ARTICLE
6 September 2024

Cybersecurity Alert: FINRA Update On CrowdStrike IT Service Disruption

AP
Anderson P.C.

Contributor

Anderson P.C. is a boutique law firm that specializes in defending clients in high-stakes investigations and enforcement actions brought by the SEC, FINRA, the DOJ and other government agencies or regulators. We handle the full spectrum of securities enforcement and regulatory counseling, addressing complex issues involving public companies, senior executives, broker-dealers, financial services professionals, hedge funds, private equity funds, investment advisers, and digital assets.
FINRA has issued a cybersecurity alert concerning a recent CrowdStrike service outage that has impacted Microsoft operating systems.
United States Technology
To print this article, all you need is to be registered or login on Mondaq.com.

FINRA has issued a cybersecurity alert concerning a recent CrowdStrike service outage that has impacted Microsoft operating systems. This disruption, which began on July 19, 2024, is linked to a software update affecting CrowdStrike's Falcon software. The Cyber and Analytics Unit (CAU) within FINRA's Member Supervision program is actively monitoring the situation.

Details of the Outage

On July 19, 2024, CrowdStrike publicly disclosed an outage caused by a software update, which resulted in widespread disruptions for Microsoft Windows devices utilizing the Falcon software. According to CrowdStrike CEO George Kurtz, "this is not a security incident or cyberattack" but rather a service-related disruption. The company has since provided updates and troubleshooting guidance to assist affected customers.

Potential Secondary Risks

Given the scale of this disruption, member firms should be vigilant for secondary risks. Cybercriminals may exploit this incident to conduct social engineering and phishing attacks. The Cybersecurity & Infrastructure Security Agency (CISA) has reported observing threat actors targeting organizations through phishing and other malicious activities, capitalizing on the ongoing issues. CISA recommends that organizations stay alert and adhere to instructions from verified sources.

CrowdStrike advises firms to communicate through its Support Portal or other official channels for assistance and updates.

Action Items for Member Firms

  • Ensure that any IT service vendors you work with are aware of this disruption and are taking appropriate measures.
  • Be extra cautious of potential phishing or social engineering attempts that might leverage the current situation.
  • Any critical system or business operations issues should be reported to your Risk Monitoring Analyst at FINRA.
  • Follow guidance from official sources and avoid relying on unofficial information.

Conclusion

It's important to note that this alert does not introduce new legal or regulatory requirements or reinterpret existing ones. It does not exempt members from their current obligations under federal securities laws and regulations. Instead, it serves as a reminder to consider these developments when reviewing or updating your cybersecurity practices in alignment with regulatory requirements.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

See More Popular Content From

Mondaq uses cookies on this website. By using our website you agree to our use of cookies as set out in our Privacy Policy.

Learn More