Cyberattack hits US water utility, affecting 14 million customers

[CRAIG NIGRELLI]

THE LARGEST REGULATED WATER AND WASTEWATER UTILITY IN THE UNITED STATES, IS REVEALING IT HAD BEEN TARGETED BY A CYBERATTACK. AMERICAN WATER WORKS, , BASED IN CAMDEN, NEW JERSEY, SERVES MORE THAN 14 MILLION PEOPLE ACROSS 14 STATES AND 18 MILITARY INSTALLATIONS. THE ATTACK, WHICH WAS DISCOVERED ON OCTOBER THIRD, PROMPTED THE COMPANY TO TAKE IMMEDIATE PROTECTIVE MEASURES, INCLUDING SHUTTING DOWN CERTAIN SYSTEMS TO CONTAIN THE BREACH.

WHILE AMERICAN WATER EMPHASIZED THAT ITS WATER AND WASTEWATER OPERATIONS WERE NOT IMPACTED, THE COMPANY TEMPORARILY PAUSED ITS BILLING SYSTEMS. CUSTOMERS HAVE BEEN ASSURED THEY WILL NOT FACE LATE FEES WHILE THE SYSTEMS REMAIN OFFLINE. AN INVESTIGATION INTO THE NATURE AND SCOPE OF THE BREACH IS ONGOING, WITH THE COMPANY WORKING AROUND THE CLOCK ALONGSIDE THIRD-PARTY CYBERSECURITY EXPERTS. THE COMPANY HAS ALSO INFORMED LAW ENFORCEMENT AND IS COOPERATING FULLY WITH AUTHORITIES.

IN A REGULATORY FILING, AMERICAN WATER SAYS THAT IT IS CURRENTLY UNABLE TO PREDICT THE FULL IMPACT OF THE CYBERSECURITY INCIDENT. DESPITE THIS, THE COMPANY DOES NOT EXPECT THE BREACH TO HAVE A MATERIAL EFFECT ON ITS FINANCIAL CONDITION OR OPERATIONS. THE COMPANY MANAGES OVER 500 WATER AND WASTEWATER SYSTEMS IN AROUND 1,700 COMMUNITIES.

THE BREACH COMES AMID HEIGHTENED CONCERNS IN THE U.S. OVER CYBERSECURITY THREATS, PARTICULARLY RELATED TO CRITICAL INFRASTRUCTURE. RECENTLY, U.S. OFFICIALS HAVE EXPRESSED WORRIES ABOUT ATTEMPTS BY FOREIGN ACTORS, INCLUDING CHINESE INTELLIGENCE SERVICES, TO TARGET SECTORS LIKE WATER TREATMENT FACILITIES AND BROADBAND PROVIDERS.

AMERICAN WATER HAS NOT DISCLOSED THE SOURCE OF THE ATTACK. HOWEVER, THE INCIDENT REFLECTS BROADER CONCERNS ABOUT CYBERSECURITY VULNERABILITIES IN KEY UTILITIES, AS CYBER THREATS TO CRITICAL INFRASTRUCTURE CONTINUE TO INCREASE ACROSS THE STATES.

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