Colonial Pipeline: Responding to a Ransomware Attack in the Energy Sector

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Authors: Diane Joyce Janvrin, Scott R. Boss, Joy Gray
Cited by: 1
References: 20

Abstract

ABSTRACT Surveys suggest that almost half of recent cyberattacks have involved ransomware. This case concerns the May 2021 cyberattack on Colonial Pipeline, a private company within the U.S. critical energy infrastructure, and reveals a web of vulnerabilities in the company’s cybersecurity controls. Prompted by a ransom note demanding 75 bitcoins ($4.4 million), Colonial Pipeline shut down its pipelines and called in a cybersecurity consultant to investigate. The attackers, identified as the DarkSide group, exploited a reused password leaked in a prior data breach and gained access to an inactive employee account on a virtual private network lacking two-factor authentication. This ransomware incident underscores the imperative for implementing robust cybersecurity measures, including enhanced user authorization management and multifactor authentication (MFA), in an ever-evolving cyber threat landscape. This case critically examines the Colonial Pipeline cyberattack and offers insights into how to mitigate cyber threats and respond to ransomware demands for organizations worldwide.

Fields of Study & Subjects

Information and Cyber Security Advanced Malware Detection Techniques Smart Grid Security and Resilience

Publication details

Journal / source
Issues in Accounting Education
Publisher
American Accounting Association
Volume
41
Issue
2
Pages
131–145
Publication date
5 January 2026
Language
EN