Waterfall Security Solutions https://waterfall-security.com Unbreachable OT security, unlimited OT connectivity Wed, 26 Nov 2025 01:46:31 +0000 en-US hourly 1 https://wordpress.org/?v=6.8.3 https://waterfall-security.com/wp-content/uploads/2023/09/cropped-favicon2-2-32x32.png Waterfall Security Solutions https://waterfall-security.com 32 32 Hardware Hacking – Essential OT Attack Knowledge – Episode 145 https://waterfall-security.com/ot-insights-center/ot-cybersecurity-insights-center/hardware-hacking-essential-ot-attack-knowledge-episode-145/ Wed, 26 Nov 2025 01:46:31 +0000 https://waterfall-security.com/?p=37609 If you can touch it, you can hack it, usually. And having hacked it, you can often more easily find exploitable vulnerabilities. Marcel Rick-Cen of Foxgrid walks us through the basics of hacking industrial hardware and software systems.

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Hardware Hacking – Essential OT Attack Knowledge – Episode 145

If you can touch it, you can hack it, usually. And having hacked it, you can often more easily find exploitable vulnerabilities. Marcel Rick-Cen of Foxgrid walks us through the basics of hacking industrial hardware and software systems.

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“Security doesn’t stop at the network interface and also the PCB, the hardware level should be taken into consideration. And in general, I think OT security needs more curious minds that are looking under the hood.” – Marcel Rick-Cen

Hardware Hacking – Essential OT Attack Knowledge | Episode 145

Please note: This transcript was auto-generated and then edited by a person. In the case of any inconsistencies, please refer to the recording as the source.

Nathaniel Nelson
Welcome listeners to the Industrial Security Podcast. My name is Nate Nelson. I’m here with Andrew Ginter, the Vice President of Industrial Security at Waterfall Security Solutions, who’s going to introduce the subject and guest of our show today. Andrew, how’s it going?

Andrew Ginter
I’m doing very well. Thank you, Nate. Our guest today is Marcel Rick-Cen. He is the founder and lead instructor at Fox Grid International. And our topic is hardware hacking, picking apart the hardware, finding the vulnerabilities, arguably essential attack knowledge. We need to understand how we’re going to be attacked if we’re going to design effective defenses. So that’s that’s the topic for today.

Nathaniel Nelson
Then without further ado, here’s your conversation with Marcel.

Andrew Ginter
Hello, Marcel, and welcome to the podcast. Before we get started, can I ask you to introduce yourself, please? Tell our listeners a little bit about your background and about the good work that you’re doing at FoxGrid.

Marcel Rick-Cen
Yeah, thank you, Andrew. Hi, everyone. My name is Marcel Rick-Cen, and if I would introduce me in one sentence, I am an automation engineer turned OT security nerd. To my background, I have a master’s in automation engineering.

I have global experience in commissioning automation systems, as well as programming, planning, industrial operations. Now, during my day job, I am an OT and IIoT security consultant and a product owner of our in-house OT remote access solution.

During my nighttime, I am a hacker, or if you want to put it more formal, I am an independent OT security researcher that looks at what makes and breaks OT devices. Coming from that, I also founded FoxGrid, where I want to teach industrial cybersecurity and safety to newcomers.

Andrew Ginter
Thank you for that. And our topic is hardware hacking. Can we start with an example? You’ve got a couple of reports out. Can you pick one? Can you tell us about, a concrete example of what what is that?

Marcel Rick-Cen
Yeah, let’s talk about hardware hacking that led to a CVE that I found last year, where I found hard-coded root credentials hidden deep in the device’s firmware memory.

Andrew Ginter
Okay, so you know can you can you go a little deeper? What was the device? How’s it supposed to work? And you know how important is what you found?

Marcel Rick-Cen
So the device is a remote access gateway that machine builders usually built into the electric cabinet, so which connects the machine to the service provider.

In case there’s an unplanned interruption or any other operational bug or coming up, the service provider can directly connect over the cloud portal to this Edge device and start troubleshooting.

Andrew Ginter
So if I may, this is something that’s used in manufacturing. When you say the manufacturer, you mean someone who’s building a robot, someone who’s building a stamping machine, someone who’s building, I don’t know, a conveyor. Is is is that the use case here?

Marcel Rick-Cen
This basically can be used in any operation, from your maybe water treatment plant to your manufacturing to your building automation. Like there are really no limits. This really a network connection from the service engineer’s laptop directly into the heart of the device or into the heart of the operation.

Andrew Ginter
Okay, so it’s not just used for for like a robot, for a manufacturer of equipment. It might also be used by a service provider, by the know the engineer who’s responsible for for you know occasionally coming in and servicing oh parts of a water treatment system. it’s It’s used to access systems as well as devices is is what I’m hearing.

Marcel Rick-Cen
Yes, correct. So this acts as the gateway tu the machine or operational network.

Andrew Ginter
Okay, and so you found the default credentials. Does that mean that any fool who wants to can connect to the cloud, connect into this thing? Or how would you use those default credentials?

Marcel Rick-Cen
Luckily, the attack vector is really narrow. These default credentials, they grant root access to the device, and you only can get root access when you are physically connected to the device. So luckily, the cloud attack surface or the cloud is not exposed to this vulnerability.

Nathaniel Nelson
Okay. Andrew, I don’t know if I just missed it, but what is the actual device that we’re talking about here?

Andrew Ginter
It is an Ixon device, I-X-O-N. I forget the exact name of it, but its it’s physically it’s a little device about you know six inches square and an inch thick. And in my understanding, it’s a remote access device. You can connect into it from the cloud. Who uses this?

The sense I have is that it’s used in manufacturing. If you’re building a a laser cutter or a stamping machine, you might build one of these into the thing so that when the customer calls you up and says, your machine isn’t working, something is worn out.

You can remote into it, do the diagnostics and say, I think it’s this part, replace this part, see if if if the problem is solved. Because, moving parts wear out. Friction is the is the enemy of moving parts.

Andrew Ginter
But, when I asked the gentleman, Rick, he said, yeah, manufacturers of physical equipment use it so they can maintain the equipment or diagnose the equipment remotely.

But It’s remote access. A service provider, an engineer who’s responsible for keeping the automation running at a dozen small water utilities in the geography, might well buy a half dozen of these and drop one of them into each water system to access the HMI and the automation and whatnot.

So it’s remote access. The sense I have is it is used frequently engineers. manufacturers of equipment that’s used in manufacturing, but it could be used by service providers as well.

Nathaniel Nelson
And I think it’s the remote access thing that has me a little bit confused here. We’re talking about hard-coded credentials as vulnerability, something I’m rather used to in the IT space, right? Like a public repository or a server that’s been incorrectly configured will leak credentials to the web that then hackers could use to get in. And we’re talking about a romantic remote access device And yet, I think he mentioned there that you can only actually exploit this vulnerability if you have local physical access to the machine. So can you help me explain that gap?

Andrew Ginter
We go into this in sort of more detail later in the interview, but let me let people know kind of what’s happening. There are basically two user interfaces to the device.

One is the remote access user interface with users configured and blah, blah, blah. That’s not where the vulnerability is. The other interface is if you touch the device and you connect to it, I don’t know, I was a little weak on the details. If you connect through the USB port or if you connect, pins, you’re to electrically to pins sitting bare on the on the on the circuit board, if you open the device up, you can get access to the operating system of the device.

And it’s the operating system credentials that were leaked. So in order to use those credentials, they don’t work on the remote user interface. They work locally when you’re when you’re able to physically touch the device and plug stuff into it.

The CVE was 2024-577990. It was given 5 or a 5.9 or something like this, not a 10. This is not a remote code execution vulnerability. You can’t do this remotely. You have to be local. It’s a local escalation of privilege for vulnerability.

Nathaniel Nelson
And that explanation makes a lot of sense to me, but why is it that Like, how can you even leak credentials to somebody who’s physically using a computer, right? Like any credentials on my computer that get leaked to me doesn’t matter because I’m the user. So what I suppose I’m asking attack scenarios, are we worried about with this vulnerability?

Andrew Ginter
Actually, we didn’t go into that, but as far as I know, the scenario is that you’re there locally touching the device. Now, normally, you look at the device, it’s got network ports, it’s got one of the ports is is connected out to to the world, you come in remotely, it does its thing.

There is no other supported user interface. But if you touch the device, you can get in there, you can tamper with the the firmware, you can tamper with stuff, you can you could presumably create credentials that you could use remotely. You’d need a little bit of skill to do that, but you could brick the device. So it’s, again, if you’re standing there with a hammer, you could also brick the device.

This is why it was given a lower priority. Yes, technically it’s a vulnerability. It’s not a really alarming one. What’s interesting is how did you find it? Because the way that he found it, the technique is what he teaches at Fox Grid. You can also use to find more interesting stuff.

Andrew Ginter
Okay, so so this is something that is is is a local vulnerability. It’s not a remotely exploitable thing, which, yeah, is is lower priority. But still,

What I wanted to ask you about is, we’ve never had someone one on the show who picks things apart like this, or maybe we did once about three years ago, but it’s been a long time.

You know, can you talk about the process? How did you find this? How does one pick these things apart? What is, what does that mean

Marcel Rick-Cen
Yes, absolutely. If I would just describe it to you maybe in a pub or over coffee, this really is like hardware and digital scavenger hunt because you have to look at so many things. You also go down a rabbit hole, see it’s the wrong way, turn around, and then keep digging.

And to find this, I just needed tools for about 30 euros. So a multimeter screwdriver, prying tools, a USB logic analyzer, and USB U-RAT interface was all I needed to find this vulnerability.

Andrew Ginter
So, I mean, can you give me a little more detail? Those are the parts I’ve never used a logic analyzer. I mean, How technical is that? Do I need to be an engineer to use a logic analyzer? How did, how did you go about this? What, can you, can you tell us a story? what did you start with? What do you do next? What does that mean? And, a blind alley went down. How did, how did it work?

Marcel Rick-Cen
Yeah, I can walk you through the all the six or seven steps that led to root access from opening up to the device until I was greeted with the root banner, okay? And before anyone gets started with hardware hacking and picking a device, or before anyone gets started with taking a device apart, here are four electrical safety rules that you should follow because your own life is more important than your curiosity.

And never ever open wall-plugged devices because if they’re directly plugged into the socket, this means that hazardous voltage is inside the PCB, inside the device, and there’s the risk that you can touch a live wire and that’s you risk well you risk an electric shock. Therefore, use devices that have external power adapters only so that the voltage conversion happens outside the area where you’re working with. Also avoid mixing power sources. This is important, for example, if you really go into firmware extraction and of course preventing short circuits because this will fry your PCB and then you have a very expensive brick.

But if you stick to these rules, you can open up the device and first start with the hardware reconnaissance where you just take a look on what chips are on there. And many industrial embedded devices, they run on a so-called system on chip and they have somewhere close to the system on chip the flash memory firmware chip.

So this is basically where the brains and all information are stored and once a is and once the system is powered on, the system on chip pulls the firmware information from the firmware memory chip. If you identified these, then you take a look around the board, are there any debug interfaces and on this device I found a so-called UART debugging interface.

So with these, we can move to the next steps. And first we do some electrical measurements just to prevent that our USB, USB UART and USB signal analyzers get fried because they are very sensitive to voltage. And first things first, we first confirmed the common electrical ground on the debug interface we identified. Once we identified the common ground, we know where we well connect the ground wire of our USB logic analyzer. Then UART interface usually has two more pins, RX and TX, which stands for receive and transmit.

And then we turn on the power and then measure these pins against the electrical common ground. And in most cases, we will find a voltage range between three volts and five volts, which means these devices are communicating on the so-called transistor-transistor logic level. When this is identified, we can move on with the logic analyzer. Power off the device, connect the logic analyzer, we connect the logic analyzer’s ground to the board’s ground, and then the RX and TX wire.

Although, The Rx and Tx pin are already labeled and we only could connect to the Tx. It’s always good to connect to all pins that we have a full picture of what’s going on. Because, Andrew, at this board, this was easy mode. The pins are already labeled, but that’s not always the case. Sometimes you just have a three, four, five pins sticking out, and you don’t know what they mean.

Then you also do the same procedure. You measure for the electric common ground and then start measuring the voltage levels, and this gives you at an idea if you can find logical signals going on.

Andrew Ginter
So thanks for that. I mean, that’s giving giving us some insight into the the mechanics of of dealing with a device. I mean, I’m um’m a software guy. I never have to worry about electrocuting myself if I bring up a compiler on my laptop. But let me ask, you’ve talked about two sort of devices here that that seem to ring a bell with me. There’s the UART, which – so quick question. Is the UART USB or is it RS-232?

Marcel Rick-Cen
This is an RS232 connection to USB. So this basically converts the signal, converts this logic serial signals to USB so that your machine, your computer can work with that.

Andrew Ginter
Nate, real quick here, I had a a very short sort of interaction with with Rick there asking about the difference between USB and RS-232. For anyone who didn’t quite track that, RS-232 is a very old hardware signaling protocol. I mean, I remember using RS-232 back in the day to to connect, this was 30 years ago, to connect to 300 bits per second modems, okay? Ancient, ancient technology.

Why would there be such an ancient interface on this modern device? Is roughly what I asked him. and He said there isn’t. What there is, is a USB port. It turns out that what he connected to the TX and RX he connected to were signaling USB. And when he looked at the signals, he discovered that the messages coming across the USB were RS-232 over USB.

So he looked around, he said, well, I have a a dongle that can can take USB and gives me RS-232 and he connected to it and there he can see the messages coming across. So that’s what’s going on there. It’s a USB connector on the device that connector on the device but the signaling RS-232 over USB.

Andrew Ginter
The other one that that that struck me, and again, I’m a software guy, you mentioned the flash chip. to me, if I get what’s on the flash, I can start looking at instructions, I can start running my disassembler. Is it possible to to sort of go under the nose of the device and just read the flash chip? Or do you have to go through the front door? Do you have to go through the CPU in order to get access to the flash?

Marcel Rick-Cen
No you don’t, you also can basically perform a chip off of the flash chip and then read out the contents with a programmer. This is also possible, but at but at the time of my research I didn’t have such equipment here, so I went through the front door.

Andrew Ginter
Okay, that’s fair. So please carry on. you’re You’re talking about the UART. I interrupted you finish Finish the story here. how how are we How did you get in?

Marcel Rick-Cen
Okay, the logic analyzer revealed that indeed a logical data is transmitted over the TX pin. So this means we can connect our USB UART interface and open a serial console to that.

Andrew Ginter
That’s fair. I didn’t realize that USB was, I mean, I knew USB was serial. That’s what it means, universal serial bus.

Andrew Ginter
But I guess I never put two and two together that you could just, I don’t know, connect an RS-232 to it.

Marcel Rick-Cen
Well, you always need this interface device that you plug between that you plug into your USB socket and then on the other end of the device you can connect to the target device. So once the USB UART interface is connected and I started the terminal on, and I started the serial console on my Linux machine, then I powered up the device again I and could see the boot log flashing in front of the screen.

You know, it was a basic Linux boot lock, and at the very end, there was a login prompt to log into this device. And this is really where it got interesting, and here my curiosity was really on fire because I really wanted to get into this device and I started to look at the boot lock itself first.

Here I learned that the firmware memory is partitioned into several partitions and if you look at the common IoT hardware hacker courses, then they always tell you to go for the rootfs file system because that’s where all the binaries are stored of this Linux device.

But there was another partition that was interesting for me. This was the so-called factory partition. Scrolling further up in the boot lock, there was also a brief prompt to press space bar to enter the bootloader. But Andrew, the timing for this was so narrow that it was almost impossible to hit the timing right to enter the bootloader.

You you can imagine I was jamming the, I was hammering the space bar like a lunatic. And then maybe at the fourth or fifth time I succeeded to get the timing right and then I was presented with the next option to choose the operation. And here a very interesting option was presented to me by pressing the number four, I would be able to enter the boot command line interface.

And this was something what I was interested in and wanted to go, but with this narrow timing, I turned to chat GPT asking it, it this way is there a way that I can automate the key presses and can send a space bar press and a number four press at rapid speed? The AI gave me a five-line shell script code which uses an onboard tool of Kali Linux to send spacebar and number 4’s.

And this immediately landed me into the boot shell. And the boot shell of this device is based on the uBoot bootloader. And all the hardware hackers out there that are familiar with uBoot would immediately see that this is already a very stripped down and secured restricted version of uBoot. There was almost no way of manipulating the device, but they left in the so-called SPI command, which enabled me to read the content of the factory partition.

So that’s what I did. I issued the command to read the factory partition and then its and then it printed out the content of the factory partition in the hexadecimal format. And here’s something really strange occurred to me that the data was not always represented in two hexadecimal digits. that hexadecimal data always needs to have two digits.

If not, the data gets misaligned and then gets corrupted. So the problem I was facing here is that some digits were, or some data was represented with single digits, missing the second digit. So the data was not usable for me. Then I used another script to align the data and then convert the text hexadecimal data back into binary hexadecimal data.

And then I was able to view the binary data and the ASCII interpretation of that. And here’s something really interesting stood out. There were basically three strings of data that at first made not really sense to me but somehow felt familiar. And suddenly I realized this is the information which is also printed on the device’s label on the side. Suddenly I could see that in this partition of the factory, the version number, the serial number, the device version, and the login password for the web management surface for the web management interface was stored.

But there was another string that also kept me guessing and puzzling for quite a while, but this unknown string had the same characteristics as the web login password. It had 10 characters, capital and lowercase letters, and numbers. And I tell you, this had to be another password. So I restarted the device again, and at the very end of the boot process, I was prompted for the login once more. I entered the username root and entered This data I found inside the memory and this gave me root access to the device.

Nathaniel Nelson
Andrew, it’s not that anything that Marcel said at any point there wasn’t clear, but we’ve now gone a while and he’s expressed a lot of technical steps. Can you just give me the big picture summary, what we’re talking about here, what he achieved and why it’s important?

Andrew Ginter
Absolutely. He, he real quick, managed to connect to the boot shell with the space for script constantly blasting. And he got in and discovered there was almost nothing he could do there, but he could look at this one tiny partition. And he managed to get the data, decode the data. And he looked at it and said, this looks like a serial number.

It looks like a password. And so he said, well, let’s try it. And he reboots the device again. He doesn’t do the space for this time. He lets it completely boot. And it comes up and says, OK, I’m ready. Log in. You want to log in? And he said, yeah, let’s log in as root. And it says, well, what’s the root password? And he says, well, here’s the string that I saw in the partition. He enters it, and he’s in.

And now he’s in as root.

Andrew Ginter
Cool. So it’s not like you looked at the file system and said, oh here’s files. Look, there’s a file with the name password. it It wasn’t nearly that obvious.

Marcel Rick-Cen
No it was very well hidden, but I think also on purpose because there’s nothing written in this memory area before or after this partition. You really just find the version number, the serial number, the web management password, and well, the root password. So somewhere in production when the device gets, so to speak, gets the breath of life and the data for the label, At this moment, the data must be flashed into this firmware memory chip.

Andrew Ginter
Okay, so so this is a very small partition then. We’re not talking tens of megabytes. We’re talking tens of kilobytes.

Marcel Rick-Cen
Yeah, it was very small indeed.

Andrew Ginter
Okay, cool. So you found the vulnerability. And then I assume, there’s something called a responsible disclosure process. I assume you contacted the vendor, you contacted the government.

Marcel Rick-Cen
Right

Andrew Ginter
What was the next step there?

Marcel Rick-Cen
So the next step was to contact the security contact of this company and luckily I was already in contact with him on LinkedIn. So on a Sunday morning I sent him a screenshot of, hey Mr. XYZ, I got root access to your OT gateway.

And within two hours, he replied and said, okay, this is very concerning. Please send your findings and everything you have to our security email address and we will look into this first thing Monday morning.

then I wrote a quick report attached to screenshots and the proof of concept video. And around Monday lunchtime, they replied, said, yes, this root password is uniquely generated per device and inserted here during production. But since everything is uniquely, they kind of hinted at that they are accepting the risk so that the probability of this being exploited is rather low. They also said if machine builders, integrators, operators stick to their security requirements, they do not see really a risk of this being exploited.

Andrew Ginter
Okay, so the vendor said, it’s a low priority because, people are expected to have physical security. No fool off the street can come in take one of these devices, walk away with it, pick it apart, bring it back. That’s not a realistic threat. Do you agree with that?

Marcel Rick-Cen
Yes, totally, I agree with that. From all my experience on the shop floor and in the field, you cannot just walk up to an electric cabinet, take out a device, screw it open, extract the root credentials, in and then put it back in with a backdoor you implanted, right? This would hopefully catch some attention.

Andrew Ginter
Okay. and can you Can you finish the the the thought? I mean, you wound up with a CVE for this. you’ve You’ve interacted with a vendor, then then what? how do you How do you finish the process?

Marcel Rick-Cen
Then I contacted Mitre to file a CVE, also reported the things I found and the implications for this and after two months the CVE was assigned.

Andrew Ginter
And at that point, you’re able to disclose publicly. Is that right?

Marcel Rick-Cen
Yes.

All that being said, there is a tiny, tiny risk that you may receive the backdoor device, but then someone really must be targeting your operations. They need to know that you are operating such device. And if you’re expecting a new shipment, they could intercept the shipment, open up the device, extract the root credentials, implant the backdoor, pack it back up and ship it forward to your operations. So for that, if you are operating something critical, or if you’re operating, or if you’re having critical infrastructure and operations, you should definitely opt for temper detection and protection. You know, some devices, they have this little sticker on there, warranty void if removed.

Andrew Ginter
So fascinating stuff, at least at least to me. I’d always wondered, how some of this this hardware hacking was done. But, as far as I know, you don’t get paid to do the hardware hacking unless, I don’t know, there’s a bounty or something. You know, how does this relate to to making a living for you?

Marcel Rick-Cen
Yeah, no, this is not my day job and I also don’t get paid to find these vulnerabilities. Let’s just say this is a very expensive hobby. I’ve been in the I’ve been in the domain of automation systems for half of my life and after my work, I’m still interested, especially in what makes and breaks these devices.

And that’s also how my trainings got born. I took all the experience I made from, well, breaking these devices and turned them into training.

Andrew Ginter
Okay, and this is what you do at FoxGrid. Can you go a little deeper? I mean, if I if I sign up for one of these courses, what are you going to lead me through?

Marcel Rick-Cen
If we stay with hardware hacking, you could sign up to Industrial Embedded Systems Hardware Penetration Testing, where you will also go through these six or seven steps from investigating the PCB to hopefully getting root access. But this course has a unique approach because if you look at the IoT hardware hacking courses, you usually hack some IoT camera or home router, but it’s almost impossible to hack an industrial device because there is an entry barrier problem.

First of all, this hardware is really expensive. You usually pay $500 or more, and it’s risky because you can brick it and then you wasted $500. To get around this, I built a custom firmware for a cheap ESP8266 microcontroller that mimics the behavior of an industrial device and introduces the student to the same challenges I faced.

Andrew Ginter
Okay, so that’s the hardware hacking. Have you got other courses?

Marcel Rick-Cen
Yes, I have my flagship course, Practical Offensive Industrial Security Essentials, which gives students from diverse backgrounds, whether they’re automation engineers, IT professionals, or total newcomers, an holistic introduction to industrial cybersecurity.

Of course, there are some gaps that needs to be filled, but anyone with so anyone with enough curiosity will get through this course. or will have success with the course and then get a holistic understanding of industrial cybersecurity.

Andrew Ginter
So if I can take you sort of on a side trip real quick here. throughout this interview, I have been surprised by you personally. I mean, I had always had a stereotype in mind for people who found vulnerabilities, who hacked stuff, hardware, software, whatever. the the The stereotype that I had in mind was sort of somebody with a big ego, somebody with an ego saying to themselves, I’m smarter than you are. I can find these problems. You, and you you the vendor, have have messed it up.

I always thought you needed a that kind of attitude to be able to go in and tackle know the vendors defenses in and incorporated the product I always thought you needed attitude but what’s coming across from you is something different can you talk about who what do you need sort of in your brain in your personality to be successful here?

Marcel Rick-Cen
Well, to make it short, you just need curiosity and persistence. I think people with a big ego, they are more successful in finding more vulnerabilities But like I said earlier, this is more an expensive hobby for me, so I do not really have the pressure to find vulnerability after vulnerability. For me, it’s more, well, being on this scavenger hunt to go away that, or find a way to operate the device it was not intended to, and then really find a way in. And to be honest, I also have a whole box of scrap electrical, scrap OT devices where I did not find a vulnerability.

So this is where we come back to the expensive hobby. So I think if someone is, understanding a bit of the domain these devices are operated in and have enough curiosity and then persistence to stick to it, they can definitely find some vulnerabilities or if not, well, they can at least learn a lot about the devices, how they operate and how they interact with other devices in the OT domain.

Nathaniel Nelson
So Andrew, we’ve been talking hardware vulnerabilities.

Nathaniel Nelson
It seems relatively serious, but bring it to a practical level for me. If I’m running industrial site and I discover ah a hard coded issue in one of my gateways, and am I running around red alarms ringing? To patch immediately or am I more focused on the systems and data flows around it that enable sort of legacy technologies to occasionally have vulnerabilities like this? How would you interpret it in the grand scheme of things?

Andrew Ginter
Well, in the grand scheme of things, there’s sort of a couple of different questions. let’s let’s Let’s pick it apart. What we’ve been talking about primarily is how to find these vulnerabilities. Once you’ve found a vulnerability, now you’ve got to ask the question, A, can I patch the system? Because if it’s a vulnerability in your safety system, well, I’m sorry, the testing cost of the new version is going to be prohibitive.

It’s just really hard to patch some things. Other things are easier to patch. So can I patch it? Second question is, do I need urgently to patch it? And that’s sort of a different skill set. It’s one skill set to find the vulnerability. It’s a different skill set to say, well, how would an attacker, so it’s an imagination thing. Imagine how would an attacker use this against me?

And, we talked about two scenarios for this vulnerability. One is physically walking up and stealing the device and taking it apart and putting it back, which seems not a very credible threat because you’re going to be discovered. The second scenario was, someone with much more resources discovers that you’ve just ordered 50 of these, intercepts the shipment, bribes the driver to go take a long coffee break, breaks into, five or 10 or 15 of these devices, inserts malware, packages them all up again. Again, is that a credible threat? It’s a credible threat for some people – very high value targets. Is it a credible threat for a small bakery? probably not. So, first step is find it. Second step is figure out, can I even patch it? Third step is how would a bad guy exploit this?

Are there credible threats? Is there a third scenario that we haven’t imagined? So it’s a, it’s a, a question of imagination and studying what people have done in the past. And then, the the the decision, part part of it is, how easy is this to exploit? So we’re talking about devices generally. We’re also talking about cloud connected devices, because a lot of the devices that Marcel is focused on, that he teaches you about is industrial internet devices. They’re connected out to the cloud.

So that’s more internet internet connected, more internet exposed. But really what he looked at here was an OT, cloud remote access device. It’s arguably the most exposed piece of technology in the OT network. It’s the technology that gives internet-based users access to the OT system. So normally you would set these things on automatic update. Why? What if they blue screen? Well, nobody cares if they blue screen. It’s inconvenient if they blue screen. If the bad guys get in, they can work whatever they want, sabotage on your OT network. So, um, normally people pay a lot of attention to defects in their, to, to vulnerabilities in their OT remote access.

This one, we just, we couldn’t imagine a credible attack scenario for mere mortals. Um, it might not be that worry that that big to worry about, but generally speaking, this is the kind of device you want people like Marcel picking apart the most thoroughly, because this is the device that has to be the most thoroughly protected.

Andrew Ginter
Well, thank you so much. I mean, I learned something this episode. Before we let you go, can I ask you to sum up for our listeners? What should we take away from this? what What’s important to to to know about this stuff and and how do we use it going forward?

Marcel Rick-Cen
Okay, looking at the vulnerability I found, this was a prime example that just one part of security was completely overlooked. When you look at the device from a network perspective, you see a very fortified device.

But security doesn’t stop at the network interface and also the PCB, the hardware level should be taken into consideration. And in general, I think OT security needs more curious minds that are looking under the hood. For example, if you’re an engineer, you already understand the industrial processes.

And here I just can recommend you to level up your cybersecurity skills. And this this is exactly what I’m doing with FoxGrid. This platform exists to teach industrial security in an affordable and practical way. The flagship course, practical offensive and Practical Offensive Industrial Security Essentials, comes with an open source lab where you not only learn about penetration testing tools, but also how you can use them on simulated industrial controllers. And that way, you also can understand how your real devices would behave under such conditions. So for the next steps, if you’re curious, check out Fox Grid for resources and connect with me on LinkedIn. And of course, keep pushing OT security forward.

Nathaniel Nelson
So that seems to just about do it for your interview, Andrew, with Marcel Richtsen. Do you have any final thoughts that you’d like to share before we leave today?

Andrew Ginter
I guess so. I mean, I had always been curious, how people do this stuff. What surprised me about the the interview here was that I actually followed what he did. I kind of understood it. I thought it’d be harder than that. And I suppose it could be if you have to, if you don’t have a small amount of information to look at, it if you got to look at the entire firmware and start, I don’t know, disassembling megabytes of firmware looking for vulnerabilities.

That would strike me as harder. This seemed really straightforward. I don’t know if I don’t know if I’m curious enough about how this stuff works that I would do the work myself, but I sure wouldn’t mind another two or three guests like this to to walk us through how they did the hard work so that we can satisfy our curiosity.
-14:48

<insert bit from the end of the commentary>

Andrew Ginter
And beyond my curiosity, I agree with Marcel, we need people tracking down vulnerabilities. That’s, it’s because that’s the good way to persuade vendors to invest more in security, to, make these devices more secure to begin with is to point out afterwards, they’ve got problems. And, the next time around, hopefully they will be more careful. The bad way is to wait for the bad guys to find the vulnerabilities and exploit them and take advantage of us. So, we need more of the good guys. we need more more technical, curious people out there fighting the fight. So, thank you to Marcel.

Nathaniel Nelson
Well, thanks to Marcel for satisfying our curiosity. And Andrew, as always, thank you for speaking with me.

Andrew Ginter
It’s always a pleasure. Thank you, Nate.

Nathaniel Nelson
This has been the Industrial Security Podcast from Waterfall. Thanks to everyone out there listening.

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Top 10 OT Cyber Attacks of 2025 https://waterfall-security.com/ot-insights-center/ot-cybersecurity-insights-center/top-10-ot-cyber-attacks-of-2025/ Mon, 24 Nov 2025 12:40:42 +0000 https://waterfall-security.com/?p=37447 The post Top 10 OT Cyber Attacks of 2025 appeared first on Waterfall Security Solutions.

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Top 10 OT Cyber Attacks of 2025

In this webinar Andrew Ginter takes us through the most unusual and most consequential cyber attacks thus far in 2025 targeting critical infrastructures around the globe.

Join us on December 18, 2025 | 12 PM New York Time

Top 10 OT Cyber Attacks of 2025

Join us for a comprehensive review of the cyber incidents that shaped the industrial landscape in 2025. We will analyze the year’s most disruptive attacks, breaking down the operational downtime, financial costs, and impacts on public safety. Beyond the damage reports, we will explore the specific targeting methods used by adversaries as documented in the public record. The session concludes with a first look at the preliminary findings from Waterfall’s highly anticipated 2026 OT Threat Report.

In the fading days of 2025, we look back at cyber attacks that impaired operations in heavy industry and critical industrial infrastructures in the year thus far. We look at:

arrow red rightThe most consequential incidents in terms of downtime and dollar cost

arrow red rightIncidents affecting public safety and infrastructures

arrow red rightWhat is in the public record about how these systems were targeted

About the Speaker

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Andrew Ginter

Andrew Ginter is the most widely-read author in the industrial security space, with over 23,000 copies of his three books in print. He is a trusted advisor to the world's most secure industrial enterprises, and contributes regularly to industrial cybersecurity standards and guidance.

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Cyber Threats to the Manufacturing Industry: Risks, Impact, and Protection Strategies https://waterfall-security.com/ot-insights-center/ot-cybersecurity-insights-center/cyber-threats-to-the-manufacturing-industry-risks-impact-and-protection-strategies/ Tue, 11 Nov 2025 12:34:11 +0000 https://waterfall-security.com/?p=37134 The post Cyber Threats to the Manufacturing Industry: Risks, Impact, and Protection Strategies appeared first on Waterfall Security Solutions.

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The manufacturing sector stands at a critical inflection point as digital transformation reshapes production environments worldwide. While smart manufacturing technologies promise unprecedented efficiency gains, they also introduce significant cybersecurity vulnerabilities that threat actors are increasingly eager to exploit. Modern manufacturing facilities have evolved from isolated production environments into interconnected digital ecosystems where operational technology (OT) systems now interface with enterprise IT networks, cloud platforms, and supply chain partners. This convergence creates an expanded attack surface that requires specialized security approaches tailored to manufacturing’s unique operational requirements. 

 Digital Transformation Exposes Manufacturing to New Cyber Risks

The Fourth Industrial Revolution has fundamentally transformed manufacturing through the integration of digital technologies like Industrial IoT, artificial intelligence, cloud computing, and advanced automation. These innovations enable data-driven decision making, predictive maintenance, and flexible production capabilities that provide competitive advantages. However, this digital transformation simultaneously exposes manufacturing operations to cybersecurity risks that traditional industrial environments never had to confront.

Smart Factory Vulnerabilities: Where Digital Meets Physical

The modern smart factory contains numerous potential entry points for cyber attackers that simply didn’t exist in previous generations of manufacturing facilities. Programmable Logic Controllers (PLCs) that directly control machinery were once isolated systems but now often connect to enterprise networks for performance monitoring and remote management. These critical control devices frequently run proprietary firmware with minimal built-in security controls, creating significant vulnerabilities when exposed to network access.
Human-Machine Interfaces (HMIs),the touchscreens and operator panels that control production equipment,represent another substantial vulnerability point. Often running outdated operating systems like Windows XP or Windows 7, these interfaces typically lack endpoint protection, are rarely patched, and frequently use default passwords. Despite their critical role in production operations, HMIs have become favorite targets for attackers seeking to manipulate manufacturing processes.

 Manufacturing-Specific Cyber Attack Patterns and Techniques

Cyber attacks against manufacturing targets have evolved into specialized techniques designed to exploit the unique characteristics of industrial environments. Understanding these manufacturing-specific attack patterns is essential for developing effective defense strategies.

Ransomware’s Evolution to Target Production Systems

Ransomware attacks against manufacturers have evolved dramatically from early variants that primarily targeted IT systems. Modern manufacturing-focused ransomware specifically targets operational technology, with attackers demonstrating sophisticated knowledge of industrial control systems. Recent campaigns have included specific capabilities for encrypting engineering workstations, PLC project files, and SCADA databases, elements that are unique to industrial environments.
These specialized attacks often begin with reconnaissance phases where attackers map OT networks and identify critical production chokepoints. By targeting systems like manufacturing execution systems (MES) or production scheduling databases, attackers can maximize operational disruption while encrypting a relatively small number of systems. This strategic approach increases pressure on victims to pay ransoms quickly to restore production.

Industrial Espionage: Stealing Manufacturing Secrets and Intellectual Property

Manufacturing environments contain valuable intellectual property that makes them prime targets for espionage operations. These attacks focus on exfiltrating data rather than causing disruption and often maintain persistence for extended periods to capture evolving proprietary information.
Sophisticated threat actors target manufacturing process data including machine parameters, formulations, production sequences, and quality control methodologies. This information can allow competitors to replicate manufacturing capabilities without the substantial R&D investment required to develop them. In highly competitive sectors like pharmaceutical manufacturing or advanced materials production, these trade secrets often represent the company’s most valuable assets.

Sabotage Attacks: When Adversaries Target Production Quality and Safety

Perhaps the most concerning attack pattern involves sabotage operations designed to manipulate manufacturing processes to degrade product quality, damage equipment, or create safety incidents. These attacks specifically target the integrity of production systems rather than their availability or confidentiality.
Sabotage attacks often focus on manipulating process parameters to introduce subtle defects that may go undetected until products reach customers. By changing temperature settings, timing parameters, or ingredient proportions by small amounts, attackers can cause quality issues that damage a manufacturer’s reputation and potentially create product liability concerns. These attacks are particularly dangerous because they don’t immediately announce themselves through system outages.
 

 

Industry Segment Attack Types Common Entry Points Average Recovery Time Business Impact
Automotive Ransomware, IP Theft Supplier Connections, Remote Access 7-10 days $1.5M+ per day
Pharmaceuticals IP Theft, Process Manipulation Regulatory Reporting Systems, Research Networks 14+ days FDA Compliance Issues, Formula Theft
Food & Beverage Ransomware, Sabotage Remote Monitoring, Logistics Systems 3-5 days Product Recalls, Spoilage
Electronics IP Theft, Supply Chain Attacks Design Systems, Contract Manufacturers 5-8 days Counterfeiting, Design Theft
Defense Nation-State Espionage Contractor Networks, Email Phishing 30+ days (classified systems) National Security Implications
Chemical Manufacturing Safety System Targeting, Sabotage Process Control Networks, Safety Systems 10-14 days Environmental Incidents, Regulatory Fines

 

The Real-World Consequences of Manufacturing Cybersecurity Failures

The business impact of cyber incidents in manufacturing environments extends far beyond immediate IT recovery costs. Manufacturing-specific effects can damage competitive positioning, compromise product quality, and even create physical safety risks. Understanding these real-world consequences is essential for properly evaluating security investments and prioritizing protection measures.

Production Line Cybersecurity Incidents: Analyzing Recovery Time and Costs

Manufacturing cyber incidents impose immediate financial penalties through production downtime that directly impacts revenue and customer commitments. The average manufacturing cyber incident now results in 8.2 days of production disruption, with full recovery taking significantly longer. At average downtime costs of $1.1 million per day for large manufacturers, these incidents create immediate financial damage that far exceeds typical recovery expenses.
Recovery from manufacturing cyber incidents involves unique challenges not present in other sectors. Production equipment often requires precise calibration and validation before operations can safely resume. Quality control procedures must verify that affected systems will produce conforming products once restored. These manufacturing-specific recovery requirements significantly extend the impact period beyond initial containment.
Case studies illustrate the substantial operational impact these incidents create. A 2023 ransomware attack against a major automotive parts supplier resulted in production stoppage at three manufacturing facilities for 11 days. Beyond the immediate $12 million in lost production value, the company incurred significant overtime costs during recovery and faced contractual penalties from OEM customers whose production lines were affected by component shortages. 

When Cyber Attacks Become Safety Incidents in Manufacturing

The potential for cyber attacks to compromise safety systems represents a unique risk in manufacturing environments where physical processes can create hazardous conditions if improperly controlled. Unlike purely digital environments, manufacturing cyber incidents can directly threaten human safety and environmental protection.
Several documented cases illustrate this dangerous convergence. In 2019, a safety incident at a chemical manufacturing facility was linked to a cyber intrusion that had disabled certain alarm functions, preventing operators from receiving early warnings about an abnormal reaction. While no injuries occurred, the incident resulted in a product batch destruction and a regulatory investigation.
More concerning are targeted attacks against safety instrumented systems (SIS) that provide critical protection against hazardous conditions. The TRITON/TRISIS malware specifically designed to compromise Schneider Electric safety controllers, demonstrates that threat actors are actively developing capabilities to undermine these critical protections. By disabling or manipulating safety systems, attackers could create conditions for serious incidents while simultaneously removing the safeguards designed to prevent them.

Supply Chain Ripple Effects from Manufacturing Cyber Disruptions

The interconnected nature of modern manufacturing magnifies the impact of cyber incidents far beyond the initially affected organization. When a manufacturer experiences operational disruption, the effects propagate through supply chains in both directions, creating cascading impacts across multiple companies.
Downstream impacts affect customers who rely on the manufacturer’s output as inputs to their own processes. In tightly coordinated supply chains, even short disruptions can halt downstream production lines when critical components become unavailable. The 2021 ransomware attack on a major automotive supplier forced five OEM assembly plants to temporarily suspend operations due to component shortages, illustrating how manufacturing cyber incidents can create multiplier effects that far exceed the direct impact on the targeted company.

 

Building Manufacturing-Optimized Security Architecture

Effective manufacturing cybersecurity requires architectural approaches specifically designed for industrial environments. Generic IT security solutions often fail to address the unique operational requirements, legacy systems, and specialized protocols found in manufacturing facilities. A manufacturing-optimized security architecture acknowledges these differences while providing robust protection.

Securing Manufacturing Zones: The Industrial DMZ Approach

Zone-based security architecture provides the foundation for effective manufacturing protection by establishing clear boundaries between networks with different security requirements and operational purposes. This approach implements the Purdue Enterprise Reference Architecture’s concept of hierarchical security zones to control communication between business systems and operational technology.
The industrial demilitarized zone (DMZ) serves as a critical security boundary between IT and OT environments. This intermediary network segment hosts systems that need to communicate with both business and manufacturing networks while preventing direct connections between these environments. Properly implemented industrial DMZs include data historians, OPC servers, and middleware applications that facilitate necessary data flows while limiting potential attack paths.
Within manufacturing environments, further segmentation creates protection zones based on operational function and criticality. Critical safety systems receive the highest protection levels, while monitoring systems may operate in less restricted zones. This functional segmentation prevents an attack that compromises one manufacturing area from spreading throughout the entire operational environment

OT Visibility: You Can’t Secure Manufacturing Systems You Can’t See

Comprehensive asset visibility represents a fundamental challenge in manufacturing environments where diverse equipment from multiple vendors often operates with minimal network monitoring. Many manufacturing organizations lack complete inventories of their operational technology assets, creating significant security blind spots.
Effective manufacturing security requires specialized OT asset discovery tools that can safely identify industrial control systems without disrupting their operation. Unlike IT scanning tools that might crash sensitive OT systems, these solutions use passive monitoring and protocol analysis to build comprehensive asset inventories without sending potentially disruptive active probes.
Beyond basic inventory, manufacturing security requires visibility into system configurations, connections, and communications patterns. Baseline documentation should include PLC programming, HMI configurations, and control system parameters to enable effective change detection. Deviations from these documented baselines often provide the first indication of potential compromise.
Continuous monitoring of industrial network traffic enables early threat detection while providing operational benefits through improved troubleshooting capabilities. Modern OT monitoring solutions use protocol-specific decoders to analyze industrial communications, identifying both security and operational anomalies. These systems can detect unauthorized command sequences, unusual data transfers, or configuration changes that might indicate compromise while helping identify operational issues before they impact production.
The visibility challenge extends to understanding the complex interdependencies between manufacturing systems. Documentation should capture which systems depend on others for normal operation, which safety systems protect specific processes, and what communication paths are necessary for production. This mapping of dependencies enables both more effective security controls and more resilient recovery plans.

Authentication and Access Control in Shared Manufacturing Environments

Manufacturing environments present unique identity and access management challenges due to shift operations, shared workstations, and the frequent need for vendor access to specialized equipment. Traditional IT access controls often fail to address these operational realities, leading to either security compromises or workflow disruptions.
Effective manufacturing access control begins with role-based approaches that align permissions with operational responsibilities. Rather than managing access for individual users, this approach defines permission sets for roles like machine operator, maintenance technician, or process engineer. This simplifies administration in environments with rotating staff while ensuring consistent security controls.
Shared workstation environments require authentication solutions that balance security with operational efficiency. Manufacturing-optimized approaches include badge-based authentication systems that allow quick user switching without disrupting operations. Some facilities implement proximity-based authentication that automatically locks HMI screens when operators move away and grants access when authorized personnel approach with appropriate credentials.

Manufacturing Cybersecurity Without Disrupting Production

The imperative to maintain continuous operations creates unique constraints for security implementation in manufacturing environments. Effective manufacturing security strategies must work within these constraints, enhancing protection without compromising production excellence.

Testing Manufacturing Security Without Risking Operational Disruption

Validating security effectiveness poses particular challenges in manufacturing environments where testing on production systems risks operational disruption. However, leaving security controls unverified creates risks of either inadequate protection or unexpected operational impacts when security systems respond to actual threats.
Digital twin approaches provide a sophisticated testing methodology for manufacturing security. By creating virtual replicas of production environments, organizations can conduct realistic security testing without risking impact to operational systems. These environments allow red team exercises, vulnerability assessments, and security control validation using the same configurations present in production.
Test labs with physical equipment matching production systems provide another validation path, particularly for testing security controls on older equipment that might not be accurately represented in virtualized environments. These test environments should replicate network configurations, control system versions, and communication patterns found in production to ensure realistic testing results.
When direct testing on production systems becomes necessary, careful test scoping and scheduling minimizes risks. Tests should be limited to specific network segments, conducted during periods of lower production criticality, and include explicit backout plans to quickly restore normal operations if unexpected impacts occur. Manufacturing security testing should always include operations personnel who understand production requirements and can immediately identify potential production impacts.

 

Security Patches and Updates: Managing Risk in Production Environments

Patch management represents one of the most challenging aspects of manufacturing cybersecurity. Critical security updates often cannot be applied immediately due to production continuity requirements, vendor qualification processes, or concerns about potential compatibility issues with specialized equipment.
Effective manufacturing patch management begins with comprehensive risk assessment processes that evaluate both the security risk of delaying patches and the operational risk of applying them. This balanced approach acknowledges that both actions and inactions carry potential consequences in manufacturing environments. Critical vulnerabilities with active exploitation in similar environments typically justify expedited patching, while less severe vulnerabilities might be addressed during scheduled maintenance periods.
When patching must be delayed, compensating controls provide interim protection. These might include enhanced network monitoring around vulnerable systems, implementing additional access restrictions, or deploying virtual patching through intrusion prevention systems that can block exploitation attempts without modifying vulnerable systems.
Vendor management plays a critical role in effective manufacturing patch processes. Organizations should establish clear security expectations with equipment vendors, including response timeframes for critical vulnerabilities and testing processes for security updates. Leading manufacturers implement vendor security requirements during procurement processes, ensuring that new equipment includes appropriate update capabilities and security support commitments.
For legacy systems that cannot be patched, lifecycle management becomes an essential security strategy. Organizations must develop clear criteria for when security risks justify equipment replacement, incorporating security considerations into capital planning processes. This approach acknowledges that some systems simply cannot be adequately secured through updates alone and must eventually be replaced to maintain appropriate security postures.

 

Security Control Type Implementation Impact Production Downtime Required Effectiveness Rating Best For
Network Segmentation Medium Minimal (phased implementation) High Isolating critical systems
Unidirectional Gateways Low None (parallel deployment) Very High Critical system protection
Endpoint Protection High Moderate (requires testing) Medium Engineering workstations
ICS Monitoring Low None (passive monitoring) Medium-High Anomaly detection
Access Controls Medium Low (staged implementation) High Limiting privileged access

 

How Waterfall Security Solutions Safeguards Manufacturing Excellence

Manufacturing organizations face the dual imperative of enhancing cybersecurity while maintaining the operational reliability that enables production excellence. Waterfall Security Solutions has developed specialized technology that addresses this challenge, enabling robust protection without compromising the performance, availability, and reliability requirements of industrial environments.
Unidirectional Security Technology: Protecting Manufacturing Without Performance Penalties
Waterfall’s unidirectional security gateway technology provides a fundamentally different approach to manufacturing protection compared to traditional IT security solutions. Rather than relying on software-based controls that can be misconfigured or compromised, these gateways use hardware-enforced security to physically prevent attacks from reaching sensitive manufacturing systems.

 

Conclusion

 

As manufacturing evolves toward increasingly connected and data-driven operations, cybersecurity becomes an essential element of production excellence rather than a separate consideration. The threats targeting manufacturing environments continue to grow in both frequency and sophistication, requiring specialized protection approaches that address the unique characteristics of industrial operations.

 

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Top Oil and Gas Security Challenges and Best Practices for Protection https://waterfall-security.com/ot-insights-center/ot-cybersecurity-insights-center/top-oil-and-gas-security-challenges-and-best-practices-for-protection/ Tue, 11 Nov 2025 12:16:46 +0000 https://waterfall-security.com/?p=37111 The post Top Oil and Gas Security Challenges and Best Practices for Protection appeared first on Waterfall Security Solutions.

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The oil and gas industry faces a complex maze of cybersecurity challenges as digital transformation continues to reshape operations throughout the entire value chain. From upstream exploration activities to downstream distribution networks, critical infrastructure now depends heavily on interconnected operational technology systems that could spell disaster if compromised, potentially triggering catastrophic consequences for safety protocols, environmental protection, and overall energy security. This comprehensive examination of the sector explores the constantly evolving threat landscape, analyzes the key security challenges organizations face, and provides practical best practices to strengthen the protection of these essential assets.

The Evolving Threat Landscape in Oil and Gas Operations

The widespread digitalization of oil and gas operations has given rise to a sophisticated security environment where cyber threats increasingly zero in on critical infrastructure systems. Modern drilling platforms, refineries, and extensive pipeline networks now depend on advanced automation systems, Industrial Internet of Things devices, and cloud computing technologies to optimize their operations. While these technological advances have dramatically improved efficiency, they have also expanded the potential attack surface exponentially.

Recent Security Incidents in the Oil and Gas Sector

The industry has experienced several devastating high-profile security incidents that underscore just how severe these threats have become. The 2021 Colonial Pipeline ransomware attack stands as perhaps the most prominent example, forcing the complete shutdown of a massive 5,500-mile pipeline system that typically supplies 45% of the East Coast’s fuel supply. This single incident caused widespread disruption and fuel shortages across multiple states, demonstrating how vulnerable these critical systems can be to determined attackers.

Saudi Aramco has also faced numerous cyberattacks over the years, including the notorious 2012 Shamoon malware incident that destroyed over 30,000 computers throughout its network. More recently, the company has dealt with cloud-based attacks specifically targeting their valuable operational data, showing how threat actors continue to adapt their tactics to exploit new vulnerabilities.

The problem extends well beyond major corporations and affects smaller operators too. Throughout 2022, several midsize oil and gas operators reported ransomware attacks that specifically targeted their industrial control systems, with attackers displaying remarkably sophisticated knowledge of operational technology environments. These incidents resulted in production shutdowns lasting several days and, in some particularly concerning cases, compromised safety systems that could have led to catastrophic accidents.

Key Threat Actors Targeting Oil and Gas Infrastructure

Oil and gas facilities face threats from a diverse range of adversaries, each with its own distinct motivations and capabilities. Nation-state actors frequently target these facilities to gain geopolitical advantage, conduct economic espionage, or establish persistent access to critical infrastructure that could potentially be weaponized during future conflicts. Several countries with advanced cyber capabilities have been linked to extensive reconnaissance operations designed to map vulnerabilities in energy infrastructure worldwide.

Criminal organizations have increasingly recognized the significant profit potential in targeting oil and gas companies, particularly because these organizations face tremendous pressure to restore operations quickly during any outage. This business reality has led to the emergence of specialized ransomware operations that explicitly target industrial control systems, with ransom demands frequently exceeding $10 million for larger operations.

Additionally, hacktivists and environmental extremists represent a growing and unpredictable threat vector, with some groups motivated primarily by ideological opposition to fossil fuel operations. These actors typically focus on service disruption or data theft to embarrass companies and generate negative publicity rather than seeking direct financial gain, making their attack patterns significantly less predictable than profit-motivated criminals.

 

Year Attack Type Target System Impact Financial Loss
2021 Ransomware Colonial Pipeline IT systems 6-day pipeline shutdown $4.4 million ransom
2022 Malware European oil terminal OT systems Disrupted loading operations at multiple ports Undisclosed
2023 Supply chain Pipeline monitoring software Backdoor access to SCADA systems $30+ million (estimated)
2024 Zero-day exploit Offshore platform control systems Production shutdown for safety concerns $75+ million (estimated)
2025 Insider threat Refinery control systems Near-miss safety incident $15 million (remediation)

 

Critical Security Challenges Facing Oil and Gas Companies

The oil and gas industry confronts several unique security challenges that significantly complicate protection efforts across its operations. Understanding these specific challenges becomes crucial for developing effective security strategies that are properly tailored to address the sector’s particular operational requirements and constraints.

Convergence of IT and OT Security

Perhaps the most significant challenge facing the industry today involves the rapidly accelerating convergence of information technology and operational technology systems. Traditionally, industrial control systems operated in complete isolation from corporate networks, but ongoing digital transformation initiatives have increasingly connected these previously separate environments to enhance operational efficiency, enable remote monitoring and operations, and facilitate advanced data analytics capabilities.

This convergence creates dangerous security gaps where traditional information technology security approaches prove completely inadequate for operational technology environments. Operational technology systems prioritize availability and safety above all other considerations, making common IT security practices like regular patching schedules and frequent system updates highly problematic for continuous operations. Many security teams currently lack personnel with the specialized expertise spanning both domains, which inevitably leads to significant protection gaps in the critical interfaces between IT and OT networks.

The risks become even more magnified by the expanding use of Industrial Internet of Things devices that frequently lack built-in security controls yet connect directly to critical operational systems throughout the facility. Each new smart sensor or networked controller potentially introduces fresh vulnerabilities that could provide determined attackers with valuable access to essential production systems and processes.

Legacy System Vulnerabilities

The oil and gas industry operates extensive legacy infrastructure that was originally designed and deployed decades before cybersecurity became a significant operational concern. Many production facilities continue to use industrial control systems and SCADA equipment that have been in continuous operation for twenty years or more, running outdated operating systems that vendors no longer actively support with security updates.

These aging legacy systems present substantial and ongoing security challenges throughout the industry. They often cannot be patched with security updates, rely on obsolete communication protocols that completely lack modern authentication mechanisms, and were originally designed with the fundamental assumption of complete air-gapping rather than any network connectivity whatsoever. Replacing these systems involves prohibitive costs that can reach millions of dollars per facility, along with potential production disruptions that could last weeks or months, forcing companies to develop creative compensating security controls instead.

The challenge extends beyond just the technical aspects to include significant documentation gaps, with many organizations lacking complete and accurate network diagrams or comprehensive asset inventories for their older systems. This makes it extremely difficult to identify potential vulnerabilities or detect unauthorized changes to these critical environments during routine security assessments.

Remote Site Security Management

The vast geographical dispersion of oil and gas assets creates substantial security management challenges that are unique to the industry. Remote facilities such as offshore drilling platforms, pipeline compressor stations, and isolated production sites often operate with extremely limited on-site IT support, making comprehensive security implementation and continuous monitoring exceptionally difficult to maintain.

These remote sites frequently depend on satellite or cellular connections that come with significant bandwidth constraints, severely limiting the effectiveness of traditional security monitoring capabilities. Physical security at these remote locations may also be considerably less robust than at major facilities, substantially increasing the risk of both insider threats and physical tampering with critical control systems.

Secure remote access remains one of the most critical challenges for the industry, as maintenance personnel, third-party vendors, and operations teams require reliable access to these systems for ongoing monitoring, troubleshooting, and maintenance activities. Each remote access pathway represents a potential attack vector that must be properly secured and continuously monitored, yet operational requirements often conflict with strict security controls.

Essential Oil and Gas Cybersecurity Best Practices

Protecting oil and gas infrastructure effectively requires a comprehensive approach that incorporates advanced technical controls, well-defined organizational policies, and proven industry best practices. The following strategies provide a solid foundation for enhancing security posture across all types of operations, from small independent operators to major integrated companies.

Implementing Defense-in-Depth Security Architecture

Defense-in-depth architecture continues to serve as the fundamental cornerstone of effective protection for oil and gas infrastructure operations. This proven approach implements multiple layers of complementary security controls throughout the organization, ensuring that if one protective layer fails or is bypassed, additional layers remain in place to protect the most critical assets and operations.

For oil and gas operations specifically, effective defense-in-depth implementation begins with conducting a comprehensive asset inventory and detailed risk assessment to properly identify the critical systems that require the highest levels of protection. Security zones should be carefully established based on operational function and criticality levels, with appropriate controls implemented at each zone boundary to manage and monitor all communications between different areas.

The architecture should incorporate robust physical security measures protecting control hardware and infrastructure, comprehensive network security controls managing all data flows between different zones, application security measures ensuring system integrity at the software level, and detailed procedural controls governing human interactions with all systems throughout the facility.

Advanced monitoring capabilities spanning both IT and OT environments enable early detection of potential threats and suspicious activities, with security information and event management solutions providing correlation across all environments to identify anomalous behavior patterns that might indicate system compromise. Increasingly, artificial intelligence and machine learning technologies enhance these capabilities by automatically establishing normal operational baselines and flagging significant deviations that warrant investigation.

Regular tabletop exercises and comprehensive incident response drills help organizations thoroughly test their defense-in-depth implementation, ensuring security teams understand how layered controls work together effectively during an actual attack scenario and identify potential gaps before they can be exploited by malicious actors.

OT Network Segmentation Strategies

Network segmentation represents one of the most effective security controls available for oil and gas environments, significantly limiting an attacker’s ability to move laterally throughout the network after gaining initial access to any system. However, effective segmentation strategies for OT environments differ significantly from traditional IT approaches and require specialized knowledge of industrial systems and protocols.

The Purdue Enterprise Reference Architecture provides an excellent framework for industrial network segmentation, logically dividing systems into distinct levels ranging from field devices at Level 0, through various control systems at Levels 1 and 2, operations management systems at Level 3, and business systems at Levels 4 and 5. Each boundary between these levels represents a valuable opportunity to implement security controls that carefully restrict and monitor communications between different zones.

Implementing properly configured demilitarized zones at the critical IT/OT boundary allows necessary data exchange for business operations while minimizing direct connections between environments that could be exploited. Within the OT environment itself, micro-segmentation based on operational function, process area, or safety criticality further limits potential attack propagation and contains any successful intrusions.

Unidirectional security gateways provide particularly strong protection at the most critical boundaries, physically enforcing one-way information flow from OT networks to IT networks while completely preventing any control signals or potential malware from traveling in the reverse direction. This hardware-enforced protection effectively eliminates entire classes of network-based attacks while still enabling essential operational data to flow to business systems for analysis and reporting.

 

Regulatory Compliance in Oil and Gas Security

The oil and gas industry operates within a complex and continuously evolving regulatory landscape that increasingly addresses specific cybersecurity requirements for critical infrastructure protection. Understanding and maintaining compliance with these various requirements has become essential for operational continuity and legal protection.

International Standards and Industry Guidelines

Several key frameworks provide comprehensive guidance for cybersecurity practices specifically tailored to oil and gas operations. IEC 62443 offers detailed standards for industrial automation and control systems security, providing guidance that is specifically designed to address the unique needs and constraints of operational technology environments. This framework addresses technical security requirements, organizational processes, and complete system lifecycle security considerations.

The NIST Cybersecurity Framework provides a proven risk-based approach that applies across all industries but has become increasingly referenced in energy sector regulations worldwide. For pipeline operators specifically, the American Petroleum Institute’s Standard 1164 provides detailed and practical guidance on SCADA security practices, including recent updates that address modern threat landscapes and attack vectors.

Regional regulations increasingly impact even global operators who must comply with local requirements in each jurisdiction where they operate. The European Union’s comprehensive NIS2 Directive imposes strict security requirements on essential service providers, including all energy companies, while the U.S. Transportation Security Administration has implemented mandatory security directives for pipeline operators following lessons learned from the Colonial Pipeline incident.

Building a Compliance-Oriented Security Program

Rather than treating compliance as merely a checkbox exercise to be completed annually, leading oil and gas companies successfully integrate regulatory requirements into comprehensive security programs that genuinely enhance overall protection levels. This strategic approach begins with carefully mapping regulatory controls across different frameworks to identify common requirements and streamline implementation efforts across the organization.

Successful compliance programs place emphasis on ongoing risk management activities rather than relying solely on point-in-time assessments that may quickly become outdated. They incorporate regular evaluation of security controls against evolving threat landscapes and changing operational requirements. Documentation and evidence collection become integrated into standard operational processes rather than being conducted as separate, burdensome activities that interfere with daily operations.

Third-party risk management has become an absolutely essential element of compliance programs as regulations increasingly hold operators directly responsible for maintaining security throughout their entire supply chain ecosystem. Leading organizations implement comprehensive vendor security assessment programs and detailed contractual security requirements for all partners with any level of access to operational systems.

Framework /

Standard

Region/Scope Key Requirements Implementation Timeline
IEC 62443 International Secure development lifecycle, zone/conduit models Phased implementation
NIST CSF United States/Global Risk assessment, protection, detection, response Continuous improvement
API 1164 Pipeline operators SCADA security controls, authentication requirements Updated every 5 years
NIS2 Directive European Union Mandatory incident reporting, security measures Full compliance by 2026
TSA Security Directives U.S. pipeline operators Vulnerability management, incident response plans Immediate implementation

 

How Waterfall Security Solutions Protects Critical Oil and Gas Infrastructure

 

As threats to oil and gas infrastructure continue to grow in sophistication and frequency, traditional security approaches based solely on firewalls and software-based controls have proven inadequate for protecting critical operational systems. Waterfall Security Solutions addresses these complex challenges through innovative technology specifically designed to meet the unique protection needs of industrial environments where safety and availability cannot be compromised.

Unidirectional Security Gateway Technology for OT Protection

Waterfall’s flagship Unidirectional Security Gateway technology represents a fundamental paradigm shift in operational technology security, physically enforcing strict one-way information flow to protect critical infrastructure from external cyber threats. Unlike traditional firewalls that can be misconfigured, bypassed, or compromised through software vulnerabilities, Waterfall’s hardware-based approach creates an absolutely impassable barrier against any inbound attacks or unauthorized commands.

The technology utilizes a unique and innovative architecture featuring a transmitter component on the operational technology side connected to a receiver component on the information technology side through dedicated optical fiber connections. This physical configuration enables essential operational data to flow seamlessly to business systems for monitoring, analysis, and reporting purposes while making it physically impossible for malware, attack commands, or any unauthorized communications to travel in the reverse direction. This effectively creates a modern, highly functional implementation of traditional air gap protection while maintaining complete operational visibility and business intelligence capabilities.

For oil and gas operators, this approach successfully resolves the fundamental tension that has long existed between operational connectivity requirements and security imperatives. Critical production data, equipment status information, and performance metrics can flow freely to corporate networks for essential business intelligence purposes while critical control systems remain completely protected from any network-based attacks. The technology provides comprehensive support for all standard industrial protocols, including Modbus, OPC, and OSIsoft PI systems, enabling seamless integration with existing infrastructure investments without requiring costly system replacements.

 

Beyond the core gateway technology, Waterfall’s comprehensive solution suite includes specialized secure remote access options designed specifically for industrial environments, allowing authorized vendors and remote workers to access necessary systems when required without compromising overall security posture. The company’s industrial security monitoring solutions provide detailed visibility into operational technology network activity to detect potential insider threats or anomalous behavior patterns that might indicate compromise.

Conclusion

 

The security challenges facing the oil and gas industry will undoubtedly continue to evolve and become more complex as digital transformation initiatives reshape operations and threat actors develop increasingly sophisticated attack capabilities and techniques. Organizations that proactively implement comprehensive security strategies combining advanced technology, robust processes, and well-trained personnel will be best positioned to protect their critical infrastructure while still enabling the significant operational benefits that modernization can provide.

By carefully applying the proven best practices outlined throughout this article and leveraging specialized security technologies like those provided by Waterfall Security Solutions, oil and gas operators can substantially enhance their overall security posture while ensuring the reliable and safe delivery of essential energy resources to communities and industries worldwide. The investment in robust cybersecurity measures today will prove essential for maintaining operational continuity and protecting both business assets and public safety in an increasingly connected and threatened world.

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Data Diode vs Firewall: Understanding the Key Differences in OT Security https://waterfall-security.com/ot-insights-center/ot-cybersecurity-insights-center/data-diode-vs-firewall-understanding-the-key-differences-in-ot-security/ Tue, 04 Nov 2025 09:20:06 +0000 https://waterfall-security.com/?p=37000 The post Data Diode vs Firewall: Understanding the Key Differences in OT Security appeared first on Waterfall Security Solutions.

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When you’re protecting operational technology infrastructure, the security solution you pick could mean the difference between weathering a cyberattack and making headlines for all the wrong reasons. It’s not really about whether you need protection anymore; that ship sailed when hackers started going after power grids and water systems. What matters now is figuring out which technology will actually work when attackers come knocking.

OT security isn’t your typical IT problem. We’re talking about systems that run power plants, manage water treatment facilities, control manufacturing lines, and keep transportation networks moving. When these systems fail, you’re not dealing with stolen passwords or leaked documents. You’re looking at potential physical damage, environmental disasters, or genuine public safety threats. Understanding your security options has never been more critical.

Two technologies dominate the conversation when it comes to creating secure boundaries between OT networks and external threats: data diodes and firewalls. Both handle security, but their approaches are worlds apart. This choice shapes everything: immediate protection, operational flexibility, compliance posture, and how well you’ll handle whatever new threats emerge.

TLDR: Data Diode vs Firewall key differences: 

Aspect Data Diode Firewall
Security Model Hardware, one-way Software, two-way
Attack Surface Minimal, immune to 0-day Larger, exploitable
Maintenance Low, set-and-forget High, ongoing updates
Flexibility Limited, no remote High, supports remote
Performance Low latency, scalable Higher latency may slow
Compliance Simple, physical proof Complex, ongoing checks
Use Cases Critical infrastructure General OT with access

What is a Data Diode? Core Technology and Functionality Explained

A data diode is a cybersecurity device that enforces one-way data transfer between two networks. It allows information to flow out of a secure system without allowing external data to flow back in. Organizations use data diodes to protect critical infrastructure, defense systems, and industrial control networks from cyberattacks.

The technology works by physically severing the return path that network communications typically need. Regular network connections require two-way communication for protocols like TCP/IP to work properly. Data diodes break this requirement at the hardware level, making it physically impossible for external systems to establish connections or push data back into protected networks.

What is The Technical Architecture of Data Diodes?

The hardware creates what’s essentially an air gap with controlled, one-way data transmission. Inside these devices, fiber optic connections carry data from OT networks to external monitoring systems, but the physical design prevents signals from traveling backward. The transmit fiber literally can’t receive signals, and the receive side can’t transmit anything. This isn’t a software setting that could accidentally get changed; it’s baked into the hardware design.

Your OT systems still provide all the data needed for monitoring, reporting, and analytics. Historians keep collecting process data, SCADA systems continue displaying real-time information, and operators maintain full operational visibility. The key difference? This visibility never creates a pathway for attackers to reach critical systems.

Data diodes also eliminate concerns about network protocols being exploited. Since there’s no return communication path, traditional network-based attacks simply can’t function. Malware that depends on command and control communications finds itself cut off from its handlers. Remote access trojans lose their ability to communicate back to attackers.

Security Guarantees Provided by Hardware Enforcement

Hardware enforcement gives you security guarantees that software simply can’t match. With a data diode, protection doesn’t depend on perfect configuration, timely updates, or hoping that nobody’s found an undiscovered vulnerability. The security model is binary: data goes out, nothing comes back.

This approach eliminates entire categories of cyberattacks that need two-way communication to succeed. Advanced persistent threats, remote access trojans, and command-and-control communications all need bidirectional connectivity. By physically preventing this connectivity, data diodes create an impenetrable barrier.

The reliability extends beyond just cybersecurity threats. Data diodes also protect against insider threats who might attempt to establish unauthorized network connections. Even with administrative access to systems, an insider can’t override the physical limitations of the hardware.

Firewall Technology in OT Security Contexts

Firewalls have evolved considerably since their early days, particularly for operational technology environments. Modern OT firewalls include deep packet inspection, protocol-aware filtering, and specialized capabilities for industrial communication protocols. They act as intelligent gatekeepers, examining traffic and deciding what gets through based on predefined rules and policies.

Unlike data diodes, firewalls keep bidirectional connectivity alive while trying to filter out malicious traffic. They analyze packet contents, addresses, protocol types, and application behaviors to determine whether communications should pass or get blocked.

Evolution of Firewall Technology for Industrial Networks

Firewalls were originally built for IT networks, where the main job was to keep malicious traffic out of corporate systems while still allowing employees, servers, and applications to connect to the internet. These early firewalls were not designed with operational technology (OT) in mind. Industrial networks have very different requirements-24/7 uptime, specialized communication protocols, and devices that often remain in service for decades. Applying traditional IT firewalls directly to OT environments often caused disruptions, latency, or outright failures because the firewalls simply didn’t “understand” how industrial equipment communicated.

 

evolution of firewall technology

To meet these unique demands, firewalls for industrial use evolved in several key ways.

First, they became protocol-aware. Industrial control systems rely on communication protocols such as Modbus, DNP3, IEC 61850, OPC, and PROFINET. Unlike typical IT protocols, these are highly specialized and often lack built-in security features. Modern OT firewalls now include deep packet inspection (DPI) for these protocols, meaning they can read and interpret the actual commands and values being exchanged between devices. This allows the firewall not only to block generic suspicious traffic, but also to detect anomalies such as unauthorized control commands or malformed data packets that could indicate tampering.

Second, OT firewalls added segmentation capabilities tailored to industrial environments. In IT, segmentation often means dividing a corporate network into different security zones. In OT, segmentation is even more critical because it can stop a compromise in one part of a plant or facility from spreading to safety-critical or production-critical systems. Modern industrial firewalls enable very granular control, ensuring that only specific devices or applications can talk to each other, and only in very specific ways.

Third, these firewalls evolved to perform application-layer filtering. Instead of just looking at IP addresses and ports, they can analyze the actual applications running on top of communication protocols. This provides deeper security by distinguishing between normal operational commands and malicious activity that might be hidden inside legitimate-looking traffic. For example, a command to “read data” might be allowed, while a command to “change setpoint” from an unauthorized source would be blocked immediately.

Finally, OT firewalls now support high availability and redundancy features designed for industrial use. In environments like power grids, oil refineries, or manufacturing lines, even a momentary network disruption can have costly or dangerous consequences. Industrial firewalls are engineered to handle continuous uptime, support redundant hardware configurations, and tolerate the challenging physical conditions of plant environments, such as electrical noise, temperature extremes, or vibration.

In short, firewalls for industrial networks have matured far beyond their IT ancestors. They are now specialized security devices that combine traditional packet filtering with deep industrial protocol awareness, network segmentation, and resilience features. This evolution reflects the growing recognition that OT environments face distinct threats, and that protecting them requires tools specifically designed for the realities of industrial operations.

Configuration and Management Challenges in OT Environments

Managing firewalls in OT environments creates challenges. Industrial systems often need 24/7 availability, which means maintenance windows are scarce. Configuration changes require careful planning and testing. Firewall rule sets can become incredibly complex, and mistakes can block legitimate traffic or allow malicious activity through.

Another challenge involves keeping up with security updates and threat intelligence. Firewall effectiveness depends heavily on current threat signatures and properly configured rules. This ongoing maintenance requirement can strain resources.

Key Differences: Data Diode vs Firewall Security Capabilities

Data diodes operate on a deterministic security model where the hardware design makes certain attacks physically impossible. Firewalls implement rule-based protection requiring constant management.

The deterministic nature of data diodes means your security posture doesn’t deteriorate over time.  Firewalls, on the other hand, rely on constant vigilance, updates, and adjustments.

data diode vs firewall

 

Maintenance and Operational Requirements

Firewalls need regular updates, rule changes, and monitoring. Data diodes need minimal maintenance once deployed. Firewall management requires cybersecurity expertise; data diodes require more upfront network design work.

Performance and Operational Considerations

Data diodes excel in high-throughput scenarios and handle any IP-based protocol without modification. Firewalls introduce latency due to inspection and require protocol-specific support.

Operationally, firewalls enable remote access while data diodes eliminate it. Organizations must balance between absolute security and operational flexibility.

Data Diodes Regulatory Compliance

Data diodes align closely with critical infrastructure protection standards, offering simple, verifiable compliance. Firewalls can support compliance, too, but require continuous updates and detailed documentation.

Implementation Scenarios

Use data diodes for critical systems that can’t tolerate compromise, such as power generation or chemical processing. Use firewalls when bidirectional communication and remote access are essential, such as in manufacturing. A layered approach using both often makes the most sense.

Waterfall Security’s Unidirectional Security Gateway

Waterfall Security Solutions pioneered hardware-enforced unidirectional protection. Their Unidirectional Security Gateway advances data diode concepts with support for industrial protocols, secure file transfers, and solutions like HERA (Hardware-Enforced Remote Access).

Waterfall Security’s technology provides deterministic security guarantees while addressing practical deployment challenges in industrial networks. With proven deployments in power, oil and gas, water treatment, transportation, and more, Waterfall offers a reliable approach to OT cybersecurity.

Conclusion

When it comes to protecting Critical infrastructure, your choice between data diodes and firewalls does not have to be an either/or decision. While data diodes provide absolute protection through unidirectional communication and firewalls offer flexible, bidirectional connectivity with rule-based security, the most robust OT security strategies often combine both. 

By adding hardware-enforced protection to segment critical networks, organizations can dramatically strengthen their security posture. This layered approach ensures that even if a firewall is compromised, the physical barrier provided by a data diode prevents threats from reaching your most sensitive systems. As cyber threats against OT continue to evolve, combining these technologies delivers resilience and safety for the future.

As cyber threats against OT continue to evolve, understanding these differences ensures resilience and safety for the future.

 

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Security by Design- The New Imperative for Rail Systems https://waterfall-security.com/ot-insights-center/transportation/security-by-design-the-new-imperative-for-rail-systems/ Tue, 04 Nov 2025 07:00:36 +0000 https://waterfall-security.com/?p=36880 The post Security by Design- The New Imperative for Rail Systems appeared first on Waterfall Security Solutions.

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Security by Design- The New Imperative for Rail Systems

An introduction to the UITP Report & Real-World Applications

November 26, 2025 | 15:00 CET

Security by Design- The New Imperative for Rail Systems

Join us for an in-depth webinar exploring the UITP “Design for Security of Safety-Critical Systems” report — a groundbreaking framework for integrating cybersecurity into rail Safety Instrumented Systems (SIL 1–SIL 4) across their entire lifecycle. Aligned with the soon-to-be-published IEC 63452 and other key safety standards, this session will provide rail operators, suppliers, and cybersecurity professionals with practical insights on applying security-by-design principles to real-world challenges. Discover how industry leaders are addressing the intersection of safety and cybersecurity, the growing impact of AI-driven threats, and the new engineering principles shaping the future of secure rail systems.

In a webinar, attendees will come away understanding:

arrow red rightKey findings from the UITP report and their impact on rail safety and cybersecurity

arrow red rightReal-world insights from Waterfall Security, MTA and Alstom on implementing recommendations

arrow red rightOpen discussion on challenges, solutions, and best practices for embedding cybersecurity in safety-critical systems.

About the Speakers

Picture of Serge Van Themsche

Serge Van Themsche

Senior Consultant for Waterfall Security,
Co-Leader of the UITP Report

Picture of Eddy Thésée

Eddy Thésée

Vice President Digital & Cyber Platform at Alstom

Picture of Shea McKinney

Shea McKinney

Deputy Chief Information Security Officer OT at MTA,
Contributor to the UITP Report

Picture of Michael J. Wong

Michael J. Wong

Cybersecurity Director at MTA,
Contributor to the UITP Report

Register Now

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Cybersecurity Risk Assessment for Public Transport OT Environments: A Practical Guide https://waterfall-security.com/ot-insights-center/transportation/cybersecurity-risk-assessment-for-public-transport-ot-environments-a-practical-guide/ Thu, 30 Oct 2025 14:40:06 +0000 https://waterfall-security.com/?p=36894 The post Cybersecurity Risk Assessment for Public Transport OT Environments: A Practical Guide appeared first on Waterfall Security Solutions.

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Cybersecurity Risk Assessment for Public Transport OT Environments: A Practical Guide

Discover how rail operators can strengthen cybersecurity in OT environments. This blog explores the UITP framework, helping transport leaders assess risks, set protection goals, and build resilience across critical rail systems. A must-read for anyone securing modern public transport.
Picture of Serge Van themsche

Serge Van themsche

Waterfall team

Cybersecurity Risk Assessment for Public Transport OT Environments: A Practical Guide

Why OT Cybersecurity Requires a Specialized Approach

Unlike IT systems, OT environments prioritize safety, reliability, and real-time operations. A cyber incident in an OT system, such as a signaling failure or a train control breach, can have immediate physical consequences, including service disruptions or safety hazards. 

The UITP framework outlines two models: Track A for small PTOs and Track B for mid- to large-sized operators. In addition to offering corporate and IT risk assessment guidelines, the report introduces a comprehensive model specifically tailored for OT environments, where customized protections are essential to address unique risks. 

Key Insights: Risk Assessment for OT Environments:

The Role of Track B in OT Cybersecurity 

Track B is designed for larger operators with intermediate to advanced cybersecurity maturity. It provides detailed risk and vulnerability assessment, aligning with international standards such as IEC 62443, ISO 27005, and TS 50701/IEC 63452. 

Practical Steps: From Risk Scoring to Security Level Targets 

Step 1: Identify the System under Consideration (SuC) 

Define the scope of the OT system to be assessed, by identifying the SuC’s boundaries and document the system’s architecture. 

 

Step 2: Identify Assets 

Create an inventory of OT assets within the SuC, by listing the physical and logical assets and group these assets into zones, based on their criticality and function. 

 

Step 3: Define Risk Criteria 

Establish scales for impact and likelihood to evaluate risks. Assess consequences in terms of safety, operational availability, and financial impact. Evaluate the Likelihood of a cyber incident based on threat actor capability (e.g., skill level, resources) and vulnerability exposure. 

 

Step 4: Identify Threats and Vulnerabilities 

Define the threat landscape for the OT system, by identifying threat actors (e.g., hacktivists, nation-states, insiders) and document vulnerabilities in the SuC. 

 

Step 5: Conduct an Initial Risk Assessment 

Security Level 

Level of protection 

SL1 

Protection against casual violations 

SL2 

Protection against intentional violations 

SL3 

Protection against sophisticated attacks 

SL4 

Protection against high-resource attacks 

 Evaluate the inherent risks in the SuC, by assigning risk scores based on impact and likelihood. To help you determine the risk level (Low: 1; Medium: 2, High: 3, Critical: 4) use UITP’s risk matrix.  

 

Step 6: Translate Risk Scores into Security Level Target (SL-T) 

The SL-T is transformed into a 7-dimension matrix based on the 7 Foundational Requirements (FRs) defined in IEC 62443’s / EN 50701. 

FR 

Description 

Details 

FR1 

Identification and Authentication Control 

Ensure only authorized personnel and devices access OT systems. 

FR2 

Use Control 

Restrict system access based on roles (e.g., operators vs. maintenance). 

FR3 

System Integrity 

Protect OT systems from unauthorized modifications or malware. 

FR4 

Data Confidentiality 

Secure sensitive operational data within OT networks. 

FR5 

Restricted Data Flow 

Segment OT networks to limit unnecessary communication. 

FR6 

Timely Response to Events 

Implement real-time monitoring and incident response. 

FR7 

Resource Availability 

Ensure OT systems remain operational during cyber incidents. 

 

Step 7: Perform Zoning and Define Zone Criticality 

Group assets into security zones that should reflect common security requirements (e.g., safety-critical vs. business-critical) and assign Zone Criticality Levels (ZC-L) based on the worst-case impact of a breach. 

 

Step 8: Implement Mitigation Strategies 

Apply controls to meet SL targets, for each of the 7 Foundational Requirements. In order to do so, each defined Security Requirement must be addressed.   

For example, if a signaling system is assessed with a risk score of 3 translated into a SL-T3, the Security Requirements in red in the following table must be met for FR5 (Restricted data flow). The same process applies to the 6 additional Foundational Requirements. 

This is where cyber technologies play an active part in the process. For example, a network architecture based on firewalls could achieve SL1 for FR5 but would require additional means to meet SL2 (SR 5.1.(1): physical network segmentation), whereas a unidirectional gateway would inherently meet SL1, SL2, and SL3 for FR5. 

 

Step 9: Address Tail Risks 

Modern risk management introduces the concept of “tail risk”. The notion that some risks could bring down organizations or even entire industries has now entered the sphere of best cybersecurity practices. Even with robust risk mitigation, tail risks—low-probability, high-impact events—pose a real challenge. For instance, abusing a fail-safe mechanism to generate the derailment of a passenger train or of a freight convoy carrying dangerous goods could be considered a tail risk. Mitigation Strategies may include increasing the security Level target (e.g.: from SL-T3 to SL-T4) or beefing up the resilience planning (by implementing backup systems and manual overrides) and the incident response plans by preparing for worst-case scenarios. 

Applying UITP’s Risk Assessment Tools for OT

Tool 2 is specifically designed for OT systems, helping operators:  

  • Assess risks based on SL targets. 
  • Implement mitigation strategies aligned with the 7 Foundational Requirements. 
  • Address tail risks through resilience and contingency planning. 

 

Next Steps: 

  • Apply Tool 2 to assess and mitigate risks in your OT environment. 
  • Consult OT cybersecurity experts to tailor protections to your specific needs. 

 

Conclusion: Proactive OT Cybersecurity 

Cybersecurity in OT environments is not a one-time effort—it’s an ongoing process. By adopting UITP’s Track B methodology, operators can: 

  • Proactively protect their OT systems against evolving threats. 
  • Ensure safety, reliability, and resilience in public transport operations. 
  • Start the compliance process with standard EN 50701/IEC 63452. 

Final Thought: OT cybersecurity requires a specialized approach that balances safety, reliability, and security. Which methodology, if any, does your company use?

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Managing Risk with Digital Twins – What Do We Do Next? – Episode 144 https://waterfall-security.com/ot-insights-center/ot-cybersecurity-insights-center/managing-risk-with-digital-twins-what-do-we-do-next-episode-144/ Mon, 20 Oct 2025 15:17:50 +0000 https://waterfall-security.com/?p=36741 How can we USE this information to make useful decisions about next steps to address cyber risk? Vivek Ponada of Frenos joins us to explore a new kind of OT / industrial digital twin - grab all that data and work it to draw useful conclusions.

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Managing Risk with Digital Twins – What Do We Do Next? – Episode 144

Asset inventory, networks and router / firewall configurations, device criticality - a lot of information. How can we USE this information to make useful decisions about next steps to address cyber risk? Vivek Ponnada of Frenos joins us to explore a new kind of OT / industrial digital twin - grab all that data and work it to draw useful conclusions.

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“Lots of people have different data sets. They have done some investment in OT security, but they’re all struggling to identify what’s the logical next step in their journey.” – Vivek Ponnada

Managing Risk with Digital Twins – What Do We Do Next? | Episode 144

Please note: This transcript was auto-generated and then edited by a person. In the case of any inconsistencies, please refer to the recording as the source.

Nathaniel Nelson
Welcome listeners to the Industrial Security Podcast. My name is Nate Nelson. I’m here with Andrew Ginter, the vice president of industrial security at waterfall security solutions, who’s going to introduce the subject and guest of our show today.

Andrew, how’s it going?

Andrew Ginter
I’m very well, thank you, nate. Our guest today is Vivek Ponnada. You might remember him from an episode a little while ago. He was the co-lead on the top 20 secure PLC coding practices document that came out a year ago, two years ago.

Today, he’s the Senior Vice President growth and strategy at Frenos. And our topic is digital twins for managing risk. And it sounds like a bunch of marketing buzzwords, you know, digital twins, managing risk, but they’ve got some real technology behind this. So I’m looking forward to this.

Nathaniel Nelson
Then without further ado, here’s you with Vivek.

Andrew Ginter
Hello, Vivek, and welcome to the show. Before we get started, can I ask you to say a few words about yourself for our listeners and about the good work that you’re doing at Frenos?

Vivek Ponnada
Sure, thanks Andrew. Hey everyone, my name is Vivek Ponnada. I am the SVP of Growth and Strategy at Frenos. I’ve been in the OT security space for quite some time. Back in the day, I was a gas turbine controls engineer for GE, then I became a controls and cybersecurity solutions upgrade sales manager for them.

I initially covered power and utilities and then of course added oil and gas. I’m based in houston so that was a natural thing. Before joining Frenos worked at nozomi networks as the regional sales director for three years so I’ve been in the OT security space for quite some time and I am happy to be on this podcast.

And at Frenos, we’re doing something cool. We’re doing an attack path analysis and risk assessment at scale, bringing autonomous risk assessments to a space that’s been lacking this kind of approach. So we’re looking forward to our conversation discussing more about that.

Andrew Ginter
Thanks for that. And our topic today is risk, which a lot of people find boring. I mean, people new to the field tend to want to focus on attacks. Attacks are interesting. Attacks are technical. It’s not until they have failed to secure funding as a manager of, you know, their security team for the last 10 years that they start being interested in risk, which is the language and the decision-making of business.

We’re going to talk about risk. You’re talking about, you know, we’re going to talk about digital twins, which is a real buzzword nowadays, but, you know, this is our topic.

And you’ve mentioned, you know, risk assessments, you’ve mentioned attack path analysis. You know I look forward to looking looking into all of this. You know to me, risk is is fascinating. It’s how we make progress. It’s how we shake the money loose.

But you know before we start, can we can we can you before we dig into it, can we start at the beginning? What is the problem, the risk problem that that you know we’re trying to address here?

Vivek Ponnada
Yeah, great question, Andrew. The past 10 plus years in OT security has been, let’s find out what we have, right? So lots of people start figuring out that they need asset inventory solutions. So the likes of Dragos, Nozomi, Claroty have been the forefront of that kind of an approach. So network security monitoring leading to passive asset discovery and vulnerability identification.

So now 10 plus years into this people have a lot of datasets. They have several sites, especially the ones that they would consider important to their production. They’ve installed sensors. They have lots of information.

Now they’re asking what next, right? The real use case is risk identification and risk mitigation as you mentioned, but there’s a struggle. We’ll struggle out there with different data sets not able to figure out what the actual risk is for them to address next. So that’s the problem we’re trying to solve.

We are trying to aggregate information, provide contextual analysis of what’s the riskiest path to a crown jewel or what might be the logical way to isolate and segment because not every risk can be mitigated by just patching your vulnerability for whatever reason that that’s the the main problem.

The conclusion is that lots of people have different data sets. They have done some investment in OT security, but they’re all struggling to identify what you do with that information what’s the logical next step in their journey.

Andrew Ginter
So that makes sense. I mean, it’s one thing to sketch, this is what, the nist cybersecurity framework says a complete security program should look like.

It’s another thing to say, I’ve only got so much budget this year and a comparable amount, hopefully next year. What do I do this year? What do I do next year? What’s sort of most important to do first? That’s that’s a really important question.

How does a person figure that out? What what’s the decision path there?

Vivek Ponnada
Yeah, that’s the real question. Lots of people in the past used to say over isolated or we are segmented. Where we have a DMZ between it and ot. A lot of these assumptions have not been validated.

In other cases where they have different data sets, it’s not very clear what the what the next problem that they could solve is, right? So everybody like you said has limited budget or resources.

So the honest question is, hey, where we should focus next? It’s not very clear. People have done linear projects, right? They’ll pick a firewall project or a segmentation project or a vulnerability management program.

And all these are are good, but overall not fixing the immediate problem or not solving the immediate problem first, right? So the commonly requested feature of many of these tools like dragos, nozomi or other vendors has been, hey, can you please tell me what my riskiest asset is or what my riskiest path is?

And they have not been able to do it because that’s not in in their and their current portfolio, is that contextual summarization, right? So let’s say you have an asset at the purdue model level two, for example, that is talking to another asset at level three, and then there’s a DMZ about that with some kind of firewall rules, isolating it, and if someone has a real world knowledge of this network and and that’s what we are talking about right a digital twin that’s kind of replicating the network and you analyze if that firewall rule and if that path is possible to get to level two or maybe they have other compensated controls in the path allowing them to say yep my level two is secure this network this location is not reachable easily or it takes a lot of complicated daisy-chaining of attacks to get to then that would be a an identification of what the what the risk is and if you need to address something.

The common consensus has been one, of course, you can really assess these in real time in the production environment, right? So you need to build something that’s a replica of that network.

And then you analyze all these scenarios to see if that asset that you deem important or that network that you deem is a is it critical for your environment.

Is reachable or not reachable from the outside or from any other attack vector that you choose, right? They assume breach could be your corporate enterprise network it could be a wireless network or it could be anything else that you deem as a as an attack vector and to assess in this digital replica or digital twin if that asset can be reached.

So that’s what in general most people have been asking for that’s been missing in the currently available set of tools.

Andrew Ginter
So Nate, Vivek’s answer there was a little abstract. Let me let me be a little more concrete. He’s saying, look, a lot of people in the last 10 years have deployed Dragos and Nozomi and Industrial Defender and you name it, asset inventory tools.

And in a large organization, these tools come back and say, you have 10,000, you might have 50,000 industrial control system assets. Okay.

And many of them are poorly patched because they’re deep down in areas where you can’t, it’s really hard to patch them. Patching them is dangerous. You have to test these patches, blahh blah, blah, blah.

So you’ve got 107,000 vulnerabilities in these 50 odd thousand assets. Okay. And they’re arranged into 800, 2000, whatever subnetworks.

And the networks are all interconnected. Right. So now you’re you’re you’re you’re scratching your head going, and the question is, what do I do next with my security?

And one of the things the asset inventory folks have done is they’ve allowed you to go through these assets, understand what they are, and assign a criticality to them. These are the safety instrumented systems. They’re really important.

Nothing touches them. These are the protective relays. They prevent damage to equipment and so on. And so what he’s saying is you can’t just look at the list of assets and vulnerabilities and figure out what to do next.

You need a model. And so this is what he’s talking about, a digital twin that is looking at attack paths and looking at which assets are really important and telling you which really important have assets have really short and easy attack paths.

That’s probably what you need to focus on next.

Nathaniel Nelson
Yeah, and I fear this is one of those things where everybody else in the world knows something that I don’t, but like, what is a digital twin?

Andrew Ginter
You know… That word is a marketing buzzword and it means whatever the marketing team wants it to mean. The first time I heard the word was in a presentation a few years ago at s4.

The sales guy from ge got up and did a sales pitch, in my opinion, a very smooth, a very, what’s the right word, cleverly scripted sales pitch. But he basically said a digital twin is a computer model of a physical system.

And you the ge at the time had technology, they probably still have it, that will, let’s say you’ve got a chemical process. It’s going to it’s got a physical emulator built in. It can simulate the chemistry.

It’s got emulators built in for all of the ge PLCs in the solution, for all of the ge ihistorian and other components. It’s got a complete simulation. And whenever the physical the measurements coming out of the physical world, they correlate against the measurements that should be coming out based on the simulation.

Whenever there’s a material discrepancy, they would say, oh, that’s potentially a cyber attack. Investigate this. Something has gone really weird here and would take all sorts of automatic action to correct it.

It was amazing in principle, yet I’ve heard dozens of other vendors use the term digital twin to mean other things. The best definition that I’ve heard is, look, your cell phone, Nate, your cell phone is a digital twin of you.

What does that mean?

It’s not, probably not, a biological simulation of your body, though some apps kind of do that. They’re measuring heartbeat and whatnot.

It is an enormous amount of different kinds of information about you. Somebody who steals this your cell phone, steals all that information, knows an enormous amount about you.

And so, I like that definition because it’s much broader than the very specific original definition that I heard at s4 from ge. A digital twin can be anything that is a lot of detailed information.

And so, I can’t remember if it’s on the recording or not, but I remember asking Vivek, is your digital twin that kind of physical simulation? And he’s going, no, no, no. It’s a network simulation. It’s a different kind of digital twin than the physical simulation that some people talk about. And they use it for different purposes. So, again, it’s a marketing buzzword, but it means, generally speaking, a system that has a lot of information that uses and analyzes and, does good things with a lot of information about another thing, like my cell phone does for me.

Andrew Ginter
So that makes sense in the abstract. I mean, you folks do this. You’re building this technology. You’ve got this this digital twin concept. Can you talk about what you folks have? I mean, maybe give us an example of deciding what to patch next and using this this digital twin and sort of give us some insight into into what data you have, what data you need, and and how you use that to make these decisions.

Vivek Ponnada
Yeah, great question, Andrew. Patching has been a significantly challenging problem to solve in ot, as you’re well aware, right? In it, if it’s vulnerable, you apply a patch and there’s a limit of downtime impact, but you run with it.

In ot, of course, it’s not practical because a patch might not be available, an outage window might not be available, and of course, there’s production, downtime issues to deal with, so patching has been really hard.

With what we’re doing though, it’s actually highlighting what to patch and what might be skipped for the moment. Right so when we’re doing this attack path analysis and we come up with a mitigation prioritization score and we say that, hey, this particular network is easy to get to, the complexity of the attack is pretty pretty low.

In just one or two hops from the enterprise network, I’m able to get to this asset and this is vulnerable. And we do provide other options besides patching right we’ll say maybe segmentation or adjusting the firewall role might be a way to go in some cases but if you do decide that patching is relevant and and our recommendation provides that you’ll see that if something is not on that attack path, right? So it might be another asset in the vicinity, but the complexity the attack of that to that asset is much, much higher, then you could deprioritize patching that asset, even if those two assets we’re talking about have the exact same vulnerability, right?

So if something is on the attack path and it’s easier to execute an attack to that asset, maybe you want to prioritize that more than another asset that’s exactly the same vulnerability, but it’s not on a critical attack path, if you will.

And so getting to it is harder. So you would want to deprioritize that compared to the other ones.

Andrew Ginter
All right, so so you used the word reachable. Is that loosely the same as or connected to the concept of pivoting, where an adversary takes over a an asset and a computer, a PLC, something, and uses the compromised cpu, basically, to attack other things, pivot through a compromised device to attack other things, and then repeat, use the newly compromised things to attack other things?

Eventually, you find, let’s say, computers that have permission to go through a firewall into a deeper network, and now you can use that compromised computer to reach through the firewall. Is this what reachable means? Reachable by a pivoting path?

Vivek Ponnada
It certainly could be right so pivoting would be jumping from one host or one asset to another right or from one network to another.

The concept of living of the land means that you have ownership of an asset and you’re using native functionality and eventually get to another asset from there because you have a direct connection or to a firewall for example. And so reachable essentially means that you’re able to get to that asset.

Now how you get to that asset or network is it because know firewall rule has any any for example that allowed you to just get there or in another case you were able to use rdp or some kind of insecure remote access to get there or in other cases maybe a usb right somebody plugged in the usb and now you have access to that asset. So lot of these scenarios are very much dependent on what the end user is trying to evaluate the risk for.

So if they are for example heavily segmented and their primary mediations are all segmentation and firewall based then they would want to know if those firewall rules are working according to plan or if the last time there was an exception that that poked a hole in their firewall now they are allowing access from level 4 to their critical networks, not realizing that their firewall has as a hole.

In other cases, they might have assumed that rdp was disabled in this level 3 device in this workstation, but it is actually enabled. And so now suddenly someone from outside of their enterprise network is able to get to that level 3 and now once you’re there, they could do a lot more, right, further exploration. So reachable essentially means that you’re able to get to a network that’s of interest from another area that’s your starting point.

Andrew Ginter
So, Nate, I remember a couple of episodes, a year and a half, two years ago, robin berthier was on from network perception. He was doing, it sounded like a bunch of similar stuff.

He wasn’t, I don’t think they were taking the output of, drago’s tools, but I could be wrong. What I remember was that he was taking firewall configurations and putting sort of a reachability, what’s reachable from where, map together for large complex OT networks, and would issue alarms, would issue alerts when sort of reality deviated from policy. You could say policy is this, safety instrumented systems never talk to the internet.

That’s a reasonable policy. And he would ingest hundreds, sometimes thousands of firewall configurations and say and router configurations and come back with an alert saying, these three devices over here are safety systems and they can reach the internet. So that what he was doing. What we’re talking here, what seems to me to be different here, but I could be wrong, is we’re talking here about pivoting paths, not only paths.

Sort of network configuration, not not just reachable not not just reachability, but the difficulty of pivoting as well.

Nathaniel Nelson
Yeah, and and is the reason why pivoting becomes relevant in a discussion about PLC security because these devices make for such efficient means of, that they connect your maybe, let’s say, lesser it t assets to more important safety critical systems. So PLCs sort of seem like a natural point at which an attacker would move through.

Andrew Ginter
Sort of. PLCs tend to be the targets of pivoting attacks in ot, sophisticated attacks, because they’re the ones that control the physical world. You want to reach the PLC to cause it to misoperate the physical process.

Pivoting through PLCs is possible in theory, and it’s a little bit more possible in practice when the PLC is based on a popular operating system like a stripped-down windows or a stripped-down linux.

But a lot of PLCs are just weird. They just their operating system, their code does one thing. It does the PLC thing. In theory, you could break into the PLC and give it new code.

But if I want to if I want to pivot through a PLC to a windows device, what am I going to how am I going to get into the windows device? I might want to get into it with a remote desktop. There is no remote desktop client on a PLC. It doesn’t exist.

And so pivoting through PLCs, you the attacker might, depending on the version of the PLC, might have to do an enormous amount more work to get pivoted through a PLC.

And so if the only way into, a let’s say, a safety system target is a really critical system, is to pivot through three different PLCs, pivoting through firewalls each time, that’s going to be really hard to do.

Whereas if, I remember a presentation from from dale peterson at s4 last year, year before, where he he was talking about network segmentation. He says, network segmentation, firewalls are almost always the second thing that industrial sites do to to launch their security program.

And I’m going, excuse me, excuse me, what’s but second thing? What’s the first thing? I thought firewalls were the first thing everybody does. “Andrew,” he says, “the first thing is to take the passwordless hmi off of the internet. That’s the first thing you have to do.” and I’m going, yep, you’re you’re right.

And a tool like this will be able to look at you and say, here’s my network. If I want to go from the bad guys into this hmi, it’s on the internet. It has no password.

That’s your number one. It’s it can tell you that. Not just policy, but it it it says, and the safety systems back there, you’ve got to pivot through three PLCs.

That’s going to be really hard to do. You might have some other security you might want to deploy in between. So this is the the concept of of pivoting that, I found very attractive in this this tool, measuring the difficulty of an attacker from the internet reaching a a target inside of a a defensive posture.

Andrew Ginter
That’s interesting. We’ve had guests on the show talking about attack paths. These, these are tools that, build a model of the system and, count all of the ways that an attacker can get from where they are into a consequence that we want to avoid. Um,

And it’s not just count them, but evaluate, let’s call it the difficulty. Mean, risk talks about the classic approximation for risk is likelihood times frequency.

Sorry, likelihood times consequence or impact, if you wish. And, likelihood is a really murky, difficult concept for high consequence attacks. And so what a lot of people do is they substitute likelihood with difficulty. And they They try to evaluate how difficult are really nasty, attacks with really nasty consequences.

It sounds vaguely like you’re doing this. You’re you’re You’re talking about attack paths. You’re talking about difficulty. Is this Is this where you’re going? The one thing you haven’t mentioned is consequence.

Vivek Ponnada
Yeah, that’s a good point because we are doing something unique in that we are allowing user to evaluate in this digital to in this digital replica how an adversary might be not only pivoting but exploiting different components to get to their crown jewels right the way we’re doing that is showcasing different views of TTPs that are well documented with all the IOCs and the threat intel that we aggregated so if it’s a power customer for example they could use a volt typhoon view to see how a volt typhoon actor might be able to leverage initial access to credential exploitation to other kind of exploits within within the environment and there might be a manufacturing customer with a whole different set of interesting TTPs that they want to evaluate But the idea behind this is you figure out what the generally documented TTPs are for a certain type of adversary and how they might you go about from your your starting point, which is initial access or the starting point of your threat analysis to all the way to the crown jewels. And in doing so, you’re making assumptions, right? Because, we’re not in this production environment. We’re not actually exploding something, but you’re evaluating the different scenarios where you say, OK, I have this Windows workstation and I’m going to use RDP, right? I’m going to exploit something there.

What if RDP was disabled? So these days people have some datasets where they can export from an EDR tool and provide open ports and services, right? Then we know, for example, upfront that and some of these services like SMB or whatever that you think is typically exploited by the TTP or the threat actor of choice or or interest is exploding and you disable that, you now know that at least that path is closed, right?

In other cases, The attack path might show three or four different types of exploits to be able to get to that ground jewel or the ground jewel network.

Then that that layer of difficulty or the complexity of the daisy chaining is much higher compared to another network or another attack path. That is trivial, right? So it uses native credentials and it only takes one hop in the attack path to get to that asset or network, then for example, that the previous one was more complex to even get to, right?

But the end of the day, all this conversation so far is about, how difficult it is to get to that ground jewel network or the ground jewel asset right not talking about what the attacker might do once they get there because that part is the impact or the consequence here we actually have a an automatic assessment based on the types of PLCs or types of controllers or the types of assets we see in general based on our threat intel and our initial assessment.

But an end user that’s running this tool or a consultant that’s running this tool can adjust that. Right So there’s a manual way for them to say, hey this network is of a higher priority for me compared to this other network.

Show me what the impact of getting to this network is for me because this is higher for me. So to to be fair, we’re not doing quantification yet in this In this tool we’re limiting ourselves at the moment to how easy or difficult it is to get to a particular crown jewel network and what the adversary might be able to do in that kind of a network. Right So it’s it’s one of those interesting aspects of that analysis where you’re not doing the analysis of what an attacker would do once they get to a crown jewel because that’s a whole different ballgame compared to you’re trying to break the kill chain break the path way before that so you’re you’re assessing or analyzing what are all the attack paths and how easy or difficult it is to get to the crown jewels that you’re trying to protect.

Andrew Ginter
Good going. I mean, I have maintained for some time, and and it’s easy for me to do because I’m on the outside. I don’t have to do the work. But I’ve maintained for some time that risk assessments, part of a risk assessment should be a description of the simplest attack or three that remain credible threats in the defensive posture, threats able to bring about unacceptable consequences. There’s always a path that will let you bring about, an attacker bring about an unacceptable consequence. The question is how difficult it is.

And so to me, the risk assessment should include a description of the simplest such attack or, attacks, plural. Um,

So that’s that’s sort of one. Is this kind of what you’re doing? Can can you give me the next level of detail on on what you’re looking at and and how you’re making these decisions?

Vivek Ponnada
Yeah, definitely. So the problem like you described is that there might be some open ports or services that are vulnerable.

However, if those ports are closed or those services are disabled, then that problem is solved, at least for the moment, right? Unless there’s another vulnerability discovered on the particular asset. So what we’re doing is we’re ingesting information from the various sources that they have.

In other cases, provide options to add that in the tool so that you have the contextual information as to what attacks are possible with what’s relevant in that environment, right?

And in the past, people did this using questionnaires, asking people or evaluating and subject matter experts, using a tabletop or something like that. But the beauty of our frameworks platform is that you’re actually able to do this in an automated fashion and at scale, because if you have like a typical customer, or dozens of end-user sites and hundreds or even thousands of networks, you’re not actually able to analyze the risk of each network of each asset down to the level of what’s possible with the given ports and services or install software or not install software in that environment, right?

But if you’re able to ingest all this information right from the IP addresses and different types of assets and the vulnerabilities tied to them to the ports and services that are enabled or disabled or in other cases, making a an exception to say hey I’m disabling this using some kind of application whitelisting or some kind of segmentation.

All the information at scale can be analyzed and you can get a a view that shows a realistic and more or less validated attack path versus someone that’s just looking at a piece of paper or a complex network in a manual fashion.

So this this is where I think the big difference is in that we’re looking at the attack complexity and the attack path at scale with whether it’s tens or so of sites or thousands of networks and able to decipher what the context is for exploitation or just lateral movement or or whatever the path might be to get to your crown jewels.

Andrew Ginter
So you’ve mentioned a couple of times at scale, you’ve mentioned a couple of times the potential for ingesting information about a lot of assets and networks. The asset inventory tools out there produce that knowledge already. I’m guessing you’re interfaced with them.

Can you talk about about that? How do you get data? How do you get the data about the system that that you’re going to analyze?

Vivek Ponnada
Yeah, that’s a great question. Yeah, we definitely can ingest information from a variety of sources. So the platform can ingest information both offline. So drag and drop a CSV or an XML file or any kind of spreadsheet.

And we also have API hooks to be able to automatically ingest information from The likes of Dragos / Nozomi / Claroty, which are the OT security product vendors. We can also ingest information from CMDBs or any kind of centralized data depositories like Rapid7 or Tenable.

In other cases, the customers might have just spreadsheets from the last time they did a site walk. We can ingest that too. So we’re not restricted on ingest ingesting any specific type of format. We have a command line tool that can ingest other sources as well.

But the basis, the digital twin starts with the firewall and the config file. So we ingest information from the likes of Fortinet, Cisco, Palo Alto, you name it.

Then ingest information from these IT or OT tools. At the end of the day, the more information that’s provided, the fidelity of the data is higher. But the and beauty of the platform is that if you don’t have any kind of information,

We can not only create mitigating controls and options within the platform, but we also built an extension of the Frenos platform called Optica, where you can quickly leverage existing templates, for example, Dell servers or Cisco routers or Rockwell PLCs.

Within a few minutes, you can drag and drop and build a template, which you then import into Frenos. To replicate what might be in the system already. So long story short, any kind of asset information, vulnerability information out there, we can ingest.

And if there is none or there’s limited visibility in certain sections or location, we can build something that’s very similar so that the customers can have a view for what the risk is in a similar environment.

Andrew Ginter
And you mentioned a couple of times, I remember here, compensating controls. I mean, the compensating control everybody talks about is more firewall rules, more firewalls, more firewall rules, keep the bad guys away from the vulnerable assets that we can’t patch because, we can’t afford to shut everything down and test everything again.

Can you talk about compensating controls? What other kinds of compensating controls might your your system recommend?

Vivek Ponnada
That’s a great question because as we were discussing earlier in OT, not everything is fixable because a patch might not be available or an outage window is not available, right? So historically, most people have used a combination of allow listing or deny listing or some kind of ports and services disabled or, to your point, firewall rules and segmentation have a place in that as well.

Overall, the key is to figure out what the attack path is and in how or which fashion you can break that attack path. So if the consideration is from level 4 through a DMZ or firewall and the firewall rule was any any or something that was allowing too much, and maybe too many protocols or something that could be disabled, you can start there as a preference. Right If that’s not possible or that’s not a project you can take the next thing could be hey I’m leveraging this kind of SMB or other exploit at that level 3 device before going to level 2.

Let’s look at what this service was on that particular asset right so you can disable that so within the tool we built in almost 20 or so different options for combinations of all these compensating controls and that are historically used in OT right so it could be a combination of firewall rule or a service or port disabled or or in other cases it could be disconnecting them to put in a different segment Again, this is not new, right? This is how historically OT has been able to mitigate some of the risk.

We’re just bringing that to the forefront to see or show you what other things can be done to break the attack path versus strictly talking about vulnerability management and fixing the problem by applying a patch, which is not practical as we talked about.

Andrew Ginter
Compensating controls are are tricky Nate, making we identify a vulnerability a weakness in a defensive posture there’s a new vulnerability announced from some piece of software that we use on some PLC or safety system or who knows what deep into our architecture the what do we do about that is an open is a question everybody asks sort of the consensus that’s building up is that, if that system is exposed to attack, then we have to put compensating measures in.

If it’s not exposed or if it’s, really hard to reach, maybe we don’t need to change anything in the short term until our next opportunity to to do an upgrade or, a planned outage or something.

And a tool like this one, like the Frenos tool, is one that can tell us how reachable is it, how exposed is this, compare that to our risk tolerance. Are we running a passenger rail switching system? Are we running a small bakery?

Different levels of exposure are acceptable in different circumstances. So having the tool give us a sense of how exposed we are is useful in making that that decision, are we gonna patch or not? And if we have to do something, it’s useful to have a list of compensating controls and sort of the list that that I heard Vivek go through, but they’re probably gonna add to this if they haven’t already.

You can change permissions. If you got a file server that sharing files is the problem and the bad guys can put a nasty on the file server, change permissions so that it’s harder to do that.

Turn off services, programs that are running on, Windows ships with, I don’t know, 73 services running. Most, industrial systems don’t need all of these services. They would have been nice to turn them off ages ago if you haven’t already turned them off and there’s a vulnerability in one of these services and you’re pretty sure you’re not using it, you can turn it off.

Add firewall rules that make it harder to reach the system. Add firewall rules that say, fine, if I need to reach the system for some of the services, but I don’t think I ever need to reach this service from the outside, even if I need to use it on the inside, add a firewall rule that blocks access to that service on that host from the outside.

None of this is easy. Every change you make to an important system have the engineering team has to ask the question is this how likely is it that I’m i’m messing stuff up here how likely is it that I’m introducing a problem that’s gonna that’s gonna bite me with a really serious consequence how how likely is it that the cure is worse than the than the disease here so compensated controls aren’t easy but what I see this tool doing is giving us more information about the vulnerable system about how reachable is that vulnerable system. What are the paths that are easiest to get to that vulnerable system? If I can turn off, I don’t know, remote desktop halfway through the attack path and make the attack that much more difficult, now you have to go through, I don’t know, PLCs instead of Windows boxes.

That’s useful knowledge. This is all useful knowledge. We we need as much ammunition as as we can get when we’re making these difficult decisions about shoot, I have to change the system to make it less vulnerable. What am I going to change without breaking something?

Andrew Ginter
Well, thank you so much for joining us, Vivek. Before I let you go, can I ask, can you sum up for our listeners, what are the most important points to to take away from this new technology? And I don’t know, what can they do next?

Vivek Ponnada
Yeah, for sure. So the quick summary is we’re trying to solve a problem that’s been around for a decade plus. Lots of customers do not have a risk assessment in place. They’re not quite sure where they stand currently.

So some of them are early in their journey with this lack of information. They still need to figure out where they have to invest their next dollar or next hour of resource. And in other cases they had spent the past three or five years in developing an OT security program.

A lot of information available, lots of alerts, but again they’re not so sure how they are compared to maybe their industry peers or how they are compared to where they should be in their security posture management.

So what Frenos is able to do is to both leverage their existing data sets and missing information by providing something that’s a replica of their environment showcase where they should be focusing on in terms of breaking the attack paths highlighting not just where they currently stand but also where they were compared to yesterday so overall this is what most executives have been asking before investing in OT security where do we stand currently how good are we compared to an existing known

Attack vector or campaign if you will and then how good can we be currently as in today because the risks are not staying constant so how do we keep up with it so the outcome of the frameworks platform is both a point in time assessment if you like and also continuous posture management because you’re able to validate what compensating controls and preventive measures that you are deploying or or implementing and if they’re going well or not

So conclusion is that we are a security posture management and visibility company that’s able to bring out the best in your existing data sets and provide you gaps and the gap analysis and and help you figure out where to invest your next dollar or resource on what site or what location.

And if you’d like to know more, hit me up on LinkedIn. My email is Vivek at Frenos.io or happy to connect with you on LinkedIn to take it from there. If you’d like more information, know hit up on our website, Frenos.io as well. You’ll see all the information about our current use cases, the different products and services we have to offer. So looking forward to connecting with more of you.

Nathaniel Nelson
Andrew, that just about does it for your interview with Vive Banada. Do you have any final word to take us out with today?

Andrew Ginter
Yeah. This topic is timely. the topic of risk-based decision-making. I mean, this too is coming into effect in a lot of countries, particularly In Europe, the regulation in every country is different, but the directive says you have to be making risk-based decisions.

And I’m sorry, a risk assessment is… Should be much more than a list of unpatched vulnerabilities. A list of unpatched vulnerabilities does not tell you how vulnerable you are.

It’s just a list of vulnerabilities. To figure out how much trouble you’re in, you need a lot more information. You need information about how which assets are most critical. You need information about how reachable are those critical assets for your adversaries.

And when new vulnerabilities are announced a arise that simplify the pivoting path that simplify reachability of a critical asset for your adversaries you need advice as to that’s what you need to fix next and here are your options for fixing that so I see this kind of of tool as as uh step in the right direction. This is the kind of information that that a lot of us need in not just the world of NIST-2, in the world of managing risk, managing reachability.

You know We’ve all segmented our networks. What does that mean? You can still reach, bang, bang, bang, pivot on through. Well, then, What does that mean? This kind of tool tells us what that means. It gives us deeper visibility into reachability and and vulnerability of the critical assets, risk, opportunity to attack. You know I don’t like the word vulnerability. Too often it means software vulnerability. This talks about This kind of tool exposes attack opportunities and tells us what to do about them. So to me, that’s that’s a very useful thing to do.

Nathaniel Nelson
Well, thank you to Vivek for highlighting all that for us. And Andrew, as always, thank you for speaking with me.

Andrew Ginter
It’s always a pleasure. Thank you, Nate.

Nathaniel Nelson
This has been the Industrial Security Podcast from Waterfall. Thanks to everyone out there listening.

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The post Managing Risk with Digital Twins – What Do We Do Next? – Episode 144 appeared first on Waterfall Security Solutions.

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IT & OT Relationship Management https://waterfall-security.com/ot-insights-center/ot-cybersecurity-insights-center/it-ot-relationship-management/ Mon, 20 Oct 2025 13:23:37 +0000 https://waterfall-security.com/?p=36718 In many organizations the relationship between IT/enterprise security and OT/engineering teams is dysfunctional. Much has been written about the problem. Most of that writing misses the point. In most cases, the relationship problem can be resolved with a little clarity, a bit more good will, and a modicum of mutual education.

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IT & OT Relationship Management

IT & OT Relationship Management eBook

In many organizations the relationship between IT/enterprise security and OT/engineering teams is dysfunctional. Much has been written about the problem. Most of that writing misses the point. In most cases, the relationship problem can be resolved with a little clarity, a bit more good will, and a modicum of mutual education.

The root cause of most IT/OT disputes is consequence – IT and OT networks in most organizations have dramatically different worst-case consequences of compromise. These sharply different consequences demand very different management disciplines for OT vs. IT assets and networks. Compounding the problem is each side’s limited understanding of the other’s threats, risks and constraints.

While there is no “magic bullet”, effective cooperation to define and develop a workable OT proceeds much more smoothly with mutual understanding. Providing the foundation of that understanding is the goal of this guide.

Request the guide to explore:

arrow red rightAddressing espionage vs. sabotage – different risk management goals

arrow red rightCommon misunderstandings – criticality, credibility, and cost-cutting

arrow red rightPrioritizing prevention – why segmentation and dependency analysis is so important in OT

About the author
Picture of Andrew Ginter

Andrew Ginter

Andrew Ginter is the most widely-read author in the industrial security space, with over 23,000 copies of his three books in print. He is a trusted advisor to the world's most secure industrial enterprises, and contributes regularly to industrial cybersecurity standards and guidance.

FAQs About IT & OT Relationship Management

In many organizations the relationship between IT/enterprise security and OT/engineering teams is dysfunctional. These teams work in the same organization, support the same mission, and even address many of the same threats, but when they sit down together it sounds like they need relationship counselling.

Much has been written about the problem. Most of that writing misses the point, focusing on symptoms of the disagreement rather than the root cause. The root cause is consequence – IT and OT networks in many organizations have dramatically different worst-case consequences of compromise. These sharply different consequences demand different management disciplines for OT vs. IT assets and networks. Compounding the problem is each side’s poor understanding of the other’s threats, risks and constraints.

Mutual education is a key starting point. The goal of IT security teams is most often to manage business risk by protecting information – information is the asset. The security goal for most OT / engineering teams is to protect safe, reliable and efficient operations of the physical asset – information is the threat. The only way a control system can change from a normal state to a compromised state is if attack information somehow enters the control system. The focus for engineering teams must be to control the flow of potential attack information, not to protect that information.

The right question is not “Who should manage each asset?” but “How should each asset be managed? While teams may argue over who should maintain which assets, the real question is “What are the consequences for the business if the assets are mis-managed?” Horror stories abound: an IT intern schedules a complete backup of the power plant control system at 2:00 AM and takes the entire plant down for the duration of the backup. A new Active Directory policy universally schedules a complete virus scan on every computer in the company at 3:00 AM and takes down every factory in the company.

In a real sense who does the job does not matter, so long as they have the skills, knowledge, credentials and certifications to manage each asset correctly. The engineers who manage OT-critical Windows systems – does it make sense to make these people into the part of the IT team that manages Windows servers? There may be benefits – efficiencies, cross-training opportunities, or better expert retention rates because bigger groups lead to greater opportunities for advancement. There may also be risks, if OT people are promoted into upper management roles and we no longer have enough people at lower levels trained and certified on how OT equipment must be managed. These are all organizational questions that can and should be answered independently, once we have agreed on how machines in OT must be managed differently from what appear to be similar machines in IT networks.

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Analyzing Recent NIS2 Regulations – OT security is changing https://waterfall-security.com/ot-insights-center/ot-security-standards/analyzing-recent-nis2-regulations-ot-security-is-changing/ Sun, 05 Oct 2025 07:16:29 +0000 https://waterfall-security.com/?p=36227 One EU nation after another is releasing new regulations for their energy infrastructures to comply with the NIS2 directive. Jørgen Hartig of SecuriOT in Denmark joins us to look at the recent Danish, Norwegian, Finnish and other rules.

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Analyzing Recent NIS2 Regulations – OT security is changing

Watch the webinar with SecuriOT for an in-depth look at the Recent NIS2 Regulations

One EU nation after another is releasing new regulations for their energy infrastructures to comply with the NIS2 directive. Jørgen Hartig of SecuriOT in Denmark joins us to look at the recent Danish, Norwegian, Finnish and other rules. We compare the rules to each other, to long-standing NERC CIP regulations in North America, and to the IEC 62443 cross-industry standards. And we dig into what’s new – consequence boundaries, OT/IT dependencies and more – and we look at what are the new concepts and ways of thinking that are at the core these new security measures.

Attendees will come away understanding:

arrow red right What are the rules, who do they apply to, and to what degree?

arrow red right What’s new – for example requirements for manual operations, spare parts, IT/OT data flow inventories, OT isolation and IT/OT dependencies?

arrow red right What are the unifying concepts underlying the new security requirements?

About the Speaker

Picture of Andrew Ginter

Andrew Ginter

Andrew Ginter is the most widely-read author in the industrial security space, with over 23,000 copies of his three books in print. He is a trusted advisor to the world's most secure industrial enterprises, and contributes regularly to industrial cybersecurity standards and guidance.
Picture of Jørgen Hartig

Jørgen Hartig

Jørgen Hartig (OT Security Specialist | Founder at SecuriOT) bring practical, hands-on experience to the complex challenges of operational technology (OT) security. Jørgen Hartig work closely with clients to ensure compliance with NIS2, IEC 62443, NIST CSF, etc., making sure that security strategies are not only compliant but also resilient, scalable, and tailored to the operational reality on the ground.

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The post Analyzing Recent NIS2 Regulations – OT security is changing appeared first on Waterfall Security Solutions.

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