Incident: Cyberattack on Pemex's Systems Demanding $5 Million in Bitcoin

Published Date: 2019-11-12

Postmortem Analysis
Timeline 1. The software failure incident at Mexico's Pemex occurred when hackers demanded a ransom of about $5 million in bitcoin, which was reported on November 12, 2019 [92151]. Therefore, the software failure incident at Pemex happened in November 2019.
System 1. Pemex's computer systems 2. Pemex's storage and distribution facilities 3. Pemex's financial systems 4. Pemex's email system [92151]
Responsible Organization 1. Hackers using the "DoppelPaymer" ransomware were responsible for causing the software failure incident at Mexico's Pemex [92151].
Impacted Organization 1. Pemex - the state oil firm in Mexico [92151]
Software Causes 1. The software cause of the failure incident was a cyberattack involving ransomware, specifically the "DoppelPaymer" ransomware strain, which targeted Mexico's Pemex oil firm [92151].
Non-software Causes 1. The hack on Mexico's Pemex was caused by hackers demanding a ransom of about $5 million in bitcoin, indicating a cyberattack as the primary cause [92151].
Impacts 1. The software failure incident caused Pemex to shut down computers across Mexico, freezing systems such as payments, affecting less than 5% of its computers [92151]. 2. The attack led to financial disruptions, with all computers in the finance department being offline, potentially causing problems with payments [92151]. 3. Pemex had to communicate with employees via mobile messaging service WhatsApp as employees could not open their emails [92151]. 4. The incident resulted in the company having to reconnect unaffected computers to its network using software patches and wiping infected computers clean [92151]. 5. The attack on Pemex highlighted the potential catastrophic damage companies can suffer digitally, even if they choose not to pay the ransom, as seen in the case of Norsk Hydro [92151].
Preventions 1. Implementing robust cybersecurity measures such as regular security audits, penetration testing, and employee training to prevent cyberattacks like ransomware [92151]. 2. Ensuring timely software updates and patches to address known vulnerabilities that could be exploited by hackers [92151]. 3. Implementing a comprehensive backup and disaster recovery plan to mitigate the impact of a ransomware attack by restoring systems and data from backups without needing to pay the ransom [92151].
Fixes 1. Implementing robust cybersecurity measures to prevent future cyberattacks like the ransomware attack on Pemex [92151]. 2. Regularly updating software and applying patches to address vulnerabilities that could be exploited by hackers [92151].
References 1. Five employees 2. Internal emails 3. Hackers 4. Pemex officials 5. Cybersecurity firm CrowdStrike 6. Sources who spoke on condition of anonymity 7. Norwegian aluminum producer Norsk Hydro 8. Insurance company [92151]

Software Taxonomy of Faults

Category Option Rationale
Recurring one_organization, multiple_organization (a) The software failure incident has happened again at one_organization: The article mentions that Pemex, the state oil firm in Mexico, was targeted by a cyberattack involving ransomware. This incident caused the company to shut down computers across Mexico, affecting systems such as payments. The attack demanded a ransom of about $5 million in bitcoin from Pemex, indicating a recurrence of a software failure incident within the same organization [92151]. (b) The software failure incident has happened again at multiple_organization: The article also mentions that DoppelPaymer, the type of ransomware used in the attack on Pemex, has been behind recent attacks on other entities as well. Specifically, it was mentioned that DoppelPaymer was behind recent attacks on Chile's Agriculture Ministry and the town of Edcouch in Texas, indicating that this type of ransomware has targeted multiple organizations [92151].
Phase (Design/Operation) design, operation (a) The software failure incident in the article is related to the design phase. The incident was a result of a cyberattack involving ransomware that targeted Mexico's Pemex, causing the company to shut down computers across Mexico and freezing systems such as payments [92151]. The hackers demanded a significant amount of money in bitcoin from Pemex, indicating that the failure was due to contributing factors introduced by the cyberattack and the design vulnerabilities in the company's systems. (b) The software failure incident in the article is also related to the operation phase. The cyberattack on Pemex affected the company's operations, forcing it to shut down computers and causing disruptions in systems such as payments [92151]. The attack led to communication challenges within the company, with employees having to resort to using mobile messaging services like WhatsApp due to the inability to access emails. This indicates that the failure was also influenced by factors related to the operation or misuse of the system.
Boundary (Internal/External) within_system, outside_system (a) The software failure incident at Pemex was primarily within the system. The incident was caused by hackers who demanded a ransom in bitcoin after launching a cyberattack on the company's systems, forcing them to shut down computers across Mexico and freezing systems such as payments [92151]. The ransom note appeared on Pemex computers, pointing to a darknet website affiliated with "DoppelPaymer" ransomware, indicating that the attack originated from within the system [92151]. The company had to reconnect unaffected computers to its network using software patches and wipe infected computers clean to mitigate the impact of the attack [92151].
Nature (Human/Non-human) non-human_actions, human_actions (a) The software failure incident in this case was due to non-human actions, specifically a cyberattack by hackers who deployed ransomware on Mexico's Pemex systems [92151]. The hackers demanded a significant ransom in bitcoin to unlock the affected systems, causing disruptions to Pemex's operations such as freezing payments and shutting down computers across Mexico. (b) Human actions also played a role in this software failure incident as the hackers behind the cyberattack deliberately targeted Pemex's systems and demanded a ransom for restoring access to the affected computers [92151]. Additionally, there was mention of confusion within Pemex about the type of ransomware used in the attack, indicating human involvement in the response and decision-making processes following the incident.
Dimension (Hardware/Software) software (a) The software failure incident reported in the article is primarily attributed to a cyberattack by hackers targeting Mexico's Pemex. The hackers demanded a ransom in bitcoin after infecting Pemex's systems with ransomware, which led to the shutdown of computers across Mexico, affecting systems such as payments [92151]. (b) The software failure incident is directly linked to the use of malicious programs by hackers, such as the "DoppelPaymer" ransomware, which encrypted Pemex's systems and demanded a significant ransom in bitcoin for decryption. The attack disrupted Pemex's operations, including financial systems, and forced the company to take measures like shutting down computers, applying software patches, and wiping infected computers clean [92151].
Objective (Malicious/Non-malicious) malicious (a) The software failure incident reported in the article is malicious in nature. It was a cyberattack on Mexico's Pemex by hackers who demanded a ransom of about $5 million in bitcoin. The hackers used ransomware, specifically the "DoppelPaymer" type, to cripple Pemex's systems, forcing the company to shut down computers across Mexico and freezing systems such as payments [92151]. The ransom note demanded a substantial payment in bitcoin and threatened Pemex with a 48-hour deadline, indicating a malicious intent to harm the company's operations and extort money.
Intent (Poor/Accidental Decisions) poor_decisions (a) The intent of the software failure incident related to poor_decisions: - The software failure incident involving Pemex was a result of hackers demanding a ransom of about $5 million in bitcoin after a cyberattack on the state oil firm's systems [92151]. - The hackers behind the attack used ransomware, specifically "DoppelPaymer," to cripple Pemex's systems and demanded payment in exchange for restoring access [92151]. - Pemex was targeted by the ransomware due to the failure to pay immediately after the cyberattack, missing out on a special discount offered by the hackers for early payment [92151]. (b) The intent of the software failure incident related to accidental_decisions: - The software failure incident was not due to accidental decisions but rather a deliberate cyberattack orchestrated by hackers targeting Pemex's systems for financial gain [92151].
Capability (Incompetence/Accidental) unknown (a) The software failure incident reported in the article is related to a cyberattack on Mexico's Pemex, where hackers demanded about $5 million in bitcoin. The attack was carried out using ransomware, specifically the "DoppelPaymer" type, which is a form of malware that encrypts files and demands payment for their release [92151]. (b) The incident was not accidental but rather a deliberate cyberattack orchestrated by hackers who targeted Pemex's systems, leading to the shutdown of computers across Mexico and affecting various operations within the company [92151].
Duration temporary (a) The software failure incident in the article is temporary. The incident involved a cyberattack on Mexico's Pemex, which forced the company to shut down computers across Mexico, freezing systems such as payments. The hackers demanded a ransom in bitcoin, and the company was taking steps to reconnect unaffected computers to its network using software patches and wiping infected computers clean [92151].
Behaviour crash, other (a) crash: The software failure incident in the article can be categorized as a crash. The hack on Mexico's Pemex resulted in the company having to shut down computers across Mexico, freezing systems such as payments [Article 92151]. (b) omission: There is no specific mention of the software failure incident being caused by the system omitting to perform its intended functions at an instance(s) in the article. (c) timing: The software failure incident is not related to the system performing its intended functions correctly but too late or too early. (d) value: The failure in this incident is not due to the system performing its intended functions incorrectly. (e) byzantine: The software failure incident does not involve the system behaving erroneously with inconsistent responses and interactions. (f) other: The behavior of the software failure incident in this case can be described as a ransomware attack where hackers demanded a significant amount of money in bitcoin from Pemex after compromising the company's systems, leading to a shutdown of computers and affecting operations such as payments [Article 92151].

IoT System Layer

Layer Option Rationale
Perception None None
Communication None None
Application None None

Other Details

Category Option Rationale
Consequence property, non-human (d) property: People's material goods, money, or data was impacted due to the software failure The software failure incident at Mexico's Pemex resulted in hackers demanding about $5 million in bitcoin as ransom after a cyberattack that disrupted the company's systems, including freezing systems such as payments [92151]. The ransom note demanded 565 bitcoins, threatening Pemex with a 48-hour deadline and listing an email address for contact. The attack affected less than 5% of Pemex's computers, leading to financial implications and potential problems with payments [92151]. Additionally, the attack on Norwegian aluminum producer Norsk Hydro in March generated up to $71 million in cleanup costs, with only $3.6 million paid out by insurance so far, showcasing the financial impact of such software failures [92151].
Domain information (a) The failed system was related to the industry of information as it impacted the production and distribution of information within the company. The cyberattack on Pemex disrupted the company's systems, including freezing systems such as payments and affecting the ability to communicate via email [92151].

Sources

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