FireEye Jumps as It Steps In to Help With Pipeline Cyberattack

FireEye jumps after it says it is assisting with the investigation into a ransomware attack that has shut down operations of the biggest U.S. pipeline.
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FireEye  (FEYE) - Get Report shares jumped on Monday after the cybersecurity firm said its Mandiant incident response division was assisting with the investigation into a ransomware attack that has shut down operations of the biggest gasoline pipeline in the U.S.

Shares of Milpitas, Calif.-based FireEye were up 3.88% at $20.06 after the company was named as one of several cybersecurity providers assisting in the ransomware attack against Colonial Pipeline, which is suspected to have been carried out by a professional cybercriminal group called DarkSide.

DarkSide is known for deploying ransomware and extorting victims while avoiding targets in post-Soviet states. Ransomware is a type of malware designed to lock down systems by encrypting data and demanding payment to regain access.

Colonial Pipeline on Friday was forced to halt operations along its entire 5,500-mile conduit carrying gasoline and other fuels from the Gulf Coast to the New York metro area as it moved to contain an assault that involved ransomware, code that holds computer systems hostage.

Colonial transports roughly 2.5 million barrels a day of gasoline and other fuels from refiners on the Gulf Coast to consumers in the mid-Atlantic and southeastern U.S.

Its extensive pipeline network serves major U.S. airports, including Atlanta’s Hartsfield Jackson Airport, the world’s busiest by passenger traffic. So far, no evidence has emerged that the attackers penetrated the vital control systems that run the pipeline.

Last year, a ransomware attack moved from a natural-gas company's networks into the control systems at a compression facility, halting operations for two days, according to a Department of Homeland Security alert. 

The company, which Homeland Security didn't name, didn't have a plan to respond to a cyberattack, the agency said.

TheStreet founder and contributor Jim Cramer in March spoke to FireEye CEO Kevin Mandia about cyberattacks against Microsoft  (MSFT) - Get Report. TheStreet Quant Ratings rates FireEye as a hold with a rating score of C.

West Texas Intermediate crude, the U.S. benchmark, rose 0.45% early Monday to $65.19 a barrel, and gasoline prices in New York surged more than 4% to the highest in three years after the cyberattack.

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