Why Energy Suppliers Need Good Cyber Security
The numerous difficulties faced by the energy sector are a result of cybercriminals and hackers who are constantly looking for ways to exploit weak points in network security and infrastructure. According to a recent IBM Security Report, 24% of all recorded cyberattacks were directed towards the UK’s energy sector. Due to the vulnerability of the national electrical grids, anything might collapse at any time, and cyber attacks on infrastructure and systems could be deadly.
These cyber-threats have the potential to substantially impair supply, distribution, and manufacturing chains for energy. Energy providers have been urged by the National Cyber Security Centre (NCSC) to make proactive investments in strong cybersecurity solutions rather than waiting for cyberattacks to occur. This article examines the cyber threats affecting the energy business and why energy suppliers require the finest cyber hygiene because the costs of cyberattacks may eventually be passed on to customers.
Cyber Security’s Importance in the Energy Sector
Cybersecurity is crucial to the energy sector because of how crucial its infrastructure is, particularly its power grids, pipelines, and other power systems. These systems are extremely vulnerable to cyber attacks, which can result in long-lasting power outages, data breaches, ransomware attacks, weak points in the supply chain, and environmental dangers.
Due to the rising digitization of corporate processes, commercial energy suppliers have started incorporating cybersecurity measures. Both proactive and reactive tactics are included in cybersecurity initiatives.
Top Cyber Threats for the Energy Sector
System access is prevented by the use of firewalls, intrusion detection systems, and more stringent security measures. The process of responding to cyber incidents must also include the identification and mitigation of cyber threats that could jeopardize the integrity of systems.
1. Ransomware Attack
Energy-related cyberattacks have been prevalent for a while. The following cyber risks must be recognised and stopped in their tracks, thus the sector must be watchful and take advantage of technological advancements.
Attacks using ransomware pose a significant risk to the energy industry. An energy organization’s operations may be disrupted by a ransomware attack, and fixing the problem can be expensive. The implications of a ransomware assault on the systems of an energy provider might be catastrophic for every industry and household. The organization’s reputation could suffer from a lack of an incident response plan.
An illustration of a recent ransomware assault led to the payment of $4.4 million to the DarkSide, an unnamed organisation. The Colonial Pipeline system in the US was temporarily shut down as a result of this incident. In addition to the attack’s immediate costs, the aftermath resulted in petrol shortages and widespread public fear.
2. Supply Chain Attacks
A supply chain assault occurs when hackers gain access to a company’s network via a supplier or vendor from another firm. They gain access to confidential information including customer and payment details by using viruses or harmful software. It is challenging to track the attack due to the intricacy of supply chain data breaches.
The SolarWinds supply chain attack in 2021 served as a wake-up call for governmental agencies and the global energy business. Unauthorised users gained access to SolarWinds’ network and used the Orion software to break into private computers all across the world. This security breach was caused by unauthorised individuals. Companies in the US and the UK had setbacks as a result of this attack, suffering yearly revenue losses of 14% and 8%, respectively.
3. IAM Inefficiencies
Identity and access management (IAM), a critical security function, is in charge of regulating access to sensitive data and systems. Technology improvements allow hackers to execute more complex attacks even though they shield systems from harmful activities. Unfortunately, by failing to promptly find and address system problems, many firms expose themselves to devastating breaches.
In Ukraine, malware attacks on power grids occurred in 2015 and 2016. The hackers attempted to take down the systems that control the grid in addition to simply cutting off the power. It would have been harder to swiftly restore power if this had happened. There were massive power disruptions as a result, which directly affected human life.
The incident demonstrated the potential outcomes of inadequate IAM in critical infrastructure. It stressed the importance of putting in place robust security measures to protect crucial systems.
4. Device Phishing
Mobile phishing assaults against workers in the energy sector increased by 161% in 2020 and 2021. All businesses are impacted by brittle and outmoded technology, but the energy sector is the most vulnerable. These assaults on workers in the energy sector are carried out to compromise business security, steal sensitive data, and extort money. Energy businesses should educate staff members about the hazards and how to spot phishing emails and text messages to battle mobile device phishing assaults to prevent a cyber attack of this kind. Another option to control mobile device usage is to implement security measures like mobile device management.
Conclusion
Every industry faces a serious threat from cyberattacks, but critical infrastructure organisations like those in the energy sector are particularly at risk. To avoid the devastating effects of a cyber assault, energy suppliers and providers should make efforts to identify and manage potential cyber threats. Good cybersecurity practices can defend their security and commercial operations to a great extent, ensuring improved business continuity and little reputational damage.
