The Impact and Risks of Cyberattacks on Critical Infrastructures

Recent cyberattacks on water systems highlight significant dangers to cyber physical systems vital for critical infrastructures. While cyberattacks have become commonplace, most people only notice them when directly affected. In 2024 alone, over 859,000 cyberattacks occurred, averaging nearly 100 per hour. The financial toll in that year reached nearly $17 billion, increasing from $2.7 billion in 2018. Among these, approximately 4,900 targeted critical infrastructures that support both physical and digital economies.

A notable incident occurred when Canvas, a learning management system used in education, succumbed to a ransomware attack in May, disrupting service for millions. This event underscored the vulnerability of centralized data management sites and the potential to cripple large systems.

Air travel, affecting over 2.5 million people daily, heavily depends on centralized data management. It coordinates airline tickets, crew schedules, and ground operations. The passenger service system, managing the entire life cycle of passengers, has evolved in complexity and functionality. Such centralization enhances efficiency but also increases vulnerability to cyberattacks, as demonstrated when European airports faced manual processing due to a cyberattack in 2025. A similar incident in the U.S. would paralyze air travel and weaken transportation security.

Even benign incidents, like the American Airlines computer outage on July 28, reveal the frailty of cyber physical systems without malicious intent. In July 2024, a CrowdStrike software update bug forced airlines into manual check-ins and paper ticketing, costing Delta Airlines around $500 million. This disruption, not a cyberattack but a software bug, illustrated the impact of centralized data management failures.

Many critical infrastructures employ centralized or hybrid management systems for efficient oversight. However, they remain susceptible to cyberattacks that can stall components of the digital economy. For instance, the decentralized Federal Reserve system processes many financial transactions within its hybrid structure. Compromising any part can delay payments and financial operations.

Centralization provides efficiency gains but also poses risks. Balancing benefits and vulnerabilities remains crucial in designing complex systems. The digital economy often offers frequent benefits, with risk mitigation efforts preventing severe outcomes. However, incidents like the Canvas attack show that negative events can still arise.

Rare disruptions can be highly disruptive and costly. For critical infrastructures within the digital economy, they can be incapacitating. As Sheldon H. Jacobson, Ph.D., highlights, understanding the tradeoff is essential for enjoying the benefits of a connected digital economy despite the risks.