Protecting US Dams From Cyberattacks

Photo of Paul Ausick
By Paul Ausick Updated Published
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
Protecting US Dams From Cyberattacks

© 6381380 / iStock

The U.S. Department of Interior’s Bureau of Reclamation earlier this month awarded a $45 million, five-year indefinite-delivery, indefinite-quantity contract for IT risk management services to two private companies. The two companies, Booz Allen Hamilton Holding Corp. (NYSE: BAH) and Spry Methods will provide technical and professional services to support the threat monitoring systems for more than 600 dams scattered across 17 western states and managed by the bureau.

The threat to the nation’s dam is both real and one that needs immediate attention. Real because an attack has already been successful against a dam near Rye Brook, New York, and immediate because it could happen again at any time threatening significant loss of life and property.

In 2016, an Iran-based group of hackers succeeded in gaining control of the Bowman Avenue Dam’s sluice gate, the device the controls water flow out of the dam. Fortunately, the attackers went after the wrong Bowman Dam.

[nativounit]

The Bowman Dam in New York is out of service. Chances are the attackers meant to gain access to the control systems at the much larger Arthur Bowman Dam in Oregon.

Neither of the Bowman Dams generates electricity, but the inferred threat against hydroelectric dams and the U.S. electricity grid did manage to get people’s attention, at least to some degree. The recent $45 million contract spread over 600 dams for a period of five years amounts to average spending of $15,000 per year per dam.

Marty Edwards, the former director of the Department of Homeland Security’s Industrial Control Systems/Computer Emergency Response Teams (ICS/CERT) told Nextgov.com:

That is certainly a good start but ultimately cybersecurity is about hiring people. I would like to see either permanent civil servants or a standing program put in place to use contractors every year. Most likely the best approach is a combination of the two.

One might argue that the nation’s leaders haven’t gotten the message yet. Last month President Trump decided not to name a White House Cybersecurity Advisor to replace Rob Joyce who resigned in April. The task was given to new national security advisor John Bolton and the staff at the National Security Council (NSC).

The recent agreement between North Korea and the U.S. is all about nukes and does not mention cyberwarfare at all. That may have been necessary to get to any kind of agreement at all, but how well-prepared is the United States to counter a cyberattack by the North Koreans.

There is ample evidence that North Korea (the Democratic Peoples Republic of Korea or DPRK) uses cyberattacks to steal funds for the Kim regime. That is not the worst news. According to Crowdstrike’s annual threat report:

Given the geopolitical tension surrounding the North Korean nuclear program, DPRK-based adversaries are likely to continue malicious cyber activity against entities in South Korea, Japan and the U.S. Network access obtained via remote access tools … may be used to deploy wiper malware.

Given the gravity of a possible compromise to the U.S. energy sector, Falcon Intelligence has assessed that this specific targeting may represent DPRK posturing via cyber operations that could deliver destructive effects against the U.S. critical infrastructure, should a military conflict occur.

No cybersecurity coordinator and just $45 million over five years  is not an effective response to threats posed by government-sponsored attackers from two countries that are at odds with the United States and have a track record of cyberattacks.

[recirclink id=469109]

[wallst_email_signup]

Photo of Paul Ausick
About the Author Paul Ausick →

Paul Ausick has been writing for a673b.bigscoots-temp.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.

He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.

Our $500K AI Portfolio

See us invest in our favorite AI stock ideas for free

Our Investment Portfolio

Continue Reading

Top Gaining Stocks

CBOE Vol: 1,568,143
PSKY Vol: 12,285,993
STX Vol: 7,378,346
ORCL Vol: 26,317,675
DDOG Vol: 6,247,779

Top Losing Stocks

LKQ
LKQ Vol: 4,367,433
CLX Vol: 13,260,523
SYK Vol: 4,519,455
MHK Vol: 1,859,865
AMGN Vol: 3,818,618