Cyber Blog

American Water Works, a major supplier of drinking water and wastewater services to over 14 million people, disclosed on Monday that its systems were hacked, leading the company to suspend customer billing operations as a precaution.

The Camden, New Jersey-based utility detected the unauthorized activity last Thursday and immediately took measures to protect its systems. In a regulatory filing, the company stated that while its facilities and operations remained unaffected, it could not yet determine the full impact of the incident.

As part of its response, the company shut down certain systems, including its customer portal service, MayWater, which remained offline as of Tuesday afternoon.

“In an effort to safeguard our customers’ data and prevent further harm, we deactivated several systems,” an American Water Works spokesperson told CBS News. “There will be no late fees for customers while these systems remain unavailable. We are working tirelessly to investigate the scope and nature of this breach.”

American Water Works confirmed it has alerted law enforcement and is cooperating with the investigation.

The utility, which is the largest regulated water and wastewater service provider in the U.S., operates more than 500 systems across 1,700 communities in 14 states and on 18 military installations. Its coverage spans states including California, Illinois, Kentucky, Maryland, New Jersey, and Virginia.

Following news of the incident, the company’s stock fell by $5.58 (3.9%) on Monday, closing at $136.99. However, shares recovered slightly by Tuesday, rising by 66 cents (0.5%) to $137.66, giving American Water Works a market value of $26.84 billion.

The breach comes amid heightened concerns from U.S. officials about cyberattacks on critical infrastructure. Recent reports from The Wall Street Journal suggest that Chinese intelligence officers may be involved in efforts to compromise U.S. infrastructure, including water treatment facilities and broadband providers.