One Legal Stab at CrowdStrike Liability
July 30, 2024
This essay is the work of a dinobaby. Unlike some folks, no smart software improved my native ineptness.
I read “CrowdStrike Will Be Liable for Damages in France, Based on the OVH Precedent.” OVH is a provider of hosting and what I call “enabling services” to organizations in France, Europe, and other countries. The write up focuses on a modest problem OVH experienced in 2021. A fire consumed four of OVH’s data centers. Needless to say the customers of one of the largest online services providers in Europe were not too happy for two reasons: Backups were not available and the affected organizations were knocked offline.
Two astronauts look down at earth from the soon to be decommissioned space station. The lights and power on earth just flicked off. Thanks, Microsoft Copilot. No security meetings today?
The article focuses on the French courts’ decision that OVH was liable for damages. A number of details about the legal logic appear in the write up. For those of you who still watch Perry Mason reruns on Sling, please, navigate to the cited article for the details. I boiled the OVH tale down to a single dot point from the excellent article:
The court ruled the OVH backup service was not operated to a reasonable standard and failed at its purpose.
This means that in France and probably the European Union those technology savvy CrowdStrike wizards will be writing checks. The firm’s lawyers will get big checks for a number of years. Then the falconers of cyber threats will be scratching out checks to the customers and probably some of the well-heeled downstream airport lounge sleepers, the patients’ families died because surgeries could not be performed, and a kettle of seething government agencies whose emergency call services were dead.
The write concludes with this statement:
Customers operating in regulated industries like healthcare, finance, aerospace, transportation, are actually required to test and stage and track changes. CrowdStrike claims to have a dozen certifications and standards which require them to follow particular development practices and carry out various level of testing, but they clearly did not. The simple fact that CrowdStrike does not do any of that and actively refuses to, puts them in breach of compliance, which puts customers themselves in breach of compliance by using CrowdStrike. All together, there may be sufficient grounds to unilaterally terminate any CrowdStrike contracts for any customer who wishes to.
The key phrase is “in breach of compliance”. That’s going to be an interesting bit of lingo for lawyers involved in the dead Falcon affair to sort out.
Several observations:
- Will someone in the post-Falcon mess raise the question, “Could this be a recipe for a bad actor to emulate?” Could friends of one of the founder who has some ties to Russia be asked questions?
- What about that outstanding security of the Microsoft servers? How will the smart software outfit fixated on putting ads for a browser in an operating system respond? Those blue screens are not what I associate with my Apple Mini servers. I think our Linux boxes display a somewhat ominous black screen. Blue is who?
- Will this incident be shoved around until absolutely no one knows who signed off on the code modules which contributed to this somewhat interesting global event? My hunch it could be a person working as a contractor from a yurt somewhere northeast of Armenia. What’s your best guess?
Net net: It is definite that a cyber attack aimed at the heart of Microsoft’s software can create global outages. How many computer science students in Bulgaria are thinking about this issue? Will bad actors’ technology wizards rethink what can be done with a simple pushed update?
Stephen E Arnold, July 30, 2024
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