Posted on Jul 12, 2015
How much would a cyber attack on our power grid cost the United States?
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While the simultaneous technical breakdowns of the New York Stock Exchange, United Airlines and Wall Street Journal on Wednesday weren’t connected, it sparked concerns of the damage an all-out cybercrime blackout could cause if such a glitch reached our power systems.
The extent of the economic damage can be estimated in one massive sum: $1 trillion. That’s according to a recent study by specialist insurance company Lloyd’s and University of Cambridge’s Centre for Risk Studies.
The report looked at two scenarios. One where a group of terrorists or “disgruntled insider” hackers break into the power system and bring 50 of the almost 700 generators in the northeastern U.S. offline, resulting in a blackout that lasts about 4 days. The damage: $243 billion in immediate and tangential economic loss.
The second scenario is where things get even worse. A group of hackers target the U.S. power grid and take out twice as many generators for the same amount of time. The economic damage more than quadruples to $1 trillion, or about 6% of U.S. GDP.
"This scenario shows the huge impact and havoc that could result from a major cyber attack on the U.S.,” said Tom Bolt, director of performance management at Lloyd’s. “The reality is that the modern, digital, and interconnected world creates the conditions for significant damage.”
Such a blackout would reach across 15 states, including New York City and Washington D.C., leaving 93 million people without power. The damage includes factors like a rise in mortality rates as health and safety systems fail, a decline in trade as ports shut down and transportation chaos as infrastructure collapses.
While such an attack is technologically possible, noted Lloyd’s, it isn’t necessarily likely. The report sets the “benchmark return period,” or an estimate of the likelihood of such an event, at 1:200. Lloyd’s, which is in the business of insurance, warns that the industry could lose upward of $71 billion from such an attack.
http://www.msn.com/en-us/money/markets/this-is-how-much-a-cybercrime-blackout-would-cost-the-us/ar-AAcLg74
The extent of the economic damage can be estimated in one massive sum: $1 trillion. That’s according to a recent study by specialist insurance company Lloyd’s and University of Cambridge’s Centre for Risk Studies.
The report looked at two scenarios. One where a group of terrorists or “disgruntled insider” hackers break into the power system and bring 50 of the almost 700 generators in the northeastern U.S. offline, resulting in a blackout that lasts about 4 days. The damage: $243 billion in immediate and tangential economic loss.
The second scenario is where things get even worse. A group of hackers target the U.S. power grid and take out twice as many generators for the same amount of time. The economic damage more than quadruples to $1 trillion, or about 6% of U.S. GDP.
"This scenario shows the huge impact and havoc that could result from a major cyber attack on the U.S.,” said Tom Bolt, director of performance management at Lloyd’s. “The reality is that the modern, digital, and interconnected world creates the conditions for significant damage.”
Such a blackout would reach across 15 states, including New York City and Washington D.C., leaving 93 million people without power. The damage includes factors like a rise in mortality rates as health and safety systems fail, a decline in trade as ports shut down and transportation chaos as infrastructure collapses.
While such an attack is technologically possible, noted Lloyd’s, it isn’t necessarily likely. The report sets the “benchmark return period,” or an estimate of the likelihood of such an event, at 1:200. Lloyd’s, which is in the business of insurance, warns that the industry could lose upward of $71 billion from such an attack.
http://www.msn.com/en-us/money/markets/this-is-how-much-a-cybercrime-blackout-would-cost-the-us/ar-AAcLg74
Cybersecurity
National Security
Hacking
Edited >1 y ago
Posted >1 y ago
Responses: 4
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Due to the current cyber attacks that are taking place with impunity, I believe that the power grid is vulnerable and there is little that we can do to prevent it. Nothing clearly overt will happen unless the "balloon" goes up, but they will be prepared to use it, if necessary. (primarily China) But as I have stated in the past, there is little likelihood that this will happen because of our interrelated economies. One other statement is the EMF bomb, that is far more likely. Severe damage and since most of those that oppose the USA to that extent have aged systems that are hardened due to lack of sophisticated technology, would be unaffected. Keep your old classic cars in the garage.
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Which power grid, Western, Eastern or Texas? There would have to be three large scale attacks to take out the entire US.
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Well since scenarios are thrown in, if the Russian or any government or terrorists hit us with an EMF weapon that knocked out our grid, satellites and GPS systems it would cost us our way of life, our country. Our military would have no communication nor ability to fight as they were trained with today's technology. Nothing would function. We would be defeated before we reacted because we wouldn't even know we were attacked until we were came out from under the rubble of enemies missles. Worst case scenario nation wide sneak attack.
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GySgt Wayne A. Ekblad
And yet, MSgt Manuel Diaz, what have we done to defend against such a possibility?
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MSgt Manuel Diaz
GySgt Wayne A. Ekblad - fornicate the US Constitution initiated gun control and regulate via EPA emissions on oil n coal
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Gayane Badalian-Very MD. Ph.D
That is true, we are deeply dependent on technology... these type of assaults could be costly,,,,
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