Securing Electrical Project Firms Against Cyber Threats – A Case Study of JNT TEK’s Incident Response and Cybersecurity Overhaul

Executive Summary

Cybersecurity is a growing concern for all industries, including those involved in large-scale projects for municipal clients. One such company, specializing in electrical projects for the city, experienced a devastating email phishing attack that resulted in a $400,000 loss due to a fraudulent wire transfer. This whitepaper details how JNT TEK, a managed services provider (MSP), assisted the company in recovering from the attack, implementing critical security enhancements, and ensuring protection against future threats.

JNT TEK's response included immediate mitigation of the phishing attack, migration to Microsoft Azure, deployment of Security Operations Center (SOC) services, endpoint detection and response (EDR), security awareness training, and a comprehensive backup and disaster recovery plan. This case study highlights how a strong cybersecurity framework can safeguard against financial losses, protect sensitive data, and enable business continuity.

Introduction

The client, a prominent electrical contracting firm that handles large-scale projects for city governments, was the victim of a sophisticated email phishing attack. The company's reliance on email communication for client transactions, particularly wire transfers, made it an easy target for cybercriminals.

The attack led to a fraudulent wire transfer of over $400,000 to an unauthorized account. Despite their best efforts to recover the funds, the company was required to pay 50% of the loss, exposing the firm to significant financial risk. This case study explores how JNT TEK assisted the company in recovering from the incident and establishing a robust cybersecurity strategy to protect against future attacks.

The Cybersecurity Incident: Phishing Attack and Financial Loss

Background

The company's primary communication method with clients, including large governmental entities, was email. In this instance, the attackers used a well-crafted phishing email that appeared to be from a trusted client. The email contained a request for a routine payment, including banking details that had been altered to direct funds to an illegitimate account.

The client, unaware of the fraudulent nature of the request, processed the payment, which led to a loss of over $400,000. The attack exposed the vulnerability of the company's email systems, as well as a lack of internal security measures to detect and prevent such fraud.

Immediate Consequences

• Financial Impact: The company faced a direct financial loss of $400,000. Although they recovered 50% of the funds, the financial strain on the business was significant.

• Reputation Damage: The incident also had the potential to harm the company's reputation, particularly given their work with public sector clients.

• Operational Disruption: Following the attack, the company faced difficulties in resuming business operations and addressing the breach's aftermath.
  
  

The firm's existing IT infrastructure lacked robust cybersecurity defenses, and the internal IT team was overwhelmed by the complexity of responding to the attack. Recognizing the need for expert assistance, the company partnered with JNT TEK to address the immediate threat and implement a long-term cybersecurity strategy.

JNT TEK's Response: Incident Mitigation and Recovery

JNT TEK acted quickly to address the phishing attack's fallout and implemented a multi-faceted approach to secure the client's systems. The following steps were taken to mitigate the impact and ensure future protection:

Incident Mitigation: Phishing Attack Recovery

1. Incident Response and Forensics: JNT TEK conducted a full forensic investigation to determine how the attackers had infiltrated the system and traced the fraudulent wire transfer.

2. Client Communication: JNT TEK worked with the company to inform and cooperate with the affected clients and stakeholders, providing transparency and reassurance during the recovery process.

3. Credential Reset and Email Security: The company's email accounts were immediately secured by resetting passwords, implementing multi-factor authentication (MFA), and enhancing email filtering systems to block malicious content in the future.
   
   
   

Cloud Migration and Infrastructure Overhaul

Recognizing the need for scalable and secure operations, JNT TEK migrated the company's critical systems to Microsoft Azure, which offered several key advantages:

• Scalability: Azure's cloud environment allowed for seamless scaling of the company's systems to meet growing demand and future-proof their IT infrastructure.

• Built-in Security: Azure's built-in security features, such as network security, encryption, and identity management, provided a foundation for a more secure IT environment.

• Business Continuity: Azure's disaster recovery and backup capabilities ensured that critical data and systems could be restored in the event of another breach or failure.
  
  
  

SOC Services and Advanced Threat Detection

JNT TEK implemented a Security Operations Center (SOC) to provide the company with 24/7 monitoring and incident response capabilities. The key benefits of the SOC include:

• Real-Time Threat Detection: Continuous monitoring of all network traffic, systems, and endpoints to identify suspicious activity and potential breaches.

• Rapid Response: In the event of a security incident, the SOC team can quickly respond to isolate and contain threats, minimizing downtime and damage.

• Proactive Threat Intelligence: The SOC leverages advanced threat intelligence to stay ahead of emerging threats and vulnerabilities, ensuring that the company is always protected against the latest cyberattacks.
  
  
  

Endpoint Detection and Response (EDR)

JNT TEK deployed a comprehensive Endpoint Detection and Response (EDR) solution across the company's devices. This solution provided:

• Continuous Endpoint Monitoring: EDR solutions monitor endpoints (computers, mobile devices, etc.) for any signs of compromise or malicious activity.

• Automated Remediation: EDR tools automatically isolate and remediate infected devices, preventing lateral movement of malware or unauthorized access to sensitive systems.

• Threat Hunting and Analysis: The EDR system empowers JNT TEK's security team to proactively hunt for hidden threats and anomalies within the company's network.
  
  
  

Security Awareness Training for Employees

Human error is often the weakest link in cybersecurity, which is why JNT TEK implemented a comprehensive security awareness training program for the company's staff. This training included:

• Phishing Awareness: Employees learned to identify phishing attempts, including how to spot suspicious emails, verify sender information, and handle requests for financial transactions.

• Social Engineering: Training on common social engineering tactics, such as pretexting and baiting, helped employees understand how attackers might manipulate them into giving up sensitive information.

• Best Practices: Employees were educated on password security, multi-factor authentication, and other cybersecurity best practices to help prevent future incidents.
  
  
  

Advanced Email Filtering

To prevent future phishing attacks and other email-based threats, JNT TEK deployed an advanced email filtering system. This system included:

• Phishing Detection: Automated tools that analyze incoming emails for signs of phishing, such as fraudulent sender addresses or suspicious links.

• Spam and Malware Filtering: Emails containing malware attachments or harmful links were blocked before reaching employees' inboxes.

• DMARC, SPF, and DKIM Implementation: Domain-based email authentication standards (DMARC, SPF, DKIM) were implemented to ensure that only authorized senders could send emails on behalf of the company's domains.
  
  
  

Backup and Disaster Recovery Plan

JNT TEK implemented a comprehensive backup and disaster recovery plan, ensuring that the company's critical data could be quickly restored in case of any future incidents. The plan included:

• Automated Backups: Critical business data and systems were backed up regularly to secure, offsite locations.

• Rapid Data Recovery: A well-defined process for restoring systems and data from backups in the event of a data loss or system failure.

• Redundancy: Backup systems were deployed across geographically distributed locations, ensuring that data could be recovered even in the event of a local disaster.
  
  
  

Comprehensive Security Suite

Finally, JNT TEK implemented a full suite of security measures to further protect the company from future cyber threats, including:

• Firewalls and Intrusion Prevention Systems (IPS): Advanced firewalls and intrusion prevention systems were installed to block unauthorized access and malicious traffic.

• Multi-Factor Authentication (MFA): MFA was rolled out across all critical systems, adding an additional layer of security to prevent unauthorized access.

• Compliance and Regulatory Standards: JNT TEK ensured that the company's security framework adhered to relevant industry regulations and compliance requirements, such as NIST and GDPR.
  
  

Results and Outcomes

Financial Protection