HACK ATTACK HALTS MAJOR U.S. PIPELINE
Ransomware strike underscores vulnerability of critical infrastructure
WASHINGTON — The operator of a major pipeline system that transports fuel across the East Coast said Saturday it had been victimized by a ransomware attack and had halted all pipeline operations to deal with the threat. The attack is unlikely to affect gasoline supply and prices unless it leads to a prolonged shutdown of the pipeline, experts said.
Colonial Pipeline did not say what was demanded or who made the demand. Ransomware attacks are typically carried out by criminal hackers who scramble data, paralyzing victim networks, and demand a large payment to decrypt it.
The attack on the company, which says it delivers roughly 45% of fuel consumed on the East Coast, underscores again the vulnerabilities of critical infrastructure to damaging cyberattacks that threaten to impede operations. It presents a new challenge for an administration still dealing with its response to major hacks from months ago, including a massive breach of government agencies and corporations for which the U.S. sanctioned Russia last month.
In this case, Colonial Pipeline said the ransomware attack Friday affected some of its information technology systems and that the company moved “proactively” to take certain systems offline, halting pipeline operations.
The Alpharetta, Georgia-based company transports gasoline, diesel, jet fuel and home heating oil from refineries located on the Gulf Coast through pipelines running from Texas to New Jersey. Its pipeline system spans more than 5,500 miles, transporting more than 100 million gallon a day.
Oil analyst Andy Lipow said the impact of the attack on fuel supplies and prices depends on how long the pipeline is down. An outage of one day or two would be minimal, he said, but an outage of five or six days could cause shortages and price hikes, particularly in an area stretching from central Alabama to the Washington, D.C., region.
Lipow said a key concern about a lengthy delay would be the supply of jet fuel needed to keep major airports operating, like those in Atlanta and Charlotte, North Carolina.
While there have long been fears about U.S. adversaries disrupting American energy suppliers, ransomware attacks by criminal syndicates are much more common and have been soaring lately. The Justice Department has a new task force dedicated to countering ransomware attacks.
Ransomware scrambles a victim organization’s data with encryption. The criminals leave instructions on infected computers for how to negotiate ransom payments and, once paid, provide software decryption keys.
The attacks, mostly by criminal syndicates operating out of Russia and other safe havens, reached epidemic proportions last year, costing hospitals, medical researchers private businesses, state and local governments and schools tens of billions of dollars.
Average ransoms paid in the United States jumped nearly threefold to more than $310,000 last year.