Quantum Ransomware Attack on Tex-Isle, Inc.

Tex-Isle, Inc., a third-generation, family-owned Texas company operating in the Energy, Utilities & Waste sector, has been targeted by the ransomware group Quantum. The company, which has a long history of success built on an absolute dedication to service, has been hit by the ransomware group, which claimed responsibility for the attack on their dark web leak site.

Tex-Isle, Inc. is a significant player in the industry, with investments, a strategic location, and a commitment to environmental stewardship that places it in the top quartile regarding CO2 emissions. The company's size and industry position make it a valuable target for threat actors.

The ransomware attack on Tex-Isle, Inc. is part of a broader trend of cyberattacks on critical infrastructure organizations. In 2023, the North Texas Municipal Water District, which serves more than 2 million people, was hit with a cyberattack that caused operational issues, including disrupted phone services. The incident did not impact water, wastewater, or solid waste services for customers, but it did affect the district's business computer systems.

Ransomware groups like Quantum have been targeting water utilities as critical infrastructure organizations likely to pay exorbitant ransoms to restore service. In the U.S., law enforcement agencies reported that ransomware gangs hit five U.S. water and wastewater treatment facilities from 2019 to 2021, and these figures did not include three other widely reported cyberattacks on water utilities.

The U.S. Environmental Protection Agency (EPA) sought to help improve cybersecurity protections at water utilities earlier this year but backed off the effort following lawsuits from Republican lawmakers and powerful industry groups.

The incident at Tex-Isle, Inc. underscores the need for improved cybersecurity measures in the energy, utilities, and waste sector. As the industry continues to digitalize, it becomes increasingly vulnerable to cyberattacks, highlighting the importance of robust security protocols and ongoing training for employees to mitigate these risks.

Sources

• Tex-Isle, Inc. Website: https://www.texisle.com/
• "Large Texas Water Utility Hit With Ransomware Attack" by GovTech: https://www.govtech.com/security/large-texas-water-utility-hit-with-ransomware-attack
• "North Texas water utility serving 2 million hit with cyberattack" by Recorded Future News: https://www.recordedfuture.com/north-texas-water-utility-cyberattack/
• "North Texas water utility the latest suspected industrial ransomware attack" by Cybersecurity Dive: https://www.cybersecuritydive.com/news/north-texas-water-utility-ransomware/701144/