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U.S. oil and gas giant Halliburton (HAL.US) was the victim of a cyberattack.

AInvestThursday, Aug 22, 2024 3:50 am ET
1min read

According to an informed source, oilfield services giant Halliburton (HAL.US) was hit by a cyberattack on Wednesday. Halliburton said it had discovered a problem affecting some of its systems and was working to determine the cause and impact. A spokesperson said in an email statement the company was working with “leading external experts” to resolve the issue. The source said the attack appeared to have affected business operations at the company’s Houston Northside facility, as well as some global connectivity networks. The source said Halliburton had asked some employees not to access internal networks.

Halliburton, based in Houston, Texas, is one of the world’s largest oilfield services companies, providing drilling services and equipment to major energy producers worldwide. It had nearly 480,000 employees at the end of last year, operating in 70 countries.

Cyberattacks have been a perennial problem for the energy industry. In 2021, a ransomware attack on Colonial Pipeline, a major fuel supply line, caused it to shut down for days. The FBI has blamed the intrusion on a group called DarkSide, which caused gasoline prices to spike, panic buying and localized fuel shortages.

In recent years, a number of major US companies have been hit by cyberattacks, including UnitedHealth Group (UNH.US), casino giant MGM Resorts International (MGM.US), Caesars Entertainment (CZR.US) and consumer goods maker Kelty (KLX.US).

While it is not clear what exactly happened to Halliburton’s internal data, ransomware works by encrypting the victim’s data. Hackers typically demand tens of thousands or even millions of dollars in bitcoin payments in exchange for the keys to unlock the data. If the victim refuses, hackers sometimes threaten to leak sensitive data to increase pressure.

For example, the group believed to have attacked Colonial Pipeline, DarkSide, said it wanted to be paid a ransom. The chief executive of Colonial Pipeline said his company paid $4.4 million in ransom because executives were unsure of the severity of the intrusion and how long it would take to restore the pipeline.

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