Cybersecurity is a priority for any business or organization. Yet for utility companies, the need to secure their digital assets is perhaps even more critical. Hacks can not only affect their customer data, but also potentially the service that they provide to the community.
By far, the largest threat to utility companies comes from external sources, including bad actors who seek a ransom in exchange for not releasing sensitive data or shutting down services. There are several best practices that utility companies should deploy to reduce the risk of a hack. Ideally, this should be done in layers so that the company is more fully protected against hacks and other cyber threats.
At Inclind, we build smart, secure websites for public utilities. Using the latest technology, we create websites that are both effective and safe. Our ultimate goal is to help our clients develop a digital strategy that can help them grow in the future, securely and thoughtfully. To learn more about our website design and development services for utility companies, reach out to talk to a member of our team.
Common Cyber Threats for Utility Companies
Utility companies have become a bigger target for hackers in recent years. In some cases, the goal of these attacks is to shut down critical services. In other cases, the hack is done as a wayto make money through ransoms by holding a company’s digital assets hostage.
In 2024, American Water - one of the largest water utility providers in the United States - was hit by a cyber attack that interrupted the company’s business operations. While the company responded quickly to pause billing and protect customer data, it was a stark reminder that even massive corporations are vulnerable to these types of threats.
Utility companies face many different types of cyber threats. We’ll dive into some of the most common threats below.
Ransomware
Ransomware encrypts a system and then demands a ransom for decryption. This can lock utility companies out of these systems, potentially crippling operations. The Colonial Pipeline attack of 2021 is an example of a ransomware attack on an energy company.
Malware
Malware can be used to disrupt operations, steal data, or gain unauthorized access to critical systems. This can result in significant losses to a utility company, including disruption of services.
Supply Chain Attacks
Supply chain attacks involve introducing malicious components into the software and hardware used by utility companies. This can ultimately lead to security breaches and other disruptions.
Phishing
Phishing involves sending deceptive messages or emails to induce employees to reveal their credentials or other sensitive information (such as bank account routing numbers). For utility companies, this can lead to security issues with control systems and sensitive data.
Nation-State Attacks
Nation-state attacks occur when state-sponsored actors (often associated with countries such as Russia, Iran, North Korea, and China) target energy and utility companies to achieve certain goals. These attacks may include an element of cyber espionage or may be done simply to cause chaos and disruptions.
Control System Attacks
Control system attacks go after SCADA and other control systems to disrupt a utility company’s operational technology, causing service disruptions, safety issues, and physical damage.
DDoS Attacks
Denial-of-Service (DoS) and DDoS attacks overwhelm a system with traffic, making it unavailable to legitimate users. This can interrupt real-time data transmission, which impacts operational efficiency.
Insider Threats
Insider threats happen when employees, contractors, or others with “inside” information knowingly or unknowingly compromise security measures or share sensitive information.
This is just a sampling of some of the security threats facing utility companies. As technology evolves (such as artificial intelligence/AI), the scope of cyber attacks will likely increase. That is why it is so critical to have an overlapping web of defenses to protect against cyber threats.
Cyber Security Best Practices for Utility Companies
Unfortunately, it may not be possible to prevent all data breaches or security incidents. Companies rely on people, who are fallible. That is why it is important to have layers of security to reduce the risk of an attack.
Utility companies use a wide array of technology, such as control systems. Experts can offer specific advice on how to best secure this software. Otherwise, utility companies should employ these best practices to lower the likelihood of a cyber attack.
Implement Multi-Factor Authentication (MFA)
This technology adds an extra layer of security by requiring additional verification before critical systems are accessed. Even if passwords are compromised, using MFA can reduce the risk of unauthorized access. MFA should be required for any sensitive system and for any employees who access any utility company system remotely. We also highly recommend setting up multi-factor authentication for website logins, which is something we regularly help our clients implement.
Harden Defenses
Similar to building a moat around a castle, there are steps that a utility company can take to strengthen its defenses. Firewalls should be employed to block unauthorized access to the company’s network. Intrusion detection systems (IDS) can then monitor network traffic for any suspicious activity. Utility companies should also make sure that their firewalls are up to date and configured correctly to prevent breaches. They should also encrypt sensitive data (such as billing information) so that any data that may be accessed by hackers will be unreadable without the encryption key.
Proactive Security Training
Employees should receive regular, ongoing security training on topics like phishing. This can reduce the likelihood of an employee accidentally exposing the system by clicking on a link or inputting information into an unsafe website. Additional training for staff with access to sensitive systems should be mandatory.
Regular System Updates and Patches
One of the easiest ways for hackers to gain access to a system is through software that has not been updated or patched. All software should be routinely updated, including both operating systems and third-party software and applications, with the latest security patches installed. Automated patch management can make sure that all systems are updated. Website updates are something we handle as part of our site maintenance and support services.
Implement Threat Monitoring & Defense Systems
Cybersecurity tools that are powered by AI can identify suspicious behaviors, which can allow utility companies to stop threats before they become a bigger problem. Advanced monitoring tools can constantly track network activities so that the company can respond rapidly to any potential breach or abnormal activities.
Conduct Comprehensive Audits and Assessments
Establishing cybersecurity defenses is just the first step. You will have to make sure that these defenses are working as they should for full protection. Regular security audits can identify weak spots in a utility company’s cybersecurity. Additionally, experts can perform penetration testing to simulate cyber attacks and identify any vulnerabilities in the system so that they can be fixed.
Utility companies must adhere to rigorous compliance requirements. Frameworks like the NIST Cybersecurity Framework and NERC CIP standards provide structured guidelines to assess and mitigate cyber risks. Staying aligned with these requirements isn’t just best practice, it’s often a regulatory necessity.
Adopt The Zero Trust Architecture Framework
Utilities are increasingly adopting Zero Trust Architecture, which requires continuous verification of users and devices regardless of their location in the network. Implementing Zero Trust principles can significantly reduce the attack surface.
Secure Physical Equipment
With IT and OT environments increasingly interconnected, it’s critical to ensure that control systems like SCADA are properly segmented from business networks and that physical access to infrastructure (like field equipment) is strictly controlled.
Establish A Vendor Risk Management Program
Third-party vendors and contractors often have access to critical systems. Establishing a vendor risk management program, including rigorous vetting, contractual cybersecurity requirements, and continuous monitoring, is essential.
Create An Incident Response Plan
As the American Water incident revealed, no company is completely immune to cyberattacks. Every system has vulnerabilities, particularly when those systems involve humans. Every utility company should have a response plan in place so that it can respond quickly and minimize damage in the event of a breach. An in-house or contracted cybersecurity team should be ready to respond in the event of any type of cyber attack.
How Inclind Can Help Secure Utility Websites
At Inclind, we have decades of experience building secure websites using the latest best practices. We take the time to learn about new and emerging threats - and about the most advanced tools to stop cyber attacks. If not designed and developed properly, a utility company’s website can be a vulnerability, which is why we take pride in our highly secure website builds.
As part of our ongoing website maintenance and support services, our team will update your website content management system and any associated apps and install any necessary security patches. We can also advise you on what software is generally considered safe and what should probably be avoided to maintain cybersecurity best practices.
Work with Inclind to Build and Maintain a Secure Utility Company Website
The possibility of a cyber attack keeps many utility company executives up at night. Public utilities of all sizes are potential targets for hackers. Employing cybersecurity best practices - and working with an experienced website design and development team - can help reduce the risk of a cybersecurity incident.
Based in Delaware, Inclind offers web development and design services to mid-sized utility companies throughout the U.S. We take pride in offering the highest level of security for our clients based on industry best practices. All of our services, including website support and maintenance, site redesigns, custom integrations, and accessibility audits, are designed to help keep your website and digital assets as secure as possible.
We're available if you’d like to learn more about our website development services for utility companies. You can fill out our online contact form or call us at 800-604-8139 to talk to one of our experts about your website.