US Sanctions Alleged Russian Hackers Who Claimed Attacks on US Water Facilities

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Washington, D.C. – The US Treasury Department on Friday sanctioned two alleged members of a Russian cybercriminal gang that has claimed responsibility for a series of hacks against US critical infrastructure providers, including a cyberattack in January that caused a tank at a Texas water facility to overflow.

Treasury posted photos of the two alleged hackers — Yuliya Vladimirovna Pankratova and Denis Olegovich Degtyarenko — unmasking them from the anonymous social media accounts they had used to hide.

Pankratova and Degtyarenko are allegedly part of a politically motivated hacking group called Cyber Army of Russia Reborn (CARR), which has claimed credit for a series of cyberattacks against American and European organizations in support of Russia.

The string of hacks alarmed US officials because of how easily they were able to pull them off. The hackers logged into sensitive industrial software systems that are supposed to be separated from the public internet. US national security adviser Jake Sullivan appealed to state officials and water authorities to shore up their cyber defenses.

The hack in January in the small town of Muleshoe, in north Texas, wasted tens of thousands of gallons of water, according to the Treasury Department. It coincided with at least two other towns in north Texas taking precautionary defensive measures.

Sanctions against criminal hackers are increasingly common as the US government tries to deter both politically and financially motivated computer operatives.

Among CARR’s other claimed targets was a wastewater treatment plant in Indiana. The hackers tend to blend their unsophisticated hacking efforts with psychological operations designed to drum up interest in the group and spread panic among targets. They have, for example, released videos of them purporting to infiltrate water systems and disrupt critical infrastructure.

“Russia continues to provide a safe haven to cybercriminals and enable their operations that target infrastructure within the United States and its allies and partners,” State Department spokesman Matthew Miller said in a statement on Friday.

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