BPM Analytics
Theft and cybersecurity threats in the utilities and energy sector
Throughout the production, transmission, and distribution processes, the energy and utilities sectors are prone to cybersecurity threats. Electricity, water, and oil and gas networks are part of a nation’s critical infrastructure and are often ripe targets for criminals or hacktivists.
Estimates show that between 2019 and 2023, energy and utility businesses lost a total of $400 million due to cybercrime. This has led to rapid advancements in cybersecurity infrastructure and technology for the energy and utilities industries. Research shows that utility businesses are spending up to 8% of their IT budget on cybersecurity.
This article explores the emerging cybersecurity threats in energy sector and the prevention technologies one can use.
Why is energy and utility cybersecurity crucial?
Cybersecurity is the frontline defence against data breaches, ransomware attacks, phishing, and identity theft. As we rely on energy and utilities to power homes, run businesses, and provide critical medical care, its security becomes crucial –
Critical infrastructure for the economy
The economic health and the safety of citizens depend on consistent and reliable energy delivery. Cyberattacks on the energy and utility networks can cripple economic activity, cause financial losses, damage infrastructure, and result in loss of life. For example, a cyberattack on a city’s energy grid can halt businesses, hospitals, and transport hubs.
Managing the growing data
The amount of data energy and utilities businesses collect and analyse is enormous. It includes intellectual property, customer information, and operational data. A security breach can compromise the data integrity, which is why managing it becomes essential.
High financial risk
The cost of a cyberattack includes the financial loss due to service downtime, loss of reputation, litigations, and the cost of recovery. Energy and utilities are two of the most regulated industries (for example, the Electricity Act 2003 in India and the EPAct 2005 in the US). Therefore, a service outage may attract heavy scrutiny and penalties for non-compliance.
Rising complexity
Since energy and utility businesses manage complex connections within the energy infrastructure while transitioning to green energy, their data is always dynamic and in multiple locations. It moves across channels, interconnections, and locations. Therefore, they must protect the data while in motion.
Emerging cyber threats in the energy and utilities sectors
Energy and utility facilities are prone to both physical and virtual threats. Here are a few critical cyberattacks they must defend themselves against –
Advanced persistent threat (APT)
APTs target and infiltrate host systems for a prolonged period while remaining undetected. These threats sabotage systems, spy on utility facilities, and steal critical information to gain a competitive or political advantage.
Ransomware attack
Due to the critical nature of their operations, the energy and utility businesses are prime targets. For example, in a ransomware attack, hackers encrypt an organisation’s data and hold it hostage for a high ransom.
Insider threat
Current or ex-employees may use their access rights to the network to disrupt the systems or steal and sell information. Access to the systems may be intentional or due to negligence.
Infrastructure vulnerabilities
The score of cyberattacks expands significantly with new-age modernisation and IoT devices in the energy and utility grids. If these IoT devices lack robust security protocols, they can compromise the entire network.
Supply chain attack
Energy and utility businesses rely on third-party suppliers for software and hardware, which the miscreants can leverage to compromise security. A compromised component can go undetected, allowing attackers to spy on operations or cause widespread security breaches.
How to use energy and utility theft prevention technologies?
A robust strategy encompasses technology and procedural transformations to safeguard the infrastructure from cybersecurity threats in energy sector. These include –
Data analytics
Data analytics leverages artificial intelligence (AI) and machine learning (ML) to detect suspicious activities before they can cause serious damage. It improves the existing controls and identifies new ones, whereas diagnostic analysis detects and fixes revenue leakage.
Process automation
Process automation begins with analysing existing gaps and benchmarking them against future goals to prevent losses, followed by integration and maturity assessment to safeguard the system from cybersecurity threats.
Network segmentation
Network segmentation aims to isolate the critical systems from the rest of the network to minimise the impact of a cyber-attack. Even if the hackers access the less secure network, they are unable to breach the isolated critical systems.
Comprehensive risk management
Identify the risks within the existing infrastructure and prioritise them according to the threat quotient. This is an ongoing process with system updates and the addition of new hardware and software.
How can Infosys BPM help in utility theft prevention?
Infosys BPM offers comprehensive utility theft solutions for companies to detect and prevent theft, leakage, and fraud. Its services include advanced analytics to identify suspicious patterns, prescriptive analytics to enhance precision, and diagnostic analytics to detect revenue leakage. A combination of process automation, maturity assessment, data analysis, and incident management delivers future-proof fraud control systems. Additionally, Infosys BPM integrates IoT devices and SMART grid control for real-time monitoring and compliance.
