Vulnerability Risks Within the Energy Sector: Current Risks and Why Going Passwordless is Vital

Vulnerability Risks Within the Energy Sector: Current Risks and Why Going Passwordless is Vital

In recent years, we’ve seen an influx of cybersecurity threats compromising energy players, from Saudi Aramco in 2012 to the Colonial Pipeline last year, both of which have had the power to halt the flow of fuel to entire states and nations. In fact, a 2019 survey of global utilities by Siemens and the Ponemon Institute showed 56% of respondents reported that, in the last 12 months, their organization experienced at least one attack that resulted in the loss of private data or an outage.

More recently, the Insikt Group, the threat research division of Massachusetts-based Recorded Future, shared evidence alleging that state-sponsored Chinese hackers had targeted seven Indian state centers in charge of electrical dispatch and grid control. The attack seemed to be a potential retaliation, as rising border disputes between the two countries have resulted in increased friction.

Russia’s invasion of Ukraine is now front and center with experts underlining the global energy sector and supply chain as one of the most vulnerable to attack; and according to CISA, FBI and DOE, the time to activate and execute acts for prevention is now.

In early April, Russian hackers targeted the Ukrainian power grid, seeking to create a blackout that would have belabored more than two million individuals. Though Ukrainian officials conveyed the breach attempt was foiled, the attack would have been noted as the largest cyber-induced blackout ever, had it been successful.

In response, governments are taking steps to address this vulnerability, albeit slowly. Earlier this spring, President Biden signed the Cyber Incident Reporting Act into law, requiring companies in the energy sector (among 15 other key verticals) to report cyberattacks to the federal government within 72 hours of the incident.

But what’s the root of the problem?

With renewable energy sources like wind and solar largely being managed digitally (and many fossil fuel organizations trending that way, as well), passwords and simple multi-factor authentication (MFA) methods are falling short in the face of skilled – and often state-sponsored – hackers.

It’s one thing to require swift reporting – which eliminates plausible deniability – but another to proactively work to prevent cyberattacks upfront. With traditional MFA methods increasingly being circumvented, it’s key for energy leaders to better secure access to their critical systems and data. Despite being touted as more secure options for personal use and businesses, two-factor authentication options such as passcode generators and security questions are incredibly exposed to security risks; hackers are continuously accessing accounts through these methods, often by accessing generic personal information from social profiles and searches, or bypassing these barriers entirely with common tactics like push bombing, phishing and SIM-swapping.

Bottom line: Hackers can identify the security missteps within the energy realm and are capitalizing on the subsequent opportunities they present for bad actors such as themselves. Within the energy industry, a cybersecurity breach introduces a multitude of risks that will likely flood into product distribution and overall supply. This chain of events then bleeds into financial disruptions, employment rates and erupts into overall business-structure chaos.

In HYPR’s 2022 State of Passwordless Security Report, 89% of organizations experienced a phishing attack in the past year — indicating phishing is still at an all-time high. Yes, recent news has shown hackers have been attacking businesses directly at their energy grids, but can we know for sure that they won’t begin from the roots up; i.e. the employees of these companies?

So, what can change? What needs to change? Now more than ever - after a pandemic erupted into supply chain breakdowns, labor shortages resulted in open windows for vulnerabilities, and energy resource prices skyrocketed and the data behind them became that much more valuable - it’s time to go passwordless.

Why the energy sector needs to drive passwordless forward.

Executing a passwordless strategy is more approachable and feasible than one may think, and the benefits are worth any potential lift or bandwidth stretch. By taking on a passwordless approach to cybersecurity, businesses within the energy industry can embark on a better path to maximizing productivity and accessibility, and to surpassing current cybersecurity standards.

  • With passwords taken out of the equation, energy employees no longer need to manage, remember, and keep up with multiple logins for various platforms and technical/grid control systems; or, in a CIO’s worst nightmare, use the same password for multi-access. Going passwordless mitigates the risk of passwords being stolen or sold across the dark web, and protects treasured energy data from breaches, ransomware attacks, and targeted blackouts with a new level of security.
  • Onboarding for new employees will become more seamless, cutting down on time and resource use within a sector that is known to be organizationally complex. Proactivity is the name of the game in today’s cybersecurity landscape, and energy organizations that move to adopt a passwordless infrastructure can expect much smoother sailing than their reactive counterparts.

Featured

  • 2025 Security LeadHER Conference Program Announced

    ASIS International and the Security Industry Association (SIA) – the leading membership associations for the security industry – have announced details for the 2025 Security LeadHER conference, a special event dedicated to advancing, connecting and empowering women in the security profession. The third annual Security LeadHER conference will be held Monday, June 9 – Tuesday, June 10, 2025, at the Detroit Marriott Renaissance Center in Detroit, Michigan. This carefully crafted program represents a comprehensive professional development opportunity for women in security this year. To view the full lineup at this year’s event, please visit securityleadher.org. Read Now

    • Industry Events
  • Report: 82 Percent of Phishing Emails Used AI

    KnowBe4, the world-renowned cybersecurity platform that comprehensively addresses human risk management, today launched its Phishing Threat Trend Report, detailing key trends, new data, and threat intelligence insights surrounding phishing threats targeting organizations at the start of 2025. Read Now

  • NRF Supports Federal Bill to Thwart Retail Crime

    The National Retail Federation recently announced its support for the Combating Organized Retail Crime Act of 2025. The act was introduced by Chairman Chuck Grassley, R-Iowa, Senator Catherine Cortez Masto, D-Nev., and Representative Dave Joyce, R-Ohio. Read Now

  • ISC West 2025 Brings Almost 29,000 Industry Professionals to Las Vegas

    ISC West 2025, organized by RX and in collaboration with the Security Industry Association, concluded at the Venetian Expo in Las Vegas last week. The nation’s leading comprehensive and converged security event attracted nearly 29,000 industry professionals and left a lasting impression on the global security community. Over five action-packed days, ISC West welcomed more than 19,000 attendees and featured 750 exhibiting brands. Read Now

    • Industry Events
    • ISC West
  • Tradeshow Work Can Be Fun

    While at ISC West last week, I ran into numerous friends and associates all of which was a pleasant experience. The first question always seemed to be, “How many does this make for you?” Read Now

    • Industry Events
    • ISC West

New Products

  • FEP GameChanger

    FEP GameChanger

    Paige Datacom Solutions Introduces Important and Innovative Cabling Products GameChanger Cable, a proven and patented solution that significantly exceeds the reach of traditional category cable will now have a FEP/FEP construction.

  • Camden CM-221 Series Switches

    Camden CM-221 Series Switches

    Camden Door Controls is pleased to announce that, in response to soaring customer demand, it has expanded its range of ValueWave™ no-touch switches to include a narrow (slimline) version with manual override. This override button is designed to provide additional assurance that the request to exit switch will open a door, even if the no-touch sensor fails to operate. This new slimline switch also features a heavy gauge stainless steel faceplate, a red/green illuminated light ring, and is IP65 rated, making it ideal for indoor or outdoor use as part of an automatic door or access control system. ValueWave™ no-touch switches are designed for easy installation and trouble-free service in high traffic applications. In addition to this narrow version, the CM-221 & CM-222 Series switches are available in a range of other models with single and double gang heavy-gauge stainless steel faceplates and include illuminated light rings.

  • 4K Video Decoder

    3xLOGIC’s VH-DECODER-4K is perfect for use in organizations of all sizes in diverse vertical sectors such as retail, leisure and hospitality, education and commercial premises.