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  • March 2023
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Ransomware Attack at Colonial Pipeline Company

By: Suraj Srinivasan and Li-Kuan Ni
  • Format:Print
  • | Language:English
  • | Pages:20
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Abstract

On the morning of May 7, 2021, Colonial Pipeline Company became aware that the company had been the victim of a malicious ransomware attack that had stolen and locked up company data. The extortionists demanded 75 bitcoins (worth about $4.4 million at the time) in exchange for the decryption tool needed to unlock the data. To contain the system infection, the control room promptly shut down all company pipelines that transported nearly half of all refined oil products consumed in the East Coast of the United States. Within hours, external experts and governmental authorities were assembled to help but information was still limited on how to manage the cyberattack. As the passing of every minute threatened the oil supply to 13 states and the nation’s capital, CEO of Colonial Pipeline, Joseph Blount had to make one crucial decision: whether to pay the ransom or not.

The case discusses Colonial Pipeline’s cybersecurity practices, ransomware trends, detail of the ransomware attack at Colonial, impact of the attack, Colonial’s response to the attack, and post-attack repercussion. Overall, the case prompts readers to contemplate how organizations should prevent and respond to the ever-increasing threat of cyber breaches.

Keywords

Disruption; Communication; Communication Strategy; Decision Making; Decision Choices and Conditions; Judgments; Corporate Accountability; Corporate Disclosure; Corporate Governance; Governance Controls; Policy; Employees; News; Cybersecurity; Digital Strategy; Information Infrastructure; Information Management; Internet and the Web; Crisis Management; Business or Company Management; Resource Allocation; Risk Management; Negotiation Tactics; Failure; Business and Stakeholder Relations; Attitudes; Behavior; Perception; Reputation; Trust; Public Opinion; Social Issues; Infrastructure; Distribution Industry; United States; Alabama

Citation

Srinivasan, Suraj, and Li-Kuan Ni. "Ransomware Attack at Colonial Pipeline Company." Harvard Business School Case 123-069, March 2023.
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About The Author

Suraj Srinivasan

Accounting and Management
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Related Work

    • March 2023
    • Faculty Research

    Ransomware Attack at Colonial Pipeline Company

    By: Suraj Srinivasan and Li-Kuan Ni
Related Work
  • Ransomware Attack at Colonial Pipeline Company By: Suraj Srinivasan and Li-Kuan Ni
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