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Inside the Cunning, Unprecedented Hack of Ukraine&39s Power Grid

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Inside the Cunning, Unprecedented Hack of Ukraine&39s Power Grid
In Shocking Turn Of Events, Russia Now Owes Ukraine Billions
Ukraine out of power

It was 3:30 p.m. last December 23, and residents of the Ivano-Frankivsk region of Western Ukraine were preparing to end their workday and head home through the cold winter streets. Inside the Prykarpattyaoblenergo control center, which distributes power to the region’s residents, operators too were nearing the end of their shift. But just as one worker was organizing papers at his desk that day, the cursor on his computer suddenly skittered across the screen of its own accord.

He watched as it navigated purposefully toward buttons controlling the circuit breakers at a substation in the region and then clicked on a box to open the breakers and take the substation offline. A dialogue window popped up on screen asking to confirm the action, and the operator stared dumbfounded as the cursor glided to the box and clicked to affirm. Somewhere in a region outside the city he knew that thousands of residents had just lost their lights and heaters.

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The operator grabbed his mouse and tried desperately to seize control of the cursor, but it was unresponsive. Then as the cursor moved in the direction of another breaker, the machine suddenly logged him out of the control panel. Although he tried frantically to log back in, the attackers had changed his password preventing him from gaining re-entry. All he could do was stare helplessly at his screen while the ghosts in the machine clicked open one breaker after another, eventually taking about 30 substations offline. The attackers didn’t stop there, however. They also struck two other power distribution centers at the same time, nearly doubling the number of substations taken offline and leaving more than 230,000 residents in the dark. And as if that weren’t enough, they also disabled backup power supplies to two of the three distribution centers, leaving operators themselves stumbling in the dark.

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A Brilliant Plan

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The hackers who struck the power centers in Ukraine-the first confirmed hack to take down a power grid-weren’t opportunists who just happened upon the networks and launched an attack to test their abilities; according to new details from an extensive investigation into the hack, they were skilled and stealthy strategists who carefully planned their assault over many months, first doing reconnaissance to study the networks and siphon operator credentials, then launching a synchronized assault in a well-choreographed dance.

“It was brilliant,” says Robert M. Lee, who assisted in the investigation. Lee is a former cyber warfare operations officer for the US Air Force and is co-founder of Dragos Security, a critical infrastructure security company. “In terms of sophistication, most people always [focus on the] malware [that’s used in an attack],” he says. “To me what makes sophistication is logistics and planning and operations and … what’s going on during the length of it. And this was highly sophisticated.”

Ukraine was quick to point the finger at Russia for the assault. Lee shies away from attributing it to any actor but says there are clear delineations between the various phases of the operation that suggest different levels of actors worked on different parts of the assault. This raises the possibility that the attack might have involved collaboration between completely different parties-possibly cybercriminals and nation-state actors.

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“This had to be a well-funded, well-trained team. … [B]ut it didn’t have to be a nation-state,” he says. It could have started out with cybercriminals getting initial access to the network, then handing it off to nation-state attackers who did the rest.

The control systems in Ukraine were surprisingly more secure than some in the US.

Regardless, the successful assault holds many lessons for power generation plants and distribution centers here in the US, experts say; the control systems in Ukraine were surprisingly more secure than some in the US, since they were well-segmented from the control center business networks with robust firewalls. But in the end they still weren’t secure enough-workers logging remotely into the SCADA network, the Supervisory Control and Data Acquisition network that controlled the grid, weren’t required to use two-factor authentication, which allowed the attackers to hijack their credentials and gain crucial access to systems that controlled the breakers.

The power wasn’t out long in Ukraine: just one to six hours for all the areas hit. But more than two months after the attack, the control centers are still not fully operational, according to a recent US report. Ukrainian and US computer security experts involved in the investigation say the attackers overwrote firmware on critical devices at 16 of the substations, leaving them unresponsive to any remote commands from operators. The power is on, but workers still have to control the breakers manually.

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