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Suzanne SmalleySeptember 29th, 2023
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FBI WARNS ENERGY SECTOR OF LIKELY INCREASE IN TARGETING BY CHINESE, RUSSIAN
HACKERS

Global energy supply changes will likely increase Chinese and Russian hackers’
targeting of critical energy infrastructure, according to an FBI notification
sent to the energy industry and obtained by Recorded Future News.

The alert, issued Thursday, cites factors such as increased U.S. exports of
liquefied natural gas (LNG); changes in the global crude oil supply chain
favoring the U.S.; ongoing Western pressure on Russia’s energy supply; and
China’s reliance on oil imports.

The notification does not refer to any specific advanced persistent threat (APT)
hacking groups associated with China or Russia, nor does it point to specific
cybersecurity incidents involving critical infrastructure. Instead, it broadly
notes the attractiveness of U.S. networks for foreign intrusions and reminds
recipients that Chinese and Russian hackers are constantly trying to explore key
systems and improve their ability to exploit gaps they discover.

“Utilities see probing and low-level attempted attacks everyday by the Russians
and PRC,” Brian Harrell, former assistant secretary for infrastructure
protection at the Department of Homeland Security and now an energy sector
executive, said via email.

These low-level intrusions could help hackers understand key elements of
specific systems such as where a target has open ports or what firewall rules
may be, for example.

“China doesn’t make a lot of noise, but the small localized intrusions are
helping build their network attack capabilities, likely for future use,” Harrell
said. “There’s no doubt that the energy sector is on the front lines of
malicious cyber-activity right now as China preps the battlefield.”

Chinese hackers have targeted U.S. entities by conducting what the notification
calls “post-exploitation activity with generic reconnaissance commands using
‘live off the land’ tools.”

"Living off the land" typically refers to an attacker exploiting tools or
features that already exist in the target environment. For example, insidious
strains of ransomware, such as WannaCry and LockBit, have used a default Windows
binary — an existing piece of operating-system code — to cover their tracks and
persist inside a given network.

The FBI warning notes that since at least 2020, state-sponsored Chinese hackers
have exploited common vulnerabilities to “target US and allied networks and
software/hardware companies to steal intellectual property and develop access
into sensitive networks to include critical infrastructure, defense industrial
base sectors, and private sector organizations.”

The FBI declined to comment on the notification.

The notification also emphasizes how the Russian invasion of Ukraine changed the
global energy supply chain, calling Western sanctions a “significant driver” of
recent LNG supply chain shifts. The change will likely increase the Russian
hackers targeting of the U.S. energy industry, according to the notification.

By mid 2022, 74% of Europe’s LNG imports originated in the U.S. the notification
said, noting that the US was able to meet European LNG demand.

The notice said that since at least 2016 Russian hackers have targeted
government entities and multiple US critical infrastructure sectors, using
“staging targets networks as pivot points and malware repositories when
targeting their final intended victims.”

Last week, Bruno Kahl, the head of Germany’s foreign intelligence service,
cautioned that state-sponsored hackers could target LNG terminals there.

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Tags
 * Russia
 * Critical Infrastructure
 * energy
 * FBI

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SUZANNE SMALLEY



Suzanne Smalley is a reporter covering privacy, disinformation and cybersecurity
policy for The Record. She was previously a cybersecurity reporter at CyberScoop
and Reuters. Earlier in her career Suzanne covered the Boston Police Department
for the Boston Globe and two presidential campaign cycles for Newsweek. She
lives in Washington with her husband and three children.


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