Scarinci Hollenbeck, LLC, LLCScarinci Hollenbeck, LLC, LLC

Firm Insights

The First Successful Cyber Attack on an Electrical Grid

Author: Scarinci Hollenbeck, LLC

Date: January 20, 2016

Key Contacts

Back

Experts have long warned about the exposure of industrial control systems to cyber attack. These systems, like those used in our electrical grid, usually are not regularly updated.

Their 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.

distribution electric substation with power lines and transformers, at sunset

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.

The group behind BlackEnergy is known as the “Sandworm Gang.”

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.

    Scarinci Hollenbeck, LLC, LLC

    Related Posts

    See all
    When to Settle and When to Fight: A Litigator's Framework post image

    When to Settle and When to Fight: A Litigator's Framework

    Every lawsuit comes with a cost, and knowing when to settle a lawsuit is one of the most consequential decisions a business owner will face. Experienced litigators understand how to minimize cost and obtain certainty for their clients. For many business owners, the decision is viewed almost entirely through a financial lens: What will it cost […]

    Author: Sean M. Pena

    Link to post with title - "When to Settle and When to Fight: A Litigator's Framework"
    A Whistleblower Just Filed a Complaint Against Your Company: Here's What to Do Now post image

    A Whistleblower Just Filed a Complaint Against Your Company: Here's What to Do Now

    Few situations create more uncertainty than learning that an employee has filed a whistleblower complaint. Questions arise immediately: Is the allegation legitimate? Should the employee be placed on leave? Do we need to notify our insurance carrier? Are we now prevented from disciplining the employee if there are unrelated ongoing work related issues? There is […]

    Author: Sean M. Pena

    Link to post with title - "A Whistleblower Just Filed a Complaint Against Your Company: Here's What to Do Now"
    Assignment for the Benefit of Creditors: An Alternative to Bankruptcy for Distressed Businesses post image

    Assignment for the Benefit of Creditors: An Alternative to Bankruptcy for Distressed Businesses

    When a business reaches the point where it can no longer service its debts or otherwise resolve its liabilities, management is often faced with a difficult question: is a bankruptcy filing necessary or is there another way to perform an orderly liquidation or sale of the business assets? While Chapters 7 and 11 of the […]

    Author: John D. Giampolo

    Link to post with title - "Assignment for the Benefit of Creditors: An Alternative to Bankruptcy for Distressed Businesses"
    Breaking Down New Jersey’s “Mansion” Tax: What Buyers and Sellers Need to Know post image

    Breaking Down New Jersey’s “Mansion” Tax: What Buyers and Sellers Need to Know

    For many years, the New Jersey Mansion Tax has been a significant consideration in high-value real estate transactions. Recent legislative changes, however, have substantially altered how the tax operates, including who is responsible for paying it and the amount owed in certain transactions. Whether you are purchasing, selling, or investing in New Jersey real estate, […]

    Author: George McGowan

    Link to post with title - "Breaking Down New Jersey’s “Mansion” Tax: What Buyers and Sellers Need to Know"
    Estate Planning for Digital Assets Under New Jersey Law post image

    Estate Planning for Digital Assets Under New Jersey Law

    As our personal and financial lives increasingly move online, estate planning must evolve to address a new category of property: digital assets. From email accounts and social media profiles to cryptocurrency and cloud-stored business records, these assets often carry both financial and sentimental value. Yet, without proper planning, they can become inaccessible—or even lost—upon incapacity […]

    Author: Marc J. Comer

    Link to post with title - "Estate Planning for Digital Assets Under New Jersey Law"
    The Role of Representation and Warranty Insurance in M&A Transactions post image

    The Role of Representation and Warranty Insurance in M&A Transactions

    In today’s mergers and acquisitions market, representation and warranty (R&W) insurance has become a common feature of deal negotiations. Once used primarily in larger transactions, R&W insurance is now frequently incorporated into middle-market deals as buyers and sellers look for efficient ways to allocate risk and close deals. When structured properly, R&W insurance can help […]

    Author: George McGowan

    Link to post with title - "The Role of Representation and Warranty Insurance in M&A Transactions"

    No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

    Sign up to get the latest from our attorneys!

    Explore What Matters Most to You.

    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!

    * The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form. By providing a telephone number and submitting this form you are consenting to be contacted by SMS text message. Message & data rates may apply. Message frequency may vary. You can reply STOP to opt-out of further messaging.
    “If you would like to submit a file, please email it directly to info@sh-law.com.

    Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!