organisations, procurement decisions are usually made without input from those responsible for cyber security, and such agreements can provide access to critical systems via open application programming interfaces (APIs) and other interaction mechanisms.

Supplier relationships are also overwhelming without a standard process to manage cyber risk when the relationship is via an arms-length contractual arrangement. Many organisations are struggling to address their internal network security issues and have not sufficiently considered the risks beyond their own network.

But third party cyber security risk is too significant and too dangerous an issue for board members to continue to overlook.

NIS Directive
Current regulatory initiatives including the Networks and Information Systems (NIS) Directive and GDPR require organisations to take responsibility for ensuring that external suppliers have implemented adequate cyber security measures.

Both NIS and GDPR require notification to the Information Commissioner’s Office (ICO) no later than 72 hours after an organisation is aware of a data breach or a cyber incident having a substantial impact on its services.

Many data breaches affecting large organisations occur within a third party service provider. Organisations that do not have the contractual provisions and processes in place with these suppliers to secure the necessary information surrounding the data breach are unlikely to meet the 72-hour deadline.

Missed deadlines and poor or inaccurate information reveal due diligence and contractual failures. These failures increase the risk of a regulatory investigation and significant financial penalties.

But regulatory fines are just the beginning. There are also civil liabilities, as well as loss of consumer trust and investor confidence that result from a cyber breach. Under GDPR, individuals can claim compensation for material and non-material damage.

A data controller is jointly and severally liable for the damage if it was in some way also responsible for a breach due to unlawful processing by a data processor.

To mitigate these risks, organisations that outsource cyber security functions should comprehensively review their third party contractual arrangements and revise their internal procurement processes and procedures to include cyber security assessments. These reviews should, at a minimum, assess, document and monitor these agreements.

Cyber threats are on the rise in both number and complexity. They are purposely attacking the supply chain. Recent regulatory approaches under NIS and GDPR require organisations to take an active role overseeing their third-party providers.

Failure to do so can result in regulatory fines, civil liabilities and reputational loss. Investing human and financial capital now to assess and mitigate risk can help significantly reduce these liabilities, protect an organisation’s reputation and strengthen consumer trust.

If you want to save yourself stress, money and a damaged reputation from a cyber incident – for a cyber security incident prevention, protection and training please ring us now on 01242 521967 or email [email protected] or complete the form on our contact page NOWContact Cyber 139