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Colonial Pipeline ransomware hack and gas shortage fears: What you need to know

CNET logo CNET 11/05/2021 23:48:22 Andrew Morse
a close up of a sign: Colonial Pipeline was the target of a ransomware attack that forced it to shut down operations. Getty Images © Provided by CNETColonial Pipeline was the target of a ransomware attack that forced it to shut down operations. Getty Images

The weekend shutdown of a major US petroleum pipeline after a ransomware attack has highlighted the vulnerability of the country's critical infrastructure, which has been the target of an increasing number of cyberattacks. Colonial Pipeline, which operates the main gas artery along the East Coast, shut down the pipeline Friday after discovering ransomware on its computer systems. The FBI blamed the attack on a group called Darkside.

a building with a blue umbrella: Colonial Pipeline was the target of a ransomware attack that forced it to shut down operations. © Getty Images

Colonial Pipeline was the target of a ransomware attack that forced it to shut down operations.

The shutdown has affected the supply of gas in parts of the East Coast, with some people waiting an hour or more at filling stations

Here's what you need to know about the hack:

What happened?

Colonial Pipeline was hit with a ransomware attack. Bloomberg reported that the hackers began their attack on Thursday by stealing about 100 gigabytes of data as part of a double-extortion scheme. 

What's a ransomware attack?

Hackers use ransomware to grab a company's computer data, scramble it and hold it hostage until a ransom is paid. In a double-extortion scheme, the attackers also threaten to publish the pilfered data.

How did Colonial respond?

The company, which operates pipelines for gasoline, jet fuel and other refined petroleum products, halted pipeline operations after discovering the hack. In a statement, Colonial said it "proactively took certain systems offline to contain the threat, which has temporarily halted all pipeline operations, and affected some of our IT systems."

The company shut down the East Coast pipeline and said in a statement that it's aiming for "substantially restoring operational service by the end of the week."

Colonial services seven airports and operates in 14 states. Its system is the biggest in the US, the company says, covering more than 5,500 miles and carrying more than 100 million gallons of fuel per day. A legend on its company's tanks, featured on its website, reads, "America's Energy Lifeline."


Video: Cyber attack shuts down major U.S. fuel pipeline network (CBS News)

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Who's behind the attack?

The FBI blamed Darkside, a hacking group, for the attack. The law enforcement agency said it was notified of the hack on May 7 and is investigating alongside the company and other government agencies.

Cyberreason, a security company based in Boston, wrote that Darkside focuses on targets in English-speaking countries and avoids operations in former Soviet bloc countries. It sells its ransomware, a model known as ransomware as a service, and maintains a help desk for negotiations with victims, Cyberreason said.

How prevalent are ransomware attacks?

Unfortunately, they're pretty common. City governments around the country, including Baltimore's and Atlanta's, have been slammed by ransomware attacks. Hospitals have been shut down. (In one case, a patient died because she had to be taken to a hospital nearly 20 miles away from her initial destination, which was dealing with a cyberattack.)

Oftentimes, the victims pay to recover their data. Two cities in Florida -- Lake City and Riviera Beach -- together paid more than $1 million to unfreeze their systems. The cities paid in bitcoin, a popular cryptocurrency. 

What's been going on with concerns about a gas shortage?

A Department of Transportation agency posted a regional emergency declaration for 18 states and Washington, DC, "in response to the unanticipated shutdown of the Colonial pipeline system due to network issues that affect the supply of gasoline, diesel, jet fuel, and other refined petroleum products throughout the Affected States." The declaration is designed to keep the fuel supply on the East Coast flowing.

North Carolina, South Carolina and Virginia have also declared states of emergency.

Still, officials say there's no need to hoard gasoline, because the pipeline was expected to be back near normal at the end of the week.

Energy Secretary Jennifer Granholm acknowledged that some states might experience a supply crunch but said there was no need to rush to the pumps.

"We know that we have gasoline," Granholm said, according to US News and World Report. "We just have to get it to the right places."

South Carolina Gov. Henry McMaster tweeted a similar message to his state's citizens.

"There is no need to rush to top off your gas tanks or hoard gas," McMaster wrote, "the pipeline is expected to resume operations by the end of the week."

What about gas prices?

The shortage has caused an increase. The average price of gas jumped six cents, to $2.96, according to AAA

mercredi 12 mai 2021 02:48:22 Categories: CNET

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