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Axios Re:Cap

Holding Cities Ransom

Axios Re:Cap

Axios

Daily News, News

4.5705 Ratings

🗓️ 16 December 2019

⏱️ 11 minutes

🧾️ Download transcript

Summary

On Friday, the government of New Orleans shut down due to a cyberattack, the latest city to face an increasingly common problem. Dan and Axios Cities Correspondent Kim Hart talk about cyberattacks on local governments, and what happens when attackers demand a ransom. Plus: The FCC’s message for Facebook and a possible space crash in silicon valley.

Transcript

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0:00.0

Welcome to Axis ProRata.

0:08.7

We take just 10 minutes to get you smarter on the collision of tech, business, and politics.

0:12.6

I'm Dave Bramack.

0:13.6

On today's show, the FCC's message for Facebook and a possible space crash in Silicon Valley.

0:19.4

But first, holding cities ransom.

0:22.0

So last Friday, the city government of New Orleans shut down.

0:25.8

Not at 5 p.m. like it would on a normal Friday, but hours earlier after the detection of a cyber

0:31.3

attack in its municipal computer network.

0:33.7

What the city referred to as, quote, an abundance of caution resulted in all of its computer networks, internal and external, being taken offline.

0:41.3

City offices, the physical ones, were closed, and even the official New Orleans homepage was unavailable.

0:47.3

Now, New Orleans officials say there is no evidence that actual information was compromised, but not all of its systems are back online

0:54.6

yet. And the overall episode reflects the vulnerabilities of city governments to cyber

0:58.6

intrusions at a time when more and more of their services, including vital, sometimes

1:03.1

life-saving information, are being provided virtually. One thing missing here from the New Orleans

1:08.0

attack was a so-called request for ransom, which

1:11.1

is when a hacker demands money to put everything back to normal.

1:14.5

But ransomware attacks against U.S. cities and towns are more common than you might think,

1:18.8

and often very difficult to navigate.

1:20.8

By the numbers here, Barakouda networks reported in September that 50 U.S. cities and towns

1:26.2

had seen ransomware attacks so far in 2019.

1:29.3

And a more recent report from a company called MC Soft puts the number north of 100.

1:34.0

And that latter report expands the figure to 950 if you also include educational and

...

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