The cyberattack that forced the closure of the largest fuel pipeline on the East Coast of the United States has raised new questions about the vulnerability of the country’s critical infrastructure to cyberattacks.
Illustration. The breach at Alpharetta, Georgia-based Colonial Pipeline is the latest in a series of cybersecurity incidents confronting the administration of President Joe Biden – as well as a striking reminder that many companies Operators of the nation’s most basic infrastructure, from dams to power plants, are still unprepared to deal with the threats posed by toxic numbers. Here’s a summary of how a criminal gang managed to get into Colonial’s systems and why the tool they use – ransomware – is such a persistent threat. How can a hacker shut down a pipeline? On May 7, Colonial Pipeline said it learned that hackers had infected their computer networks with ransomware, malicious code used to take control of computers and extract payments from victims. The breach affected Colonial’s business network, which it uses for tasks like payroll management and data reporting to regulators. Colonial disabled those systems, but it also turned off the much more sensitive technology running its pipeline operations — a precaution meant to prevent hackers from accessing it if they hadn’t already. These systems monitor air flow for impurities and leaks, control power levels, and perform other automated tasks to keep pipelines running smoothly. What exactly was closed? Colonial shut down its entire main pipeline, more than 5,500 miles long from Houston, Texas, to Linden, New Jersey. The pipeline transports 45% of gasoline, jet fuel and diesel to the US East Coast, according to the company. The short-lived outage sent wholesale gas prices up on financial markets in the affected region, but that rally cooled slightly during trading on May 10. And while some gasoline retailers may try to add a few cents a gallon to the price at the pump, there have been no reports of shortages at suppliers serving those retail points. Market analysts say the pipeline shutdown will need to last through at least the middle of the week to start affecting supply in some parts of the Southeast, and Houston’s refineries won’t start. reduce production unless Colonial shuts down until next week. Overall, the US is stockpiling 235 million barrels of gasoline, enough to supply the whole country for nearly a month. However, retail gasoline prices have risen steadily in recent weeks and any anxiety could accelerate gains as the country approaches Memorial Day weekend, which the industry considers is the beginning of the “summer driving season” in high demand. How bad could this be? It depends on whether the outage turns into a protracted crisis for Colonial’s customers, which include busy airports and US military bases. Some customers can buy fuel from foreign suppliers, but they will face more financial pressure as Colonial’s pipeline network remains offline. Colonial said on May 10 that it has begun reactivating segments of the pipeline and anticipates “significantly restoring operational service by the end of the week”. However, they did not explain what “basically” means and did provide some other details about the attack investigation. What is Ransomware? Ransomware is software that hackers deploy to lock down victims’ data so they can’t access or use it – in the worst case scenario, essentially shutting down an entire company or government office. The hacker then demands a ransom in exchange for providing a digital key to unlock the files. Over the past few years, ransomware has grown from an occasional nuisance to a ubiquitous threat. Victims include the hospital system, the school district and the DC police department, as well as many small businesses. According to the FBI report, ransomware attacks increased by 37% from 2018-2019 and 20% from 2019-2020. According to one report, the pandemic has led to a significant increase in ransomware, with the number of attacks Attacks more than doubled year-on-year, with a particularly large increase in the healthcare sector. The Department of Justice recently launched a task force to explore new solutions to the problem. But in the meantime, the problem continues to get worse as criminal motives grow. Why aren’t pipelines and power plants better protected against ransomware? The private companies that operate much of America’s critical infrastructure — power plants, dams, natural gas pipelines, and other critical facilities — often neglect to implement safety protocols. government-recommended cybersecurity. While protecting against foreign government hackers sometimes requires complex technology that small critical infrastructure operators cannot afford, protecting against ransomware is are not. Use strong passwords, train employees not to click on suspicious links, and require employees to use multi-factor authentication – which involves entering a randomly generated number after entering one’s password – can prevent all but the most advanced types of hacks, including ransomware. Despite years of warnings from government officials and cybersecurity experts, most companies outside of the highly regulated financial sector have not taken many of these steps. And even organizations that try to take cybersecurity seriously can be covered by small holes. A long-neglected office worker or old computer in a closet is often the weak link that opens an organization’s doors to hackers. With so many companies leaving themselves with easy targets, many cybercriminals have started using ransomware to make money. By choosing victims they know there can be no downtime, these criminals virtually guarantee themselves an easy profit. Additionally, many ransomware operators have begun exploiting a secondary source of profit: reselling stolen data on the dark web, where sensitive personal information can fetch huge sums. Between victims and hackers is a burgeoning crypto ecosystem, consisting of unscrupulous payment facilitators ready to handle ransom transactions and rock wall law enforcement. How often do victims pay the ransom? The US government discourages ransomware victims from paying attackers to regain access to their data. While some ransomware operators honor their agreements and unlock victims’ files to foster trust and increase their chances of receiving a future ransom, many of these criminals simply take the money and disappear. Paying the ransom also encourages cybercriminals to continue their attacks. Anne Neuberger, deputy national security adviser for cyber and emerging technologies, said: “We recognize that victims of cyberattacks often face very difficult situations and they must balance the cost-benefit when there is no other option about paying the ransom,” – told reporters on May 10 In the US, it is not illegal to pay a ransom to regain access to locked data. However, it is illegal to pay ransoms to entities on the Treasury’s sanctions list, and the Treasury Department has warned companies that assist ransomware victims to conduct due diligence on hackers. before making payment arrangements. DarkSide, what is the group behind the attack? The FBI has confirmed that the Colonial Pipeline hack was the work of the DarkSide ransomware gang. This group is a relatively newcomer to the ransomware ecosystem, but they are already well known for their professionalism, patience, and large ransom demand. Security firm Cybereason wrote in a report last month: “The team has a phone number and even a help desk to facilitate negotiations with the victim, and they are putting a lot of effort into gathering information. about their victims – not just technical information about their environment, but more general information about the company itself, like the size of the organization and estimated revenue.” DarkSide is based in Russia, but so far the US has said it does not believe the hackers acted on behalf of the government of Russian President Vladimir Putin. Mr. Biden said on the afternoon of May 10: “To date, there is no evidence … from our intelligence people that Russia is involved. However, he added: “There is evidence that the actor’s ransomware is in Russia. They have some responsibility to deal with this.” Like other ransomware gangs, DarkSide operates on a so-called “ransomware-as-a-service” model, in which it provides code to less sophisticated hackers and helps them carry out attacks enter in exchange for their share of the profits. After being closely watched by the Colonial Pipeline attack, DarkSide seems to be rethinking this model. On May 10, a purported statement from the DarkSide hackers announced the group’s intention to scrutinize the partners’ planned attacks in the future to “avoid social consequences.” festival”. “Our goal is to make money, and not create problems for society.” What is the US government doing with this attack? The White House has established a working group that includes the Department of Homeland Security’s Cybersecurity and Infrastructure Agency; The Department of Transport’s Pipeline and Hazardous Materials Safety Administration; FBI; and the Departments of Energy, Treasury and Defense. These agencies are working together to prepare for various scenarios should the pipeline remain shut, including planning for shortages and higher gas prices. In addition, the Department of Transportation waives regulations that limit the driving time without rest of fuel trucks in 17 states and Washington DC. That could make it easier to deliver to customers due to Colonial’s closure.
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