Cyberattack Prompts Major Pipeline Operator To Halt Operations; What Will It Potentially Mean For Gas Prices?
WOODBRIDGE, N.J. (CBSNewYork) -- A cyberattack shut down a major fuel pipeline that runs from Texas to New Jersey.
Investigators now believe it was carried out by a criminal gang known as Darkside and now some people are worried about an increase in gas prices because of it, CBS2's Cory James reported Sunday.
The incident is making some worry about an increase in gas prices from a potential gas shortage caused by the ransomware attack.
Sunday marked the third day of the pipeline shutdown.
READ MORE: Cyberattack Prompts Major Pipeline From Texas To New Jersey To Shut Down
Colonial Pipeline suspended operations because of the threat against the company. A spokesperson said the Georgia-based business turned off its entire system to protect its pipelines that run more than 5,000 miles from Texas to the Garden State.
U.S. Secretary of Commerce Gina Raimondo spoke out about the attack on Face The Nation.
"The president was briefed yesterday. It's an all-hands-on-deck effort right now, and we are working closely with the company, state and local officials to, you know, make sure that they get back up to normal operations as quickly as possible and there aren't disruptions in supply," Raimondo said.
A spokesperson for Colonial Pipeline posted an updated statement Sunday evening on the company's website that says, in part, "While our mainlines (Lines 1, 2, 3 and 4) remain offline, some smaller lateral lines between terminals and delivery points are now operational. We are in the process of restoring service to the other laterals and will bring our full system back online only when we believe it is safe to do so."
In ransomware attacks, criminal hackers seize data and demand a large payment to release it.
It is unclear what was taken from Colonial Pipeline and if any demands were made.
"This is what businesses now have to worry about, and I will be working very closely with Ali Mayorkas on this. It's a top priority for the administration. Unfortunately, these sorts of attacks are becoming more frequent. They're here to stay and we have to work in partnership with business to secure, secure networks, to defend ourselves against these attacks," Raimondo said.
Now the question is, what will this cyberattack do to gas prices if not resolved soon?
Colonial Pipeline transports about 45% of the fuel used on the East Coast.
The pipelines carry everything from jet fuel to home heating oil.