Scarinci Hollenbeck, LLC
The Firm
201-896-4100 info@sh-law.comFirm Insights
Author: Scarinci Hollenbeck, LLC
Date: January 20, 2016
The Firm
201-896-4100 info@sh-law.comTheir failure would cause significant social disruption. They are the soft underbelly of our modern world. For example, Stuxnet exploited a Siemens industrial controller not designed to withstand cyber attack. In another case, original, 1960’s 8 inch, floppy disks control parts of the launch systems for U.S. nuclear missiles.[1] Indeed, most homes still have traditional circuit breakers.
The first known instance of malware causing a disruption in major electrical service took place on December 23, 2015 in Ukraine. At least three regional substations were disconnected from the grid. While not in the U.S., the Ukrainian methods and apparatuses for delivering electricity to the end-user are not significantly different. In all, around 700,000 homes lost power as a result of this attack.
The cyber attack happened when many Ukrainian power stations became infected by the malware package “BlackEnergy.” The package’s original purpose was to spy on various business groups, such as media organizations, power companies, and telecoms. However, the malware used in this attack contained several important upgrades to its functionality—most notably: making the infected machine unbootable, wiping all data on the infected machine, and backdooring a secure shell (SSH) utility, which gave the attackers permanent access to the infected machines. Researchers suspect that the attackers used the SSH to gain access to the systems and shut them down. Meanwhile, the program wiped all the data on the systems, making their recovery much more lengthy and difficult. Finally, the attackers waged denial-of-service attacks (DDoS) on the target’s internet and phones systems to prevent power company personnel from learning about the outages.
In the past, this group has spied on NATO, Eastern European agencies, and European commercial and industrial groups. Research suggests that the group operates from Russia, although confirmation has been slippery, and even if they did operate from Russia, it is not clear who is directing them. Whoever this group is though, they possess enough sophistication to run a three pronged attack: shutting down electric service, wiping data on the system computers, and coordinating a DDoS attack on internet and phone systems. No one of these three prongs is necessarily a difficult attack. However, the coordination of all three indicates that, without hyper-sophisticated malware, attackers can use a variety of low-sophistication attacks in tandem to produce a high-level result.
The infection most likely, although not confirmed, occurred through Microsoft Word macros. These sorts of attacks are considered “social engineering” attacks, which rely on duping an end-user into installing malware or taking an action they otherwise would not and should not take. This particular kind is simple and insidious. For example, the end-user receives an email from his boss saying to review the attached document ASAP. The email looks legitimate, and not wanting to disappoint the boss, the user opens the attachment. As the Word document opens, it runs a macro that installs the malicious software, unbeknownst to the end-user.
Despite experts’ warnings, attacks on these sorts of systems have been rare and usually done only for specific discrete reasons. However, with the now real threat that these attacks could become more widespread and more frequent, we will have to acknowledge that any device with a computer connected to a system, must be secured and monitored for cyber-attack.
[1] Oddly enough, this is currently a pretty secure way to operate these missiles as the technology is so old that it is impervious to the advancements in cyber attack software. However, once someone does develop an exploit, the whole system will need to change.
Related Article:
Cyber Insecurity: The Dark Web
The Quantum Computer And The Obsolence of Current Encryption
What Is Cyber Security? It Starts With Cryptology
Cyber Insecurity: Ashley Madison Encrypted Passwords Cracked.
Survey Reveals Many Business Executives Lack Cybersecurity Confidence
Top Cybersecurity Threats Unveiled by Hackers – Is Anyone Safe?
Additional information and resources:
Cyber Security And Data Protection Group
Intellectual Property And Technology
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Secured transactions form the backbone of a wide range of business dealings, including business loans, mortgages, and inventory financing. Because the stakes are often high and relatively minor oversights can have drastic consequences, lenders and borrowers should thoroughly understand how to form an enforceable security agreement that protects their legal rights. What Is a Secured […]
Author: Dan Brecher
Cashing a check marked “paid in full” can be a risky endeavor, particularly if you don’t fully understanding the legal implications. If you are owed more than the amount of the check you accept and deposit, you may waive your right to collect the full disputed amount. That is why you should consider either rejecting […]
Author: Dan Brecher
The One Big Beautiful Bill Act of 2025 (OBBBA) significantly impacts federal taxes, credits, and deductions. A key change relating to Qualified Small Business Stock (QSBS) allows greater tax-free gains for investments in startups and other qualifying small businesses. Company founders and other investors should understand how the enhanced tax strategy works or risk missing […]
Author: Dan Brecher
Corporate consolidation involves two or more businesses merging to become a single larger entity. The result is often a stronger and more competitive company that can better navigate today’s competitive marketplace. What Is Corporate Consolidation? Corporate consolidation closely resembles a basic merger transaction. The primary difference is that a consolidation creates an entirely new business […]
Author: Dan Brecher
Business law plays a critical role in nearly every aspect of running a successful enterprise, from negotiating a commercial lease to drafting employee policies to fulfilling corporate disclosure obligations. Understanding what is business law and your legal obligations can help your business run smoothly and build productive relationships with clients, business partners, regulators, and others. […]
Author: Dan Brecher
Corporate transactions can have significant implications for a corporation and its stakeholders. For deals to be successful, companies must act strategically to maximize value and minimize risk. It is also important to fully understand the legal and financial ramifications of corporate transactions, both in the near and long term. Understanding Corporate Transactions The term “corporate […]
Author: Dan Brecher
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!