Ransomware Increasingly Targeting Small Governments

Ransomware Increasingly Targeting Small Governments
To get back up and running quickly, and because it's cheaper, city and county governments often pay the ransom, especially if insurance companies are footing the bill. The result: More ransomware.

Small and local government have not only continued to pay ransoms to the criminals behind ransomware, but they have been doing so at an accelerating pace, according to a new report by consulting firm Deloitte.


In 2019, more than 163 ransomware attacks targeted local and county governments, with at least $1.8 million paid to the cybercriminals behind the attacks and tens of millions of dollars in recovery costs, according to data compiled by the Deloitte Center for Government Insight. In 2018, there were only 55 publicly reported attacks and less than $60,000 in ransom. In fact, local governments are seeing an increasing number of attacks at the same time attackers are also demanding higher ransoms — an average of 10 times higher than what they demand from private-sector companies.


Three unique facets of local governments are likely driving the increase in ransomware cases: The organizations tend to have insurance, they leave gaps in their networks and system security, and they need to maintain critical services. The result is a feedback loop, says Srini Subramanian, state and local government sector leader for Deloitte.


"The more they are paying out, the more money criminals are demanding," he says. "The criminals like targeting governments because they pay. And cyber insurance is paying because it is the fastest way to recovery, and it is likely the most cost-effective way as well."


Local governments became a favored target of ransomware in 2019. In August, local and county government organizations in Texas were dis ..

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