As our technology becomes more expansive, it can get more complicated to cover all points of vulnerability. According to Sophos, ransomware attacks have affected 67 percent of energy businesses so far this year, the same percentage as in 2023.. Cybercriminals attempted to compromise the backup systems of 98 percent of the companies that were impacted in the previous year. Of all the sectors, hackers were successful in the greatest percentage of these attacks—79 percent.
Artificial Intelligence-powered cybersecurity is the frontline of defense against various threats, including data breaches and ransomware attacks.
The high rate of cyber strikes is concerning, and considering the energy and utilities sector handles a large amount of sensitive data, including customer information, operational data, and proprietary technology, an attack could be dire. A cyberattack can compromise this data, leading to financial losses, reputational damage, and legal repercussions. The mean cost from a ransomware attack totaled $3.12 million in 2024.
Artificial Intelligence-powered cybersecurity is the frontline of defense against various threats, including data breaches and ransomware attacks. Understanding its complexities and recent advancements will help protect energy infrastructures from attacks.
The Criticality of Energy Infrastructure
In the digital age, energy has become as important as water, food, and shelter. Computers, transportation, and communications all need energy to operate, and we take it for granted because the power that runs them isn’t tangible or visible. Ensuring that we protect the facilities that enable energy production is critical for everyday life.
Cyberattacks that target utilities and the power infrastructures can interrupt energy services and endanger public health and safety. They shut down businesses, pharmacies, grocery stores, ATMs, banks, contaminate water, and taint food.
Economically, extended power loss hurts the bottom line of big and small businesses. An Information Technology Intelligence Consulting (ITIC) survey revealed that 33 percent of survey participants estimated losses between $1 and $5 million for a 60-minute failure, and 81 percent indicated a one-hour power outage costs them more than $300,000.
Ransomware locks vital systems, malware sabotages operations, and state-sponsored attacks cause long-lasting damage. Sophos stated that hackers, on average, hit 62 percent of computers in energy-related companies, significantly higher than the cross-sector average of 49 percent. Sixty-one percent of energy organizations paid the ransom to get their files back.
Outdated Legacy Systems
A few different components comprise energy infrastructures, including:
- Generation, transmission, and distribution of electricity
- Networks of oil and natural gas pipelines
- Oil refineries
- Other transportation elements, such as marine and rail transportation
Many of these systems operate on outdated legacy platforms that lack the tools to protect against coordinated cyberattacks. If attackers can disrupt one area, breach a transmission network, or compromise the distribution systems, it can lead to widespread power outages, operational disruptions, and significant economic consequences.
Outdated legacy systems aren’t equipped with advanced encryption, security monitoring, and threat detection capabilities in modern technologies, making it easier for hackers. If you don’t have skilled IT professionals in-house, you can find custom software solution providers to migrate your infrastructure to more modern systems to secure it for the long run. Advanced AI security measures should accompany it to match technological advancements. If not, the migration could introduce new security gaps, making the system vulnerable when connected to newer, more sophisticated systems.
Supply Chains in Critical Infrastructure
Supply chain systems are integral components of many businesses and keeping them running smoothly is critical to the economy. The supply chain connected to the energy sector has many vulnerabilities, as attackers can exploit weaknesses in the hardware, software, or third-party services. The attack risk increases when relying on suppliers or partners with outdated or inadequate security practices. A breach in one aspect of the supply chain can create a disastrous domino effect that affects the structure’s integrity. It can cost at least $50,000 for large industrial plants even for a brief outage lasting less than five minutes. Ensuring the energy infrastructure is well-protected is highly important for the success of businesses.
Maintaining Compliance with Energy Infrastructures
Complying with rigid regulations related to cybersecurity and critical infrastructure protections can take a lot of work to achieve. These regulations protect essential services, requiring strict adherence. Maintaining compliance is accomplished through continuous monitoring, reporting, and updating security measures to meet evolving regulatory requirements. Failing to comply could result in fines, legal repercussions, and increased vulnerability. Energy companies can hire IT professionals or choose Managed Service Providers with the technical skills and industry knowledge to ensure all regulations are followed.
Skill Gap in Cybersecurity
If you want to safeguard your energy system adequately, you must consider many factors. Hackers and bad actors are becoming more proficient at finding weaknesses in energy infrastructures. It’s a never-ending race to accomplish comprehensive protection measures that will outlast cyber attackers’ knowledge.
Energy companies may have to upskill their in-house IT professionals or find a trusted software solutions company specializing in cybersecurity.
Unfortunately, there is a worldwide shortage of almost 4 million skilled cybersecurity professionals who can handle these issues. The growing demand and the energy sector’s increasing reliance on digital technologies have made retaining talent difficult. This shortage leaves energy companies vulnerable to attacks because they lack the skills to implement and maintain strong security measures. These professionals are essential for infrastructure migration, data encryption, and compliance management software integration. Energy companies may have to upskill their in-house IT professionals or find a trusted software solutions company specializing in cybersecurity.
The Role of Cybersecurity and Software Technology
Effective cybersecurity infrastructure and software technology can be challenging to secure, but they are essential for peace of mind. These solutions mitigate risks, detect threats, and respond rapidly to incidents, ensuring continuous energy generation. Here are some of the best practices to follow:
Network Segmentation and Isolation
Segmenting an energy infrastructure is a proven method for minimizing the impact of a breach. Isolating critical systems for broader IT networks makes it challenging for attackers to move laterally across the infrastructure. If one network segment is compromised, containment of the attack limits its reach and protects the most sensitive parts of the energy grid.
Identity and Access Management (IAM)
IAM is a cybersecurity practice that helps organizations control access to their resources. It includes the zero-trust approach, multi-factor authentication, and privileged account management. It ensures that only authorized personnel can access sensitive resources.
Zero-Trust Architecture
A zero-trust architecture model trusts no entity. It operates on the approach that everyone must gain permission through multi-factor authentication. It assumes that everyone is a threat until proven safe, mitigating the risk of unauthorized access.
Advanced Threat Detection and Response
Threat detection systems harness Artificial Intelligence to monitor network traffic and user behavior, continuously identifying anomalies. Event management solutions gather and analyze security logs, simplifying the process for security teams to identify and respond to incidents.
Devices are protected with endpoint detection and response tools that monitor for malicious activity and take action to neutralize threats.
SOAR is a collection of software tools and programs that improve an organization's cybersecurity.
Security Orchestration, Automation, and Response (SOAR)
SOAR is a collection of software tools and programs that improve an organization’s cybersecurity. It integrates security tools and processes and uses Machine Learning to analyze data from multiple sources. It alleviates the strain on IT teams by incorporating automated responses to incidents and prioritizes incident response actions.
Vulnerability Management and Patch Management
Expert support teams should conduct regular vulnerability assessments and perform patch management to protect the software and hardware components against known threats.
Hardware Protections
While there is distress about protecting software, there should also be protection for the hardware. Access controls, perimeter security, and video surveillance can prevent unauthorized access to critical facilities. Biometric access controls, like fingerprint and face scanning, add an extra barrier by using unique passcodes to safeguard sensitive areas. Other perimeter security, including fences, barriers, and motion sensors, can deter and detect intruders, while continuous video surveillance provides real-time monitoring.
Employee Awareness and Training
Employees are the users who engage with the inner workings of digital infrastructures the most. It is important that they understand each system component and how to spot anomalies. Regular training programs are essential to educate staff about cybersecurity risks, including social engineering and phishing attacks. Fostering a culture of security awareness is pivotal in reducing the chance of successful attacks and encouraging proactive reporting of suspicious activities.
Collaboration and Information Sharing
Clear communication and collaboration between government agencies, energy companies, and other stakeholders are crucial for enhancing the security of the energy sector. Sharing threat intelligence and best practices leads to more coordinated responses to cyber incidents. Joint exercise and information-sharing initiatives help organizations emerge ahead of threats and strengthen the overall resilience of critical infrastructure.
Protect our Energy with Effective Cybersecurity Measures
The energy sector is an important cornerstone of modern life, powering everything from homes to hospitals. As cyberattacks become more commonplace, empowering energy infrastructures with effective AI-powered cybersecurity resources is essential. Utilizing all available methods will fortify an energy infrastructure from potential cyberattacks, protecting the community from dangerous power outages. 
Ashish Kumar
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