Ransomware Recovery &
FTC Audit Remediation
After a ransomware attack and a failed FTC audit, this Dallas RIA had lost trust in its incumbent IT provider. Katalism remediated persistent compromises, modernized their infrastructure, and delivered the evidence required to pass the FTC audit.
Client type
Employees
Location
FTC audit result
The Challenge
Persistent compromises, failed audit, broken trust
Active compromise
Several workstations and servers remained compromised months after the ransomware event.
Email risk
Inconsistent email controls left the firm vulnerable to phishing and business email compromise.
Outdated identity infrastructure
Aging Domain Controller and legacy group policies increased exposure across the environment.
Regulatory failure
The firm had failed an FTC audit and required documented remediation to demonstrate compliance.
Loss of trust
Leadership needed a transparent, proven partner to fully remediate and prevent recurrence.
Our Solution
Full remediation, modernization, and compliance
Emergency remediation & containment
Isolated, imaged, and rebuilt infected endpoints; removed persistent threats and performed firm-wide compromise sweeps.
Email & identity hardening
Implemented DMARC/SPF/DKIM, anti-phishing rules, and quarantine policies. Migrated all users to Microsoft Entra with enforced MFA and modern authentication. Migrated mailboxes to Office 365 with tightened tenant security.
Infrastructure modernization
Replaced and modernized the Domain Controller and Group Policy baseline. Deployed EDR across endpoints and standardized patching and configuration baselines.
Compliance remediation & process
Drafted and implemented company policies and evidence artifacts — incident response, access reviews, vendor management — required for FTC compliance. Conducted pre-audit validation and delivered the evidence package used to satisfy the regulator.
Rebuilding trust
Provided weekly executive summaries, role-based reporting, and a remediation tracker so leadership could follow progress and sign off at every stage.
Implementation Highlights
What we delivered
Full firm migration to Microsoft Entra + Office 365 with conditional access and MFA for all 32 users
Email security stack configured to quarantine phishing & spoofing with strict domain authentication
Domain Controller replaced; legacy and insecure policies removed; privileged access minimized
EDR deployed across the estate and compromised machines rebuilt where required
Compliance pack created and used to demonstrate corrective controls to the FTC auditor
Before & After
Before Katalism
- Active ransomware compromise on multiple systems
- No DMARC, SPF, or DKIM enforcement
- Aging Domain Controller with legacy group policies
- Failed FTC Safeguards audit
- No incident response plan or compliance documentation
- No endpoint detection and response (EDR)
After Katalism
- All compromises removed; systems rebuilt and secured
- Full DMARC/SPF/DKIM with anti-phishing quarantine
- Modern Domain Controller with hardened group policies
- Passed FTC Safeguards audit
- Complete policy library and compliance evidence package
- EDR deployed across all endpoints with 24/7 monitoring
Outcomes
Measurable results
Regulatory
Firm successfully passed the subsequent FTC audit after remediation.
Security posture
All known compromises removed; centralized identity and enforced MFA implemented firm-wide.
Email security
Marked reduction in phishing exposure and credential risk following email hardening.
Operations & trust
Executive leadership regained confidence; documented processes established for ongoing compliance and incident response.
"Katalism cleaned up the attack, rebuilt our security posture, and gave us a compliance program we can finally trust. Their team was transparent and practical — they didn't just patch things, they helped us stop the problems from coming back."
Frequently Asked Questions
How quickly can Katalism respond to an active ransomware incident?
We begin triage within 15 minutes of engagement. For this client, our team isolated compromised systems, preserved forensic evidence, and began remediation within the first business day.
Can Katalism help us pass an FTC audit after a prior failure?
Yes. We build the policies, technical controls, and evidence packages required by the FTC Safeguards Rule. This client passed their subsequent FTC audit after our remediation program.
Do you handle Microsoft Entra and Office 365 migrations as part of remediation?
Yes. Identity and email infrastructure are often the highest-priority targets after a breach. We migrate, harden, and monitor these systems as part of our remediation and ongoing managed services.
Facing a Similar Challenge?
Whether you're recovering from an incident or preparing for a compliance audit, we can help. Schedule a meeting to discuss your situation.