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The operator of a critical US pipeline that provides the East Coast of the country with nearly half of its gasoline and jet fuel reportedly shelled out $5 million ransom to hackers, clearing the way for the pipeline to function normally again.
According to reports in the US media, Colonial Pipeline made the ransom payment to the hacking group DarkSide after the group launched a massive ransomware attack on the pipeline last week.
The Federal Bureau of Investigation (FBI) Monday confirmed that ransomware from the shadowy hacking group had forced the shutdown of the network that stretches from Texas to New Jersey and delivers nearly half of the transport fuels for the East Coast.
The breach of Colonial Pipeline’s IT system forced the company to shut down 5,500 miles of pipelines to ensure hackers could not gain access to its operational technology.
However, it did not deter the group from accessing key information, leaving the operator with no option but to pay the hefty ransom.
The hacking group acknowledged that they had forced the operator to shut its entire network.
“Our goal is to make money and not creating problems for society. From today we introduce moderation and check each company that our partners want to encrypt to avoid social consequences in the future,” DarkSide wrote on its website on Monday.
“We are apolitical, we do not participate in geopolitics, do not need to tie us with a defined government and look for our motives,” the statement said. “Our goal is to make money, and not creating problems for society,” it added further.
Biden under fire
The Biden administration faced blistering attacks from Republicans over soaring fuel prices after the 5,500-mile pipeline shut down, also the vulnerability of US energy infrastructure to cyberattacks.
On Thursday, Biden claimed that the pipeline was resuming service but cautioned it would take time to resolve shortages and warned gas stations not to engage in price extorting.
“They should be reaching full operational capacity as we speak, as I speak to you right now,” he said. “That is good news. But we want to be clear: We will not feel the effects at the pump immediately. This is not like flicking on a light switch.”
He also said the administration would launch a retaliatory strike at hackers, saying that the US would pursue “a measure to disrupt their ability to operate.”
Jen Psaki, the White House spokeswoman, said the Biden administration was waiting for recommendations from the US Cyber Command.
The issue of ransom payment to hackers has set a dangerous precedent in the US, where cyberattacks against government and industry have seen an alarming surge in recent years.
According to experts, the decision to pay ransom serves a short-term political goal and saves Biden from criticism at home over rising fuel prices and queues at gas stations, but it encourages other hacking groups to launch similar cyberattacks on American companies.
While Biden refused to admit the ransom amount had been paid, Psaki said it remained the “position of the federal government” not to pay ransoms because the money can encourage criminals to conduct more attacks.
She stopped short of criticizing Colonial by name and said it was “not constructive” to single out any particular company.
GOP seizes the opportunity
Republicans seized the opportunity to attack the Biden administration, adding gas shortages to the list of problems under the new government.
“Border crisis, gas lines, inflation, economic stagnation, kids still out of school, rocket attacks in Israel, and on and on and on,” Josh Holmes, a former chief of staff for Senator Mitch McConnell of Kentucky, the Republican leader, wrote Wednesday on Twitter. “If you’re a Republican under the dome not talking about any of this today, you’re weakening your country.”
The cyberattack, meanwhile, has once again exposed the vulnerability of critical US energy infrastructure.
“There’s obviously much still to learn about how this attack happened, but we can be sure of two things: This is a play that will be run again, and we’re not adequately prepared,” US Senator for Nebraska, Ben Sasse, said in a statement on Saturday.
A report in Hill, citing data provided by cybersecurity company Check Point Research, said hackers attempt to breach American utility companies 260 times per week on average, with the company seeing a 50 percent increase in these attempts since March, and a general increase since the beginning of 2020.
