[BreachExchange] US fuel pipeline hackers 'didn't mean to create problems'

Destry Winant destry at riskbasedsecurity.com
Wed May 12 10:32:54 EDT 2021


https://www.bbc.com/news/business-57050690

A cyber-criminal gang that took a major US fuel pipeline offline over the
weekend has acknowledged the incident in a public statement.

"Our goal is to make money and not creating problems for society," DarkSide
wrote on its website.

The US issued emergency legislation on Sunday after Colonial Pipeline was
hit by a ransomware cyber-attack.

The pipeline carries 2.5 million barrels a day - 45% of the East Coast's
supply of diesel, petrol and jet fuel.

The operator took itself offline on Friday after the cyber-attack. Work to
restore service is continuing.
On Monday, the FBI officially confirmed that DarkSide was responsible for
compromising Colonial Pipeline's networks, saying that it was continuing to
work with the firm and other government agencies on the investigation.

During a speech about the economy at the White House on Monday, US
President Joe Biden said that he was being "personally briefed" on the
situation with the pipeline each day.

"The agencies across the government have acted quickly to mitigate any
impact on our fuel supply," he said.

"We're prepared to take additional steps depending on how quickly the
company is able to bring its pipeline back up to capacity."

A number of cyber-security researchers, including firms contacted by the
BBC, have speculated that the cyber-criminal gang could be Russian, as
their software avoids encrypting any computer systems where the language is
set as Russian.

Mr Biden said that the US government was concerned about this aspect of the
cyber-attack.

"I'm gonna be meeting with President Putin and so far there is no evidence,
based on our intelligence people, that Russia is involved," he said.

"Although, there's evidence that the actors' ransomware is in Russia - they
have some responsibility to deal with this."

DarkSide posted a statement on its website on Monday, describing itself as
"apolitical".
"We do not participate in geopolitics, do not need to tie us with a defined
government and look for... our motives," the group said.

The group also indicated it had not been aware that Colonial was being
targeted by one of its affiliates, saying: "From today, we introduce
moderation and check each company that our partners want to encrypt to
avoid social consequences in the future."

Impact on fuel prices
US fuel prices at the pump rose six cents per gallon on the week to $2.967
per gallon for regular unleaded gasoline, the American Automobile
Association (AAA) said on Monday, while Wall Street shares in US energy
firms were up 1.5%.

The AAA said prices were heading towards their highest level since 2014.

On Sunday, the US government relaxed rules on fuel being transported by
road to minimise disruption to supply. This allowed drivers in 18 states to
work extra or more flexible hours when transporting refined petroleum
products.

However, there are fears that this could change if the shutdown is
prolonged.

Independent oil market analyst Gaurav Sharma told the BBC a lot of fuel was
now stranded at refineries in Texas.

"Unless they sort it out by Tuesday, they're in big trouble," said Mr
Sharma. "The first areas to be hit would be Atlanta and Tennessee, then the
domino effect goes up to New York."

He said oil futures traders were now "scrambling" to meet demand, at a time
when US inventories are declining.

Demand - especially for fuel for cars - is on the rise as consumers return
to the roads and the economy recovers.
The temporary waiver issued by the Department of Transportation enables oil
products to be shipped in tankers up to New York, but this would not be
anywhere near enough to match the pipeline's capacity, Mr Sharma warned.

Sources said the ransomware attack was likely to have been caused by a
cyber-criminal gang called DarkSide, who infiltrated Colonial's network and
locked the data on some computers and servers, demanding a ransom on Friday.

The gang stole almost 100 gigabytes of data hostage, threatening to leak it
onto the internet.

The FBI and other government agencies worked with private companies to
respond - the cloud computing system the hackers used to collect the stolen
data was taken offline on Saturday, Reuters reported.

On Sunday, Colonial said that although its four main pipelines remained
offline, some smaller lines between terminals and delivery points were now
operational.

"Quickly after learning of the attack, Colonial proactively took certain
systems offline to contain the threat. These actions temporarily halted all
pipeline operations and affected some of our IT systems, which we are
actively in the process of restoring," the firm said.

It added it would bring its full system back online "only when we believe
it is safe to do so, and in full compliance with the approval of all
federal regulations".
The incident highlights the risk ransomware can pose to critical national
industrial infrastructure, not just businesses.

In addition to a notice on their computer screens, victims of a DarkSide
attack receive an information pack informing them that their computers and
servers are encrypted.

The gang lists all the types of data it has stolen, and sends victims the
URL of a "personal leak page" where the data is already loaded, waiting to
be automatically published, should the company or organisation not pay
before the deadline is up.

DarkSide also tells victims it will provide proof of the data it has
obtained, and is prepared to delete all of it from the victim's network.

According to Digital Shadows, a London-based cyber-security firm, DarkSide
operates like a business.
The gang develops the software used to encrypt and steal data from
companies.

It then provides ransomware to "affiliates" who pay DarkSide a percentage
of their earnings from any successful attacks.

When it released new software in March that could encrypt data faster than
before, the gang issued a press release and invited journalists to
interview it.

It even has a website on the dark web where it lists all the companies it
has hacked and what was stolen, and an "ethics" page where it says which
organisations it will not attack.

DarkSide also works with "access brokers" - nefarious hackers who work to
harvest the login details for as many working user accounts on various
services as they can find.

Rather than break into these accounts and alert users or the service
providers, these brokers sit on the usernames and passwords and sell them
off to the highest bidders - cyber-criminal gangs who want to use them to
carry out much larger crimes.
How did the attack occur?
Digital Shadows thinks the Colonial attack was helped by the coronavirus
pandemic, with more engineers remotely accessing control systems for the
pipeline from home.

James Chappell, co-founder of Digital Shadows, believes DarkSide could have
bought account login details for remote desktop software such as TeamViewer
and Microsoft Remote Desktop.
He says it is possible for anyone to look up the login portals for
computers connected to the internet on search engines like Shodan, and then
"have-a-go" hackers just keep trying usernames and passwords until they get
some to work.

"We're seeing a lot of victims now, this is seriously a big problem," said
Mr Chappell.

"The amount of small businesses that are falling victim to this... It's
becoming a big problem for the economy globally."

Digital Shadows' research shows the cyber-criminal gang is likely to be
based in a Russian-speaking country, as it avoids attacking companies in
post-Soviet states including Russia, Ukraine, Belarus, Georgia, Armenia,
Moldova, Azerbaijan, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and
Uzbekistan.
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