Microsoft 365 Default Settings and Lack of Hardening
Priority Level: One Category: Cybersecurity / Compliance
Description: The bank's Microsoft 365 (MS365) environment operates with default settings, which prioritize ease of use and rapid adoption over security. These settings leave the system vulnerable to data exfiltration, eavesdropping, and other cyberattacks. A formal MS365 hardening process, addressing 10 critical areas, has not been implemented, increasing the risk of undetected data breaches.
Impact:
- High risk of data breaches due to unsecure configurations, potentially leading to financial loss and reputational damage.
- Regulatory non-compliance with FFIEC guidelines, risking penalties and poor audit scores.
- Lack of visibility into security incidents, delaying response and mitigation efforts.
FFIEC Reference:
- FFIEC IT Examination Handbook, Information Security (September 2016):
- "Institutions should implement secure configuration of systems to reduce vulnerabilities." (p. 25)
- "Cloud-based services require specific security controls to protect sensitive data." (p. 27)
Recommendations:
- Engage RESULTS Technology to facilitate an MS365 hardening process, focusing on the 10 critical areas identified.
- Implement multifactor authentication (MFA), conditional access policies, and data loss prevention (DLP) configurations.
- Conduct regular security assessments of the MS365 environment to ensure ongoing compliance.
Prioritization Rationale:
- Priority One: These findings address critical cybersecurity and data protection risks with high potential for breaches, data loss, and regulatory penalties. They represent immediate vulnerabilities in cloud and remote access.