The White House has opened a debate on the merits of companies making ransom payments to cyber attackers after a group of hackers shut down a US pipeline over the weekend, underscoring the seriousness of the threat to infrastructure reviews.
The Federal Bureau of Investigation has long opposed such payments on the grounds that they will encourage more ransomware attacks, in which hackers take control of a target’s computers or data until their attacks. financial requirements are met.
Anne Neuberger, US deputy national security adviser for cyber and emerging technologies, said on Monday that the Biden administration is “definitely reviewing” its “approach to ransomware and ransom players in general.”
“Victims of cyber attacks are often faced with a very difficult situation and just need to find a balance. . . the cost-benefit ratio when they have no choice to pay a ransom, ”she said, noting that companies with encrypted data without a backup often struggled to recover information after a ransomware attack .
“That’s why, given the rise of ransomware and frankly given the troubling trend that we often see targeting companies that have insurance and may be wealthy targets, we need to take a close look at this area,” he said. declared Neuberger.
Ransomware hackers claimed one of their biggest targets yet, shutting down the 5,500 miles on Friday Colonial pipeline network that transports gasoline, diesel and jet fuel from refineries along the Gulf of Mexico to the Atlantic coast. The system has the capacity to meet nearly 15% of the total liquid fuel demand in the United States.
The FBI identified on Monday Dark side, an organization believed to be run from Russia by an experienced team of online criminals, as “responsible” for compromising colonial pipeline networks.
“Currently we are evaluating DarkSide as a criminal actor, but of course our intelligence community is looking for connections to nation-state actors,” Neuberger told reporters.
The Colonial Pipeline Company, backed by a group of investors including private equity group KKR and conglomerate Koch Industries, said it would restore most services by the end of the week while working with shippers to find other ways to transport fuels.
The shutdown left Gulf Coast refineries without a market, forcing them to cut production to as low as 500,000 barrels per day, according to an oil industry expert. Some refiners, including New York-listed Valero, were looking to park fuels on ships, S&P Global Platts said. Valero did not respond to a request for comment.
The Colonial pipeline company declined the federal government’s offer to help restore its systems, Neuberger said. The White House had offered no “further advice” to Colonial on whether to pay a ransom, she added.
James Lewis, a cybersecurity expert at the Center for Strategic and International Studies, said the pipelines were flagged as a potential cybersecurity risk ten years ago, adding that the White House’s comments on the ransom payment were a ” admission of reality ”.
US gasoline markets did not react much to the blackout, with futures contracts for June delivery rising only 0.3% to $ 2.13 per gallon on Monday.
However, if the pipeline is not quickly returned to service, more severe price movements could follow, analysts said.
“If consumers panic, you might see really stronger prices over the next few days,” said Alan Gelder, vice president of refining and chemicals at Wood Mackenzie. “A lot will depend, I guess, on the evening news in the United States.”
There has been a proliferation of ransomware attacks in recent years as it has become an increasingly lucrative criminal enterprise, with ransom demands from victims averaging around $ 100,000, according to the US Department of Justice. Justice. Many criminals operate outside jurisdictions such as Russia, where they are unlikely to be prosecuted by authorities.
Insurers have also been accused of encouraging companies to pay, by offering refunds for extortion payments. Monday, the global insurance group AXA mentionned he would stop writing cyber policies that reimburse the payments of his French clients, following criticism.
