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Hack at Water Company Serving 14M Customers Including Military Bases

Regulators and cyber watchdogs have warned for years of the need for critical infrastructure entities to shore up their cyber defenses against attack.  An October attack on a water company shows the continued need for vigilance.  The company disabled certain operations out of an abundance of caution, but says that only billing operations were directly affected and messaged that customers would not be subject to late fees if the hack affected their payments.  

WHY IT MATTERS

Although the hack took down only billing operations, it shows how widespread the impact could be if a threat reached any operational systems.  In this case, the target company is a water utility serving 14 states and 18 military bases, with a total customer population of about 14M.  

An attack early this year in the healthcare sector took down billing systems and managed to paralyze the delivery of certain care because providers could not process claims.    

Together, these attacks are good reminders that “back office” functions can create vulnerability for any cyber target. 

While the American Water hack does not appear to impact vital services or operations, the company noted that it is “unable to predict the full impact of this incident” and disconnected some systems. The 8-K filing also notes that American Water does not expect the hack to have a “material effect on the company, or its financial condition or results of operations.” The company took billing services offline and noted on its website that customers will not incur late charges and water services will not be shut off while they work to get back online. The company said in a statement to CyberScoop that it had “contacted and [is] receiving assistance from law enforcement, and we are coordinating fully with them.”

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