Hartford Business Journal

8 Hartford Business Journal • August 20, 2018 • www.HartfordBusiness.com Reporter's Notebook Matt Pilon | mpilon@HartfordBusiness.com Health Care/Bioscience, Startups & Entrepreneurs, Government/Law and Energy TECHNOLOGY CT cybersecurity czar continues to sound the alarm I t can be unsettling to hear what Connecticut cybersecurity czar Arthur House has to say, and he probably wants it that way. House, who is approaching the two-year mark as the state's first-ever cyber security risk officer, says that unless something changes quick- ly, many signs point to a major cyber attack on U.S. infrastructure in the not-so-distant future. His message is that we're not safe and most government agencies and indus- tries aren't taking the requisite, some- times costly steps to decrease the odds of an attack. "I have no idea how to shake loose those who are still complacent," House said during a recent panel discussion in East Hartford organized by the Connecticut Cen- ter for Advanced Technology (CCAT). "Some say it's not going to happen until there's a cyber '9/11.' " The CIA, White House, municipalities and major companies have all been hacked. Just prior to CCAT's July 25 forum, the Wall Street Journal, citing the Department of Homeland Security, reported that hackers had breached the control rooms of U.S. utilities in 2016 and 2017 — gaining access through the utilities' vendors — and could have caused power blackouts if they desired. Such an attack could be a major disaster, and House suspects that states may be left largely on their own to deal with the impact. One way hackers gained access was through "spearfishing" emails, duping employees to click on email links that can install malware. Officials say that people remain one of the weaker links in cybersecurity defense. Despite the warning signs, most government agencies and businesses have no cybersecu- rity strategy in place, House said. Connecticut, however, has been more proactive than many states on its utilities' cybersecurity. House acknowledges the corporate world's "visceral opposition" to regulation, such as man- dating cybersecurity audits, but he thinks that's coming, whether it's voluntary or not. "Take your pick, it's going to happen," he said. Vanessa Richards, Assistant U.S. Attor- ney for the District of Connecticut, who also spoke at the CCAT event, said there are many challenges on the law enforcement side. Cybercriminals are often based in other countries, which makes them hard to catch. Companies can also be wary of reporting poten- tial breaches to authorities, for fear of regulatory or customer backlash. She urged businesses to suppress that fear. Coming forward generally looks better to the public and authorities alike. "If we don't know about it, we can't combat the threat," Richards said. "Don't be afraid of us." A lot depends on the scale and nature of your business, but the panelists had this advice for a few steps you can take to boost your cybersecurity: • Consult the professionals. Have an IT secu- rity firm assess your systems for weaknesses. • Figure out in advance the immediate steps you'll take if breached. • Know contact details for the local FBI or U.S. Attorney's Office. • Seek out whether your industry has a so-called Information Sharing and Analy- sis Center (ISAC), which are sector-based nonprofits that enable companies to share information and benchmark themselves against their peers. • Weigh the potential benefits of a cybersecu- rity insurance policy. ENERGY & UTILITIES Efficiency contractor: CT funding raid taking its toll The legislature's decision late last year to raid $165 million in energy-efficiency funds to help solve the state's budget deficit is playing out about as badly as expected for efficiency contractors. So says Leticia Colon de Mejias, CEO of Windsor- based Energy Efficiencies So- lutions (EES) and a co-plain- tiff in an ongoing lawsuit against the state that argues the raid is unconstitutional. The majority of that $165 million diversion — $117 million — comes from the state's energy-efficiency fund, which is replenished annually by charges on utility custom- ers' bills. That fund pays for incentives for residential and commercial energy-efficiency upgrades, from insulation to windows, and has helped grow an industry of contrac- tors like Energy Efficiencies Solutions. Colon de Mejias said she has been forced to lay off eight of her 30 employees since January. She says oth- ers have it worse. "I know three companies that have closed already," she said. "Everybody is in crisis." Programs have been reduced across the board, as have marketing budgets, taking a deep bite out of contractor revenues. "I've never been booked out less than 30 days, now I'm booked out five days," said Colon de Mejias, whose company provides home energy assessments, energy usage reports, air sealing, and insulation, among other services. "We don't know if we have work next week." She said fellow contractors are taking out loans to cover expenses in the hopes that the raid is overturned, or that particularly cold weather starts in September, which could prompt more eligible homeowners to seek services. She said others are exploring a move to Massachusetts, which is viewed as having a healthier energy-efficiency market than Connecticut. The state continues to fight the lawsuit in federal court, noting that it's swept energy funds before. ECONOMY CT's 2017 wages, winners & losers In the recent August edition of The Connecticut Economic Digest, Department of Labor Research Analyst Jonathan Kuchta breaks down the state's wage trends in 2017. Most sectors experienced growth last year, though the goods-producing sectors saw a decline. Wages in the much larger services industries grew 0.8 percent compared to 2016, rising to $64,990. Here are the sectors that saw the steepest increases and declines: BIGGEST GAINERS 2016-2017 Sector No. establishments 2017 wage Wage trend Utilities 137 $124,209 10.9% Agriculture, forestry, fishing and hunting 386 $35,886 4.0% Administrative and waste management 7,638 $45,568 3.5% BIGGEST LOSERS 2016-2017 Sector No. establishments 2017 wage Wage trend Real estate and rental and leasing 3,551 $66,281 -6.1% Management of companies and enterprises 1,129 $154,167 -5.6% Transportation and warehousing 1,943 $47,366 -0.7% Leticia Colon de Mejias helping on a home energy assessment. PHOTO | HBJ FILE HBJ PHOTO | MATT PILON Arthur House, state cyber security risk officer, speaks at a recent event in East Hartford.

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