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The City of Wichita recently had an experience that’s become all too common — its water system was hacked. The cyberattack, which targeted water metering, billing and payment processing, followed the targeting of water utilities across the U.S. in recent years.

In going after America’s water, hackers aren’t doing anything special. Despite rising fears of AI use in cyber threats, the go-to criminal way into systems remains preying on human foibles, be it via phishing, social engineering, or a system still running on a default password — “old school” cyberattacks, according to Ryan Witt, vice president of cybersecurity firm Proofpoint.

The rising cybercrime wave targeting key infrastructure led the Environmental Protection Agency to issue an enforcement alert warning that 70% of water systems it inspected do not fully comply with requirements in the Safe Drinking Water Act. Without quantifying an exact number, the EPA said some have “alarming cybersecurity vulnerabilities” — default passwords that have not been updated, vulnerable single login setups, and former employees who retained systems access.

While the methods may be simple, an attack last year by an Iranian-backed activist group against 12 water utilities in the U.S. reinforced how purposeful “an attacker’s mindset” can be, according to Witt. The targeted utilities all contained equipment that was Israeli-made.

FBI, NSA, CISA all express concern

In February, the FBI warned Congress that Chinese hackers have burrowed deep into the United States’ cyber infrastructure in an attempt to cause damage, targeting water treatment plans, the electrical grid, transportation systems and other critical infrastructure. A Russian-linked hack in January of a water filtration plant in a small Texas town, Muleshoe — located near a U.S. Air Force base — caused a water tank to overflow. “Water is among the least mature in terms of security,” Adam Isles, head of cybersecurity practice for Chertoff Group, recently told CNBC.

Psychological impact on the population is also a strategic aim, seen not only in targeting of water assets but the Colonial Pipeline hack that made national headlines in 2021, and in the words of the federal Cybersecurity and Infrastructure Security Agency, featured “snaking lines of cars at gas stations across the eastern seaboard and panicked Americans filling bags with fuel, fearful of not being able to get to work or get their kids to school.” 

Attacks on U.S. water utilities’ IT systems can have a similar psychological impact, and even if the attacks don’t directly interfere with the operations of the utility, still lessen public trust in water supply. No hack to date has shut off the water to a population, but that’s the bigger worry, said Stuart Madnick, an MIT professor of engineering systems and co-founder of Cybersecurity at MIT Sloan.

Service hacking by China is meant to create 'panic and chaos', says Fmr. CISA Director Chris Krebs

Meddling with a water supply through attacks targeting IT (informational technology), like Wichita’s system, is minor in comparison to a successful attack on the OT (operating technology) that controls water plants. That is a massive risk, Madnick said, and the threat of it happening is not zero.

“We have demonstrated in our lab how operations, such as a water plant, could be shut down not just for hours or days, but for weeks. It is definitely technically possible,” he said.

A recent letter sent by EPA Administrator Michael Regan and National Security Advisor Jake Sullivan to the nations’ governors detailed the urgency of the threat. But Madnick is wary of the government’s ability to act quickly or robustly enough to prevent such an occurrence. Budgets, outdated infrastructure, and reluctance to move on an issue that may seem both vital and daunting suggest that the fixes may indeed not come quickly enough. “It has not happened yet, and serious action to prevent ‘likely’ will not happen, until after it has happened,” he said.

Outdated water utility technology

Like any modern system, water utilities rely on technology for monitoring, for operations, and for customer communication. The technology creates vulnerabilities — for providers and users — so the need for enhanced security measures is acute. “The community risk from cyberattacks includes an attacker gaining control of the operations of a system to damage infrastructure, disrupt the availability or flow of water, or altering the chemical levels, which could allow untreated wastewater to be discharged into a waterway or contaminate drinking water provided to a community,” said an EPA spokesman.

Witt says there are some initial steps to take in improving the cyber hygiene of dated systems. “Improving password strength, reducing exposure to public-facing internet, and the need for cybersecurity awareness training,” would go a long way to shoring up defenses, he said. Another potential fix is the deployment of what are called air-gapped systems that separate supervisory and control systems from other networks. Since the easiest way into these systems is to obtain credentials and then exploit the system, “A systems admin should not be able to access office systems such as email and be able to operate a control panel of a water system from the same laptop,” Witt said.

For the most part, attacks that have occurred have been preventable, according to the EPA. “Systems were victimized by destructive and costly cyberattacks because they failed to adopt basic cyber resiliency practices,” the EPA spokesman said. “All drinking water and wastewater systems are at risk — large and small, urban and rural,” he said. 

While it has not been a tool needed to date in these water utility attacks, AI is coming alongside the concerted cyber efforts of geopolitical rivals. “Rapid advances in artificial intelligence are giving cyberthreat actors more sophisticated tactics, techniques, and procedures to penetrate operational technology that controls critical infrastructure facilities,” the EPA spokesman said. “These attacks have been linked to a variety of types of malicious actors, including hackers working on behalf of or in support of other nations who could use disruptions to U.S. critical infrastructure to their strategic advantage.”

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CEO of Southeast Asia’s largest bank warns investors: ‘Buckle up, we’re in for a volatile ride’

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CEO of Southeast Asia's largest bank warns investors: 'Buckle up, we're in for a volatile ride'

Tan Su Shan is the CEO and director of DBS Group.

Bloomberg | Bloomberg | Getty Images

With valuations in the U.S. stock market becoming increasingly stretched, the chief executive of Southeast Asia’s largest bank is warning investors to expect turbulence ahead.

“We’ve seen a lot of volatility in the markets. It could be equities, it could be rates, it could be foreign exchange,” DBS CEO Tan Su Shan told CNBC, adding that she expects that volatility to continue.

Tan, who took over the helm of DBS from longtime CEO Piyush Gupta in March, said that investors were particularly worried about the lofty valuations of artificial intelligence stocks, especially the so-called “Magnificent Seven.”

The Magnificent Seven — Amazon, Alphabet, Meta, Apple, Microsoft, Nvidia and Tesla — are some of the major U.S. tech and growth stocks that have driven much of Wall Street’s gains in recent years.

“You’ve got trillions of dollars tied up in seven stocks, for example. So it’s inevitable, with that kind of concentration, that there will be a worry about. ‘You know, when will this bubble burst?'”

Earlier this week, at the Global Financial Leaders’ Investment Summit in Hong Kong,  it was likely there would be a 10%-20% drawdown over the next 12 to 24 months.

Morgan Stanley CEO Ted Pick said at the same summit that investors should welcome periodic pullbacks, calling them healthy developments rather than signs of crisis.

Tan agreed. “Frankly, a correction will be healthy,” she said.

Recent examples include Advanced Micro Devices and Palantir, both of which posted stronger-than-expected quarterly results on Tuesday, yet their shares — and the wider Nasdaq — fell.

Her remarks follow similar warnings by the International Monetary Fund and central bank chiefs Jerome Powell and Andrew Bailey, who have all cautioned about inflated stock prices.

Singapore as diversification play

Tan advised investors to diversify rather than concentrate holdings in one market. “Whether it’s in your portfolio, in your supply chain, or in your demand distribution, just diversify.”

Tan, who has over 35 years of experience in banking and wealth management, noted that Asia could attract more investment from the U.S.—and that it’s not a bad thing.

Singling out Singapore and the country’s central bank’s efforts to boost interest in the local markets, Tan described the city-state as a “diversifier market.”

“We’ve got rule of law. We’re a transparent, open financial system and stable politically. We’re a good place to invest…. So I don’t think we’re a bad place to think about diversifying your investments.”

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Elon Musk says Tesla needs to build ‘gigantic chip fab’ to meet AI and robotics needs

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Elon Musk says Tesla needs to build 'gigantic chip fab' to meet AI and robotics needs

Tesla CEO Elon Musk attends the Saudi-U.S. Investment Forum, in Riyadh, Saudi Arabia, May 13, 2025.

Hamad I Mohammed | Reuters

Tesla CEO Elon Musk says the company will likely need to build a “gigantic” semiconductor fabrication plant to keep up with its artificial intelligence and robotics ambitions.

“One of the things I’m trying to figure out is — how do we make enough chips?” Musk said at Tesla’s annual shareholders meeting Thursday.

Tesla currently relies on contract chipmakers Taiwan Semiconductor Manufacturing Company and Samsung Electronics to produce its chip designs. Musk said he was also considering working with U.S. chip company Intel

“But even when we extrapolate the best-case scenario for chip production from our suppliers, it’s still not enough,” he said.

Tesla would probably need to build a “gigantic”  chip fab, which Musk described as a “Tesla terra fab.” “I can’t see any other way to get to the volume of chips that we’re looking for.” 

Microchips are the brains that power almost all modern technologies, including everything from consumer electronics like smartphones to massive data centers, and demand for them has been surging amid the AI boom.

Tech giants, including Tesla, have been clamoring for more supply from chipmakers like TSMC — the world’s largest and most advanced chipmaker. 

According to Musk, Tesla’s potential fab’s initial capacity would reach 100,000 wafer starts per month and eventually scale up to 1 million. In the semiconductor industry, wafer starts per month is a measure of how many new chips a fab produces each month.

For comparison, TSMC says its annual wafer production capacity reached 17 million in 2024, or around 1.42 million wafer starts per month.

While Tesla doesn’t yet manufacture its own microchips, the company has been designing custom chips for autonomous driving for several years.

It is currently outsourcing production of its latest-generation “AI5” chip, which Musk said will be cheaper, power-efficient, and optimized for Tesla’s AI software.

The CEO also announced on Thursday that Tesla will begin producing its Cybercab — an autonomous electric vehicle with no pedals or steering wheel — in April.

Musk’s statements underscore Tesla’s shift into AI and robotics — industries the CEO sees as the future of the global economy. 

“With AI and robotics, you can actually increase the global economy by a factor of 10, or maybe 100. There’s not, like, an obvious limit,” Musk said at the shareholder meeting. 

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CNBC Daily Open: Tech had a rough day in the markets — its employees had a worse October

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CNBC Daily Open: Tech had a rough day in the markets — its employees had a worse October

Traders works on the floor of the New York Stock Exchange.

NYSE

October’s job losses in the U.S. were nearly twice as high as a month earlier — the steepest for any October since 2003, data from outplacement firm Challenger, Gray & Christmas showed.

The technology sector was the hardest hit, with 33,281 cuts, almost six times September’s total.

Being laid off is an awful feeling — and it must feel bitterly ironic to work in a field that’s developing the very technology making you redundant.

One person spared both redundancy fears and existential doubt is Tesla CEO Elon Musk, who just had a nearly $1 trillion pay package approved by Tesla shareholders.

To earn the full trillion, though, Musk has to meet a chain of performance targets, culminating in Tesla reaching an $8.5 trillion valuation.

Its market cap is currently $1.54 trillion — by contrast, the world’s most valuable company now is Nvidia, which briefly hit a $5 trillion valuation last Wednesday.

After Thursday’s slump in tech stocks, however, Nvidia’s market cap has dipped to a “mere” $4.57 trillion.

Other tech companies, such as Microsoft, Broadcom and Palantir Technologies, also fell broadly over concerns that their stock prices are too high. Those moves dragged the tech-heavy Nasdaq Composite down by 1.9%.

For most tech workers and investors, Thursday was another reminder of volatility’s sting. For Elon Musk, it was just another day on the road to the stratosphere.

What you need to know today

And finally…

A panoramic view of Riyadh, Saudi Arabia.

Alessio Gaggioli Photography | Moment | Getty Images

Inside the Gulf’s trillion-dollar AI gamble

After raking in trillions of dollars in oil revenue, the Gulf monarchies have become known for splashing cash on big-ticket projects like sci-fi-worthy cities in the desert, major sports franchises, and advanced military hardware.

Now, though, as they face prolonged lower crude prices, some of the region’s leaders are looking at leveraging their vast sovereign capital to build domestic artificial intelligence industries.

— Emma Graham

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