Incident Response & Recovery

Even with strong security controls, incidents can occur. This section outlines how to prepare for, respond to, and recover from security incidents effectively.

Playbooks for Common Incidents

Predefined procedures for responding to specific types of security incidents help ensure consistent and effective responses.

Device Loss or Theft

1. Immediate Actions:

   • Report the incident to security team
   • Remotely wipe device if possible
   • Change passwords for accounts accessible from the device
   • Revoke authentication tokens and certificates

2. Investigation Steps:

   • Determine what data was on the device
   • Assess potential access to systems and accounts
   • Review logs for any access after loss/theft

3. Recovery Actions:

   • Issue replacement device with clean installation
   • Restore necessary data from backups
   • Document the incident and update procedures if needed

Account Compromise

1. Immediate Actions:

   • Isolate the affected account
   • Reset credentials and revoke sessions
   • Review activity for signs of lateral movement
   • Notify relevant stakeholders

2. Investigation Steps:

   • Determine the attack vector (phishing, credential stuffing, etc.)
   • Identify all actions taken by the attacker
   • Assess impact on data and systems

3. Recovery Actions:

   • Implement additional security controls
   • Restore affected systems to known good state
   • Conduct security awareness training if needed

Malware Infection

1. Immediate Actions:

   • Isolate affected systems from the network
   • Preserve evidence for analysis
   • Activate incident response team
   • Notify relevant stakeholders

2. Investigation Steps:

   • Identify the malware type and capabilities
   • Determine the infection vector
   • Assess the scope of the infection
   • Identify data and systems potentially affected

3. Recovery Actions:

   • Clean or reimage affected systems
   • Restore data from clean backups
   • Implement additional security controls
   • Update anti-malware signatures and protections

Web3-Specific Incidents

Private Key Compromise

1. Immediate Actions:

   • Transfer assets to secure wallets if possible
   • Revoke permissions associated with the key
   • Notify relevant stakeholders

2. Investigation Steps:

   • Determine how the key was compromised
   • Review blockchain transactions for unauthorized activity
   • Assess impact on assets and systems

3. Recovery Actions:

   • Generate new keys using secure procedures
   • Update key management practices
   • Conduct security awareness training if needed

Smart Contract Exploit

1. Immediate Actions:

   • Pause contract functions if possible
   • Alert users and stakeholders
   • Implement circuit breaker if available

2. Investigation Steps:

   • Analyze the exploit and vulnerability
   • Assess impact on assets and users
   • Determine remediation options

3. Recovery Actions:

   • Deploy fixed contract
   • Implement recovery plan for affected assets
   • Update development and testing procedures

Containment, Eradication & Recovery Steps

General process for responding to security incidents regardless of type.

Containment

Limiting the impact and spread of the incident.

1. Immediate Containment: Taking urgent actions to stop the incident from spreading
2. Evidence Preservation: Capturing necessary information for investigation
3. Communication Control: Managing information flow about the incident
4. Stakeholder Notification: Informing those who need to know about the incident

Eradication

Removing the cause of the incident.

1. Root Cause Identification: Determining how the incident occurred
2. Threat Removal: Eliminating malware, vulnerabilities, or other causes
3. Verification: Ensuring the threat has been completely removed
4. Enhanced Monitoring: Implementing additional monitoring to detect reoccurrence

Recovery

Restoring systems and operations to normal.

1. Staged Restoration: Gradually restoring systems in order of priority
2. Security Validation: Verifying security controls before full restoration
3. Operational Verification: Ensuring systems function correctly
4. User Notification: Informing users when systems are restored

Web3-Specific Considerations

Incident response in Web3 environments requires additional considerations:

1. Immutability Challenges: Addressing the irreversible nature of blockchain transactions
2. Community Communication: Managing public disclosure in decentralized communities
3. Cross-Chain Impacts: Addressing incidents that affect multiple blockchains
4. Governance Activation: Utilizing governance mechanisms for incident response
5. Post-Incident Compensation: Developing approaches for making affected users whole

Documentation and Reporting

Maintaining appropriate records throughout the incident response process.

1. Incident Timeline: Documenting the sequence of events and actions taken
2. Evidence Collection: Preserving relevant logs, artifacts, and other evidence
3. Impact Assessment: Documenting the effects of the incident
4. Response Evaluation: Assessing the effectiveness of the response
5. Formal Reporting: Creating required reports for management, regulators, or others

Post-Incident Activities

Actions to take after an incident has been resolved.

1. Lessons Learned: Identifying what worked well and what could be improved
2. Control Updates: Implementing new or enhanced security controls
3. Procedure Refinement: Updating incident response procedures
4. Training Updates: Incorporating lessons into security training
5. Threat Intelligence Sharing: Contributing to community knowledge when appropriate

Effective incident response requires preparation, practice, and continuous improvement. By developing comprehensive playbooks and procedures, organizations can respond quickly and effectively to security incidents, minimizing their impact and facilitating rapid recovery.