Local IT Company Addresses CrowdStrike Incident

Lockbaud, a Kansas City-based IT services provider, highlights the importance of proactive cybersecurity measures in response to a recent CrowdStrike update that caused widespread system disruptions and blue screen errors.

Sam Sapp, Lockbaud

Sam Sapp, owner of Lockbaud, emphasized the irony and significance of this incident, given CrowdStrike's role as a prominent cybersecurity provider.

"This situation underscores a critical lesson in IT security: even tools designed to protect us can sometimes be the source of disruption," Sapp stated.

The incident, which began on July 18, 2024, affected numerous organizations worldwide, causing system crashes and operational interruptions. CrowdStrike has confirmed that the issue stemmed from a defect in a single content update for Windows hosts and is not related to a security breach or cyberattack.

Key points highlighted by Sapp include:

- Widespread Impact: The incident affected banks, airports, supermarkets, and mediavcompanies across multiple countries.

- System Vulnerabilities: Even trusted security solutions can introduce vulnerabilities, emphasizing the need for robust backup and recovery processes.

- Rapid Response: CrowdStrike's quick acknowledgment and efforts to resolve the issue demonstrate the importance of transparent communication during IT crises.

Sapp offered the following advice for businesses in light of this incident:

- Implement Staged Updates: Roll out updates to a small subset of systems before full deployment to catch potential issues early.

- Maintain Offline Backups: Keep recent system backups that are not connected to the network to facilitate quick recovery if needed.

-Diversify Security Solutions: Avoid relying solely on one security provider to mitigate risks associated with single points of failure.

- Enhance Incident Response Plans: Regularly update and practice incident response procedures to ensure preparedness for unexpected disruptions.

"While this incident is unfortunate, it serves as a valuable reminder of the complexities in cybersecurity," Sapp added. "It reinforces the need for layered security approaches and robust contingency planning."

Lockbaud remains committed to helping businesses navigate the evolving landscape of cybersecurity challenges. The company continues to monitor the situation and is prepared to assist clients in implementing best practices to prevent and mitigate similar incidents in the future.

Brian Watts contributed to this story.

UMKC Offers Fraud Prevention, Cybersecurity Workshop

UMKC TalentLink presents “Fraud Prevention and Cybersecurity: Protect Your Business and Customers,” a workshop on May 8, 11 am-1:30 pm. Led by Focused Forensic Solutions President Krista Shelton and Lockbaud Founder Sam Sapp, the workshop includes proactive measures for small businesses to protect operations from fraud and cyber threats.

Workshop facilitators Krista Shelton and Sam Sapp

According to the Association of Certified Fraud Examiner’s Report to the Nations, the average fraud case endures for 12 months and incurs a significant loss of $100,000 to the business.  “Fraud and cybersecurity are escalating concerns for small businesses,” says Shelton. “This trend underscores the pressing need for vigilance and proactive measures in safeguarding small enterprises against financial crimes.”

Fraud may encompass billing, payroll, expense reimbursement schemes, and identity theft. These deceitful practices can slip unnoticed into daily business operations.

“A basic understanding paired with simple, yet effective, fraud prevention measures can significantly enhance the security of small businesses and their clients,” says Shelton. “These initial steps not only offer a layer of protection but also instill a sense of confidence in your financial safety.”

Cybersecurity also threatens the livelihood of small businesses. “Small businesses are more often becoming the target for cybersecurity and fraudulent activities by bad actors. The reality is that businesses aren’t prepared, and they are more likely to succumb to easier tactics,” says Sapp.

The Identity Theft Resource Center’s 2023 Business Impact Report indicates that 73% of owners or leaders of small and medium-sized businesses shared they had experienced a data breach, a cyberattack, or both in the previous 12 months. 43% of organizations reported first-time attacks, impacting businesses in financial services, retail, hospitality, and other industries. 47% percent of businesses surveyed incurred a loss of $250,000 or less and 26% experienced financial impact between $250,000-500,000.

Fraud, phishing, and other costly illegal acts are increasing in frequency and complexity. Small businesses can take measures to be prepared. 

“It takes modern solutions to combat a modern threat, including a modern understanding of the threat,” says Sapp. “This presentation gets you up to speed on the modern tactics your office can prepare for to protect systems.”

Register for the workshop HERE.

Brian Watts contributed to this story.