Colonial faces $1 million fine after ransomware attack

Share on facebook
Share on twitter
Share on linkedin
Share on reddit

Colonial Pipeline may face a fine of nearly $1 million. After inspection, the regulator finds that the American oil company has probably violated several safety guidelines. Colonial can challenge the fine.

The Pipeline and Hazardous Materials Safety Administration (PHMSA) reports this in a press statement.

Colonial Pipeline CEO Pays $4.4 Million in Ransom

In May 2021, Colonial Pipeline was the news of the day. The petroleum company was the target of a ransomware attack. Hackers penetrated the company’s corporate network and were able to install ransomware. As a result, the oil company was forced to temporarily shut down production.

The attackers also managed to get hold of 100 GB of sensitive company information. They managed to steal names, contact information, dates of birth, copies of identity documents and health data of employees. Financial records, tax bills, insurance papers, reports and audits were also stolen.

Because tens of millions of Americans depend on the petroleum supply, the company decided to pay the hackers $4.4 million in ransom. “I realize it is a controversial decision. I didn’t take that lightly. I didn’t feel comfortable watching the money flow to the perpetrators. I did it in the national interest,” CEO Joseph Blount said in an interview.

Hackers managed to infiltrate network with leaked password

An investigation by cybersecurity company Mandiant showed that the hackers – believed to be members of the Russian hacker group DarkSide – had no access to critical parts of the IT systems. The perpetrators used a password from an employee’s VPN account to infiltrate the company’s network. It was leaked over the dark web. The account

Read more

Explore the site

More from the blog

Latest News