Thursday, 13 June 2024

Data Culture: why NCS servers being accessed by fired employee multiple times over 3 months is scary

If you had a place where you kept your barang-barang/bric-a-brac/bits-n-pieces, even detached, would you keep it unlocked/unlatched while latching and locking the rest of your home?

I was actually planning a blog on the multi-billion-dollar money laundering case in Singapore, when this piece of news came out in the open, the case of the disgruntled NCS employee. Laundry can wait.



Some facts as they have been released (1)

Background

1 NCS (2) is owned by Singtel group

2 NCS focuses on applications, cybersecurity, infrastructure and engineering

3 NCS serves corporates, Telco (since is owned by Singtel) and more pertinently Government. In fact, up to 66% of NCS $2.7B revenue was from government (3) and as recently as this year NCS was still focused on government (4)

4 Singtel is also a major player in GXS bank, together with Grab.

Mr Nagaraju

5 Mr Nagaraju was employed by NCS from November 2021

6 Mr Nagaraju was fired by NCS in October 2022, with an effective last day of Nov 16 2022.

7 Mr Nagaraju went back to India

8 Between Jan 6 2023 and Jan 17 2023, Mr Nagaraju accessed NCS servers using Administrator privileges 6 times.

9 Mr Nagaraju found a new job in Singapore in February 2023 and came back to Singapore, living with an ex NCS colleague

10 He used the “wifi” and accessed NCS systems again in February 2023

11 In March 2023, a full 3 months after he had been fired, Mr Nagaraju accessed the NCS systems 13 times and deleted some virtual servers.

12 Mr Nagaraju was arrested in April 2023

13 He was sentenced to 2 years and 8 months jail

14 NCS apparently made a loss of SGD918,000.


The press reaction

Mainstream media is portraying this case as a disgruntled ex-employee causing almost SGD1m damage to the ex-employer. This misses the point.

Assuming 66% of NCS revenue came from government, that’s $1.7B that the government has paid NCS in 2023 for services. Hence a lot of data that pertains to Singapore residents, likely including Personally Identifiable Information, is kept in systems possibly built (infrastructure and engineering), managed (applications) and secured (cybersecurity) by NCS. This should be the story.

I am sure some people will argue that the systems that Mr Nagaraju had access to were not government systems but systems internal to NCS. Yes, but so what? If you cannot keep your own house in order, how can you help keep someone else’s? What type of governance does NCS have on it systems?


Think about it:

1 Mr Nagaraju accessed systems after he was fired, the HR system is likely not to be properly integrated with the other systems. Also note, he was fired, he did not resign voluntarily. This is really weird because in a previous project I was involved in, we did have to integrate with an HR system to control accesses systematically.

2 He accessed systems from India even. Hence there is no geographical restriction as to who can access NCS systems. While this is a good thing to allow employees to work from home or take care of emergencies, there should be some monitoring taking place, not a half-yearly review after the horses have bolted.

3 It is not mentioned whether he used an NCS device or his own personal device from India to access the systems; personal devices can be secured and 3 months is past most cases for reviewing accessed for personal devices. If he had an NCS laptop, again, the processes to secure the devices failed, and the device access was not cut.

4 He had admin powers and admin credentials. Either, again, his ID’s access to systems was not terminated, not something new. You would have thought lessons would have been learnt. Or it was a shared ID and password, a major no-no in the IT world. Basically NCS controls and governance on IDs and passwords and accesses were severely lacking. Not that I am saying NCS was the IT vendor, but even in 2017 the AG reviewed 2 critical government services (Ministry of Defence MINDEF, and Ministry of Manpower MOM, and Singapore Customs) and found similar lapses in IDs (5)

In brief, this case shows how bad the controls of NCS were. And I think it is legitimate to ask how likely this culture has affected the projects for which they earned around SGD1.7B in 2023 from the government.

I am sure nobody in SG has forgotten about the IHIS/SingHealth issues where even the then PM’s data was searched (6).

To me, focusing on close to SGD1M ‘losses’ to NCS is a red herring. And I would like to ask, isn’t NCS aware of back-ups? Apparently NCS only discovered the servers missing when someone tried to log into one of them the day after Mr Nagaraju deleted it. SGD1M worth of damage, I would find it hard to believe unless there are no back-ups. That would be another horror story on how NCS managed its servers.

Conclusion

I think it is important to understand that the real story is not the SGD1M NCS supposedly lost, but the fact that their governance, processes and security practices leave much to be desired.

It's all about culture: is securing your company's assets in your blood?

Data is crucial, especially when more and more government services are moving online. We trust certain organisations to keep our data safe, and they choose vendors who, we hope, will do so. Personally, when I see a major vendor for these government organisations having a loose data culture, I fear for my data.


  1. https://www.channelnewsasia.com/singapore/former-employee-hack-ncs-delete-virtual-servers-quality-testing-4402141
  2. https://en.wikipedia.org/wiki/NCS_Group
  3. https://www.singtel.com/about-us/investor-relations/annual-report-fy2023/ncs-ceo-review
  4. https://www.zdnet.com/article/ncs-looks-beyond-government-singapore-for-transformation-growth/
  5. https://tnp.straitstimes.com/news/singapore/government-audit-finds-lapses-it-controls-unchecked-vendors
  6. https://www.straitstimes.com/singapore/personal-info-of-15m-singhealth-patients-including-pm-lee-stolen-in-singapores-most

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