US Colonial Pipeline Company’s entire network closed, oil prices expected to rise
More than half of the US East Coast fuel supply company Colonial has had a cyber attack. Due to this the entire network of the company has been shut down. The company has identified the cyber attack as a ransomware attack. The closure of the pipeline network has raised the possibility of rising prices. The reason for this is that the demand is going to increase as the summer season starts. The attack has also drawn attention to how important America’s energy infrastructure is to hackers.
Pipeline transports 2.5 million barrels of fuel every day
Every day 2.5 million barrels of fuel are transported through the Colonial Pipeline. This includes petrol, diesel, jet fuel and other refined products. Through this pipeline, various types of fuels cover a distance of 8,850 km. The pipeline connects the East Coast refineries to Eastern and Southern America. The company says the system has been shut down after a cyber attack was identified on Friday. The move has temporarily affected the operation. Apart from this, the company’s IT system has also been affected.
US government is investigating: The US government is investigating this cyber attack. However, the investigation is still at a preliminary stage. According to a former official and two sources associated with the industry, it appears that the hackers are associated with a very professional cyber criminal group. According to the former official, it is also being investigated whether the hackers are connected to the ‘Darkside’ developed by the cyber security research community. Darkside is known for developing ransomware and seeking ransom from victims.
Attack done through malicious software : According to Colonial, this ransomware attack has been done through malicious software. Ransomware is a type of malware that encrypts data and locks the system. The hackers then demand a ransom to grant access again. Malware has become more popular in the last five years. Colonial has entrusted the investigation to a third party cyber security firm. Apart from this, the company is also in touch with federal agencies.
Hackers captured 100 GB of data from the company : According to sources, the hackers had broken into Colonial’s network on Thursday and captured 100 GB of data of the company. After this, hackers have locked up some computers and demanded ransom. Hackers have threatened that the data will be leaked on the Internet if the ransom amount is not given. However, the colony has not yet confirmed the ransom demand. The company said on Sunday that four main lines had come to a standstill. While some short lines running from the terminal to the delivery point have started functioning.
Fuel price may increase by 2-3%
Experts say that the role of this pipeline is very important in fuel supply in the East Coast region. 45% of fuel in these states is supplied through this pipeline. Repair work has continued since the attack. Currently, the idea is to supply fuel by road. Experts believe that due to the collapse of the pipeline, fuel prices in the East Coast states may increase by up to 2-3%. If the pipeline is affected for more days, it can have a greater impact.
