These days, it seems like every other week brings a new alert to your inbox — your password has been compromised. In 2023, cybercrime reached record highs, with spikes in malware, ransomware, and data breaches taking their toll on companies and customers. And from the looks of it, 2024 is shaping up to be even worse as hackers grow bolder in their targets.

Leak in the system: On Monday, American Water ($AWK), the largest water utility in the US, announced that hackers breached some of its networks last week. Fortunately, the attack did not impact the 14M+ customers who depend on its services, nor did it compromise sensitive data, financials, or operations. However, the breach has put both investors and the public on notice.

• Security breaches on US utility firms have soared 70% this year, according to Check Point Research, making the industry the prime target for cyberattacks.
• Bloomberg reports that US government officials and cybersecurity researchers have warned about the vulnerability of critical infrastructure, which often relies on outdated software.

Here Come the Waterworks

Check Point’s August report revealed that utility companies, which play an important role in delivering power, water, and other resources to households and businesses, have faced nearly 1.2K cyberattacks this year. And while none have resulted in major infrastructure damage, previous hacks have highlighted the serious risks posed by these incursions.

• Serious attacks on UnitedHealth ($UNH) and National Public Data exposed sensitive information, such as social security numbers.
• Snowflake ($SNOW) also faced an extortion campaign that leaked corporate secrets and internal correspondence from 100 large US organizations.

They’re already here: In the last month, ransomware attacks disrupted flights and shipments at the Port of Seattle while hackers accessed wiretap systems maintained by telecom giants Verizon ($VZ) and AT&TT

. Overwhelmingly, many of these attacks are carried out by adversaries of the US and the West, including Iran, China, and North Korea. Given the rising volume of attacks, a lack of preparedness to defend against such skilled hackers could spell disaster for businesses, governments, and critical infrastructure.