Incident: Accellion File Transfer Appliance Vulnerabilities Lead to Global Breaches

Published Date: 2021-03-08

Postmortem Analysis
Timeline 1. The software failure incident involving Accellion's File Transfer Appliance (FTA) occurred in late December and January as per the article [112240]. Therefore, the estimated timeline for the software failure incident would be December 2020 - January 2021.
System 1. Accellion's File Transfer Appliance (FTA) [112240]
Responsible Organization 1. Hackers associated with the financial crimes group FIN11 and the ransomware gang Clop were responsible for causing the software failure incident [112240].
Impacted Organization 1. Reserve Bank of New Zealand 2. State of Washington 3. Australian Securities and Investments Commission 4. Singaporean telecom Singtel 5. High-profile law firm Jones Day 6. Grocery store chain Kroger 7. University of Colorado 8. Cybersecurity firm Qualys 9. Multiple federal and state, local, tribal, and territorial government organizations 10. Private industry organizations in the medical, legal, telecommunications, finance, and energy sectors [Citation: <Article 112240>]
Software Causes 1. Vulnerabilities in Accellion's File Transfer Appliance (FTA) software, which were exploited by hackers, leading to data breaches and extortion attempts [112240].
Non-software Causes 1. End-of-life status of the Accellion File Transfer Appliance (FTA) product [112240] 2. Slow response and communication from Accellion regarding the severity of the vulnerabilities [112240]
Impacts 1. Multiple organizations and government entities worldwide were breached as a result of the vulnerabilities in Accellion's File Transfer Appliance, leading to data exfiltration and extortion attempts by ransomware groups like Clop [112240]. 2. The incident resulted in the exposure of sensitive data from victims such as the Reserve Bank of New Zealand, the state of Washington, the Australian Securities and Investments Commission, the Singaporean telecom Singtel, the law firm Jones Day, the grocery store chain Kroger, the University of Colorado, and cybersecurity firm Qualys [112240]. 3. Accellion faced criticism for being slow to raise the alarm about the potential risks to FTA users, leading to a large time window for active exploitation by hackers [112240]. 4. The company is now facing multiple lawsuits in Northern California and Washington state courts as a consequence of the widespread intrusions [112240]. 5. The incident highlighted the potential catastrophic impact if similar vulnerabilities were to occur in public cloud services, emphasizing the need for robust security measures in cloud environments [112240].
Preventions 1. Timely patching and proactive communication of vulnerabilities by the software vendor could have prevented the software failure incident [112240]. 2. Accelerated transition away from legacy network equipment like Accellion's File Transfer Appliance (FTA) to newer, more secure platforms could have mitigated the risks associated with the end-of-life product [112240]. 3. Enhanced monitoring and detection capabilities within organizations to quickly identify and respond to potential breaches could have minimized the impact of the incident [112240]. 4. Improved cybersecurity awareness and training for employees to prevent successful phishing attempts or other initial access vectors used by threat actors [112240].
Fixes 1. Implementing the patches and fixes released by Accellion to address the vulnerabilities in their File Transfer Appliance (FTA) [112240]. 2. Transitioning away from the end-of-life FTA product onto Accellion's new platform, Kiteworks, which is supported and actively maintained [112240]. 3. Enhancing communication and response time to potential risks and incidents to ensure timely mitigation and support for affected customers [112240]. 4. Conducting thorough security assessments and audits to identify and address vulnerabilities in on-premises equipment and cloud services to prevent similar incidents in the future [112240].
References 1. Accellion CEO Jonathan Yaron's statement [112240] 2. Security firm FireEye's investigation results [112240] 3. Department of Homeland Security's Cybersecurity and Infrastructure Security Agency joint statement [112240] 4. Jake Williams, founder of Rendition Infosec [112240] 5. David Kennedy, CEO of TrustedSec [112240] 6. Brett Callow, threat researcher at Emsisoft [112240]

Software Taxonomy of Faults

Category Option Rationale
Recurring one_organization, multiple_organization (a) The software failure incident related to the Accellion File Transfer Appliance (FTA) has happened again at multiple organizations. The incident involved a series of breaches in December and January that affected dozens of companies and government organizations worldwide [112240]. The vulnerabilities in Accellion's FTA were exploited by hackers, leading to data breaches and extortion attempts. Known victims included the Reserve Bank of New Zealand, the state of Washington, the Australian Securities and Investments Commission, the Singaporean telecom Singtel, the law firm Jones Day, the grocery store chain Kroger, the University of Colorado, and cybersecurity firm Qualys. The incident also resulted in multiple lawsuits against Accellion in Northern California and Washington state court [112240]. (b) The software failure incident related to the Accellion FTA has also happened at multiple organizations. The Department of Homeland Security's Cybersecurity and Infrastructure Security Agency stated that actors exploited the vulnerabilities in Accellion's FTA to attack federal and state government organizations, as well as private industry organizations in various sectors such as medical, legal, telecommunications, finance, and energy [112240]. The incident highlighted the widespread impact of the vulnerabilities in Accellion's FTA, affecting organizations across different sectors and industries.
Phase (Design/Operation) design, operation (a) The software failure incident related to the design phase can be attributed to the vulnerabilities in Accellion's File Transfer Appliance (FTA) that were exploited by hackers. Accellion released patches to address these vulnerabilities in late December and January, but the attackers were able to exploit these flaws to breach dozens of companies and government organizations worldwide [112240]. (b) The software failure incident related to the operation phase can be seen in the slow response of Accellion to communicate the severity of the vulnerabilities to its users. Incident responders mentioned that Accellion was slow to raise the alarm about the potential risk to FTA users, leading to a large time window for active exploitation by the attackers [112240].
Boundary (Internal/External) within_system, outside_system (a) The software failure incident related to the Accellion File Transfer Appliance (FTA) can be categorized as within_system. The vulnerabilities in the FTA product were exploited by hackers to carry out a widespread breach affecting numerous organizations [112240]. Accellion had released patches to address the vulnerabilities, but the incident highlighted the risks associated with using legacy network equipment like FTA, which was at the end of its life [112240]. The incident also raised concerns about the potential catastrophic impact if similar vulnerabilities were to occur in public cloud services, emphasizing the importance of ensuring the security of both on-premises and cloud-based systems [112240].
Nature (Human/Non-human) non-human_actions, human_actions (a) The software failure incident related to non-human actions was primarily due to a series of breaches in Accellion's File Transfer Appliance (FTA) caused by a cluster of vulnerabilities in the network equipment offering. Hackers exploited these vulnerabilities to breach dozens of companies and government organizations worldwide, leading to extortion threats by the ransomware group Clop [112240]. (b) The software failure incident related to human actions involved the slow response and communication from Accellion regarding the severity of the vulnerabilities in FTA. Incident responders mentioned that Accellion was slow to raise the alarm about the potential risk to FTA users, leading to a large time window for active exploitation. This delay in communication contributed to the widespread intrusions and subsequent lawsuits faced by the company [112240].
Dimension (Hardware/Software) hardware, software (a) The software failure incident related to hardware: - The incident involving Accellion's File Transfer Appliance (FTA) was due to vulnerabilities in the hardware equipment offered by Accellion. Hackers exploited these vulnerabilities in the FTA, which is essentially a dedicated computer used to move large and sensitive files within a network [112240]. - The article mentions that Accellion devices sit on-premises, meaning attackers had to seek out vulnerable pieces of equipment within targets' networks. This highlights the hardware aspect of the software failure incident [112240]. (b) The software failure incident related to software: - The software failure incident was primarily caused by vulnerabilities in the software of Accellion's File Transfer Appliance (FTA). The vulnerabilities in the software allowed hackers to exploit the system and carry out breaches in multiple organizations and government entities [112240]. - Accellion released patches to address the vulnerabilities in the software of the FTA, indicating that the root cause of the incident was related to software flaws [112240].
Objective (Malicious/Non-malicious) malicious (a) The software failure incident related to the Accellion File Transfer Appliance (FTA) breaches can be categorized as malicious. The incident involved hackers exploiting vulnerabilities in the Accellion FTA to breach numerous companies and government organizations worldwide, leading to extortion attempts by the ransomware group Clop [112240]. The hackers behind the incident were motivated by criminal profit, as opposed to espionage purposes seen in other recent nation-state hacking sprees targeting different software systems. The attackers targeted various sectors including government, medical, legal, telecommunications, finance, and energy, extorting money from victim organizations to prevent the public release of exfiltrated information [112240].
Intent (Poor/Accidental Decisions) unknown (a) The intent of the software failure incident: - The software failure incident involving Accellion's File Transfer Appliance (FTA) was not due to poor decisions but rather due to the exploitation of vulnerabilities by hackers for criminal profit [112240]. - The incident was carried out by hacking groups motivated by criminal profit, as opposed to espionage purposes seen in other hacking sprees [112240]. - The hackers targeted multiple federal and state government organizations, as well as private industry organizations, for extortion purposes [112240]. - Accellion had been working for three years to transition customers away from FTA onto its new platform, Kiteworks, indicating a proactive approach to addressing the end-of-life product [112240].
Capability (Incompetence/Accidental) development_incompetence, unknown (a) The software failure incident related to development incompetence is evident in the Accellion data breach incident. Accellion released a patch in late December and more fixes in January to address vulnerabilities in its network equipment offerings. However, the company faced criticism for being slow to raise the alarm about the potential risk to users, with incident responders mentioning that the severity of the situation wasn't being effectively communicated by Accellion [112240]. (b) The software failure incident related to accidental factors is not explicitly mentioned in the provided article.
Duration temporary The software failure incident related to the Accellion File Transfer Appliance (FTA) vulnerabilities can be considered as a temporary failure. This is because the incident was caused by specific vulnerabilities in the FTA product that were exploited by hackers, leading to breaches in multiple organizations [112240]. The vulnerabilities were addressed through patches released by Accellion in late December and January to mitigate the ongoing exploitation [112240]. The incident was not a permanent failure caused by inherent flaws in the software but rather due to specific vulnerabilities that were exploited by malicious actors.
Behaviour crash, omission, value, other (a) crash: The software failure incident related to the Accellion File Transfer Appliance (FTA) can be categorized as a crash. The vulnerabilities in the FTA led to breaches in multiple organizations, causing the system to lose its state and not perform its intended functions properly. This resulted in unauthorized access to sensitive data and subsequent extortion attempts by hackers [112240]. (b) omission: The software failure incident can also be categorized as an omission. The vulnerabilities in the Accellion FTA caused the system to omit performing its intended functions of securely transferring large and sensitive files within a network. This omission led to the exposure of sensitive data and subsequent extortion demands by the ransomware group Clop [112240]. (c) timing: The software failure incident is not specifically related to timing issues where the system performs its intended functions correctly but at the wrong time. (d) value: The software failure incident can be categorized as a value failure. The vulnerabilities in the Accellion FTA caused the system to perform its intended functions incorrectly by allowing unauthorized access to sensitive data, leading to data breaches and extortion attempts by hackers [112240]. (e) byzantine: The software failure incident is not specifically related to a byzantine behavior where the system behaves erroneously with inconsistent responses and interactions. (f) other: The software failure incident can also be categorized as a failure due to a security flaw. The vulnerabilities in the Accellion FTA exposed a security flaw in the system, allowing hackers to exploit it for unauthorized access to sensitive data. This flaw resulted in data breaches and extortion attempts by the ransomware group Clop [112240].

IoT System Layer

Layer Option Rationale
Perception None None
Communication None None
Application None None

Other Details

Category Option Rationale
Consequence property, theoretical_consequence (d) property: People's material goods, money, or data was impacted due to the software failure The software failure incident involving Accellion's File Transfer Appliance (FTA) resulted in numerous companies and government organizations worldwide being breached due to vulnerabilities in the network equipment offering. The hackers behind the breach threatened to make the stolen data public if the victims did not pay up, leading to extortion attempts. Victims included organizations like the Reserve Bank of New Zealand, the state of Washington, the Australian Securities and Investments Commission, and others [112240]. The incident led to multiple lawsuits being filed against Accellion in Northern California and Washington state court as a result of the widespread intrusions [112240]. Additionally, the ransomware group Clop released extortion demands and leaked data from a handful of victims per week, indicating the impact on data security and potential financial losses for the affected organizations [112240].
Domain information (a) The software failure incident related to the Accellion File Transfer Appliance (FTA) impacted various industries involved in the production and distribution of information. Organizations such as the Reserve Bank of New Zealand, the state of Washington, the Australian Securities and Investments Commission, the Singaporean telecom Singtel, the high-profile law firm Jones Day, the grocery store chain Kroger, the University of Colorado, and cybersecurity firm Qualys were among the victims of the breach [112240]. The incident highlighted the vulnerabilities in the FTA system, which was used to move large and sensitive files within networks, making it a critical component for organizations dealing with information exchange and data transfer.

Sources

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