Here’s A $19 Profit Play On The Colonial Pipeline Hack

man siting facing laptop

A shadowy criminal gang from overseas pulled off a brazen cyber-hijacking of half the East Coast's gasoline supply. Nope, this isn't that James Bond movie that keeps getting pushed; it's the latest ransomware hack.

Around 100 million gallons of gasoline flow from Houston to New York via the Colonial every day. That's around 45% of the East Coast's fuel intake, and since the "DarkSide" attack hit May 7, inleaded gas prices are hitting $2.99 a gallon, on average, nationwide, which is a level we haven't seen here since late 2014.

So, what's the profit play here? Energy? Oil and gas? There is a supply crunch, not to mention the recovery underway. But… you'd have to be way fast on the trigger.

No, the serious profit potential the Colonial hack is generating is right here, where not very many people are looking right now.

The Hack Impact Will Linger Long After the Gas Starts Flowing

A huge chunk of the media bandwidth spent on the Colonial hack is going toward the supply crunch, and for now – as in, this week – it's a big deal.

The long-term impact is on cybersecurity, and the way I see it, that's where the real profit potential is.

A criminal gang we know pretty much zero about just pulled a cyber-Pearl Harbor, and it's impacting lives and bottom lines. Senator Rob Portman (R-OH) told a Senate hearing Tuesday that the Colonial attack "is potentially the most substantial and damaging attack on U.S. critical infrastructure ever," and in this case, he's not being dramatic.

The Colonial hack is just one of hundreds of thousands of cyber-attacks that we know of; we're still dealing with the fallout from the SolarWinds hack of dozens of private- and government-sector organizations.

Entire cities – San Francisco, Baltimore, New Orleans – have had operations disrupted through ransomware attacks of one kind or another. Hospital systems, school systems, police departments – you name it, criminal hackers have probably hit it. Acer Inc., a big Taiwanese electronics company, was recently hit with a ransomware demand for $50 million – a world record, unfortunately.

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Disclaimer: Any performance results described herein are not based on actual trading of securities but are instead based on a hypothetical trading account which entered and exited the suggested ...

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William K. 1 month ago Member's comment

Certainly this is a valid point, that system security is in need of better protection. And the valid security organizations that produce products that actually work well will do well. And everything from microsoft is still shipped long before it is ready to ship, as evidenced by the weekly patches and fixes. But that appear to be their business plan.