What is Incident Response?
Incident response is the organized process of detecting, analyzing, containing, and recovering from security incidents — including established procedures for when an AI agent wallet is compromised, an agent behaves unexpectedly, or spending controls are breached.
WHY IT MATTERS
When an agent wallet is compromised, every second counts. Crypto transactions are irreversible — funds drained are funds lost. A well-prepared incident response plan is the difference between losing $1,000 and losing everything.
Agent-specific incident response includes: immediate agent shutdown (kill switch), wallet freeze (revoke all approvals, rotate keys), impact assessment (how much was lost, what was compromised), root cause analysis (how did the compromise happen), and recovery (fund new wallets, redeploy with fixes).
The most critical element is speed of detection. If your monitoring alerts you within minutes of anomalous behavior, you can contain the damage. If you discover the compromise hours later, the wallet may already be drained.
HOW POLICYLAYER USES THIS
PolicyLayer enables instant incident response for agent wallets. Spending can be frozen immediately through a kill switch, all agent transactions can be paused fleet-wide, and detailed audit logs support rapid root cause analysis.