Cyber-failure
Colonial Pipeline cyberattack reveals vulnerability of nation’s energy sector
WASHINGTON — After a cyberattack, the operator of a major U.S. fuel pipeline said Monday it hopes to have services mostly restored by the end of the week as the FBI and administration officials identified the culprits as a gang of criminal hackers.
Colonial Pipeline, which delivers about 45% of the fuel consumed on the East Coast, halted operations last week after revealing that a ransomware attack had affected some of its systems. On Monday, U.S. officials sought to ease concerns about price spikes or damage to the economy by stressing that the fuel supply had not been disrupted, and the company said it was working toward “substantially restoring operational service” by the weekend.
Nonetheless, the attack highlights the vulnerabilities of the nation’s energy sector and other critical industries whose infrastructure is largely privately owned. Ransomware attacks are typically carried out by criminal hackers who scramble data, paralyzing networks, and demand large payments to decrypt it.
The Colonial attack was a potent reminder of the real-world implications of the burgeoning threat. Even as the Biden administration works to confront organized hacking campaigns sponsored by foreign governments, it must still contend with difficult-to-prevent attacks from cybercriminals.
“We need to invest to safeguard our critical infrastructure,” President Joe Biden said Monday. Energy Secretary Jennifer Granholm said the attack “tells you how utterly vulnerable we are” to cyberattacks on U.S. infrastructure.
The attack came as the administration, still grappling with its response to massive breaches by Russia of federal agencies and private corporations, works on bolstering cybersecurity defenses. The Justice Department has formed a ransomware task force designed for situations such as Colonial Pipeline, and the Energy Department on April 20 announced a 100-day initiative focused on protecting energy infrastructure from cyber threats. Similar actions are planned for other critical industries, such as water and natural gas.
However, the challenge facing the government and the private sector remains immense.
In this case, the FBI revealed that the criminal syndicate whose ransomware was used in the attack is named DarkSide. Its members are Russian speakers and the syndicate’s malware is coded not to attack networks using Russian-language keyboards.
Anne Neuberger, White House deputy national security adviser for cyber and emerging technology, said at a briefing that the group has been on the FBI’s radar for months. She said its business model is to demand a ransom from victims and split the proceeds with the ransomware developers.