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Recently, the Federal Bureau of Investigation( FBI) officially confirmed that DarkSide was responsible for compromising Colonial Pipeline’s networks.
DarkSide Group
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- Recently, the Colonial Pipeline (the operator of one of the largest fuel pipelines in the USA) announced that it had been hit with a ransomware attack, in which criminal groups lock up computer systems and hold data hostage until the victim pays a ransom.
- In response, the company protectively shut down its pipeline.
- The pipeline carries 2.5 million barrels a day – 45% of the East Coast’s supply of diesel, petrol and jet fuel.
- In response, the company protectively shut down its pipeline.
- The company has reportedly paid a ransom amount of $5 million in Bitcoin to retrieve its files.
Impact On Oil Prices
- Oil prices rose in response to the attack on Colonial Pipeline with the price of Brent crude rising to $69 per barrel.
- The temporary shortage also led to an increase in pump prices in the US with the average national price of petrol rising to over $3.0 per gallon, the highest level since 2014.
- The disruption led to a gas shortage across the east coast with customers facing long lines to purchase fuel and many pumps running out of petrol and diesel as panic buying led to customers purchasing larger quantities of fuel.
- Crude oil prices have risen despite a surge in Covid-19 infections in Asia due to expectations of increasing crude oil demand from the US and Europe leading to further upward pressure on auto fuel prices.
Impact on India:
- India, the world’s third-biggest oil importer and consumer
- Rising oil prices are posing fiscal challenges for India, where heavily-taxed retail fuel prices have touched record highs in some parts of the country.
- The increase in oil prices will increase the country’s import bill, and further, disturb its current account deficit (excess of imports of goods and services over exports).
Measures Need To Be Taken
- There is a need to move towards fortifying approaches to prevent attacks including employing a zero-trust security framework in enterprise networks.
- A zero-trust approach means anything is suspected whenever any activity is done on the network, and every user, including the CEO, will have to be verified time and again.
- Other measures such as Cloud Access Security Brokers (CPAB), which act as intermediaries between users and cloud service providers, could “give teeth” to an overall cybersecurity strategy.
- India’s oil and gas PSUs were making efforts to beef up security, and that organisations managing critical infrastructures such as pipelines and refineries were required by the government to implement certain security measures.
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