CVE-2026-0963 is a critical security vulnerability classified under CWE-22 (Improper Limitation of a Pathname to a Restricted Directory, commonly known as path traversal) affecting Arcadia Technology, LLC's Crafty Controller product, specifically version 4.7.0. The vulnerability resides in the File Operations API Endpoint, where insufficient input validation allows an authenticated remote attacker to manipulate file path parameters. By exploiting this flaw, the attacker can traverse directories outside the intended restricted directory, enabling unauthorized file access, modification, or deletion. This can escalate to remote code execution (RCE) if the attacker replaces or tampers with executable files or scripts used by the system. The CVSS v3.1 score of 9.9 reflects the critical nature of this vulnerability, with an attack vector of network (AV:N), low attack complexity (AC:L), requiring privileges (PR:L) but no user interaction (UI:N). The scope is changed (S:C), indicating that exploitation affects resources beyond the initially vulnerable component. The impact on confidentiality and integrity is high, as sensitive files can be accessed or altered, and availability impact is low but present. No public exploits are known yet, but the severity and ease of exploitation make this a high-priority threat. The lack of available patches at the time of publication increases risk for affected users.

For European organizations, the impact of CVE-2026-0963 is significant, especially for those relying on Crafty Controller 4.7.0 in industrial automation, IoT, or critical infrastructure environments. Successful exploitation can lead to unauthorized disclosure of sensitive data, manipulation of configuration or operational files, and execution of arbitrary code, potentially disrupting operations or causing safety hazards. This could result in operational downtime, financial losses, regulatory penalties under GDPR if personal data is compromised, and reputational damage. The requirement for authentication means insider threats or compromised credentials could be leveraged, increasing risk in environments with weak access controls. The partial availability impact could affect service continuity, critical in manufacturing or energy sectors prevalent in Europe. The absence of known exploits does not reduce urgency, as the vulnerability’s characteristics make it a likely target for attackers once exploit code becomes available.

1. Immediately restrict access to the File Operations API Endpoint to only trusted and necessary users, employing network segmentation and firewall rules. 2. Enforce strong authentication and authorization controls, including multi-factor authentication, to reduce the risk of credential compromise. 3. Monitor and log all file operation requests and responses for unusual or unauthorized activity, enabling rapid detection of exploitation attempts. 4. Implement input validation and sanitization at the application layer to detect and block path traversal patterns if possible via WAF or custom rules. 5. Isolate the Crafty Controller environment to minimize lateral movement in case of compromise. 6. Engage with Arcadia Technology for patches or updates addressing this vulnerability and plan immediate deployment once available. 7. Conduct regular security audits and penetration testing focusing on API endpoints and file system access controls. 8. Educate users and administrators about the risks of credential theft and the importance of secure password practices. 9. Consider temporary compensating controls such as disabling the vulnerable API endpoint if feasible without disrupting critical operations.