{"id":1586,"date":"2019-05-30T13:06:46","date_gmt":"2019-05-30T13:06:46","guid":{"rendered":"https:\/\/www.technology-solved.com\/huntsville-al\/?p=1586"},"modified":"2023-07-17T22:27:42","modified_gmt":"2023-07-18T02:27:42","slug":"1586-2","status":"publish","type":"post","link":"https:\/\/www.technology-solved.com\/huntsville-al\/1586-2\/","title":{"rendered":"Baltimore estimates cost of ransomware attack at $18.2 million as government begins to restore email accounts"},"content":{"rendered":"<div><\/div>\n<div><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-1634 size-medium\" src=\"https:\/\/www.technology-solved.com\/huntsville-al\/wp-content\/uploads\/sites\/13\/2019\/05\/bs-1559160002-ubk74xc2zk-snap-image-300x169.jpg\" alt=\"Baltimore Estimates Cost Of Ransomware Attack\" width=\"300\" height=\"169\" srcset=\"https:\/\/www.technology-solved.com\/huntsville-al\/wp-content\/uploads\/sites\/13\/2019\/05\/bs-1559160002-ubk74xc2zk-snap-image-300x169.jpg 300w, https:\/\/www.technology-solved.com\/huntsville-al\/wp-content\/uploads\/sites\/13\/2019\/05\/bs-1559160002-ubk74xc2zk-snap-image.jpg 750w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/div>\n<div>A sign on the door of the Baltimore Department of Public Works&#8217; water department office May 8, 2019. Residents have not been able to conduct business with the city or pay bills by cash or credit cash at the Abel Wolman Municipal Building because of a ransomware attack. (Kenneth K. Lam \/ The Baltimore Sun)<\/div>\n<div>\n<figure class=\"trb_ar_by_i_f\"><img loading=\"lazy\" decoding=\"async\" class=\"trb_ar_by_i\" title=\"Ian Duncan\" src=\"https:\/\/www.trbimg.com\/img-54343006\/turbine\/bal-ian-duncan-20141007\/70\/70x70\" alt=\"Ian Duncan\" width=\"70\" height=\"70\" \/><\/figure>\n<p><span class=\"trb_ar_by_nm_pm\"><span class=\"trb_ar_by_nm_au\"><a class=\"trb_ar_by_nm_au_a\" href=\"https:\/\/www.baltimoresun.com\/bal-ian-duncan-20141007-staff.html#nt=byline\" target=\"_blank\" rel=\"noopener noreferrer\">Ian Duncan<\/a><\/span><a class=\"trb_ar_by_cl\" href=\"mailto:iduncan@baltsun.com?subject=Regarding:%20%27Baltimore%20estimates%20cost%20of%20ransomware%20attack%20at%20$18.2%20million%20as%20government%20begins%20to%20restore%20email%20accounts%27\" target=\"_blank\" rel=\"noopener noreferrer\">Contact Reporter<\/a><span class=\"trb_ar_by_nm_pb\">The Baltimore Sun<\/span><\/span><\/p>\n<\/div>\n<div class=\"trb_ar_dateline\"><\/div>\n<div class=\"trb_ar_bd\">\n<div class=\"trb_ar_page\">\n<p>Baltimore\u2019s budget office estimates a ransomware attack on city computers will cost at least $18.2 million \u2014 a combination of lost or delayed revenue and direct costs to restore systems.<\/p>\n<p>The cost estimates were disclosed Wednesday at a City Council budget hearing as regular email service was restored for at least some Baltimore employees, the first public indication that the city\u2019s technological recovery is showing signs of success.<\/p>\n<div class=\"teads-inread sm-screen\">\n<div class=\"teads-ui-components-credits\"><a href=\"https:\/\/www.teads.com\/?utm_source=inread&amp;utm_medium=credits&amp;utm_campaign=invented%20by%20teads\" target=\"_blank\" rel=\"nofollow noopener noreferrer\"><span class=\"teads-ui-components-credits-colored\">inRead<\/span>\u00a0invented by Teads<\/a><\/div>\n<\/div>\n<p>The city\u2019s information technology office has spent $4.6 million on recovery efforts since the ransomware struck May 7 and expects to spend an additional $5.4 million by the end of the year, officials said.<\/p>\n<p>The other $8.2 million in impact is from potential lost or delayed revenue, such as money from property taxes, real estate fees and some fines.<\/p>\n<aside class=\"trb_ar_sponsoredmod\">\n<div class=\"trb_ar_nt\"><\/div>\n<\/aside>\n<p>The hackers demanded the city pay a ransom in bitcoins worth about $76,000 on the day of the attack, but Democratic Mayor Bernard C. \u201cJack\u201d Young refused to pay. While the estimated cost of recovery is vastly higher than the ransom, the city still likely would have needed to spend money to bolster its defenses to prevent a future breach.<\/p>\n<aside class=\"trb_em trb_embed\">\n<figure class=\"trb_em_ic_figure\"><img decoding=\"async\" class=\"trb_em_ic_img\" title=\"Baltimore political leaders seek briefings after report that NSA tool was used in ransomware attack\" src=\"https:\/\/www.trbimg.com\/img-5cea959f\/turbine\/bs-md-ci-ransomware-nsa-20190525\/400\/400x225\" alt=\"Baltimore political leaders seek briefings after report that NSA tool was used in ransomware attack\" \/><\/figure>\n<div class=\"trb_em_r\"><\/div>\n<\/aside>\n<p>After hearing the news, Young said in an interview Wednesday night that he was going to \u201cleave all of that to the professionals and we\u2019ll just have to find the money\u201d in the budget.<\/p>\n<p>He added that he has talked with Democratic U.S. Rep. Elijah Cummings of Baltimore and plans to reach out to other members of Maryland\u2019s congressional delegation to talk about getting financial help from the federal government because of \u201cthe virus that they let out,\u201d referencing a New York Times report that a tool leaked from the National Security Agency played a role in the Baltimore hack.<\/p>\n<p>As for the estimated cost and lost revenue being much larger than the ransom demand, Young said: \u201cWe\u2019re not going to pay criminals for bad deeds. That\u2019s not going to happen.\u201d He added that even if the city were to pay the ransom, \u201cthere\u2019s no guarantee that if you pay, you reset your system.\u201d<\/p>\n<p>Members of the congressional delegation have sought briefings from the NSA and federal law enforcement about the hack.<\/p>\n<p>City budget director Bob Cenname shared the cost estimates at the council hearing. He said he didn\u2019t expect to see a long-term hit to revenues, but some payments to the city had been delayed.<\/p>\n<p>\u201cOnce we get through this bump, I don\u2019t think the ransomware will have a huge effect,\u201d Cenname said.<\/p>\n<p>A summary of the cost estimate did not provide a breakdown of the projected $10 million in spending, but officials have said they\u2019re working with outside experts to restore the network under arrangements approved by the city\u2019s finance director.<\/p>\n<div class=\"teads-inread sm-screen\">\n<div>\n<div class=\"teads-ui-components-adchoices\"><\/div>\n<div class=\"teads-ui-components-label\">ADVERTISING<\/div>\n<div id=\"teads1\" class=\"teads-player\"><\/div>\n<div class=\"teads-ui-components-credits\"><a href=\"https:\/\/www.teads.com\/?utm_source=inread&amp;utm_medium=credits&amp;utm_campaign=invented%20by%20teads\" target=\"_blank\" rel=\"nofollow noopener noreferrer\"><span class=\"teads-ui-components-credits-colored\">inRead<\/span>\u00a0invented by Teads<\/a><\/div>\n<\/div>\n<\/div>\n<aside class=\"trb_ar_sponsoredmod\"><\/aside>\n<p>The initial cost estimate is similar to a figure for Atlanta, which suffered a similar attack last year and that Baltimore officials have said they\u2019re using for comparison. A confidential estimate obtained by the Atlanta Journal-Constitution put Atlanta\u2019s costs at $17 million, but it\u2019s not clear whether that included any effect on the city\u2019s revenues.<\/p>\n<p>Democratic Councilman Isaac \u201cYitzy\u201d Schleifer said he was not surprised by the Baltimore estimate, given the experience of other jurisdictions. But he said council members are seeking a fuller estimate that would include lost productivity by city employees.<\/p>\n<p>Schleifer said he expects the total cost to rise, adding: \u201cThere\u2019s obviously a lot more where that came from.\u201d<\/p>\n<aside class=\"trb_em trb_embed\">\n<div class=\"SandboxRoot env-bp-350\">\n<div id=\"twitter-widget-0\" class=\"EmbeddedTweet EmbeddedTweet--cta EmbeddedTweet--mediaForward media-forward js-clickToOpenTarget js-tweetIdInfo tweet-InformationCircle-widgetParent\" lang=\"en\">\n<article class=\"MediaCard MediaCard--mediaForward customisable-border\" dir=\"ltr\">\n<div class=\"MediaCard-media\">\n<p><a class=\"MediaCard-borderOverlay\" title=\"View image on Twitter\" role=\"presentation\" href=\"https:\/\/twitter.com\/CouncilmanYitzy\/status\/1133830013818671105\" target=\"_blank\" rel=\"noopener noreferrer\"><span class=\"u-hiddenVisually\">View image on Twitter<\/span><\/a><\/p>\n<div class=\"MediaCard-widthConstraint js-cspForcedStyle\">\n<div class=\"MediaCard-mediaContainer js-cspForcedStyle\"><a class=\"MediaCard-mediaAsset NaturalImage\" href=\"https:\/\/twitter.com\/CouncilmanYitzy\/status\/1133830013818671105\"><img loading=\"lazy\" decoding=\"async\" class=\"NaturalImage-image alignnone\" title=\"View image on Twitter\" src=\"https:\/\/pbs.twimg.com\/media\/D7wsYn_WwAAYbRe?format=jpg&amp;name=small\" alt=\"View image on Twitter\" width=\"1200\" height=\"900\" \/><\/a><\/div>\n<\/div>\n<\/div>\n<\/article>\n<div class=\"EmbeddedTweet-tweetContainer\">\n<div class=\"EmbeddedTweet-tweet\">\n<blockquote class=\"Tweet h-entry js-tweetIdInfo subject expanded\" cite=\"https:\/\/twitter.com\/CouncilmanYitzy\/status\/1133830013818671105\">\n<div class=\"Tweet-header\">\n<p><span class=\"TweetAuthor-decoratedName\"><span class=\"TweetAuthor-name Identity-name customisable-highlight\" title=\"Isaac Schleifer\">Isaac Schleifer<\/span><\/span><span class=\"TweetAuthor-screenName Identity-screenName\" dir=\"ltr\" title=\"@CouncilmanYitzy\">@CouncilmanYitzy<\/span><\/p>\n<\/div>\n<div class=\"Tweet-body e-entry-content\">\n<p class=\"Tweet-text e-entry-title\" dir=\"ltr\" lang=\"en\">Early projected Ransomware financial impact is 18.2 million. That number is expected to grow.<\/p>\n<div class=\"TweetInfo\">\n<div class=\"TweetInfo-like\">\n<p><a class=\"TweetInfo-heart\" title=\"Like\" href=\"https:\/\/twitter.com\/intent\/like?tweet_id=1133830013818671105\"><span class=\"TweetInfo-heartStat\">9<\/span><\/a><\/p>\n<\/div>\n<div class=\"TweetInfo-timeGeo\"><a class=\"u-linkBlend u-url customisable-highlight long-permalink\" href=\"https:\/\/twitter.com\/CouncilmanYitzy\/status\/1133830013818671105\">3:18 PM &#8211; May 29, 2019<\/a><\/div>\n<\/div>\n<\/div>\n<\/blockquote>\n<\/div>\n<div class=\"CallToAction-icon\">\n<div class=\"Icon Icon--replyCTA \" title=\"View conversation on Twitter\" role=\"img\"><\/div>\n<\/div>\n<div class=\"CallToAction-text\">19 people are talking about this<\/div>\n<div class=\"CallToAction-chevron\">\n<div class=\"Icon Icon--chevronRightCTA \" title=\"View on Twitter\" role=\"img\"><\/div>\n<\/div>\n<\/div>\n<div class=\"tweet-InformationCircle--top tweet-InformationCircle\"><a class=\"Icon Icon--informationCircleWhite js-inViewportScribingTarget\" title=\"Twitter Ads info and privacy\" href=\"https:\/\/help.twitter.com\/en\/twitter-for-websites-ads-info-and-privacy\" target=\"_blank\" rel=\"noopener noreferrer\"><span class=\"u-hiddenVisually\">Twitter Ads info and privacy<\/span><\/a><\/div>\n<\/div>\n<div class=\"resize-sensor\">\n<div class=\"resize-sensor-expand\">\n<div><\/div>\n<\/div>\n<div class=\"resize-sensor-shrink\">\n<div>Since the beginning of the attack, employees had been without access to baltimorecity.gov emails. Many resorted to <a href=\"https:\/\/www.baltimoresun.com\/maryland\/baltimore-city\/bs-md-ci-gmail-accounts-20190523-story.html\" target=\"_blank\" rel=\"noopener noreferrer\">creating Gmail accounts<\/a>\u00a0as a workaround. That caused fresh problems, though, when Google\u2019s security system flagged some of the accounts as suspicious and briefly suspended them.<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/aside>\n<p>Lester Davis, a spokesman for Young, said the city has successfully carried out a pilot to restore some email accounts. The city now will begin restoring accounts, prioritizing the police and fire departments as the system is rolled out. Davis said the email system now includes additional safeguards, but he declined to describe them.<\/p>\n<p>\u201cThe situation is still delicate,\u201d Davis said. \u201cFolks are working through this. We\u2019re taking our time.\u201d<\/p>\n<p>Officials have not given a timetable for how long the recovery will take, other than saying it could be months.<\/p>\n<p>The city also restored some services with\u00a0<a href=\"https:\/\/www.baltimoresun.com\/maryland\/baltimore-city\/bs-md-ci-property-deeds-20190524-story.html\" target=\"_blank\" rel=\"noopener noreferrer\">manual workarounds<\/a>. While the city\u2019s credit card payment system was knocked offline, residents with copies of bills could pay what they owed by mail or in person using checks or money orders.<\/p>\n<p>After<a href=\"https:\/\/www.baltimoresun.com\/business\/real-estate\/bs-bz-ransomware-home-buyers-sellers-20190521-story.html\" target=\"_blank\" rel=\"noopener noreferrer\">\u00a0the city\u2019s property market was halted by the attack<\/a>, officials came up with a temporary fix, relying on sellers to sign paperwork promising to pay any outstanding bills once the systems come back online.<\/p>\n<p>Sheryl Goldstein, a deputy chief of staff to Young, has said the city has been proceeding cautiously as it seeks to bring systems back online, not wanting to leave any weaknesses unaddressed.<\/p>\n<p>\u201c<a href=\"https:\/\/www.baltimoresun.com\/maryland\/baltimore-city\/bs-md-ci-ransomware-update-20190522-story.html\" target=\"_blank\" rel=\"noopener noreferrer\">It is preferable for us to be safe<\/a>\u00a0and do it right than to do it fast,\u201d she said in an interview last week.<\/p>\n<p><em>Baltimore Sun reporter Phil Davis contributed to this article.<\/em><\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>A sign on the door of the Baltimore Department of Public Works&#8217; water department office May 8, 2019. Residents have not been able to conduct business with the city or pay bills by cash or credit cash at the Abel Wolman Municipal Building because of a ransomware attack. (Kenneth K. Lam \/ The Baltimore Sun) [&hellip;]<\/p>\n","protected":false},"author":15,"featured_media":1634,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[5,1],"tags":[],"class_list":["post-1586","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","category-uncategorized"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Baltimore estimates cost of ransomware attack at $18.2 million as government begins to restore email accounts - Computer Troubleshooters Huntsville<\/title>\n<meta name=\"description\" content=\"A sign on the door of the Baltimore Department of Public Works&#039; water department office May 8, 2019. 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