Investigation Report: Ransomware Attack On The Information Systems of Hong Kong Cyberport Management Company Limited
Investigation Report: Ransomware Attack On The Information Systems of Hong Kong Cyberport Management Company Limited
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Investigation Report:
Ransomware Attack on the Information Systems of
Hong Kong Cyberport Management Company Limited
Section 48(2) of the Personal Data (Privacy) Ordinance, Chapter 486, Laws of
Hong Kong (the Ordinance) provides that “the [Privacy Commissioner for
Personal Data] may, after completing an investigation and if he is of the opinion
that it is in the public interest to do so, publish a report -
(iii) such other comments arising from the investigation as he thinks fit
to make; and
I. Background
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4. The image below illustrates the listing posted by the hacker group Trigona
on its website (content containing personal data has been redacted):
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5. Upon receiving further information from Cyberport, the Privacy
Commissioner for Personal Data (the Commissioner) commenced an
investigation against Cyberport regarding the Incident (the Investigation)
pursuant to section 38(b) 1 of the Personal Data (Privacy) Ordinance,
Chapter 486, Laws of Hong Kong (the Ordinance) forthwith in accordance
with the established mechanism, to assess whether Cyberport’s acts or
practices relating to the Incident had contravened the requirements of the
Ordinance. Meanwhile, the Commissioner issued a letter requiring
Cyberport to promptly notify all affected individuals again.
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Section 38(b) of the Ordinance provides that where the Commissioner has reasonable grounds to believe that
an act or practice has been done or engaged in, or is being done or engaged in, as the case may be, by a data
user that relates to personal data and may be a contravention of a requirement under the Ordinance, the
Commissioner may carry out an investigation in relation to the relevant data user to ascertain whether the act
or practice is a contravention of a requirement under the Ordinance.
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7. According to the information provided by Cyberport, the key events
relevant to the Incident are set out below:
Date Event
6 August 2023 The hacker exploited a user account with
administrative privileges to gain access to
Cyberport’s network.
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Personal Data Affected
9. Under section 2(1) of the Ordinance, “personal data” means any data
relating directly or indirectly to a living individual from which it is
practicable for the identity of the individual to be directly or indirectly
ascertained, and in a form in which access to or processing of the data is
practicable.
10. Cyberport stated that a total of 13,632 data subjects were affected by the
Incident. This included approximately 8,000 employment-related
individuals2, of whom 5,292 were unsuccessful job applicants and former
employees whose personal data 3 was confirmed to have been retained
beyond the retention periods. Other affected individuals included
Cyberport’s management staff, hotel employees, trainees of subsidised
programmes and those who had business dealings with Cyberport4.
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Including job applicants and current and former employees, as well as their referees, spouses and/or
dependents, and others.
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Including identity card numbers, dates of birth, bank account information, contact information, employment
information and/or academic information.
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Including payees, tenderers’ personnel and the undersigned of lease agreements, as well as others.
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Such as bank account numbers.
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Such as medical reports.
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Cyberport indicated that some of the credit cards were invalid.
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Findings of Investigation by the Security Expert
13. The investigation report also indicated that after gaining access to
Cyberport’s network, the hacker leveraged various tools to perform
malicious activities, which included lateral movement within the network,
defence evasion, data exfiltration and ransomware deployment. Multiple
Cyberport servers and network storage devices were compromised in the
Incident, involving 13 Windows systems and two virtual servers.
15. Cyberport controls the collection, holding, processing and use of the
personal data of the individuals affected by the Incident. Hence, Cyberport
is a data user as defined under section 2(1) of the Ordinance and is required
to comply with the requirements of the Ordinance, including the six Data
Protection Principles (DPPs) set out in Schedule 1 to the Ordinance.
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To protect sensitive information related to the security of the information systems, specific details have been
omitted in this report.
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Relevant Provisions of the Ordinance
16. DPP 2(2) requires that all practicable steps shall be taken to ensure that
personal data is not kept longer than is necessary for the fulfilment of the
purpose (including any directly related purpose) for which the data is or is
to be used.
17. DPP 4(1) requires that all practicable steps shall be taken to ensure that
any personal data held by a data user is protected against unauthorised or
accidental access, processing, erasure, loss or use having particular regard
to: -
(a) the kind of data and the harm that could result if any of those things
should occur;
(b) the physical location where the data is stored;
(c) any security measures incorporated (whether by automated means or
otherwise) into any equipment in which the data is stored;
(d) any measures taken for ensuring the integrity, prudence and
competence of persons having access to the data; and
(e) any measures taken for ensuring the secure transmission of the data.
Findings
18. Having considered the facts of the Incident and the evidence obtained
during the Investigation, the Commissioner considers that the Incident was
caused by the deficiencies stated below:
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(1) Ineffective Detection Measures for Cyberport’s Information Systems
19. According to the information obtained during the Investigation, the hacker
obtained the credentials of a user account with administrative privileges
through a brute force attack9 and gained access to Cyberport’s network
through a remote desktop connection. After successfully gaining access to
Cyberport’s network, the hacker employed brute force attacks and
credential dumping techniques10 to further acquire the control rights of
three other user accounts with administrative privileges11. This allowed the
hacker to carry out various activities, including lateral movement within
the network and defence evasion 12 , subsequently launch two waves of
ransomware attacks and malicious encryption on relevant servers and
network storage devices, and exfiltrate data.
21. Cyberport stated that its information systems had anti-malware software
installed at the time of the Incident to detect suspicious activities within
the network. Nonetheless, the hacker was able to successfully disable the
anti-malware software using the administrator privileges. Cyberport
confirmed that after the disabling of the anti-malware software, there were
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A technique used to break an encryption or authentication system by trying all possibilities.
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A method of obtaining the user credentials (e.g. login names and passwords) stored in the system.
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User accounts with administrative privileges can bypass firewall protection and disable anti-malware programs.
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A technique used to disable system defence software or related services.
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no other measures or tools to detect suspicious activities within the
network.
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The use of multiple security measures to build defence-in-depth is a fundamental concept in cybersecurity.
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Cyberport stated that it had implemented a new VPN 14 gateway in
November 2023 with multi-factor authentication.
24. The Commissioner considers that to ensure the network security and data
security of organisations, particularly where organisations allow users to
remotely access their computer systems, organisations should choose
software that supports two-factor or multi-factor authentication, enforce
the use of strong passwords and keep the remote desktop control
software up to date. In the Incident, if multi-factor authentication had
been enabled for remote data access, allowing for verification of the
identity of the user of the privileged account, the hacker may have been
prevented from gaining access to Cyberport’s network through that user
account, deploying ransomware and exfiltrating the personal data stored
in the systems.
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Virtual private network.
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independent security audit had been conducted for the said system.
27. In this digital age, cyberattacks are becoming increasingly frequent and
attack methods are constantly evolving. Therefore, in addition to
implementing appropriate security tools and keeping them up to date, it
is essential for organisations to regularly review their overall
cybersecurity, including conducting security audits. An information
security audit is an audit of the level of compliance with the security
policy and standards. It serves to determine the overall state of the
existing protection and to verify whether the existing protection is
performing properly. Security audits should be conducted in various
scenarios, including prior to the deployment of a new system or a
significant system update. Considering the current state of cyberattacks
and the scale of Cyberport’s information systems, the Commissioner
considers that Cyberport’s frequency of conducting security audits every
two years was too infrequent, which failed to timely respond to the recent
changes in information technology and cybersecurity risks. Moreover,
the lack of a requirement to conduct a pre-implementation risk
assessment or independent security audit on one of its affected systems,
before its implementation, was a clear oversight.
28. In other words, if Cyberport had conducted more frequent security audits
and performed appropriate risk assessments or independent security
audits before launching the systems affected in the Incident, it would
have enhanced the security defence of Cyberport’s information systems,
as the results of the security audit may have prompted Cyberport to pay
attention to the need for implementing multi-factor authentication and
installing sufficient detection measures, thereby possibly preventing the
Incident.
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(4) Lack of Specificity in the Information Security Policy
29. Regarding the written policies and procedures for information security,
Cyberport provided the “Cyberport Information Security Policy” (the
Policy) to the Commissioner. The Policy consisted of 41 pages, with the
parts relevant to cybersecurity primarily found in the sections on
“External Access Security Policy” and “Malicious Code (Virus) Policy”,
each spanning two pages. Although the Policy stipulated that Cyberport
should develop work procedures on an operational level as necessary to
meet specific security requirements, Cyberport did not provide any work
procedures or guidelines to the Commissioner in this regard.
30. After reviewing the Policy, the Commissioner considers that, in terms of
cybersecurity, the Policy primarily provides general principles.
Additionally, some requirements lack specificity: for example, while the
Policy includes requirements for “[having] appropriate virus protection
controls” and “[performing] regular check against virus infection”, it
does not elaborate on what constitutes “appropriate” or “regular”. The
Commissioner is of the view that in formulating its information security
policy, in addition to outlining principle-based security measures
Cyberport should also provide more specific operational procedures
and/or guidelines to clearly cover requirements relating to the use of
security tools and the conduct of security audits. This would provide
Cyberport’s employees with a concrete cybersecurity framework to
follow, thereby enhancing information security to safeguard against
hacker attacks.
31. During the Investigation, Cyberport confirmed that the personal data of
some of the individuals affected by the Incident, including 5,292
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unsuccessful job applicants and former employees, had been retained
beyond the corresponding retention periods. According to Cyberport’s
data retention policy, the personal data of unsuccessful job applicants
should be retained for one year, while the personal data of employees
should be retained for the duration of their employment. Cyberport did
not provide explanations for the extended retention of the personal data
of the abovementioned individuals after the expiration of the relevant
retention periods.
32. The Commissioner is of the view that upon the collection of personal
data, organisations should consider the retention periods of data in
accordance with their data retention policy and implement appropriate
measures to ensure that the data is deleted promptly upon expiration of
the retention period. This would help them to avoid unnecessary or
prolonged retention of personal data, which increases the risk of data
breaches.
33. The Commissioner notes that Cyberport failed to delete the personal data
that it collected after the expiration of the retention periods in accordance
with its data retention policy. Cyberport also did not provide justification
for retaining the personal data concerned, resulting in the unnecessary
retention of the personal data, which accounted for approximately 40 per
cent of the 13,632 individuals affected in the Incident. If Cyberport had
taken practicable steps to delete the data upon the expiration of the
retention periods, the number of individuals affected by the Incident
would have been significantly reduced.
34. Having considered all the evidence obtained in the Investigation, the
Commissioner considers that Cyberport was accountable for the
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following deficiencies:
35. Based on the above, the Commissioner considers that Cyberport had not
taken all practicable steps to ensure that the personal data involved was
protected against unauthorised or accidental access, processing, erasure,
loss or use, thereby contravening DPP 4(1) concerning the security of
personal data.
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36. Additionally, the Commissioner finds that Cyberport had not taken all
practicable steps to ensure that personal data was not kept longer than
was necessary for the fulfilment of the purpose for which the data was
used, thereby contravening DPP 2(2) concerning the retention of
personal data.
Conclusion
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Security Expert, and an overall roadmap that includes comprehensive
measures to prevent the recurrence of similar events. The Commissioner
expects that Cyberport will learn from the Incident and establish a
corporate culture that values data security. It is important for Cyberport
to remain vigilant at all times, conduct regular risk assessments and
evaluate the potential impact of hacker attacks and other cybersecurity
threats on those of its systems that contain personal data.
39. The Commissioner exercised her power pursuant to section 50(1) of the
Ordinance to serve an enforcement notice on Cyberport (the
Enforcement Notice), directing it to take the following steps to remedy
the contravention and prevent similar recurrence of the contravention:
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requirements on conducting risks assessments and security audits;
(5) Obliterate all personal data which were held beyond retention
periods from Cyberport’s information systems;
40. Under section 50A of the Ordinance, a data user who contravenes an
enforcement notice commits an offence and is liable to a maximum fine
at level 5 (i.e. HK$50,000) and to imprisonment for 2 years on a first
conviction.
V. Recommendations
41. Section 48(2) of the Ordinance provides that the Commissioner may,
after completing an investigation and if she is of the opinion that it is in
the public interest to do so, publish a report setting out the result of the
investigation and any recommendations and such other comments
arising from the investigation that the Commissioner thinks fit to make.
Apart from serving an enforcement notice to Cyberport pursuant to
section 50(1) of the Ordinance in relation to the ransomware attack on
its information systems, the Commissioner wishes to make the following
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recommendations to organisations that use information and
communication technologies for processing personal data through this
Report.
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security.
45. Information security is not only about technical issues but should also be
at the core of corporate culture. While technical measures are an essential
part of ensuring information security, it is even more fundamental for
organisations to have the right attitude in safeguarding all kinds of data
they possess, including personal data. Indeed, data subjects are only
willing to provide their personal data because they trust that
organisations will properly protect their data. Therefore, in addition to
their legal responsibilities, organisations also have the moral obligations
to protect personal data properly. Organisations should establish a
corporate culture that values information security by codifying values,
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implementing policies and fostering staff awareness to ensure that
organisations have a correct understanding of the importance of
information security from top to bottom.
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