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Turning Knowledge into Power 1Turning Knowledgeinto PowerTrend Micro Research

Turning Knowledge into Power 2ContentsIntroduction: Knowledge is power . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .The malware evolution: How we got where we are today. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .The continuous search for knowledge. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .#1 Cyber threats. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .#2 Vulnerabilities and exploits. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .#3 Targeted attacks and advanced persistent threats. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .#4 Artificial intelligence and machine learning. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .#5 IoT, IIoT, OT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .#6 The criminal underground. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .#7 Future threat landscape. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Everyone benefits from Trend Micro Research . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Conclusion. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .345679111213141516

Turning Knowledge into Power 3INTRODUCTIONKnowledge is powerThe volume and sophistication of new cyberBuilt into our security DNA, Trend Microthreats is unrelenting, but there are waysResearch is at the forefront of understandingto effectively deal with them and enablethe global cybersecurity challenges facingyour business to be more secure. Oneour increasingly connected world.critical way is through in-depth researchlarge, global team of dedicated expertsthat provides access to the methods andenables us to provide our customers, publicmeans of cybercriminals and expands theand private partners, and the broader dig-knowledge of how to better protect ourital community with in-depth informationworld against cyberattacks.about threats— both current and emerging.OurTrend Micro Research is also instrumental inTo win against cyber threats, governments,guiding the development of security tools touniversities, research institutions andprotect against these threats.ANSWERING THERIGHT ight now?What couldhappen in thefuture?private businesses must join togetherwith the shared goals of understandingIn this ebook, you’ll learn about the eightand anticipating the evolving threatcritical areas of cybersecurity and threatenvironment, creating new cybersecurityresearch on which Trend Micro Researchtechnologies, and delivering innovationfocuses every day, in multiple locationsthat continuously strengthens ouraround the world, and how this expertdigital protection.knowledge can be a powerful tool inprotecting your organization, freeing you tofocus on your business.These fundamental questions drive all of ourefforts at Trend Micro Research, which leadsto insights and intelligence that ultimatelyhelp improve cybersecurity for everyone.

Turning Knowledge into Power 4THE MALWARE EVOLUTIONHow we got where we are todayThreat ttacksCryptocurrencyMiningRansomwareDamage CausedMobile erViruses1980s/90sWormOutbreaks2001Spam MassMailersSpyware200320042005Web Threats2007201020122015201620172019

Turning Knowledge into Power 5The continuous search forknowledgeThe only effective way to keep up with rapidly evolving threats and protect our digital assets, businesses,governments and critical infrastructure is through constant, comprehensive research.Unlike the early days of malware when there were only a few variations to track, today’s cybersecurityresearch must cover a broad array of attack surfaces, methods and technologies. This includes analyzingthe evolving tactics, techniques and procedures (TTPs) used by adversaries in sophisticated attacks suchas advanced persistent threats (APTs). Researchers must also go “undercover” to where the bad actorsare, anywhere in the world, to uncover new threats and trends.Trend Micro Research covers all of these areas and more. It helps identify millions of threats daily andpublishes innovative research on cybersecurity issues. As a leading provider of cybersecurity research anda partner to law enforcement, government, and other public entities, Trend Micro Research focuses on thecritical components of today’s cybersecurity landscape:Trend Micro ResearchCyberThreatsVulnerabilitiesand sArtificialIntelligenceand MachineLearningInternet ofThings (IoT)IndustrialInternet ofThings (IIoT),and OperationalTechnology (OT)CybercriminalUndergroundThe FutureThreatLandscape

Turning Knowledge into Power 61: Cyber threats#Ongoing research and analysis of malware and threats provide a deeper understanding of how andwhy they work. This insight helps not only Trend Micro but also the broader cybersecurity community,businesses, and organizations improve prevention as well as threat detection and response.For more than 32 years, Trend Micro Research has been analyzing malware and threats, turning itsfindings into actionable intelligence. Today the organization takes advantage of sophisticated toolsfor automation, machine learning and artificial intelligence (AI) to identify new threats more quicklyand accurately than ever before. Experts then use re-engineering techniques to dissect the threatsand understand how they are intended to work.Our research coverage of malware and threats is both broad and deep, spanning across:Malware threats suchWeb threats, includingMessaging threats suchas viruses, worms,drive-bys, malvertisements,as spam, phishing, spearTrojans, mobile malware,redirects, domainphishing, and businessbackdoors, remote accessgeneration algorithmsemail compromise (BEC),Trojans (RATs), fileless(DGAs) and command-and-as well as which internetattacks, and otherscontrol (C&C) serversprotocol (IP) addresses aresending malicious emailsWHAT THISMEANS FOR YOURORGANIZATION54 BILLION THREATS wereblocked by Trend Micro in 2019 thanksto intelligence generated by Trend MicroResearch.More than 46,000 command andcontrol (C&C) servers were discoveredand blocked by Trend Micro in2019. Blocking cybercriminalinfrastructure protects yourorganization from threats basedon these sources, as well asexfiltration of stolen data.

Turning Knowledge into Power 72: Vulnerabilities and exploits#Vulnerabilities are programming flaws thatTrend Micro Research is the leader incan be exploited by cybercriminals to bypassvulnerability research, disclosing more thansecurity and gain access to a system or52% of all publicly disclosed vulnerabilities innetwork. An exploit is code that can be used2019 from 11 vendors in the study, accordingto take advantage of a vulnerability. Whento analysis from Omdia. Through its Zero Daya new vulnerability is discovered, it’s a raceInitiative (ZDI) bug bounty program, Trendagainst time to patch it before exploits can beMicro is now a top reporter of Microsoft anddeveloped and deployed by bad actors.Adobe vulnerabilities and a top reporter ofvulnerabilities to ISC-CERT (part of the NationalUnfortunately, the number of vulnerabilitiesCybersecurity and Communications Integrationpublished every year continues to grow,Center focused on industrial control systems).with 21,273 published in 2019. That’s whyTrend Micro Research identifies and disclosesvulnerability research is essential in the fightnew vulnerabilities across a wide range ofagainst cyber threats. Vulnerability researchplatforms, including:1identifies vulnerabilities in systems beforethey can be discovered and exploited formalicious purposes. Operating systems (Windows , Linux and Mac, among others) Applications (consumer and business) Mobile devices Industrial control systems andcritical infrastructure1. “Common Vulnerabilities and Exposures List,” The MITRE Corporation.

Turning Knowledge into Power 82: Vulnerabilities and exploits#CONTINUEDCompeting to find vulnerabilities in critical systemsThe world’s largest vendor-agnostic bugpreviously unknown vulnerabilities. Thebounty program, Trend Micro Zero Daycontest demonstrates the vulnerability ofInitiative (ZDI) was founded in 2005devices and software in widespread useto encourage coordinated disclosurewhile providing a checkpoint on industryof zero-day vulnerabilities toaffected vendors by financiallyprogress on fixing previouslydisclosed issues. Always focusedrewarding researcherson the evolving threat landscape,through incentive programs.Pwn2Own Vancouver 2019The ZDI program uses aincluded a new automotiveTargeted Incentive Programand sponsored hacking contestscategory, which resulted in theawarding of a Tesla Model 3. Into focus researchers’ attention onJanuary 2020, Pwn2Own Miami debuteduncovering vulnerabilities in criticalwith a focus on vulnerabilities in industrialapplications, operating systems, devices,control systems, and Pwn2Own 2020 inand industrial control systems. TheMarch was held fully virtual, reflectingZDI-sponsored Pwn2Own hackingthe current global reality for travelcontest challenges contestants to exploitwhile continuing the important work ofwidely used software and systems usingdiscovering multiple new issues. WHAT THISMEANS FOR YOURORGANIZATIONTrend Micro customers are protectedacross our products for endpoint,server, cloud, and network deploymentsimmediately upon vulnerability disclosure.In addition, Trend Micro TippingPointcustomers are protected 81 DAYS(on average) ahead of a patch beingreleased. This is acheived with a virtualpatch for a vulnerability before thevendor releases a formal patch.

Turning Knowledge into Power 9#3: T argeted attacks andadvanced persistent threatsWhen threat actors want to breach a specific organization, they often use targeted attacks and advanced persistent threats (APTs). Whetherthey are after personal information, financial or payment data, medical information, credentials, intellectual property or some other target,cybercriminals often utilize an attack lifecycle that includes: Gathering open-sourceintelligence (OSINT) about1Intelligencegathering12 Point ofentrytheir victims, from sources1 Lateral4movementsuch as LinkedIn, Facebook15 Asset and datadiscovery10101001011010and other social media Developing and deploying aninitial attack vector Establishing command-andcontrol (C&C) connectivity13 C&C Communication Laterally moving across thevictim’s network Identifying assets to steal Exfiltrating stolen data Initiating a maintenance stageto maintain persistence16 Data exfiltration!Maintenance - attackers will do theirbest to maintain their foothold insidethese stages.

Turning Knowledge into Power 10#3: T argeted attacks andadvanced persistent threatsCONTINUEDAnalyzing the attack lifecycle helps security researchers understand how hackers evolve theirTTPs and provides insight into how organizations can minimize the risk of being breached, as wellas detect when a breach has occurred and remediate it.Trend Micro researchers regularly analyze attacks against organizations, providing insight intoeach step of the attack life cycle and how best to protect against it. A recent example comesfrom Trend Micro’s participation in the MITRE ATT&CK evaluation, which found MITRE takingon the persona of APT29, a threat group that has been attributed to the Russian government.This resulted in Trend Micro being ranked among the top tier of EDR vendors for our detectionrates (91%, based on initial product configurations). Trend Micro also excelled at managing alertvolumes to avoid alert fatigue as well as giving security analysts access to the type and depthof visibility they need when looking into detailed attacker activity—showing a great balance ofdetection capabilities (especially higher confidence detections) across the full attack chain.Our detection coverage results would have remained strong without human involvement—approximately 86% detection coverage. Our MDR service boosted it to 91%.WHAT THISMEANS FOR YOURORGANIZATIONTrend Micro gives you visibility into threats across yourFindings from Trend Micro Research contribute to theentire technology infrastructure to help identify attackerscomprehensive defense and analytics capabilities of ouras they attempt to laterally move across a network. We doproducts, which are used globally to identify targeted attacksthis by collecting threat intelligence from mobile, endpoint,and advanced threats. Trend Micro uses specialized engines,server workloads (physical, virtual, cloud and containers),lateral movement detection, custom sandboxing, andnetwork, messaging, and gateway instances to correlateseamless correlation across the entire attack lifecycleattack data.to detect threats.

Turning Knowledge into Power 11#4: Artificial intelligence andmachine learningArtificial intelligence (AI) and machine learningmalware, macro malware, exploits, malicious(the method that helps AI-based systems getURLs and domains, social media threats,smarter) are critical capabilities for cybersecurity research and solutions,helping detect spam, phishing,exploits, and many other threatsransomware, business email compromise(BEC), targeted attacks, and domaingenerated algorithms (DGAs), aswell as identification of good files.or attacks far faster and moreaccurately than humans.Many forward-looking researchersare included in this group withinTrend Micro researchers anddata scientists have been workingwith these technologies since 2005,developing solutions to combat threatsTrend Micro Research. Theseresearchers consider how AI andmachine learning will be utilized tocombat cyber threats in the future — as wellwhere AI and machine learning can be used toas how cybercriminals may themselves use AIimprove detection. Some of the many areasand machine learning to increase the frequencyof use include detection of spam, phishing,and success of attacks.WHAT THISMEANS FOR YOURORGANIZATIONMore than 20 APPLICATIONS ofAI and machine learning are alreadyincorporated into Trend Micro products,giving you access to state-of-the-artsecurity with advanced threat protectioncapabilities.Recently MORE THAN 2,000Trend Micro employees competed inan AI-focused development contestto improve their understanding ofAI applications. This commitmentand broad support across thecompany fosters furtherinnovation using AItechnology.

Turning Knowledge into Power 12#5: IoT, IIoT, OTSmart homes, smart factories, smart cars, andour homes, businesses, factories and publicsmart transportation systems are all part ofinfrastructure. Trend Micro researchers studythe next wave of innovation that will transformthese areas to better understand how thesehow people and organizations use technology.technologies are currently being used, howHowever, cybercriminals and bad actors arethey could be used in the future, and how threatalso eager to exploit vulnerabilities in theactors could potentially abuse them. Examplesdevices, software, protocols, and apps used inof our research areas include:the internet of things (IoT), industrial internetof things (IIoT), and operation- al technology(OT) that increasingly connects and controls Exploitation of vulnerabilities in roboticmanufacturing and radio frequency (RF)equipment used in industrial machines Hacking of medical devices used inWHAT THISMEANS FOR YOURORGANIZATIONTrend Micro’s Smart Home Networksolutions identified MORE THAN1.8 BILLION malicious events on ourcustomers’ home networks in 2019.We launched Trend Forward Capital, aventure capital firm that is investingUS 100 MILLION in support ofunique IoT-focused companies.healthcare facilities Hijacking the communication protocols usedby drones that have been approved for useover large groups of people Exploitation of consumer devices, such askitchen appliances, smart TVs, and more,that are increasingly connected to theinternetWe also recently launched a jointventure, TXOne Networks,focussed on helping Trend Microbe a leader in IoT security inthe years to come.

Turning Knowledge into Power 13#6: The criminal undergroundCriminal underground communities canTrend Micro employs researchers around the globe to analyzebe a valuable source of information onthe many criminal undergrounds that exist, including thoseDigital Souks:everything from which cybercriminal groupsA Glimpse into the Middle Eastern andNorth African Undergroundare currently active to new TTPs used in thein Russia, China, North and South America, France, Germany,Japan, West Africa, and the Middle East.latest attacks. However, threat actors don’tHaving regionally-supported researchers is critical, as many ofwork in an isolated area of the world; an actorin Russia may target an organization in theMayra Rosario FuentesTrend Micro Forward-Looking Threat Research (FTR) TeamCybercrime inWest AfricaA TrendLabsSM Research PaperU.S. or South America. To have visibility intothe entire threat landscape, researchers arePoised for an Underground Marketthese undergrounds operate based on local languages, normsand values, which researchers must understand in order to gainTrend Micro and INTERPOLaccess to and participate in the community. This research givesA Trend Micro and INTERPOL Joint Research Paperneeded within many regions throughout theTrend Micro valuable insight and threat intelligence that areworld to collect and investigate threats and actor information.used to protect customers from the threats employed by thesebad actors.WHAT THISMEANS FOR YOURORGANIZATIONTrend Micro operates 15GLOBAL RESEARCHCENTERS for maximum coverage. We use theknowledge gained from research into criminalunderground communities to improve our products andthe protections used against the threats launched bythese actors. This knowledge also helps to inform howwe react to threats and helps our customers respondeffectively to new attacks.

Turning Knowledge into Power 14#7: Future threat landscapeWhat will cyber threats be like in six months?which challenges enterprises, organizations andTwelve months? Five years? How will malwaregovernments will face as they move to protectcontinue to change and evolve? Which newthemselves and their customers, employees andforms of attacks will emerge?constituents against new threats.Exploring and understanding all of these areTrend Micro Research includes dedicatedthe focus of forward-looking threat research:security experts who analyze the existingto anticipate the future threat landscape andthreat landscape and the overall computinglandscape, including changes to infrastructure.They identify current and emerging trends,technologies, user behavior and marketand geopolitical shifts that help them buildpredictive models of what the threat landscapewill look like at intervals in the future.The results of this research are published onMAPPINGTHE FUTUREDealing With Pervasive and Persistent ThreatsTREND MICROSECURITYPREDICTIONSFOR 2019a regular basis and available for business,technology and government leaders to use asa planning tool and guidance for cybersecuritystrategies.WHAT THISMEANS FOR YOURORGANIZATIONTrend Micro’s history of innovationand hundreds of patents showcase ourcommitment to the development oftechnologies and solutions to protectour customers in the future. Ourresearchers work directly with theTrend Micro product developmentteams to build proof-of-conceptsand ultimately embed or buildnew capabilities to protect ourcustomers.

Turning Knowledge into Power 15Everyone benefits from Trend Micro ResearchIt takes the collective efforts of many to thwart the malicious efforts of a few bad actors. By contributing analysis, insight and understandingacross all seven critical areas explained in this ebook, Trend Micro Research helps improve cybersecurity for everyone.CustomersPublic and private partnershipsTechnology vendorsProduct development: Trend Micro ResearchTrend Micro is active in public and private partner-We help vendors of operating systems andprovides product development teams with insightsships that focus on helping organizations aroundapplications such as Adobe, Microsoft, and VMware into how to protect against threats, which helpsthe world improve cybersecurity. For example,create patches against vulnerabilities ahead of publicus improve protection capabilities and buildwe work extensively with law enforcement or-disclosure . We’re also committed to long-standingnew solutions for our customers. This processganizations such as the U.S. Federal Bureau ofrelationships with leading software vendors and theallows us to continually bring innovative newInvestigation and the U.S. Secret Service. Weresearch community to influence the importance oftechnologies and solutions to the market.also have a researcher on staff at Interpol Cybersecurity in the product development life cycle .Threat intelligence: The Smart ProtectionNetwork is a global threat intelligence machinethat collects, identifies, and helps protectTrend Micro customers from new threats. This24/7/365 infrastructure is where many of theHeadquarters in Singapore to help with investigations aimed at bringing cybercriminals to justice.Part of this interaction includes working withorganizations that can help dismantle criminalinfrastructures, including botnets.new protection capabilities are hosted once theyWe are partners with Information Sharing andIoT/IIoT manufacturersare identified and published, delivering increasedAnalysis Centers (ISACS) and the Consortium forTrend Micro helps IoT and IIoT manufacturersprotection for our consumer, business andElectric Reliability Technology Solutions (CERTS)improve the security of their products and thegovernment customers around the world.for the infrastructure industry, as well as thewider IoT/IIoT ecosystem, enhancing protectionHealth Information Trust Alliance (HITRUST),throughout the entire device lifecycle. In fact,which focuses on information security for theTrend Micro and Moxa, a leader in OT technology,healthcare industry. We partner with several majorrecently launched a joint-venture called TXOnehealthcare providers in the U.S. to improve theNetworks to focus on securing industrial systems.sharing process for threat intelligence.

Turning Knowledge into Power 16ConclusionCommitted to securing our increasingly connected world, Trend Micro invests heavily in security research capabilities as well as the people who perform these functions,recognizing that threat actors never stop and are constantly changing how they attack people and organizations around the globe. This investment allows us to turnknowledge into power, providing critical information for use in our products as well as fueling innovation in new technologies to protect against threats today and those thatwill come in the future.Stay up-to-date on the latest threats and the shifts in cybercriminal activities by following our blogs, researchreports, and security reports within our Research section on our website.About Trend Micro ResearchTrend Micro, a global leader in cybersecurity, helps to make the world safe for exchanging digital information. Our innovative solutions provide our customers with layeredsecurity for data centers, cloud workloads, networks, and endpoints.At the heart of our leadership, Trend Micro Research is powered by experts who are passionate about discovering new threats, sharing key insights with the public, andsupporting efforts to stop cybercriminals. Our global team helps identify millions of threats daily, leads the industry in vulnerability disclosures, and publishes innovativeresearch on targeted attacks, artificial intelligence, Internet of Things (IoT), cybercriminals, and more. We continually work to anticipate the next wave of threats anddeliver thought-provoking research that can shape strategic industry direction.For more information, visit www.trendmicro.com 2020 by Trend Micro, Incorporated. All rights reserved. Trend Micro, the Trend Micro t-ball logo, and Trend Micro Smart Protection Network are trademarks or registered trademarksof Trend Micro, Incorporated. All other product or company names may be trademarks or registered trademarks of their owners. [EBK01 Turning Knowledge eBook 200916US]

digital protection . Built into our security DNA, Trend Micro Research is at the forefront of understanding the global cybersecurity challenges facing our increasingly connected world . Our large, global team of dedicated experts enables us to provide our customers, public and private partners, and the broader dig-