Examining the cybersecurity landscape of utilities and control systems

Image Credits: BeeBright / Shutterstock

According to a federal indictment announced March 24, 2016, seven attackers with links to the Iranian government executed cyberattacks against dozens of banks from 2011 to 2013 that disabled their websites and interfered with hundreds of thousands of customers’ ability to access their online accounts.

Public announcements of cyber incidents against the financial system allegedly carried out by foreign actors are undoubtedly areas for concern. However, this announcement included an unusual twist that warrants potentially even greater worry: The attackers also targeted a small dam near New York City.

One of the alleged attackers is accused of repeatedly gaining access to the control system of the Bowman Avenue Dam, a small flood-control structure in Rye Brook, about 20 miles north of New York City, through a cable modem.

According to government officials’ disclosure, the attacker was able to obtain information about the dam’s operations, including its water level, temperature and sluice gate, and could have sent water pouring into the city of Rye if the gate had not been disconnected for maintenance when the intrusion occurred. Though it’s one of the lesser-known of the 75,000 dams in the United States, a successful cyberattack on the dam could have threatened a neighborhood of more than 200 residents, where 3,000- to 5,500-square foot homes sell for more than $1 million.

The Bowman Avenue Dam incident illustrates a growing and disturbing reality: While online breaches such as Target, Home Depot, the IRS, the U.S. Office of Personnel Management, Staples and Healthcare.gov have grabbed the spotlight the last few years, and understandably so, attackers are extending the threat from the online and virtual to the physical world, in which damage could be even more severe.

Recent history is painfully demonstrating to us that hypothetical attack scenarios are now today’s breach victims.

It is important to understand Bowman was not the first cyberattack on critical infrastructure, and it is unlikely to be the last, with other utilities and key infrastructure operators as potential targets. The following are other recent examples:

Utilities and other industries such as manufacturing and transportation rely on an automated system known as SCADA (supervisory control and data acquisition) to control processes and equipment from remote locations. These SCADA systems tend to be older systems that weren’t built with the authentication and encryption technologies that have become standard in today’s internet-connected systems.

Given the known vulnerabilities, SCADA operators typically work to sever or limit connections between these systems and the outside world. In many cases these separations are effective; however, recent attacks have shown that vulnerabilities do indeed exist and are being exploited.

The risk to energy and other public services worldwide, including in the U.S., will be greater accentuated as more control systems are modernized and brought online. As companies embrace smart grids, which harness a new generation of sensors, wireless technology and software applications to manage the grid and energy usage, the attack surface and system complexity will only increase.

The industry is starting to take notice. After the Ukraine attack, a quasi-governmental U.S. electric industry group — the Electricity Information Sharing and Analysis Center, or E-ISAC — urged members to review network defenses and do a better job implementing multiple layers of defense against potential cyberattacks.

In July, the Federal Energy Regulatory Commission pushed for utilities to do more to thwart cyber intruders. FERC said it wanted the North American Electric Reliability Corp., the nonprofit that oversees the power grid in the U.S., Canada and part of Mexico, to develop new security standards.

Another government entity, the Office of Electricity Delivery and Energy Reliability, says it has been working closely with the Department of Homeland Security, industry and other government agencies to reduce the risk of energy disruptions caused by cyberattack.

The increased awareness and regulatory action are all positive steps toward progress. However, much of the responsibility will fall on the individual utilities to implement and execute sound cybersecurity programs. Recent history is painfully demonstrating to us that hypothetical attack scenarios are now today’s breach victims.

Latest Stories