Cyberattack On Colonial Pipeline: Alabama Among States Affected

WASHINGTON, DC — The Federal Motor Carrier Safety Administration declared an emergency in response to the "unanticipated shutdown" of the Colonial pipeline, which supplies gasoline, diesel, jet fuel and other petroleum products through Alabama, among other states.

Colonial Pipeline Co. said it learned it was the victim of a cybersecurity attack and has since determined that the incident involved ransomware. The attack could cause shortages and impact fuel prices in the region.

The impacted states and territories also include Arkansas, District of Columbia, Delaware, Florida, Georgia, Kentucky, Louisiana, Maryland, Mississippi, New Jersey, New York, North Carolina, Pennsylvania, South Carolina, Tennessee, Texas and Virginia.

Gov. Kay Ivey said a fuel shortage has not reached Alabama at this time, and she reminded people that an overreaction would only lead to that, and advised citizens to only fill up if you need to, and do not fill up multiple containers.

Related: Ivey Says Not To Hoard Gas In Alabama

Experts say the attack will affect gas prices only if the pipeline is shut down for more than five days.

"The challenges brought on by the Colonial Pipeline shut down would likely not appear for several days or longer," said Patrick De Haan a fiel analyst with GasBuddy. "My guess is they'll be able to restart the pipeline before any major issues develop. This should NOT be a pricing event- but this may be a supply event."

De Haan added, "If it lasts more than five days or so, there would be challenges in some SE states only, but they may not all be even across the affected states."

NBC News reported that a "Russian criminal group" may be responsible for a ransomware attack that shut down the major U.S. fuel pipeline, two sources familiar with the matter said Sunday. The group, known as DarkSide, has a "sophisticated approach to the business of extortion," the sources said.

Jay Town, ormer U.S. Attorney for the Northern District of Alabama and current vice president and general counsel For Gray Analytics in Huntsville said the impact of ransomware attacks goes beyond just the companies that are attacked.

"It's not just the lost income during the breach, response, and shutdown," Town said. "Or even the ransom payments. It's the lost customers."

Town referenced a report by Cybersecurity Ventures, which says ransomware attacks cost an estimated $6 trillion worldwide, and that 57 percent of businesses lose 20 percent of their clients as a result of these attacks.

Over the past 48 hours, Colonial pipeline personnel say they have taken additional precautionary measures to help further monitor and protect the safety and security of its pipeline.

"This underscores the threat that ransomware poses to organizations regardless of size or sector," the Cybersecurity and Infrastructure Security Agency said in a statement. "We encourage every organization to take action to strengthen their cybersecurity posture to reduce their exposure to these types of threats."

Patch editor Tom Davis contributed to this report.