Incident: Cyber-Attack on Microsoft Exchange Servers Affects Thousands Worldwide

Published Date: 2021-03-08

Postmortem Analysis
Timeline 1. The software failure incident, the aggressive cyber-attack affecting Microsoft customers, began as a controlled attack on a few large targets starting in late 2020 [112046]. 2. The article was published on 2021-03-08. 3. Therefore, the software failure incident occurred in late 2020.
System 1. Microsoft Exchange servers [112046] 2. Microsoft products and services [112046]
Responsible Organization 1. A Chinese government-backed actor was blamed for the cyber-attack on Microsoft Exchange servers [112046]. 2. Microsoft also attributed the attack to China [112046].
Impacted Organization 1. European Banking Authority [112046] 2. Hundreds of thousands of Microsoft customers worldwide [112046] 3. At least 30,000 organizations in the US [112046]
Software Causes 1. The software cause of the failure incident was an aggressive cyber-attack that exploited vulnerabilities in Microsoft Exchange, allowing hackers to access the email accounts of at least 30,000 organizations in the US [112046]. 2. The attack involved the use of tools that gave the attackers total remote control over affected systems, indicating a software vulnerability in Microsoft Exchange [112046]. 3. The failure incident was attributed to a Chinese government-backed actor, pointing to a software-related security breach [112046].
Non-software Causes 1. The cyber-attack was attributed to a Chinese government-backed actor, as reported by a person working with the US response and Microsoft [112046]. 2. The European Banking Authority confirmed it had been affected by the cyber-attack, indicating that the attack struck its email servers [112046].
Impacts 1. The software failure incident affected hundreds of thousands of Microsoft customers worldwide, allowing hackers to access the email accounts of at least 30,000 organizations in the US [112046]. 2. The breach had significant impacts on various entities such as credit unions, town governments, small businesses, and even large organizations like the European Banking Authority [112046]. 3. The incident led to a multi-agency effort by the Biden administration to determine the extent of the hack, identify victims, and patch vulnerabilities [112046]. 4. The attack was attributed to a Chinese government-backed actor, although China denied involvement [112046]. 5. The incident added strain on resources for US agencies already dealing with the aftermath of the SolarWinds attack, making it challenging to address both incidents simultaneously [112046].
Preventions 1. Timely installation of security patches and updates by organizations using Microsoft Exchange could have prevented the software failure incident [112046]. 2. Implementing robust cybersecurity measures and best practices within organizations to prevent unauthorized access to email accounts and systems could have helped in preventing the attack [112046]. 3. Conducting regular security audits and vulnerability scans on Microsoft Exchange servers to identify and address potential weaknesses before they are exploited by hackers could have mitigated the risk of the incident [112046].
Fixes 1. Applying patches issued by Microsoft for the attack on Exchange servers can prevent further attacks if the servers have not already been compromised [112046]. 2. Implementing additional investigation and mitigation guidance provided by Microsoft and working closely with Cisa, other government agencies, and security companies can help respond to the hack effectively [112046].
References 1. Security researcher Brian Krebs [Article 112046] 2. Cybersecurity and Infrastructure Security Agency (Cisa) [Article 112046] 3. White House press secretary, Jen Psaki [Article 112046] 4. Microsoft [Article 112046] 5. European Banking Authority [Article 112046] 6. US response sources [Article 112046] 7. Chinese government spokesman [Article 112046] 8. Former national security official [Article 112046] 9. Wired [Article 112046] 10. Tech executives, including Microsoft's president, Brad Smith [Article 112046]

Software Taxonomy of Faults

Category Option Rationale
Recurring one_organization, multiple_organization (a) The software failure incident having happened again at one_organization: - The article mentions that the recent hack on Microsoft Exchange is the second major hacking campaign to hit the US since the election, following the SolarWinds attack [112046]. - Microsoft has been targeted in this incident, similar to the SolarWinds attack, where about 100 US companies and nine federal agencies were breached [112046]. (b) The software failure incident having happened again at multiple_organization: - The article highlights that the recent hack on Microsoft Exchange is the second major hacking campaign to hit the US since the election, following the SolarWinds attack [112046]. - The European Banking Authority, the European Union’s banking regulator, confirmed it had been affected by the cyber-attack on Microsoft Exchange [112046].
Phase (Design/Operation) design, operation (a) The software failure incident related to the design phase can be seen in the article where it mentions that the cyber-attack on Microsoft Exchange allowed hackers to access the email accounts of at least 30,000 organizations in the US. The attack infiltrated accounts using tools that give the attackers "total, remote control over affected systems" [112046]. This indicates a failure in the design of the system that allowed such unauthorized access. (b) The software failure incident related to the operation phase is evident in the article where it states that the Cybersecurity and Infrastructure Security Agency (Cisa) encouraged all organizations using Microsoft Exchange to scan devices for vulnerabilities after the breach was discovered. This highlights a failure in the operation or misuse of the system that led to the vulnerability being exploited by hackers [112046].
Boundary (Internal/External) within_system, outside_system (a) within_system: The software failure incident related to the cyber-attack on Microsoft Exchange servers was primarily due to contributing factors that originated from within the system. The attack allowed hackers to access email accounts of organizations, affecting hundreds of thousands of Microsoft customers worldwide [112046]. The breach was described as a significant vulnerability that could have far-reaching impacts, and the Cybersecurity and Infrastructure Security Agency (Cisa) encouraged organizations to scan devices for vulnerabilities [112046]. Microsoft issued patches to address the attack, but fixing the issue was noted to be more complicated as the patches do not undo the damage already caused by the attackers [112046]. (b) outside_system: The software failure incident was also influenced by contributing factors that originated from outside the system. The attack was attributed to a Chinese government-backed actor, as reported by a person working with the US response and Microsoft [112046]. Additionally, the incident was compared to the SolarWinds attack, which was a separate series of sophisticated attacks attributed to Russia, indicating external factors impacting the cybersecurity landscape [112046].
Nature (Human/Non-human) non-human_actions, human_actions (a) The software failure incident reported in the articles is primarily attributed to non-human actions, specifically a cyber-attack. The attack on Microsoft Exchange servers allowed hackers to access email accounts of thousands of organizations, affecting both public and private entities [112046]. (b) However, human actions are also involved in responding to the incident. The Biden administration has launched an emergency task force involving various agencies like the FBI and Cisa to address the cyber-attack, determine the extent of the breach, and patch vulnerabilities [112046]. Additionally, organizations are urged to scan their devices for vulnerabilities and apply patches to prevent further exploitation [112046].
Dimension (Hardware/Software) software (a) The software failure incident reported in the articles is primarily related to software issues rather than hardware. The incident involved a cyber-attack on Microsoft Exchange servers that allowed hackers to access email accounts of thousands of organizations [112046]. The attack exploited vulnerabilities in the software, giving attackers remote control over affected systems [112046]. Microsoft issued patches to address the software vulnerability, indicating that the root cause of the incident was software-related [112046]. (b) The software failure incident is attributed to software vulnerabilities in Microsoft Exchange servers that were exploited by hackers, leading to unauthorized access to email accounts [112046]. The incident involved the use of tools that provided attackers with total remote control over affected systems, highlighting a software-related issue [112046]. Microsoft's response to the incident focused on releasing patches to address the software vulnerability rather than hardware-related solutions [112046].
Objective (Malicious/Non-malicious) malicious (a) The software failure incident reported in the articles is malicious in nature. The incident involved an aggressive cyber-attack that allowed hackers to access the email accounts of at least 30,000 organizations in the US, affecting hundreds of thousands of Microsoft customers worldwide [112046]. The attack was described as "unusually aggressive" and infiltrated accounts using tools that gave the attackers total remote control over affected systems [112046]. The attack was attributed to a Chinese government-backed actor, although China denied involvement [112046]. This incident is part of a larger trend of sophisticated attacks, with the recent hack following the SolarWinds attack attributed to Russia that breached about 100 US companies and nine federal agencies [112046]. The attack on Microsoft Exchange servers was detected in early January and is expected to lead to additional attacks from other hackers as the code used to take control of the mail servers spreads [112046]. The Biden administration has launched an emergency taskforce to address the cyber-attack and determine the extent of the damage and how to patch the vulnerabilities [112046].
Intent (Poor/Accidental Decisions) poor_decisions [a] The software failure incident reported in the articles was primarily due to poor decisions made by the attackers behind the cyber-attack on Microsoft Exchange servers. The attack was described as "unusually aggressive" and allowed the hackers to gain "total, remote control over affected systems" by exploiting vulnerabilities in the software [112046]. Additionally, the attack was attributed to a Chinese government-backed actor, indicating a deliberate and strategic decision to target organizations using Microsoft Exchange servers [112046]. The incident highlights the significant impact that poor decisions in cybersecurity can have on organizations and governments worldwide.
Capability (Incompetence/Accidental) development_incompetence, unknown (a) The software failure incident related to development incompetence is evident in the cyber-attack on Microsoft Exchange that affected hundreds of thousands of customers worldwide. The attack allowed hackers to access the email accounts of at least 30,000 organizations in the US, indicating a significant vulnerability that could have far-reaching impacts [112046]. (b) The software failure incident related to accidental factors is not explicitly mentioned in the provided article.
Duration temporary The software failure incident reported in the articles is temporary. The incident involved a cyber-attack on Microsoft Exchange servers that allowed hackers to access the email accounts of at least 30,000 organizations in the US [112046]. The attack was detected in early January and was described as an "active threat" by the White House press secretary, indicating that the incident was ongoing and not permanent. Additionally, Microsoft issued patches to address the attack, which suggests that the failure was temporary and could be mitigated through software updates [112046].
Behaviour crash, other (a) crash: The software failure incident mentioned in the articles can be categorized as a crash. The attack on Microsoft Exchange servers allowed hackers to access email accounts of thousands of organizations, indicating a failure of the system to maintain its state and perform its intended functions [112046]. (b) omission: The incident does not specifically mention a failure due to the system omitting to perform its intended functions at an instance(s). (c) timing: The incident does not specifically mention a failure due to the system performing its intended functions correctly, but too late or too early. (d) value: The software failure incident does not involve the system performing its intended functions incorrectly. (e) byzantine: The incident does not involve the system behaving erroneously with inconsistent responses and interactions. (f) other: The behavior of the software failure incident can be categorized as a cyber-attack that exploited vulnerabilities in Microsoft Exchange servers, leading to unauthorized access to email accounts of numerous organizations.

IoT System Layer

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

Other Details

Category Option Rationale
Consequence property, theoretical_consequence (a) unknown (b) unknown (c) unknown (d) The software failure incident resulted in the compromise of email accounts of at least 30,000 organizations in the US, affecting credit unions, town governments, small businesses, and even large entities like the European Banking Authority. The breach allowed hackers to access sensitive data stored on email servers, although in some cases, like the European Banking Authority, it was reported that no data had been obtained [112046]. (e) unknown (f) unknown (g) The articles do not mention any direct observed consequences of people losing their lives, being physically harmed, or facing immediate harm due to the software failure incident [112046]. (h) The articles discuss potential consequences of the software failure incident, such as the significant vulnerability that could have far-reaching impacts, the need for organizations to scan devices for vulnerabilities, and the challenge of handling this hack along with the recent SolarWinds attacks, which places strain on investigative and remediation resources [112046]. (i) unknown
Domain information, finance, government (a) The failed system in this incident was related to the information industry, specifically affecting email accounts of organizations in the US [112046]. (h) The incident also impacted the finance industry as the European Banking Authority confirmed it had been affected by the cyber-attack on its email servers [112046]. (l) Additionally, the government sector was affected by the software failure incident, with reports indicating that the attack targeted large US government bodies [112046].

Sources

Back to List