In 2022, there was a staggering 2,000 percent increase in cybersecurity attacks targeting commonly used protocols, with threat actors increasingly focusing on disrupting operational technology (OT) operations. Critical infrastructure environments, which include power plants, grids, and distribution systems, rely heavily on OT and industrial control systems (ICS) to manage and control these vast networks. These systems have introduced unprecedented levels of efficiency and productivity, but there is a costly trade-off. As our reliance on technology deepens, so does our vulnerability to cyber threats. This is especially true for the energy sector, which has become the most targeted industry, facing three times as many attacks as any other sector.
1. The Evolution of Cybersecurity Threats
Digital transformation has dramatically improved the efficiency, accuracy, and innovation of enterprises across every industry. However, with these advancements comes increased vulnerability. The rising number of systems, networks, and devices connected in OT and ICS environments, coupled with legacy equipment that often lacks modern security features, leaves organizations wide open to new threats. In 2022, the number of U.S.-based threat actors targeting industrial organizations increased by 35 percent, highlighting an alarming trend.
One of the most illustrative examples of the severe impact of these attacks is the Colonial Pipeline incident. In this case, the DarkSide ransomware group managed to steal a single password, subsequently affecting 45 percent of pipeline operators. This breach led to 17 states declaring a state of emergency and causing substantial oil supply shortages across the nation. Notably, over 80 percent of cybersecurity attacks originated from compromises in IT systems, where attackers would perform network discovery to understand asset locations and vulnerabilities. When targeting OT, these malicious actors aimed to disrupt industrial operations by exploiting remote services, application layer protocols, and even manipulating what operators see.
2. The Three Phases of Cyber Defense: Preparation, Ongoing Surveillance, Incident Response
The return on investment for a robust cybersecurity program can be seen through the avoidance of downtime and potential damage from a breach. Implementing comprehensive cybersecurity policies can effectively safeguard a company’s valuable assets before, during, and after an event. The cybersecurity defense journey can be broken down into three critical phases: Preparation, Ongoing Surveillance, and Incident Response.
Phase 1: Preparation
The first step in developing a strong cybersecurity program begins with identifying vulnerabilities within the organization’s systems and networks. This allows companies to prioritize vulnerabilities based on their severity and potential impact on critical processes. To fortify OT cybersecurity, organizations should undertake several initial actions.
Firstly, they should identify all assets that need protection and catalog all associated vulnerabilities and their criticality. This helps prioritize assets and create a “risk score” that can be continuously monitored during the lifecycle of the cybersecurity program. Strengthening remote access security with robust passwords and multi-factor authentication is another essential measure. Segmenting IT and OT environments using advanced firewall configurations ensures IT attacks don’t spill over into OT systems. Continuous training programs for internal staff are also necessary to keep employees up-to-date on the latest phishing scams and prevention techniques.
Phase 2: Ongoing Surveillance
Cybersecurity assessments are not one-off activities; continuous monitoring is essential for maintaining robust protection. The threat landscape is ever-changing, with new vulnerabilities and attack methods appearing continually. Organizations need to implement real-time monitoring tools to keep an eye on their networks and systems for emerging threats. By doing so, they can detect and respond to security incidents in real time.
Consistent security check-ups should be part of the routine to address new vulnerabilities as they arise. This continuous approach ensures that organizations stay ahead of potential threats, making their cybersecurity posture more resilient against evolving cyberattacks. Regular evaluations and updates to the security framework help tackle new vulnerabilities and adapt to the constantly changing threat landscape.
Phase 3: Incident Response
Establishing backup and disaster recovery plans for applications and data is another crucial aspect of bolstering cybersecurity defenses. When clear policies and procedures are in place to handle cybersecurity incidents, organizations can respond systematically to unusual events, thereby resuming normal operations quickly and minimizing disruptions. Implementing structured response protocols and backup plans ensures that any breach or attack can be managed effectively.
Having modern OT incident response techniques and proactive security measures will enhance the protection of critical systems and services. Efficient and well-coordinated OT incident response capabilities are essential for strengthening an enterprise’s ability to withstand growing threats. Furthermore, this approach helps enterprises meet the regulatory requirements for cybersecurity incident reporting, providing them with more comprehensive defenses against cyberattacks.
3. Looking Ahead to Evolving Regulatory Requirements
Since 2019, major companies have paid an estimated $4.4 billion in fines, penalties, and settlements due to cybersecurity incidents, highlighting the severe consequences of security compliance infractions. Governments worldwide are now compelling public and private sector entities to disclose cybersecurity incidents, data theft, and ransom payments to mitigate risks and address the chronic under-reporting of cybercrimes.
In the U.S., the Cyber Incident Reporting for Critical Infrastructure Act of 2022 (CIRCIA) mandates that companies operating in critical infrastructure sectors report significant cyber incidents impacting their operations within a specified timeframe. This act also provides legal protections for organizations that report incidents and ransom payments. The Biden administration’s AI Executive Order further develops standards and tests to ensure AI systems are safe, secure, and trustworthy.
Globally, the United Nations is discussing the possibility of an international treaty focused on individual data protection and cyber resilience. Organizations that implement comprehensive safeguards throughout the cybersecurity incident response journey will find it easier to meet compliance requirements. These requirements are often based on principles from the NIST Cybersecurity Framework and current security approaches.
4. Fortify or Fall
In 2022, cybersecurity attacks on commonly used protocols surged dramatically by 2,000 percent, with cybercriminals increasingly targeting operational technology (OT) operations. Critical infrastructure environments—such as power plants, electrical grids, and distribution systems—depend extensively on OT and industrial control systems (ICS) to oversee and manage these complex networks. While these systems have greatly enhanced efficiency and productivity, they come with a significant downside. The greater our dependence on advanced technology, the more vulnerable we become to cyber threats.
This is particularly concerning for the energy sector, which has emerged as the prime target for cyber attacks. In fact, the energy industry faces three times more attacks compared to any other sector, making it the most targeted industry. As critical infrastructure operations remain a focal point for cyber threat actors, the risks associated with these attacks could have catastrophic consequences, including potential disruptions in power supply and other essential services.
The rise in attacks underscores the urgent need for improved cybersecurity measures to safeguard these vital systems. Investing in robust security protocols and regularly updating defenses can help mitigate the risks. Awareness and preparedness are key to ensuring that our critical infrastructure remains secure and operational despite the growing cyber threat landscape.
