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Colonial Pipeline

A single VPN password without two-factor authentication shut down half the gasoline supply on the US East Coast.

Cyber Chronicle2 min read

In May 2021, the largest fuel pipeline in the United States stopped pumping. For a week, gas stations from Georgia to New Jersey papered over their pumps with plastic bags while drivers panic-bought fuel and, in some cases, filled trash cans.

A leaked password

The intrusion did not require an elite operation. Investigators eventually traced it back to a single set of credentials — a username and password for a legacy VPN account, no second factor, leaked into a dump on the dark web in a previous unrelated breach.

The attackers were a Russian-speaking ransomware-as-a-service group called DarkSide. They did not touch the pipeline's operational technology directly. They encrypted the IT side: billing systems, dispatch, the office machinery of running a continent-scale pipeline. Colonial shut down the pipeline itself out of caution.

The receipts come back

Colonial paid roughly 4.4 million dollars in Bitcoin. A few weeks later the FBI announced it had recovered a substantial portion of the ransom by following the funds across the blockchain and obtaining the private key for one of the wallets. DarkSide's infrastructure was knocked offline shortly afterward — though, in the way of ransomware groups, several of the same operators reappeared under new branding within months.

What the chronicle remembers

Colonial was the incident that made ransomware a national security issue rather than a corporate IT issue. It also exposed how thin the membrane is between boring credential hygiene and a queue of trucks at an empty gas station.