CrowdStrike Fallout Underscores How Single Point of Failure Technologies Create Widespread Disruption, Says CyberCube

LONDON--(BUSINESS WIRE)--Jul 22, 2024--

The faulty CrowdStrike Falcon Sensor update and subsequent outage – the CrowdOut Event – underscore the potential for Single Point of Failure (SPoF) technology outages to impact the global digital economy. CyberCube is advising clients on how to use SPoF Intelligence to identify exposed insureds and estimate the exposure footprint of the event. SPoF Intelligence is the definitive source for analyzing a portfolio's digital supply chain, integrated with the industry's leading cyber model.

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What Happened?

A global IT system outage was triggered by a faulty software update from CrowdStrike, causing widespread disruptions across various Windows operating system (OS) types. The issue originated from a defective kernel driver included in the update, which led to numerous systems crashing globally and displaying the “Blue Screen of Death” (BSoD).

The issue began with a CrowdStrike update that was intended to enhance security but inadvertently included a logic error in a configuration file. Invalid operations caused by the logic error led to the OS encountering conditions it cannot resolve. This resulted in system crashes, manifesting as the BSoD. The BSoD is a protective measure to prevent further damage to the OS by stopping all operations.​

Who Is Impacted?

The faulty update affects companies using CrowdStrike’s Falcon software on machines running Windows OS, both desktop (including Windows 10 and 11) and Windows Server. These are the primary companies affected by the event. With its global position in cybersecurity, CrowdStrike’s own customer base includes many other organizations that CyberCube identifies as SPoFs. Companies relying on one of these SPoFs may be secondary victims of the event, even if they do not use CrowdStrike and Windows directly. Additionally, CrowdStrike Falcon is deployed by managed security service providers (MSSPs) on the networks of other – typically smaller – organizations they oversee. These organizations using such MSSPs are also secondary victims of the event. Notably, financial institutions, healthcare providers, and transportation networks have all experienced disruptions.

Applying the SPoF Intelligence tool to search for insureds that are dependent on CrowdStrike Falcon, shows it is likely that all users of the core components of the CrowdStrike Falcon platform in conjunction with Windows OS are impacted. Analysis of the count of companies exposed across CyberCube’s US Industry Exposure Database (IED) identifies large companies in Manufacturing, IT, Healthcare, and Financials as the most likely to be exposed. Examination of exposed limits shows an outsize exposure in the Aviation, Banking, and Retail sectors.

CyberCube has provided clients with a list of SPoFs that are dependent both on CrowdStrike Falcon and Windows OS. The outage affects various versions of Windows operating systems. This broad scope means that any organization or individual using these operating systems alongside CrowdStrike Falcon is at risk of experiencing system crashes and operational disruptions.

Catastrophic Loss Modeling

The primary impacts of the CrowdOut Event closely resemble two scenarios in CyberCube’s Portfolio Manager aggregation model. Modeling scenario classes 41 (operating system disruptions on endpoints) and 42 (operating system disruptions on servers) within CyberCube’s event catalog show the CrowdOut Event to be mainly a system failure or business interruption (BI) event.

Customers may experience secondary impacts by way of additional SPoFs that fall within this primary footprint. SPoFs for scenario classes 4, 9, 10, 11, and 18 (mainly related to financial services and payment system technologies) have been observed as users of CrowdStrike and Windows operating systems, exposing companies that rely on these SPoFs to possible contingent business interruption (CBI) outages.

What To Expect?

Affected organizations can expect a series of remediation and recovery efforts to take place immediately. Companies with the IT resources to handle large-scale incidents are expected to recover faster. There may be ongoing disruptions as companies implement patches and verify their systems' stability. Rolling back the update and applying patches requires specialized knowledge. For small and medium-sized companies, a lack of access to IT staff could delay the remediation process. Companies lacking robust contingency or IT backup plans could also face additional disruptions.

CyberCube Support

CyberCube's Cyber Aggregation Event Response Service (CAERS) has been activated as a result of the CrowdStrike event. CAERS provides up-to-date intelligence on major cyber catastrophes worldwide as they unfold to ensure CyberCube clients have the most relevant information. CyberCube will continue to monitor this developing event and provide support for customers in calculating the impact on their own cyber insurance portfolios.

About CyberCube

CyberCube is the leading provider of software-as-a-service cyber risk analytics to quantify cyber risk in financial terms. Driven by data and informed by insight, we have harnessed the power of artificial intelligence to supplement our multi-disciplinary team. Our clients rely on our solutions to make informed decisions about managing and transferring cyber risks. We unpack complex cyber threats into clear, actionable strategies, translating cyber risk into financial impact on businesses, markets, and society as a whole.

The CyberCube platform was established in 2015 within Symantec and now operates as a standalone company. Our models are built on an unparalleled ecosystem of data and validated by extensive model calibration, internally and externally. CyberCube is the leader in cyber risk quantification for the insurance industry, serving over 100 insurance institutions globally. The company’s investors include Forgepoint Capital, HSCM Bermuda and Morgan Stanley Tactical Value. For more information, please visit www.cybcube.com or email info@cybcube.com.

Impact funnel diagram showing the impact of the CrowdOut event. (Graphic: Business Wire)

PHOENIX (AP) — Aaron Judge is mashing homers at an astounding pace for the New York Yankees. Shohei Ohtani provides the same type of thump for the Los Angeles Dodgers.

But it’s the Arizona Diamondbacks who have the best offense in the big leagues — by quite a bit.

The Diamondbacks came into Sunday’s games averaging 5.48 runs per game, a full half run better than the second place team, which is the Yankees at 4.98. Arizona was at it again on Sunday, pulling off a 11-10 win in 10 innings against the Milwaukee Brewers.

Arizona took a 5-0 lead, then trailed 8-5, then tied it up at 8-8, fell behind 10-8 in the 10th and then rallied for three runs in the bottom of the inning for the win. Eugenio Suárez provided the walk-off moment with a bases loaded single to deep right. It was a much-needed win for a franchise fighting with the Padres, Mets and Braves for the three NL wild cards.

The D-backs have a deep, speedy lineup led by Ketel Marte, Christian Walker, Corbin Carroll, Joc Pederson, Jake McCarthy and Suárez. As Sunday proved, no lead is safe when Arizona is at the plate.

“We’re really executing at a high level and it’s not just the slug,” manager Torey Lovullo said after a 14-4 win against the Rangers last week. “It’s patient at-bats waiting for our pitch, putting down the bat, handing it off to the next guy.”

Suarez has been one of MLB’s best players in the second half of the season, batting .320 with 18 homers and 44 RBIs over 51 games coming into Sunday’s games.

The Los Angeles Dodgers boast one of the best lineups in baseball, led by superstars like Ohtani, Mookie Betts and Freddie Freeman.

The problem is they also have to pitch.

A rash of injuries to the pitching staff — including front-line starters like Tyler Glasnow and Clayton Kershaw — have left manager Dave Roberts scrambling as his team reaches the most important part of the season. The Dodgers are so thin on the mound that Roberts acknowledged earlier in the week that Ohtani could return to the mound in October after having offseason elbow surgery.

“Anything is possible,” Roberts said. “I hope that’s on his mind as far as motivation for his rehab. The odds of it coming to pass are very slim, but they’re not zero.”

The Dodgers' roster conundrum isn't unique in baseball this season. As the playoffs approach, no team looks bulletproof. In fact, this will likely be the first season since 2014 that no team will reach the 100-win mark in the regular season.

The parity has allowed several teams to stay in the playoff race longer than expected, particularly in the American League. The Detroit Tigers (77-73), Seattle Mariners (77-73) and Boston Red Sox (75-75) still have hope despite hovering around .500.

The Tigers and Mariners are just 2 1/2 games behind the Minnesota Twins for the final AL wild card.

What is the worst regular-season record for a World Series winning team?

The Chicago White Sox are putting up a little bit of a fight to avoid being the worst baseball team in the modern era.

The White Sox won two straight games against the Oakland Athletics during the weekend, improving their record to 35-115. That might not seem like much, but it's the first time they won back-to-back games since June 27-29.

“If there’s one thing we’ve learned it’s you can’t take big league wins for granted,” outfielder Gavin Sheets said. “To get back-to-back wins and get a series win, it feels really good. We have to enjoy these times and keep it going.”

Chicago is trying to avoid the post-1900 record of 120 losses by the 1962 expansion New York Mets. The White Sox are 20-58 at home, one shy of the post-1900 mark for home losses shared by the 1939 St. Louis Browns and 2019 Detroit Tigers.

There are 12 games remaining. That means the White Sox have to go 8-4 to avoid 120 losses.

The 2006 St. Louis Cardinals won the World Series despite finishing just 83-78 in the regular season.

AP MLB: https://apnews.com/hub/mlb

Chicago White Sox's Bryan Ramos, left, celebrates with Gavin Sheets after the White Sox defeated the Oakland Athletics in a baseball game in Chicago, Sunday, Sept. 15, 2024. (AP Photo/Nam Y. Huh)

Los Angeles Dodgers' Shohei Ohtani awaits his turn to bat in the first inning of a baseball game against the Atlanta Braves, Sunday, Sept. 15, 2024, in Atlanta. (AP Photo/Jason Allen)

Arizona Diamondbacks' Christian Walker gets high fives from teammates after scoring their second run against the Milwaukee Brewers during the first inning of a baseball game, Sunday, Sept. 15, 2024, in Phoenix. (AP Photo/Darryl Webb)