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Bypassing the Castle Walls: Tactical Exploitation of America's Vulnerable Grid

A recent Wall Street Journal Report has detailed how America’s utility grid was hacked. The Department of Homeland Security has named Russia as responsible for the overwhelmingly complex and threatening campaign.

The scheme targeted energy companies affiliated with the government and was carried out in a sophisticated manner by initially focusing on small firms within the utility supply chain.

Early techniques involved planting malware on the websites of online publications likely to be read by employees of companies within the energy sector. The hackers would lace the online publications with malicious content allowing them to steal usernames, passwords and infiltrate company systems.

A number of small firms fell victim to these tactics giving the hackers broad access to company networks. Fake emails were subsequently sent out on behalf of the affected firms containing forged and malicious Dropbox links which captured usernames, passwords and other credentials. Further they used fake personas to send emails and pretended to be job seekers, by sending resumes containing tainted attachments to energy companies.

The hackers continued this technique of sending malware emails on behalf of firms until they reached the top of the supply chain. It was reported that on at least 8 occasions the hackers infiltrated companies who had access to the industrial control systems that run the grid.

An alarming aspect was the number of affected companies that remained oblivious of the penetration. The report is a useful description of the variety of methods used to tempt employees to expose their credentials. All too easy to do. These same techniques are regularly used by more pedestrian hackers. Two factor authentication and regular password resets remain measures to limit these threats but so many organisations do not use them.

We repeatedly counsel that employees are the last line of defence for your organisation. Circulating the Report may make an interesting read to remind them of the variety of ways they can be seduced to click an incorrect link.

Max Evans and Wendy Mansell contributed to this piece.

Copyright 2019 K & L Gates

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About this Author

Cameron Abbott, Technology, Attorney, Australia, corporate, KL Gates Law Firm
Partner

Mr. Abbott is a corporate lawyer who focuses on technology, telecommunications and broadcasting transactions. He assists corporations and vendors in managing their technology requirements and contracts, particularly large outsourcing and technology procurements issues including licensing terms for SAP and Oracle and major system integration transactions.

Mr. Abbott partners with his clients to ensure market leading solutions are implemented in to their businesses. He concentrates on managing and negotiating complex technology solutions, which...

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