In July of 2011, Distribute.IT, a domain registration and web hosting services provider in Australia was was hit with a targeted, malicious attack that resulted in the company going under and their customers left without their hosting or VPS data. The attack was calculated, targeted and vicious in it’s execution… I remember the incident well as I was working for Anittel at the time and we where offering similar services…everyone in the hosting organization was concerned when starting to think about the impact a similar attack would have within our systems.

“Hackers got into our network and were able to destroy a lot of data. It was all done in a logical order – knowing exactly where the critical stuff was and deleting that first,”

While it was reported at the time that a hacker got into the network, the way in which the attack was executed pointed to an inside job and all though it was never proved to be so it almost 100% certain that the attacker was a disgruntled ex-employee. The very real issue of an inside attack has popped up again…this time Verelox, a hosting company out of the Netherlands has effectively been taken out of business with a confirmed attack from within by an ex-employee.

My heart sinks when I read of situations like this and for me, it was the only thing that truely kept me up at night as someone who was ultimately responsible for similar hosting platforms. I could deal and probably reconcile with myself if I found myself in a situation where a piece of hardware failed causing data loss…but if an attacker had caused the data loss then all bets would have been off and I might have found myself scrambling to save face and along with others in the organization, may well have been searching for a new company…or worse a new career!

What Can Be Done at an Technical Level?

Knowing a lot about how hosting and cloud service providers operate my feeling is that 90% of organizations out there are not prepared for such attacks and are at the mercy of an attack from the inside…either by a current or ex-employee. Taking that a step further there are plenty that are at risk of an attack from the inside perpetrated by external malicious individuals. This is where the principal of least privileged access needs to be taken to the nth degree. Clear separation of operational and physical layers needs to be considered as well to ensure that if systems are attacked, not everything can be taken down at once.

Implementing some form of certification or compliancy such as ISO 27001, SOC and iRAP will force companies to become more vigilant through the stringent processes and controls that are forced upon companies once they meet compliancy. This in turn naturally leads to better and more complete disaster and business continuity scenarios that are written down and require testing and validation in order to pass certification.

From a backup point of view, these days with most systems being virtual it’s important to consider a backup strategy that not only looks to make use of the 3-2-1 rule of backups, but also look to implement some form of air-gapped backups that in theory are completely seperate and unaccessible from production networks, meaning that only a few very trusted employees have access to the backup and restore media. In practice implementing a complete air-gapped solution is complex and potentially costly and this is where service providers are chancing their futures on scenarios that have a small percentage chance of happening however the likelihood of that scenario playing out is greater than it’s ever been.

In a situation like Verelox, I wonder if, like most IaaS providers they didn’t backup all client workloads by default, meaning that backup services was an additional service charge that some customers didn’t know about…that said, if backup systems are wiped clean is there any use of having those services anyway? That is to say…is there a backup of the backup? This being the case I also believe that businesses need to start looking at cross cloud backups and not rely solely on their providers backup systems. Something like the Veeam Agent’s or Cloud Connect can help here.

So What Can Be Done at an Employee Level?

The more I think about the possible answer to this question, the more I believe that service providers can’t fully protect themselves from such internal attacks. At some point trust supersedes all else and no amount of vetting or process can stop someone with the right sort of access doing damage. To that end making sure that you are looking after your employee’s is probably the best defence against someone feeling aggrieved enough to carry out an malicious attack such as the one Verelox has just gone through. In addition to looking after employee’s well being it’s also a good idea to…within reason, keep tabs on an employee’s state in life in general. Are they going through any personal issues that might make them unstable, or have they been done wrong by someone else within the company? Generally social issues should be picked up during the hiring process, but complete vetting of employee stability is always going to be a lottery.

Conclusion

As mentioned above, this type of attack is a worst case scenario for every service provider that operates today…there are steps that can be taken to minimize the impact and protect against an employee getting to the point where they choose to do damage but my feeling is we haven’t seen the last of these attacks and unfortunately more will suffer…so where you can, try to implement policy and procedure to protect and then recover when or if they do happen.

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Resources:

https://www.crn.com.au/news/devastating-cyber-attack-turns-melbourne-victim-into-evangelist-397067/page1

https://www.itnews.com.au/news/distributeit-hit-by-malicious-attack-260306

https://news.ycombinator.com/item?id=14522181

Verelox (Netherlands hosting company) servers wiped by ex-admin
byu/jflint insysadmin