U.S. warns businesses of hacking campaign against nuclear, energy companies

Since at least May, hackers used tainted ‘phishing’ emails to ‘harvest credentials’ to gain access to networks of their targets, according to a report from the DHS and FBI

July 01, 2017 07:54 pm | Updated 07:54 pm IST - TORONTO

Analysts prepare for the Cyber Storm III, a three-to four-day drill at the National Cybersecurity & Communications Integration Center (NCCIC) just outside Washington, DC in Arlington, Virginia, September 24, 2010. The United States is launching its first test of a new blueprint for responding  to an enemy cyber blitz, including any aimed at vital services such as power, water and banks. The photo was taken on September 24 but barred from publication until September 28, 2010 by agreement with journalists given a rare access to the 24-hour watch and warning hub.     REUTERS/Hyungwon Kang   (UNITED STATES - Tags: CRIME LAW SCI TECH POLITICS)

Analysts prepare for the Cyber Storm III, a three-to four-day drill at the National Cybersecurity & Communications Integration Center (NCCIC) just outside Washington, DC in Arlington, Virginia, September 24, 2010. The United States is launching its first test of a new blueprint for responding to an enemy cyber blitz, including any aimed at vital services such as power, water and banks. The photo was taken on September 24 but barred from publication until September 28, 2010 by agreement with journalists given a rare access to the 24-hour watch and warning hub. REUTERS/Hyungwon Kang (UNITED STATES - Tags: CRIME LAW SCI TECH POLITICS)

The U.S government warned industrial firms last month about a hacking campaign targeting the nuclear and energy sectors, the latest event to highlight the power industry’s vulnerability to cyberattacks.

Since at least May, hackers used tainted “phishing” emails to “harvest credentials” so they could gain access to networks of their targets, according to a joint report from the U.S. Department of Homeland Security and Federal Bureau of Investigation.

Victims not identified

The report provided to the industrial firms was reviewed by Reuters on Friday. While disclosing attacks, and warning that in some cases hackers succeeded in compromising the networks of their targets, it did not identify any specific victims.

Strategic targeting

“Historically, cyber actors have strategically targeted the energy sector with various goals ranging from cyberespionage to the ability to disrupt energy systems in the event of a hostile conflict,” the report said.

Homeland Security and FBI officials could not be reached for comment on the report, which was dated June 28.

The report was released during a week of heavy hacking activity.

A virus dubbed “NotPetya” attacked on Tuesday, spreading from initial infections in Ukraine to businesses around the globe. It encrypted data on infected machines, rendering them inoperable and disrupting activity at ports, law firms and factories.

On Tuesday the energy-industry news site E&E News reported that U.S. investigators were looking into cyberintrusions this year at multiple nuclear power generators.

Reuters has not confirmed details of the E&E News report, which said there was no evidence safety systems had been compromised at affected plants.

The activity described in the U.S. government report comes at a time when industrial firms are particularly anxious about threat that hackers pose to their operations.

Ukraine power cut

Industrial firms, including power providers and other utilities, have been particularly worried about the potential for destructive cyberattacks since December 2016, when hackers cut electricity in Ukraine.

U.S. nuclear power generators PSEG, SCANA Corp. and Entergy Corp. said they were not impacted by the recent cyberattacks. SCANA’s V.C. Summer nuclear plant in South Carolina shut down on Thursday due to a problem with a valve in the non-nuclear portion of the plant, a spokesman said.

Another nuclear power generator, Dominion Energy, said it does not comment on cybersecurity.

Industroyer malware

Two cybersecurity firms said on June 12 that they had identified the malicious software used in the Ukraine attack, which they dubbed Industroyer, warning that it could be easily modified to attack utilities in the United States and Europe.

Industroyer is only the second piece of malware uncovered to date that is capable of disrupting industrial processes without the need for hackers to manually intervene. The first, Stuxnet, was discovered in 2010 and is widely believed by security researchers to have been used by the United States and Israel to attack Iran’s nuclear program.

The U.S. government report said attackers conducted reconnaissance to gain information about the individuals whose computers they sought to infect so that they create “decoy documents” on topics of interest to their targets.

Remote control

In an analysis, it described 11 files used in the attacks, including malware downloaders and tools that allow the hackers to take remote control of victim’s computers and travel across their networks.

Chevron, Exxon Mobil and ConocoPhillips, the three largest U.S. oil producers, declined to comment on their network security.

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