Showing posts with label FERC. Show all posts
Showing posts with label FERC. Show all posts

04 October 2010

Stuxnet: Digital Sabotage of Critical Infrastructure...

The Chief Information Security Officer's (CISO) are getting significant new understanding of the new threat emerging in the digital domains. The Energy, Chemical, Water, Transportation and other Critical Infrastructure sectors are on high alert. The Operational Risks associated with their Programmable Logic Controller (PLC) systems using Siemens technologies are being attacked. Stuxnet is a new worm that has emerged over the past few months and is being analyzed from several vectors. One analysis that is forthcoming is who developed this new sophisticated industrial sabotage cyber weapon? Let's consider this logic from Ralph Langner:

Many aspects of Stuxnet are so completely different from malware as we know it that it's only natural that so many hard-working experts at some point in the analysis ended in frustration. The best way to approach Stuxnet is not to think of it as a piece of malware like Sasser or Zotob, but to think of it as part of an operation -- operation myrtus. Operation myrtus can be broken down into three major stages: Preparation, infiltration, and execution.
Stage 1, preparation:
- Assemble team, consisting of multiple units (intel, covert ops, exploit writers, process engineers, control system engineers, product specialists, military liaison)
- Assemble development & test lab, including process model
- Do intel on target specifics, including identification of key people for initial infiltration
- Steal digital certificates

Stage 2, infiltration:
- Initial infiltration using USB sticks, perhaps using contractor's comprised web presence
- Weapon spreads locally via USB stick sharing, shared folders, printer spoolers
- Contact to command & control servers for updates, and for evidence of compromise
- Update local peers by using embedded peer-to-peer networking
- shut down CC servers

Stage 3, execution:
- Check controller configuration
- Identify individual target controllers
- Load rogue ladder logic
- Hide rogue ladder logic from control system engineers
- Check PROCESS condition
- Activate attack sequence

For the CISO and executives who are sitting around the latest emergency CISCO Telepresence call at companies such as Entergy, American Electric Power, Dominion Resources and dozens of others in the power grid industry; the reliability factor is uncertain.

If this new malware had an initial project budget cost of seven figures $,$$$,$$$.00 to achieve the three stages described previously, preparation, infiltration, and execution then the price will soon be more affordable. A price for a malware exploit kit such as this one as it is reengineered for other purposes or types of targets will decrease dramatically as it propagates across the Internet.

The significance of the decrease in price is that now it will be more affordable for the transnational economic crime syndicates. How they will utilize the new Stuxnet capability in their toolkit for cyber extortion, digital sabotage and other schemes remains to be seen. What is certain is that it will not be long before this becomes a reality. Gary McGraw comments further:

Stuxnet is a fascinating study in the future of malware. Not only did it reveal at least 4 0days (which are still being patched by Microsoft), it clearly demonstrated that physical process control systems of the sort that control power plants and safety-critical industrial processes are ripe for compromise.

Now that the genie is out of the bottle, it is hardly possible to stuff it back in. Expect the techniques and concepts seen in Stuxnet to be copied. Attacks on process control systems are no longer the fantasies of paranoids in tinfoil hats — they are here.


The next Operational Risk that will be on the horizon are the plaintiff law suits, each time we have an event like this one:


Pacific Gas and Electric Co. on Monday announced it would put as much as $100 million towards rebuilding areas of the Crestmoor neighborhood destroyed in the flames. PG&E president Chris Johns maintained that money in that relief fund would be spent on reconstructing the San Bruno neighborhood, not paying off potential legal claims. Nonetheless, the utility company reportedly already cut the city a $3 million check to cover expenses associated with responding to the disaster. PG&E is also expected to pay victims whose homes were destroyed up to $50,000 to help pay for their everyday necessities. “I realize money can’t return lives. It can’t heal scars, it can’t replace memories… But there does come a time for healing and for rebuilding, and we are committed to helping that happen,” Johns added.

A full probe would be required to determine what might have caused the 30-inch high-pressure gas pipeline to burst at Earl Avenue and Glenview Drive around 6:15 p.m. that Thursday evening. Thirty-seven homes were apparently leveled in the blast. A 30-foot-wide crater could also be seen in the aftermath of the explosion. Authorities evacuated over 100 people in the area immediately after the blast. Now the California Public Utilities Commission has ordered PG&E to check all high-pressure gas lines located in densely populated areas. The National Transportation Safety Board (NTSB) is leading the investigation into the fatal San Bruno natural gas explosion.


It is too early to determine the exact nature of the cause of the San Bruno, CA disaster yet the corporate general counsel's of major utilities are preparing for their defense. The legal risks could go well beyond the exact scene of the explosion. Why? As the plaintiffs examine the number of PLC and SCADA controllers involved in the area of the incident, you can be certain they will be looking at the software systems associated with them. They will be requesting the Information Technology organization at PG&E to produce evidence of their policies, procedures, and best practices as it pertains to SCADA exploits such as the Stuxnet worm.

Managing the Operational Risks associated with the Energy and Chemical "Critical Infrastructure" sectors goes well beyond the norm of security and safety. Even BP has established a new Operational Risk initiative in the aftermath of their Gulf of Mexico catastrophe.

BP is to create a new safety division with sweeping powers to oversee and audit the company’s operations around the world.

The Safety & Operational Risk function will have authority to intervene in all aspects of BP’s technical activities.

It will have its own expert staff embedded in BP’s operating units, including exploration projects and refineries. It will be responsible for ensuring that all operations are carried out to common standards, and for auditing compliance with those standards.

The powerful new organisation is designed to strengthen safety and risk management across the BP group. It will be headed by Mark Bly and report directly to incoming chief executive Bob Dudley.

The company said the decision to establish the new function follows the Deepwater Horizon accident in the Gulf of Mexico and BP’s investigation into the disaster. It is one of a number of major changes announced by Dudley as he prepares to take over his new role on October 1.

Who will be in charge of the "Stuxnet Task Force" ?

17 August 2009

Business Resilience: Beyond Readiness...

The continuity of your telecom operations is an operational risk that in many cases is underestimated until a significant business disruption occurs. When telecom is down, this means a combination of voice and data services that serve your business enterprise may not be available. The resilience of both the voice and data communications is the holy grail of continuity of operations and disaster recovery professionals on a global basis.

Business Resilience and the ability to effectively anticipate or absorb the impact of an incident, whether man made or as a result of a natural phenomenon differentiates your suppliers. When is the last time you tested your Tier I service supplier for a mission critical business process to determine the ability to keep their voice and data services running during a time of crisis? And maybe more important, is your own enterprise Incident Command system survivable so that you can provide voice leadership to your "Incident Commanders" where ever they may be located?

Until now, telework, disaster recovery and business continuity professionals have primarily been limited to expensive, hardware-based, or location-specific solutions that remain inherently vulnerable. TeleContinuity’s end-user driven and “virtual” service solution is predicated on turning the traditional disaster recovery and business continuity model on its head. Instead of focusing on protecting centralized telecom infrastructure and equipment-based assets; pre-planning for employee relocation; and location-specific solutions designed to enfranchise only a select number of key executives -- TeleContinuity assumes the entire telecom capability of the enterprise is wiped out and that all employees and key executives are individually scattered to a myriad of undetermined locations.

Unencumbered by the traditional telco infrastructure mentality or by the business agendas of telecommunication hardware or IP equipment vendors, TeleContinuity’s founders synthesized the best design elements of PSTN, Internet, and dynamic call center technologies to create a seamless, ubiquitous, and fully resilient outsourced services solution. There is no equipment to buy. We do not touch the customer’s PBX. A customer does not need to change their carrier relationship.

Additionally, TeleContinuity can provide your organizations all the capabilites that they need on a daily basis so that you can work remotely from any location with access to the infrastructure that makes your data and voice applications usable.

Telecontinuity is just one good example of how to make your organization more business resilient. As we approach the middle of the Hurricane season here in the U.S., you can understand why having energy to power systems is an important aspect of most COOP discussions. This simple yet valid argument for back-up power has been going on for a decade or more. Yet not until the last several years as Iraq, Afghanistan and other places that have been the result of some of our most horrific displays of "Mother Nature's" wrath on domestic urban infrastructure has energy innovation become commercialized.

White Door offers a proprietary line of portable towers systems fueled by non-traditional power sources. These self-powered towers can be rapidly deployed to satisfy physical security and communications requirements in areas where conventional power is not readily available or too expensive to deploy.

Utilizing alternative energy power sources including solar panels, wind turbines and hydrogen fuel cells, the towers have been designed to power communications and security systems for both long term and short term requirements. Completely independent of the power grid, they eliminate the costs of trenching and physical bandwidth provisioning, are flexible to place and relocate, and easily upgraded because they utilize COTS (commercial-off-the-shelf) integrated security and communication systems. These mobile trailer-towers offer an effective, reliable and energy efficient platform to power mission critical applications anywhere in the world.


White Door provides resilience to the warfighter, first responder or the corporate enterprise in their quest for alternative power and communications capabilities. When it comes to planning for the next Hurricane Katrina or the "Tip of the Spear" overseas operations readiness, resilient business organizations need to implement robust planning, exercises and systems to be able to overcome the operational risks that are before them.

Power blackouts are the catalyst for many risks to the critical infrastructure including Transportation, Internet, Voice commmunications and even those services that you take for granted like pumping gas at the local petrol station or emergency services at the local hospital. September is DHS Preparedness Month in the US and the focus is once again on the physical readiness of our nation.

There is however another facet of readiness that is slowly getting attention across the landscape of data systems blackouts, such as the mission critical applications we utilize almost everyday such as Online Banking and Voice Over Internet Protocol (VOIP) for voice communications. Cyberspace as we know it is so embedded into most of the mission essential aspects of business today that our readiness factor needs to go well beyond redundant power supplies and battery back ups for power. Cyber-Readiness is a key component of any organizations plan to stay resilient in the face of a Distributed Denial of Service Attack (DDOS) and other cyberspace exploits that disrupt our operations.

Federal prosecutors on Monday charged a Miami man with the largest case of credit and debit card data theft ever in the United States, accusing the one-time government informant of swiping 130 million accounts on top of 40 million he stole previously.

Albert Gonzalez, 28, broke his own record for identity theft by hacking into retail networks, according to prosecutors, though they say his illicit computer exploits ended when he went to jail on charges stemming from an earlier case.

Do you think you're spending too much time with your team planning and training? You haven't. Success in your organization doesn't happen because everything goes according to the plan. It happens because you were prepared when things go wrong. The organizations whose team has planned for every possible scenario and trained together in live simulations will become the most successful in their strategy execution. Their missions will be accomplished on time and within budget.

Incidents of different severity and frequency are happening around you and your organization every day. Would your employees know what an incident looks like let alone know what to do next to mitigate the risk to them and the organization?

06 February 2007

Self-Regulation: NERC Get's Proactive...

Now that the power sector and electrical utilities are going public with their acceptance of converged standards, other sectors may not be far behind. Some of the regulated critical infrastructure sectors have been working towards an industry wide set of controls that must be implemented and audited. Who will be next?

The North American Electric Reliability Council's new cybersecurity standards for critical infrastructure protection have eight categories, which apply utility risk management analyses to networked systems. A thumbnail description of the main areas:

  • Critical cyberassets
  • Security Management Controls
  • Personnel and training
  • Electronic security
  • Physical security
  • Systems Security Management
  • Incident Reporting and Response Planning
  • Recovery plan
You can bet that the drafting team has pulled their language from many of the standards that have already been in practice for years. In fact, most of the launch point for this effort came from work done soon after 9/11. How soon other industry sectors decide to adopt this framework will likely be decided by the lobby shops. Politics aside, the electric utility sector has moved into a phase of self-regulation and for good reason.

The huge blackout of Aug. 14, 2003, in which a software glitch at a single electrical provider in Ohio cascaded into an event in which 50 million people in North America lost power, underscored the importance of the reliability standards discussion. But Miserendino says that the group's biggest motivator was the threat that FERC might come in and do the regulating for it. In part, he says, that's because the 2005 Energy Act made FERC responsible for electrical transmission reliability and gave the federal agency the ability to fine utilities for noncompliance.

We can only hope that other Critical Infrastructure sectors take the same initiative sooner than later. As private enterprises, you can do it your way now or face the governments perspective later.