The High Cost of Cyber Neglect: Insights from the CrowdStrike Crisis

Introduction

The CrowdStrike outage in July 2024 highlighted significant deficiencies in cybersecurity practices and internal procedures across many organizations. Proper cybersecurity measures, coupled with adequate funding and robust business continuity plans, could have prevented or minimized the impact of such incidents. Unfortunately, a lack of investment in these areas contributed to the severity of the outage and its aftermath.

Key Cybersecurity Practices

In the wake of the outage, cybercriminals exploited the situation by launching malicious websites and distributing unofficial code. These fraudulent resources posed substantial risks, such as data theft, financial loss, and further system compromises. Cybersecurity authorities stressed the importance of seeking assistance only from official channels to avoid falling victim to these scams​ (Devdiscourse)​.

1. Rigorous Testing and Quality Assurance

  • Comprehensive Testing: Many organizations had not implemented comprehensive testing protocols, relying too heavily on automated testing rather than including manual tests on real hardware configurations. This oversight allowed the coding error to go unnoticed​ (WinBuzzer)​ (Help Net Security).

  • Staged Deployment: The absence of a phased rollout approach meant that the faulty update affected millions of devices simultaneously, exacerbating the issue​ (CIS).

2. Change Management Processes

  • Lack of Formal Change Control: Without a formal Change Control Board (CCB), the potential impacts of changes were not thoroughly evaluated, leading to hasty deployments without adequate risk assessment​ (Computer Weekly).

  • Inadequate Documentation: Many companies lacked clear documentation and procedures for managing updates, slowing down the resolution process and increasing downtime​ (CIS).

3. Vulnerability Management

  • Irregular Audits: Irregular security audits and vulnerability assessments left systems vulnerable to such incidents, as weaknesses were not identified and addressed proactively​ (Help Net Security).

  • Patch Management Failures: Organizations struggled to manage patches effectively, leading to either delayed updates or rushed implementations that skipped critical validation steps​ (Help Net Security)​ (Computer Weekly).

4. User Awareness and Training

  • Insufficient Training: Lack of regular training left IT staff and end-users ill-prepared to respond quickly and effectively during the incident​ (CIS).

Business Continuity Planning

1. Inadequate Risk Assessment and Business Impact Analysis (BIA)

  • Failure to Identify Critical Systems: Companies often did not prioritize protection and recovery for essential systems, leading to prolonged disruptions​ (CIS)​ (Computer Weekly).

  • Overlooked Threat Analysis: Without thorough threat analysis, businesses were unprepared for the widespread impact of the outage.

2. Insufficient Incident Response Planning:

  • Undefined Roles: During the outage, many organizations lacked clearly defined roles and responsibilities, resulting in confusion and delays in response efforts​ (Help Net Security).
     
  • Poor Communication: Communication plans were often insufficient, causing breakdowns in information flow between employees, stakeholders, and customers​ (CIS).

3. Lack of Disaster Recovery Planning

  • Inadequate Data Backup: Many organizations did not have regular backup processes or had not tested recovery procedures, leading to data loss and extended recovery times​ (Computer Weekly).

  • No Alternative Solutions: Without alternative processes or manual workarounds, companies struggled to maintain operations during digital system failures​ (Help Net Security).

4. Lack of Continuous Improvement

  • No Post-Incident Review: Companies often did not conduct thorough reviews after incidents, missing opportunities to learn and improve their defenses​ (CIS).

  • Stagnant Plans: Continuity and disaster recovery plans were frequently outdated, failing to address new threats and business changes​ (Help Net Security).

Impact of Insufficient Investment

A significant factor contributing to these vulnerabilities was the underfunding of cybersecurity departments. Many organizations had not invested adequately in their cybersecurity infrastructure, leading to outdated technology, insufficient staffing, and lack of training​ (Computer Weekly)​ (Help Net Security). This lack of investment left companies ill-equipped to handle the complexities of modern cyber threats and the rapid pace of technological change.

Impact of Insufficient Investment

The CrowdStrike outage served as a wake-up call for organizations to reassess their cybersecurity investments and practices. Proper funding, comprehensive testing, and robust continuity plans are essential to safeguarding against such incidents and ensuring business resilience. By learning from this event, companies can strengthen their defenses and reduce the impact of future disruptions​.

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Jason Fruge

Consulting Chief Information Security Officer (CISO)

Jason Fruge is an accomplished Consulting Chief Information Security Officer at Secutor Cybersecurity, bringing over 25 years of deep expertise in information security. His storied career includes leading and managing robust security programs for Fortune 500 companies across retail, banking, and fintech sectors. His current role involves providing strategic guidance and advisory services to clients, focusing on security governance, risk management, and compliance.

Apart from his consulting responsibilities, Jason is an active member of the global cybersecurity community. He is a Villager at Team8, a prestigious collective of senior cybersecurity executives and thought leaders. Additionally, he serves as an Advisor at NightDragon, an innovative growth and venture capital firm specializing in cybersecurity and enterprise technologies.

Jason’s tenure as a CISO is marked by a proven track record in developing and implementing comprehensive security policies and procedures. He adeptly leverages security frameworks and industry best practices to mitigate risks, safeguarding sensitive data and assets. His expertise encompasses incident response and root cause analysis, where he has notably managed cyber incidents to prevent breaches and minimize business disruption and customer impact.

A key aspect of Jason’s role has been the creation and facilitation of executive and board-level cyber risk committees, ensuring organizational alignment and awareness. His responsibilities have extended to maintaining compliance programs for standards such as PCI and SOX, as well as leading privacy and business continuity programs. Holding prestigious certifications like CISSP, QSA, and QTE, Jason is also a recognized thought leader, contributing articles on cybersecurity to InformationWeek.

Jason’s passion lies in driving innovation and fostering collaboration in the cybersecurity field. He is currently seeking an executive CISO role in a leading retail, finance, or fintech organization, where he can continue to make significant contributions to the cybersecurity landscape.

Jennifer Bayuk

Cybersecurity Risk Management Expert

Jennifer Bayuk is a highly esteemed cybersecurity risk management thought leader and subject matter expert at Secutor Cybersecurity. Her extensive experience encompasses managing and measuring large-scale cybersecurity programs, system security architecture, and a wide array of cybersecurity tools and techniques. Jennifer’s expertise is further deepened with her proficiency in cybersecurity forensics, the audit of information systems and networks, and technology control processes.

Jennifer’s skill set is comprehensive, including specialization in cybersecurity risk and performance indicators, technology risk awareness education, risk management training curriculum, and system security research. Her academic achievements are noteworthy, holding Masters degrees in Philosophy and Computer Science, and a Ph.D. in Systems Engineering. This strong academic background provides a solid foundation for her practical and strategic approach to cybersecurity challenges.

Certified in Information Systems Audit, Information Systems Security, Information Security Management, and IT Governance, Jennifer is a well-rounded professional in the field. Her credentials are further enhanced by her license as a New Jersey Private Investigator, adding a unique dimension to her cybersecurity expertise.

At Secutor, Jennifer plays a pivotal role in steering cybersecurity initiatives, aligning them with organizational risk appetites and strategic objectives. Her ability to educate and train in the realm of technology risk has been instrumental in raising awareness and enhancing the cybersecurity posture of our clients. Her dedication to research and continual learning makes her an invaluable resource in navigating the ever-evolving cybersecurity landscape.

Jennifer Bayuk’s blend of academic prowess, practical experience, and certifications make her an indispensable part of our team, as she continues to drive forward-thinking cybersecurity solutions and risk management strategies.

Steve Blanding

CISO Consultant

CISSP, CISA, CGEIT, CRISC

Steve is an IT management consultant living in Dallas, TX. Steve has over 35 years of experience in executive IT leadership, IT governance, risk and compliance (GRC), systems auditing, quality assurance, information security, and business resumption planning for large corporations in the Big-4 professional services, financial services, manufacturing, retail electronics, and defense contract industries. He has extensive experience with industry best practices for adopting and implementing new technologies, IT service management frameworks, and GRC solutions that have dramatically improved customer satisfaction while reducing cost.

Industry Experience

  • State Government: 5 years
  • Retail: 5 years
  • Defense Contract: 5 years
  • Manufacturing: 2 years
  • Health Care: 2 years
  • Local Government: 2 years
  • Public Accounting (Big 4): 7 years
  • Insurance: 3 years
  • Financial Services: 5 years

Key Career Accomplishments

  • Conducted a full-scale ISO27000 audit 4 times over the past 6 years.  Also, conducted a “light” ISO27000 review of a small Dallas-based company in 2007.
  • Developed and authored a comprehensive IT security policy manual, incident response plans, training programs, security contingency plans and configuration management plans for FedRAMP regulatory compliance.
  • Conducted multiple DR and operational backup and recovery IT risk assessments of critical business systems on mainframe, LAN, and distributed system networks located across North America.
  • Conducted data centers audits for Tyco Corporation (Brussels, 2005 and Denver, 2006), Farmers Insurance (Los Angeles, 2006), Zurich Financial Services (Chicago, Kansas City, and Grand Rapids, 2006), and Convergys Corporation (Dallas, 2010, 2011, and 2012).
  • Led a project to remediate segregation of duties and streamline user access system security and HIPAA compliance administration across 5 regions in North America, resulting in cost savings of $700,000 per year (Kaiser Permanente).
  • Implemented Sarbanes-Oxley Section 302 and 404 IT general and application controls, reducing security administration costs and improving operational performance by 50% or $500,000 annually (Tyco Corporation).
  • Led the global SAP business-IT alignment, process re-design implementation initiative for financial accounting, materials management, production planning, quality management, sales and distribution, warehouse management, and plant maintenance, which resulted in creating $2,000,000 in cost savings.
  • Engaged by Arthur Andersen in Houston to transform the local IT organization and then direct 3 organizational mergers/consolidations, which resulted in a 25% reduction in operating costs, or $3,250,000, while improving customer satisfaction by 30%, and improving employee morale, technology availability and the quality of IT infrastructure and service delivery.
  • Assigned by Arthur Andersen global leadership to lead global project teams responsible for data center and customer support call center consolidation, which resulted in annual operational cost savings of 45% or $4,000,000.
  • Implemented ITIL service management practices for problem management, incident management, help desk, project management, and operations management.
  • Conducted SOX 404 audits at Duke Energy (6 months), Red Hat (3 months), Tyco (9 months), Zeon Chemicals (4 months), and Convergys (2 months). Experience includes control design/documentation and effectiveness testing.

Publications:

Author, various articles in EDPACS and Auerbach’s IT Audit Portfolio Series, 1981 – 2001

Author, various articles in the Handbook of Information Security Management, 1993 – 1995

Editor, Auerbach’s Enterprise Operations Management, 2002

Editor, Auerbach’s IT Audit Portfolio Series, 2000 – 2002

Consulting Editor, Auerbach’s EOM Portfolio Series, 1998 -2001

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