Kyndryl and AWS: The Cyber Issues Facing the Energy Sector
As the world becomes increasingly reliant on digital technologies, the energy sector is facing an unprecedented challenge: safeguarding its critical infrastructure from a rising tide of cyber threats.
The rapid digital transformation that has characterised this industry has not only enhanced operational efficiency but has also made it a prime target for cybercriminals and state-sponsored actors alike.
Recognising the rising threat, President Biden has been pushing regulations on critical industries like energy in order to meet the challenge.
This vulnerability is underscored by alarming statistics, with data from the International Energy Agency (IEA) revealing that the average cost of a data breach in the energy sector reached a staggering US$4.72m in 2022.
The urgency of addressing these cybersecurity concerns is further amplified by a series of high-profile attacks that have rattled utilities worldwide.
A survey conducted by Kyndryl and AWS highlights this disconnect, revealing that while 94% of organisations feel prepared to mitigate cyberattacks, 71% still anticipate experiencing a disruptive incident within the next year.
The rising tide of cyber threats
The energy sector is not just another industry; it is a critical component of national security and economic stability.
As such, it has become an attractive target for cybercriminals seeking to exploit vulnerabilities within industrial control systems. Deloitte's findings reinforce this notion, identifying the energy sector as particularly susceptible to attacks that could compromise operational safety and reliability.
The Kyndryl and AWS survey paints a stark picture: the majority of oil and gas organisations reported experiencing disruptive cyber incidents in the past year, placing them among the top three most affected industries alongside retail and manufacturing.
This trend highlights an urgent need for enterprises to reassess their cybersecurity strategies, particularly as they confront evolving threats such as nation-state attacks and emerging technologies like generative AI.
“With more than half of organisations experiencing disruptive incidents in the last year, it is imperative that businesses commit to safeguarding their digital future,” Kris Lovejoy, Global Security and Resiliency Practice Leader at Kyndryl.
“This ongoing commitment is crucial for ensuring not only operational continuity but also public trust in essential services,” she continues.
Preparing for an uncertain future
The challenges faced by the energy sector are compounded by its complex operational technology systems.
As the landscape becomes increasingly interconnected, so too does the potential for cascading failures resulting from cyber incidents.
“This ongoing commitment is crucial for ensuring not only operational continuity but also public trust in essential services.”
The Kyndryl and AWS survey reveals that 52% of IT leaders are struggling with operational challenges related to preparing for emerging threats.
The rapid development of AI has lowered the barrier for entry for malicious actors, making it imperative for organisations to take proactive measures to de-risk themselves from potential cyber threats.
“Achieving this is not a one-time effort but an ongoing commitment to safeguarding our digital future,” says Kris.
With cyberattacks on the rise and critical infrastructure at stake, ensuring robust cybersecurity measures is no longer optional—it is essential for safeguarding our collective future.
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