What Businesses Should Know About Cyber Warranty in the Wake of CrowdStrike’s Disruption?

On Friday, July 19, 2024, the IT industry was shaken by a major software update from CrowdStrike. According to a USA Today report, this update triggered an unprecedented IT outage, the largest ever recorded, impacting businesses worldwide.

The updated Falcon sensor software aimed to enhance security for CrowdStrike clients by bolstering defenses against new threats.

Unfortunately, the update contained faulty code that led to a massive tech outage, particularly affecting companies using Microsoft’s Windows operating system. This incident caused significant disruptions in banking services, hospitals, and airlines.

In the aftermath, many organizations have sought assistance from their insurance providers to mitigate losses. However, the claim process has been sluggish and complicated by factors such as deductibles and mandatory waiting periods.

In such scenarios, having coverage that offers immediate payouts following an outage can be a game-changer.

This type of coverage can significantly ease, helping them recoup losses more swiftly and maintain uninterrupted business operations.

Want to overcome this type of incident in the future?

We at Asgard provide cyber warranty services that offer payouts in less than 24 hours to cover the cost of outages. This ensures your business can continue operating smoothly without any hurdles.

Before delving deeper, let’s first explore the details of CrowdStrike’s disruption and its impact.

The CrowdStrike Disruption: A Case Study

Digital infrastructure was recently shaken by a global outage triggered by an update to CrowdStrike’s Falcon security software. This update, designed to enhance compatibility with various computer systems, including Microsoft’s Windows products, inadvertently led to a significant malfunction.

The consequences were severe: Windows systems encountered the notorious Blue Screen of Death (BSOD), a critical error that essentially rendered systems inoperative. The ripple effects of this glitch were felt far and wide, affecting many critical services worldwide.

Government agencies, banks, airlines, payment processors, 911 call centers, television networks, and health systems faced substantial disruptions.

Remarkably, Microsoft reported that the update affected 8.5 million Windows devices. While this figure represents less than 1% of all Windows machines, the effects were profound.

This incident sharply underscores how a single software update can create massive ripple effects throughout the technological landscape.

Unfortunately, such incidents are common, emphasizing the importance of organizations implementing strategies to mitigate risks.

Here are some key solutions:

• Rigorous Testing: Conduct extensive pre-deployment testing, including compatibility, stress, and user acceptance tests, to identify potential issues before updates are released.
• Backup and Recovery Plans: Establish comprehensive backup and disaster recovery plans. Perform regular backups, conduct disaster recovery drills, and implement redundancy to ensure business continuity.
• Proactive Monitoring: Use advanced monitoring tools for real-time detection and response. Set up automated alerts and maintain a robust incident response plan to handle issues swiftly.
• Patch Management: Use group policies or an RMM tool to delay patches by a day or two in order to avoid patch failures such as this one. This will also allow IT teams to push patches on their own schedule rather than automatic updates which can fail.
• Cyber Warranty Services: Invest in cyber warranty services for financial protection. Work with providers to assess risks, ensure coverage for various incidents, and utilize recovery support services.

Outage Disruptions: Are Cyber Warranty Services Essential for the Future?

Considering the CrowdStrike disruption, the value of having a cyber security warranty becomes even more apparent.

It is a crucial safeguard that ensures businesses can quickly recover and maintain operations during unforeseen technological failures.

Here’s how it can benefit businesses:

Protection against financial losses

Cybersecurity warranties provide essential financial protection against the costs of cyber incidents.

When disruptions like the one caused by the CrowdStrike update occur, businesses may face substantial expenses related to downtime, data recovery, and system repairs.

A cybersecurity warranty helps cover these costs, offering financial stability and peace of mind during crises.

Assurance of rapid response and recovery support

One of the critical components of cyber warranties is the guarantee of immediate support in the event of a cyber incident.

This includes access to expert cybersecurity teams, advanced recovery tools, and prioritized assistance to restore normal operations swiftly.

Moreover, rapid response and recovery support are vital in reducing the impact of disruptions and restore business operations swiftly.

Enhancement of overall cybersecurity posture

Did you know that the 2023 Allianz Risk Barometer ranks cyber incidents as the top business risk globally, highlighting the need for quick recovery solutions?

By having a cybersecurity warranty, businesses not only gain protection during crises but also improve their defenses against future disruptions, making them more resilient overall.

Conclusion

In the wake of the CrowdStrike disruption, the importance of cyber warranty services cannot be overstated. This incident is a strong reminder of the intricacies and challenges within the cybersecurity realm.

By partnering with cybersecurity warranty providers, businesses can protect themselves against this type of unforeseen cyber incident and ensure a resilient future.

Stay vigilant, stay informed, and trust Asgard Managed Services as your steadfast cybersecurity partner.