The energy sector is known as critical infrastructure. It enables the functioning of all other nearby sectors essential for public health, safety, the economy, and national security. So it’s not surprising that the average cost of downtime per hour is a staggering $2.48 million. Because without energy, society wouldn’t be able to function for long, hence why energy companies are such big targets for nation-state hackers.
In this blog, we’ll discover why companies are targets for hackers, the motivations of nation-states, real-world examples and vulnerabilities, and what they can do to stay protected.
Why Energy Companies Are Targets for Hackers
Energy companies are targets for hackers due to the potentially catastrophic damage and the high price hackers may get from, say, a ransomware attack. Also, it’s reliance on interconnected systems and critical infrastructure. Just one attack could cripple a town and cause economic and social consequences.
Another reason why energy companies are targets for hackers is due to the fact that the sector is growing rapidly. With solar, wind, EVs, and other infrastructure expanding, it widens the area for vulnerabilities to reveal themselves.
Nation-State Motivations and Methods
Nation-state hackers are hackers that are sponsored by a government entity. The Lazarus Group is a well-known nation-state hacker group backed by the North Korean government. Responsible for attacks such as the 2014 Sony Pictures hack and are the main suspects for the 2017 WannaCry ransomware attack.
But what are their motivations? It depends on what their governments want, but generally, it is espionage, disruption, political messaging, and gaining an advantage. An example of these attacks is Russia targeting Ukrainian energy infrastructure to gain an advantage in its conflict.
Some methods these hackers employ are through phishing or job recruitment attacks. One nuclear company had several employees compromised by malicious files appearing to be a “skill assessment test for IT professionals.” 
Photo by SECURITY.com
Real-World Examples and Energy Sector Vulnerabilities
Another real-world example was from an energy provider in Europe that serves over 11 million customers. They were the victim of a ransomware attack that stole 10 terabytes of data and demanded $11 million in ransom payment.
It was suspected that the hackers used a stolen password to access their servers and deploy the ransomware attack. For such a large attack, they didn’t use a sophisticated attack to get in. This is one of the vulnerabilities energy companies have regarding cybersecurity.
In a study of 21 major energy companies, there were nearly 58,862 services exposed to the Internet. Potentially, if one of those services is compromised, it could lead to an attack like the one we mentioned from the European company. Other energy sector vulnerabilities may include their dependence on third-party vendors, since those are also a threat vector.
Photo by Kalam
How Energy Companies Can Protect Themselves
We’ve talked about how energy companies are attacked through simple and sophisticated attacks, respectively. But there are ways they can protect themselves. Here’s what we recommend for those in the energy sector looking for cybersecurity protection:
- Network security: Firewalls and network segmentation can isolate critical systems from the regular IT networks. This can limit attackers’ ability to move freely within a network.
- Employee training: 95% of breaches are tied to human error. So, taking the time to properly train executives and employees on threats can reduce that risk. This creates a culture of self-awareness and helps combat evolving cybersecurity threats.
- 24/7 monitoring: This offers immediate threat detection, reduces downtime events, and gives businesses peace of mind. For modern cybersecurity, 24/7 monitoring is not an option; it’s a necessity.
- Partnering with an MSP: A managed service provider (MSP) provides a wide range of IT and cybersecurity services for various sectors. Partnering with an MSP grants a company enhanced cybersecurity and compliance, cost efficiency, scalability, and more.
Partner with Kirkham IronTech to Secure Your Energy Operations
Nation-state hackers target the energy sector because the stakes are high, and the potential consequences of a breach are higher. But these hackers are evolving fast and usually strike before an in-house team can even detect them. That’s where we come in.
Kirkham IronTech can be your IT and cybersecurity provider or work alongside your existing in-house team. With us being a Top 250 MSSP and having over 25+ years of experience in the industry, our experts will ensure your critical energy systems are secure, compliant, and operational. No matter who’s targeting them.
But if you’re not sure about what gaps your company may have, fill out our free cybersecurity and IT infrastructure assessment. We give you a no-nonsense breakdown of your vulnerabilities with expert guidance on how you can fortify your infrastructure.
Ready to Outpace Nation-State Threats? Let’s Talk.
Call Us: (479) 434-1400 – Speak directly with our cybersecurity experts.
Visit Our Website: www.kirkhamirontech.com – Discover how we safeguard energy companies.
Email Us: info@kirkhamirontech.com – Get with us to secure your operations today.
Tom Kirkham brings more than three decades of software design, network administration, and cybersecurity knowledge to organizations around the country. During his career, Tom has received multiple software design awards and founded other acclaimed technology businesses.
