The threat of cyberattacks against critical infrastructure in the United States has evolved beyond data theft and espionage. Intruders are already entrenched in the nation’s most vital systems, waiting to unleash attacks. For instance, CISA has raised alarms about Volt Typhoon, a state-sponsored hacking group that has infiltrated critical infrastructure networks. Their goal? To establish a foothold and prepare for potentially crippling attacks that could disrupt essential services across the nation.

Volt Typhoon embodies a threat far beyond everyday cyber crime. It indicates the dangerous reality of cyber pre-positioning — a tactic that allows cyber actors to infiltrate systems, maintain persistence and potentially launch massively destructive operations. With lifeline sectors such as communications, energy, transportation and water and wastewater systems under threat, the question is no longer if attackers are embedded within U.S. infrastructure but how deeply they have rooted themselves. And the implications directly impact national security.

Nation-state pre-positioning goes beyond espionage

Employed by nation-state actors, pre-positioning goes beyond mere intelligence gathering. By silently lurking within critical infrastructure networks, actors gain the capability to wreak havoc at a moment’s notice. These intrusions, particularly in sectors like water systems and energy grids, serve little espionage value, per Anne Neuberger, the Deputy National Security Adviser for Cyber and Emerging Technologies. This indicates that the infiltrations are likely precursors to far more disruptive objectives.

Volt Typhoon’s methodical approach has allowed them to infiltrate U.S. systems for extended periods — up to five years in some cases — without detection. They’ve targeted the infrastructure that millions of Americans depend on daily. In a time of heightened geopolitical tension, a well-timed cyberattack could grind vital systems to a halt, leaving the nation vulnerable to cascading failures across multiple sectors. The fallout could be unprecedented, impacting national security, the economy and everyday life.

Volt Typhoon’s tactical mastery

Volt Typhoon is no ordinary hacking group. This state-sponsored entity has displayed a level of sophistication that challenges even the most robust cybersecurity defenses. Through its living-off-the-land (LOTL) tactics, the group exploits legitimate network administration tools, blending seamlessly with normal traffic and making detection extremely difficult. Their use of known vulnerabilities in public-facing devices such as routers and VPNs allows them to gain access, while compromised administrator credentials give them the power to burrow deeper into networks and assess operational technology (OT) systems.

The group’s calculated patience is noteworthy. Instead of seeking short-term gains, they carefully study their targets and gain an understanding of the nuances of the systems they infiltrate. In one case, Volt Typhoon spent nine months moving laterally through a water utility’s network, gaining access to crucial OT assets, including water treatment plants and electrical substations. These infiltrations are more than a technical breach — they represent a looming threat to physical infrastructure that could manifest in catastrophic failures.

The FOCAL Plan’s strategic response

In the face of these threats, CISA has developed a robust response: the Federal Civilian Executive Branch (FCEB) Operational Cybersecurity Alignment (FOCAL) Plan. This strategic framework aims to shore up federal cybersecurity defenses by driving coordinated action across agencies. The FOCAL Plan outlines how federal agencies can adopt best practices to defend against pre-positioning and other sophisticated cyber threats, promoting a holistic approach from prevention to incident response.

The FOCAL Plan focuses on five critical areas: asset management, vulnerability management, defensible architecture, cyber supply chain risk management and incident detection and response. Each area plays a crucial role in safeguarding federal systems from persistent threats like Volt Typhoon:

1. Asset management: Without knowing what assets exist within an organization, it is impossible to protect them. The FOCAL Plan emphasizes comprehensive, continuous visibility into all IT and OT assets to ensure that any unauthorized access can be detected and mitigated quickly.

2. Vulnerability management: Regular vulnerability scanning and timely patching prevent hackers from exploiting known weaknesses, shutting down one of their primary entry points.

3. Defensible architecture: Organizations must build resilience into systems, assuming that attacks will happen. This includes implementing zero trust principles to restrict lateral movement within networks and limit the damage attackers can do, even if they gain access.

4. Supply chain risk management: This addresses the growing reliance on third-party vendors. With many cyberattacks exploiting vulnerabilities in third-party systems, the FOCAL Plan emphasizes the need for agencies to closely monitor their supply chains and ensure that their vendors adhere to strict cybersecurity protocols.

5. Incident detection and response: This is the FOCAL Plan’s approach to real-time cyber defense. CISA urges agencies to deploy advanced tools like endpoint detection and response (EDR) systems, which can identify and respond to threats before they cause significant damage. The ability to share threat intelligence and coordinate responses across federal agencies is essential for ensuring that the government can act swiftly in the event of an attack.

Mitigation urgency and action

The threat landscape outlined by Volt Typhoon’s actions calls for an urgent response — not just from federal agencies but from every organization that operates critical infrastructure. The key to stopping attackers from exploiting pre-positioned access is to adopt a mentality of constant vigilance and proactive threat hunting. It’s not enough to react to attacks after they happen. Organizations must actively hunt for threats, continually monitor their systems and act quickly to patch vulnerabilities before they can be exploited.

CISA’s FOCAL Plan provides a framework, but it is up to individual organizations to implement these measures at every level. Regular security audits, comprehensive asset management and adherence to the latest cybersecurity best practices are non-negotiable. Organizations must be prepared for the reality of an attack, ensuring that they have backup systems in place. It’s vital to practice incident response through tabletop exercises and maintain open communication channels with CISA and other federal agencies.

The harsh reality is that many organizations may already have pre-positioned attackers within their networks. The objective now is to limit the damage they can do and to ensure that attackers cannot trigger even more widespread disruption.

The clock is ticking

The presence of cyber actors like Volt Typhoon in U.S. critical infrastructure is not hypothetical — it’s happening now, and the consequences of inaction could be devastating. The ability of these attackers to remain hidden within networks for years, studying their targets and preparing for destructive actions, underscores the importance of robust, proactive cybersecurity measures.

The FOCAL Plan is a step in the right direction, but the fight against pre-positioned cyber actors is far from over. It will require a sustained, coordinated effort between federal agencies, private organizations and international allies to ensure that U.S. critical infrastructure is protected and remains resilient.

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Rhode Island is grappling with the fallout of a significant ransomware attack that has compromised the personal information of hundreds of thousands of residents enrolled in the state’s health and social services programs. Officials confirmed the attack on the RIBridges system—the state’s central platform for benefits like Medicaid and SNAP—after hackers infiltrated the system on December 5, planting malicious software and threatening to release sensitive data unless a ransom is paid.

Governor Dan McKee, addressing the media, called the attack “alarming” and urged residents to take immediate precautions to protect their information. Compromised data includes Social Security numbers, banking details, addresses and dates of birth. “This breach is a stark reminder of the vulnerabilities in government IT systems,” McKee said. “We are working with Deloitte and law enforcement to contain the damage and restore public trust.”

Timeline of the attack

The cyberattack began on December 5, when Deloitte, the developer and maintainer of RIBridges, alerted state officials to suspicious activity. Initially, it was unclear whether sensitive data had been accessed. Over the following days, Deloitte implemented additional security measures while investigating the breach.

On December 10, hackers provided a screenshot of file folders as proof of their access, prompting Deloitte to confirm that the RIBridges system had been compromised. Further analysis revealed a high probability that the stolen files contained personally identifiable information (PII). By December 13, Deloitte identified malicious code within the system, leading the state to shut down RIBridges to mitigate further damage and begin remediation.

How the attackers gained access

While the exact infiltration method remains under investigation, early findings suggest that the attackers exploited vulnerabilities in the system’s architecture, likely through phishing emails targeting administrative accounts or unpatched software weaknesses. The malware deployed by the cyber criminals enabled unauthorized access and allowed the attackers to exfiltrate data unnoticed for several days.

This breach has highlighted persistent security challenges in government IT systems, which often struggle to keep pace with evolving cyber threats. RIBridges, developed in 2016 under the Unified Health Infrastructure Project (UHIP), has faced years of technical and operational issues, including public criticism for its vulnerabilities.

Impact on residents and state operations

The breach has far-reaching implications for Rhode Island’s residents and government services. Programs impacted include Medicaid, SNAP, Temporary Assistance for Needy Families (TANF) and health insurance purchased through HealthSource RI. The RIBridges system’s offline status has forced the state to resort to manual processing for December benefits and January payments, creating delays and disruptions for thousands of families.

State officials have contracted Experian to provide free credit monitoring to affected residents and set up a dedicated call center to offer guidance. McKee also urged residents to take proactive steps, including freezing their credit, updating passwords and enabling multi-factor authentication.

Comparisons to other state-level ransomware attacks

Rhode Island is not the first state to be targeted by a ransomware attack on its central systems. In 2019, Texas faced a coordinated ransomware assault that impacted 22 local entities, including state-run agencies, though its centralized IT infrastructure mitigated the spread. Similarly, Colorado’s Department of Transportation suffered a ransomware attack in 2018, which disrupted operations and required weeks to fully resolve.

These incidents underscore the growing threat of ransomware to state governments. Unlike attacks on local municipalities, state-level breaches can potentially disrupt critical systems serving millions of residents, amplifying the stakes for government cybersecurity teams.

What comes next?

The FBI and other federal agencies are assisting in the investigation, while Deloitte works to remediate the vulnerabilities and restore RIBridges. Meanwhile, negotiations between the state’s representatives and the cyber criminals are ongoing, though officials have not disclosed the ransom amount or whether they intend to pay it.

“That conversation is going on directly with Deloitte and the cyber criminals. That’s how this process works, we’re learning a little bit about it,” McKee said. “But we’re being notified of the progress on it, and ultimately, it does end up with that decision with me.”

The attack has reignited calls for stronger cybersecurity measures in government IT systems. Experts recommend adopting zero trust security models, conducting regular vulnerability assessments and increasing investments in cybersecurity infrastructure to prevent future breaches.

“This breach is a wake-up call,” says Brian Tardiff, Rhode Island’s Chief Digital Officer. “We need to ensure that our systems are resilient against increasingly sophisticated cyber threats. The stakes are too high to do otherwise.”

To learn how IBM X-Force can help you with anything regarding cybersecurity including incident response, threat intelligence, or offensive security services schedule a meeting here.

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CISA and the FBI recently released a joint statement that the People’s Republic of China (PRC) is targeting commercial telecommunications infrastructure as part of a significant cyber espionage campaign. As a result, the agencies released a joint guide, Enhanced Visibility and Hardening Guidance for Communications Infrastructure, with best practices organizations and agencies should adopt to protect against this espionage threat.

According to the statement, PRC-affiliated actors compromised networks at multiple telecommunication companies. They stole customer call records data as well as compromised private communications of a limited number of people. Sen. Mark R. Warner (D-Virginia) told the Washington Post that the threat actors listened on audio calls and even moved between networks. As a result, many media sources reported that texts between Android and Apple devices are not secure.

Historic and sophisticated cyberattack

The headlines of the Washington Post deemed it the worst telecom hack in our nation’s history, per a top U.S. senator. On the surface, this seems a bit melodramatic, with only 150 identified victims. However, experts predict the affected number of people will go into the millions. Warner, who serves as chairman of the Senate Intelligence Committee, went as far as to say that Salt Typhoon makes Colonial Pipeline and SolarWinds “look like child’s play.”

The data collected during the attack falls into two categories, reported NBC. The first included call records showing the time and number called, with most records in the Washington, D.C. area. The other included listening to live calls of specific targets, which may include Donald Trump and Kamala Harris.

However, the most concerning aspect of the attack is the national security implications. Richard Forno, Principal Lecturer in Computer Science and Electrical Engineering at UMBC, explained in UMBC Magazine that Salt Typhoon compromised the portals used by U.S. intelligence and law enforcement. As a result, he says that the attackers may have gotten information about which Chinese spies and informants counterintelligence agencies were monitoring, which those targets can then use to avoid detection.

“U.S. officials have said that many of the ways Salt Typhoon penetrated its targets was through existing weaknesses with the infrastructure. As I’ve written previously, failing to implement basic cybersecurity best practices can lead to debilitating incidents for organizations of all sizes. Given how dependent the world is on networked information systems, it is more important than ever to maintain cybersecurity programs that make it difficult for attacks to succeed, especially for critical infrastructure like the phone network,” wrote Forno.

Reducing the risk of Salt Typhoon

With words like espionage and intercepting texts thrown around, the biggest question on people’s minds is how to protect themselves from this threat. Many experts are currently recommending using encrypted apps, such as WhatsApp and X, instead of traditional texting.

“Encryption is your friend, whether it is on text messaging or if you have the capacity to use encrypted voice communications, even if the adversary is able to intercept the data if it is encrypted, it will make it impossible, if not really hard, for them to detect it. So, our advice is to try to avoid using plain text,” said Jeff Greene, CISA Executive Assistant Director for Cybersecurity, during a press briefing reported by USA Today.

Forbes also reported that an FBI official recommended citizens use a cell phone that automatically receives timely operating system updates. Additionally, the phone should have responsibly managed encryption and phishing-resistant multi-factor authentication (MFA) for email, social media and collaboration tool accounts.

“So it’s somewhat ironic that one of the countermeasures recommended by the government to guard against Salt Typhoon spying is to use strongly encrypted services for phone calls and text messages – encryption capabilities that it has spent decades trying to undermine so that only ‘the good guys’ can use it,” wrote Forno.

To learn how IBM X-Force can help you with anything regarding cybersecurity including incident response, threat intelligence, or offensive security services schedule a meeting here.

If you are experiencing cybersecurity issues or an incident, contact X-Force to help: US hotline 1-888-241-9812 | Global hotline (+001) 312-212-8034.

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