Cybersecurity Challenges in Critical Infrastructure

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Cyberattacks on water systems in multiple states underscore the vulnerabilities of cyber physical systems integral to critical infrastructure. These attacks are frequent, with 2024 witnessing over 859,000 incidents. Financial losses reached nearly $17 billion in 2024, a significant increase from $2.7 billion in 2018. Among these attacks, nearly 4,900 targeted infrastructures essential for our economy.

Canvas, a learning management system used across K-12 schools, colleges, universities, and corporate training, faced a ransomware attack in May, affecting millions. Cyber incidents demonstrate the risks of centralized data sites that, when compromised, can impact millions.

Air travel, affecting over 2.5 million people daily, relies on centralized systems for ticket processing, crew scheduling, and ground operations. The evolution of these systems advances efficiency but increases vulnerability to disruptions. A cyberattack led to manual processing in European airports in 2025, highlighting the risk. If the U.S. air travel system reverted to manual processes, it would hinder the Transportation Security Administration’s security checks.

The vulnerability was evident when American Airlines experienced a computer outage on July 28. The CrowdStrike software update bug in July 2024 impeded airlines, forcing manual check-ins and paper tickets, causing substantial costs like Delta Airlines’ estimated $500 million in impact.

Many critical infrastructures employ centralized or hybrid management systems, improving efficiency but increasing vulnerability to cyber incidents. For example, the Federal Reserve operates through a decentralized system of 12 banks, yet financial transactions centralize within these networks. These systems’ compromise could delay payments and hinder financial operations.

While centralization bolsters efficiency, it introduces risks. Balancing benefits and risks is crucial in designing these complex systems. Typically, benefits accrue regularly, and risk mitigation efforts reduce adverse outcomes. Nonetheless, as Canvas showed, negative impacts inevitably arise, illustrating the cost of participation in a digital economy.

Rare occurrences deliver disproportionate disruptions and expenses. These events can cripple critical infrastructures within our digital economy. Sheldon H. Jacobson, Ph.D., a University of Illinois Urbana-Champaign professor, applies data-driven risk decision-making to public policy analysis.