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According to Check Point Research, U.S. utilities experienced a nearly 70% increase in cyberattacks this year compared to 2023, highlighting growing threats to critical infrastructure.
As the power grid expands and becomes more digitalized, its vulnerability rises. According to a report from OANN, Douglas McKee of SonicWall says many utilities using outdated software are easy targets for cyberattacks.
While no U.S. utility has been crippled by cyberattacks so far, experts warn that a coordinated effort could severely disrupt essential services and lead to significant financial losses. Check Point data shows an average of 1,162 cyberattacks through August this year, up from 689 in 2023.
The energy sector remains highly vulnerable to cyberattacks, as seen in the 2021 Colonial Pipeline shutdown and a recent data breach at Halliburton. According to McKee, utilities rely on IoT and ICS technology, which have weaker cyber defenses than platforms like Apple or Microsoft. Experts note that regulations like NERC’s Critical Infrastructure Protection set only minimal security standards. More attack points are created as the power grid expands, including new connections to AI data centers.
NERC reported earlier this year that the number of vulnerable points on U.S. electrical networks is increasing by about 60 per day. Major U.S. companies, like UnitedHealth Group’s Change Healthcare unit, have also faced ransomware attacks, including one in February.
“If an equivalent attack occurred that was on the scale of Change Healthcare…the impact could be completely devastating,” said Kevin Kirkwood, chief information security officer at Foster City, California-based cybersecurity provider Exabeam.
Cyberattacks frequently target the financial sector, which manages vast amounts of sensitive data. Nearly 20% of these incidents aim at financial firms, highlighting the critical need for robust cybersecurity measures. Learn more in our blog. https://t.co/KB8wnAyuk5 pic.twitter.com/OlcZEvfiJB
— IMF (@IMFNews) September 2, 2024
Even breaches that don’t directly affect critical infrastructure can result in significant financial losses, noted Wayne Tung of Sendero Consulting. In 2022, IBM reported the average cost of a data breach in the energy sector was $4.72 million. Additionally, historically, election years have seen an increase in malicious cyber activity.
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