Insiders at the Dallas Central Appraisal District, which was hacked last week in a ransomware attack, tell us the system is not yet up, they are working all on paper, they cannot use email, and the hackers have asked for money. How much, we are trying to determine.
Because Dallas County manages DCAD, we are working to confirm they have no insurance to pay off the ransomware attack. Most municipal agencies are self-insured.
I spoke with Patrick Costello, co-founder and principal of evolvemga.com, a cybersecurity insurance firm that insures companies against this very sort of hacking. Costello says that ransomware is incredibly prevalent right now — both ransomware and WTF (wire transfer fraud). In fact, the San Francisco ’49ers just got hit.
How Does a Ransomware Attack Happen?
How does it happen? A hacker sends an email to someone in the company. If you click on the link, the ransomware opens up, infiltrates your system, and takes over like a virus. It can lock your system., which means you cannot work. Hence, business interruption is a massive part of evolving policies.
“Most likely someone clicked on a link and it invaded the DCAD system,” Costello said. “Do not click on unknown emails ever,” he warns, “and be especially careful transferring money.”
Once this happens, the ransomware hijackers demand payment. Even if you pay them, there is no guarantee of finding them. To date, EvolveMGA.com has paid out $35 million in ransom over a period of 7 years.
How to Prevent a Ransomware Attack
So what should DCAD do to secure data in the future?
“If possible, they need to talk to talk to a commercial insurance broker first,” says Costello. His company moved to Dallas from the Bay Area because of the growing demand for cyber security in Dallas. “These people are looking for money or any way to leverage more money. There are international and national hacking teams. It’s really pretty wild.”
