Incident: Title: Ransomware Attack Paralyzes Texas Towns, Demanding Millions in Bitcoin

Published Date: 2019-08-23

Postmortem Analysis
Timeline 1. The software failure incident of the ransomware attack in Wilmer, Texas, and other cities in Texas occurred in the summer of 2019 [Article 88067].
System 1. Computer networks of small towns, including Wilmer, Texas, and Lake City, Florida, were hacked and encrypted, leading to a ransomware attack [Article 88067]. 2. Communication channels managed by a private systems-management firm, often used by law enforcement agencies in Texas, were exploited by hackers to gain access to municipal networks [Article 88067]. 3. Email systems, laptops, tablets, and other devices in the Department of Public Safety in Georgia were affected by the attack, with the computer network remaining down [Article 88067]. 4. City computers in Baltimore were disabled by ransomware, leading to financial losses and disruptions in services [Article 88067].
Responsible Organization 1. A sophisticated hacker, perhaps a group of them, infiltrated the computer systems and encrypted the data, causing the software failure incident in multiple cities including Wilmer, Texas, and Lake City, Florida [Article 88067]. 2. The attackers responsible for the ransomware attacks were reported to have come from Eastern Europe, Iran, and in some cases, the United States [Article 88067].
Impacted Organization 1. The public library in Wilmer, Tex. [Article 88067] 2. Police officers in Wilmer, Tex. [Article 88067] 3. City governments in Texas, including Wilmer, Kaufman, and others [Article 88067] 4. State and local court systems in Georgia [Article 88067] 5. The city of Atlanta [Article 88067] 6. The state’s Department of Public Safety in Georgia [Article 88067] 7. A major hospital in Georgia [Article 88067] 8. Baltimore city government [Article 88067]
Software Causes 1. Ransomware attack leading to encryption of data and network disruption [Article 88067] 2. Malware infection through phishing emails [Article 88067]
Non-software Causes 1. Lack of strong cyberdefense and outdated systems in small city governments [88067] 2. Human error leading to clicking on phishing emails [88067]
Impacts 1. The software failure incident, a ransomware attack, led to the entire computer network of Wilmer, Texas, being hacked, causing the town to revert to manual processes like writing tickets by hand and checking out books with pen and paper at the library [Article 88067]. 2. The attack resulted in a loss of confidence in the integrity of systems that handle basic services like water, power, emergency communications, and vote counting [Article 88067]. 3. Recovery from the ransomware attacks cost millions of dollars for affected municipalities, including the payment of a ransom of about $460,000 in Bitcoin by Lake City, Florida [Article 88067]. 4. The attack on the Department of Public Safety in Georgia left the computer network down, with devices being examined and reconfigured, and state troopers resorting to writing out tickets due to the inability to use computer systems in their patrol cars [Article 88067]. 5. The ransomware attack on Baltimore city computers resulted in the city spending more than $5.3 million on recovery efforts, with an early estimate putting the total cost of lost revenue and city expenditures at more than $18 million [Article 88067].
Preventions 1. Implementing strong cyberdefense measures, including regular software updates and patches, to prevent vulnerabilities that can be exploited by hackers [88067]. 2. Backing up data, system images, and configurations regularly and keeping them offline to mitigate the impact of ransomware attacks [88067]. 3. Enhancing employee training on cybersecurity best practices, such as recognizing phishing emails, to prevent inadvertent actions that can lead to malware infections [88067]. 4. Avoiding paying ransom demands to discourage further attacks and not incentivize cybercriminals [88067]. 5. Investing in cybersecurity insurance as a proactive measure to mitigate financial losses in case of a successful ransomware attack [88067].
Fixes 1. Enhancing cybersecurity measures and updating software regularly to prevent future ransomware attacks [88067]. 2. Implementing robust backup systems to ensure data can be recovered in case of encryption by hackers [88067]. 3. Investing in cybersecurity training for employees to recognize and avoid phishing emails that can introduce malware into the system [88067]. 4. Developing and enforcing strict policies against paying ransom demands to discourage future attacks and disrupt the business model of ransomware operators [88067].
References 1. National Security Agency and other intelligence officials 2. Department of Homeland Security 3. FireEye cybersecurity firm 4. The Atlanta Journal-Constitution 5. National Conference of State Legislatures 6. Connecticut General Assembly’s Judiciary Committee 7. F.B.I. office in Dallas 8. State officials 9. National Guard in Texas 10. City officials in Wilmer and Kaufman [88067]

Software Taxonomy of Faults

Category Option Rationale
Recurring one_organization, multiple_organization (a) The software failure incident having happened again at one_organization: - The article mentions that the city of Atlanta experienced a serious cyberattack in March 2018 where attackers demanded a ransom in Bitcoin [88067]. - The city of Baltimore also faced a ransomware attack where the hackers demanded a ransom in Bitcoin to release the city's files [88067]. (b) The software failure incident having happened again at multiple_organization: - The article highlights that more than 40 municipalities have been victims of cyberattacks this year, including major cities like Baltimore, Albany, and Laredo, as well as smaller towns like Lake City, Florida [88067]. - The article also mentions that 22 cities across Texas were simultaneously being held hostage for millions of dollars after a sophisticated hacker infiltrated their computer systems and encrypted their data [88067].
Phase (Design/Operation) design, operation (a) The software failure incident occurring due to the development phases: - The article mentions that the ransomware attack on various cities in Texas, including Wilmer and Lake City, was a result of sophisticated hackers infiltrating their computer systems and encrypting their data. This attack was instigated by a once-trusted communications channel often used by law enforcement agencies, managed by a private systems-management firm, which allowed the hackers to target one system and then gain access to municipal networks across the state [88067]. - The attackers behind the cyberattack in Texas were described as a "single threat actor," possibly a group, indicating a coordinated effort to exploit vulnerabilities in the systems developed and maintained by the affected cities [88067]. (b) The software failure incident occurring due to the operation phases: - The article highlights that the ransomware attacks on cities like Wilmer and Kaufman led to significant disruptions in their operations, forcing city employees to conduct business manually instead of through computers. For example, in Kaufman, city staff members had to resort to using their cellphones due to the disabled phone system [88067]. - The impact of the ransomware attacks on the affected cities' operations was severe, with systems remaining down, email systems inaccessible, and state troopers unable to use computer systems in their patrol cars, resorting to writing out tickets by hand [88067].
Boundary (Internal/External) within_system (a) within_system: The software failure incident described in the articles is primarily due to contributing factors that originate from within the system. The failure was caused by a ransomware attack where the hackers infiltrated the computer systems of various cities and encrypted their data, rendering it inaccessible without the decryption key [88067]. The attack targeted vulnerabilities within the municipal networks, exploiting once-trusted communications channels and vintage software used by small city governments that lacked strong cyberdefense measures. The attack led to the disruption of various services, including city halls, public libraries, police departments, and emergency communications systems [88067]. The ransomware incident directly impacted the integrity and functionality of the affected systems, highlighting the within-system nature of the failure. (b) outside_system: While the ransomware attack itself was initiated by external actors (hackers), the contributing factors that enabled the attack to be successful were primarily within the system. The attackers exploited vulnerabilities within the municipal networks, such as outdated software, lack of strong cyberdefense measures, and reliance on once-trusted communication channels managed by private firms [88067]. The external threat actors targeted these internal weaknesses to infiltrate the systems and carry out the ransomware attack. The failure was not caused by external factors beyond the control of the system but rather by internal system vulnerabilities that were exploited by external attackers.
Nature (Human/Non-human) non-human_actions, human_actions (a) The software failure incident occurring due to non-human actions: The software failure incident in Wilmer, Texas, and other cities across Texas was caused by a sophisticated hacker or group of hackers who infiltrated the computer systems and encrypted the data, leading to a ransomware attack [88067]. The attack instigated a statewide disaster-style response involving the National Guard and a widening F.B.I. inquiry. The ransomware attack affected various municipalities, including small towns and major cities, disrupting services like water, power, emergency communications, and vote counting [88067]. (b) The software failure incident occurring due to human actions: In response to the ransomware attack, some cities like Lake City, Florida, decided to pay the ransom demand in Bitcoin, as they believed reconstructing their systems would be more costly than paying the ransom [88067]. Additionally, the article mentions that some cities have shown an increased willingness to pay ransoms, which has encouraged criminals to develop new and more powerful forms of encryption and inject the code into computer networks [88067].
Dimension (Hardware/Software) hardware, software (a) The software failure incident occurring due to hardware: - The article mentions that the entire computer network of Wilmer, Texas, was hacked, leading to the town being thrown into the digital Dark Ages [Article 88067]. - The attack on the Department of Public Safety in Georgia resulted in the computer network remaining down, with every device, including laptops and tablets, being examined and reconfigured [Article 88067]. - The attack on Allentown, Pennsylvania, was facilitated when an employee unwittingly clicked on a phishing email, leading to the spread of malware throughout the city government's computers [Article 88067]. (b) The software failure incident occurring due to software: - The ransomware attacks on various cities, including Wilmer, Lake City, Atlanta, and Baltimore, were primarily caused by sophisticated hackers infiltrating computer systems and encrypting data [Article 88067]. - The malware attacks, such as Sodinokibi, targeted various cities in Texas, leading to the encryption of data and disruption of services [Article 88067]. - The ransomware incidents highlighted in the article demonstrate how criminals have turned to new and more powerful forms of encryption and more ingenious ways of injecting the code into computer networks, leading to successful attacks [Article 88067].
Objective (Malicious/Non-malicious) malicious (a) The objective of the software failure incident was malicious, as it was caused by a sophisticated hacker or group of hackers who infiltrated the computer systems of multiple cities in Texas and encrypted their data, demanding ransom payments in exchange for decryption keys. The attacks were identified as ransomware attacks, where the attackers intentionally locked up data and systems to extort money from the affected municipalities [88067]. (b) The software failure incidents were non-malicious in the sense that they were not caused by accidental errors or system faults, but rather by deliberate actions of threat actors seeking financial gain through ransom payments. The attacks were not random but targeted, with the hackers investing profits back into research and development to make their attacks more precise and effective. The affected cities, lacking strong cyberdefenses and using outdated software, were specifically chosen as vulnerable targets for these ransomware attacks [88067].
Intent (Poor/Accidental Decisions) poor_decisions, accidental_decisions (a) The intent of the software failure incident related to poor_decisions: - The software failure incidents, particularly ransomware attacks on various cities and municipalities, can be attributed to poor decisions made by local governments in terms of cybersecurity measures and preparedness [88067]. - Cities and towns targeted by ransomware attacks were often described as having outdated systems, lack of budget for strong cyberdefense, and not updating their software, making them vulnerable to such attacks [88067]. - Some cities, like Lake City, Florida, ended up paying ransom demands because they believed that reconstructing their systems would be even more costly, indicating a lack of proper risk assessment and decision-making processes [88067]. - The article highlights that the ransomware business has become lucrative for hackers, leading them to invest profits back into research and development to make their attacks more precise and sophisticated, indicating a cycle perpetuated by poor decisions made by paying ransoms [88067]. (b) The intent of the software failure incident related to accidental_decisions: - Accidental decisions or mistakes were also evident in the software failure incidents, such as employees unwittingly clicking on phishing emails that spread malware, as seen in the case of Allentown, Pennsylvania [88067]. - The accidental nature of decisions leading to software failures is highlighted in the example of an employee from Allentown who missed software updates while traveling and inadvertently introduced malware into the city government's systems [88067]. - Accidental decisions also played a role in the spread of malware in the case of the attack on Baltimore city computers, where an employee's actions led to the encryption of files and the demand for ransom [88067].
Capability (Incompetence/Accidental) development_incompetence (a) The software failure incident occurring due to development incompetence: - The article discusses how small city governments, such as Wilmer, Texas, have become favorite targets for ransomware attacks due to their lack of budget and sophistication for strong cyberdefense [88067]. - It mentions that sleepy, cash-strapped local governments are the least likely to have updated their cyberdefenses or backed up their data, making them vulnerable to cyberattacks [88067]. - The attack on the Department of Public Safety in Georgia was particularly hard-hitting, with the computer network remaining down and every device needing examination and reconfiguration [88067]. (b) The software failure incident occurring accidentally: - The article does not provide specific instances of software failure incidents occurring accidentally.
Duration temporary (a) The software failure incident described in the articles is temporary. The incident involved ransomware attacks on multiple cities in Texas, causing their computer networks to be hacked and data encrypted. The affected cities had to resort to manual processes, such as writing out tickets and conducting business manually, while their computer systems were down [88067]. The temporary nature of the software failure is evident from the efforts made to restore the affected systems. Teams of state and federal cybersecurity experts, including the National Guard, were involved in restoring the networks and recovering data in the affected cities. For example, in Wilmer, a team of National Guard specialists arrived to work on restoring the network and recovering data, aiming to have the city's systems fully operational in two to three weeks [88067].
Behaviour crash, omission, value, other (a) crash: The software failure incident described in the articles can be categorized as a crash. The incident involved the entire computer network of a small town being hacked, leading to the loss of functionality and the system being thrown into a state where basic services like water, power, emergency communications, and vote counting were disrupted [88067]. (b) omission: The software failure incident can also be categorized as an omission. The system omitted to perform its intended functions as police officers had to resort to writing tickets by hand, and the public library had to check out books manually due to the network being hacked and encrypted, leading to the omission of automated processes [88067]. (c) timing: The software failure incident does not align with a timing failure as the system was not described as performing its intended functions either too late or too early. The primary issue was the loss of functionality and the disruption caused by the ransomware attack [88067]. (d) value: The software failure incident can be associated with a value failure as the system was performing its intended functions incorrectly after being hacked and encrypted, leading to disruptions in services and loss of confidence in the integrity of the systems handling basic services [88067]. (e) byzantine: The software failure incident does not align with a byzantine failure as there were no mentions of inconsistent responses or interactions within the system. The primary issue was the encryption of data and the loss of functionality due to the ransomware attack [88067]. (f) other: The software failure incident can be further categorized as a denial-of-service (DoS) attack, where the system was rendered inoperable or significantly disrupted due to the ransomware attack, leading to a halt in normal operations and services [88067].

IoT System Layer

Layer Option Rationale
Perception None None
Communication None None
Application None None

Other Details

Category Option Rationale
Consequence property, delay, non-human, theoretical_consequence, other (a) unknown (b) unknown (c) unknown (d) Property: The software failure incident resulted in the encryption of data in the computer systems of various cities, including Wilmer, Texas, leading to a loss of access to critical information and services [88067]. (e) Delay: The software failure incident caused disruptions in various city services, such as police officers having to write tickets by hand and city employees conducting business manually instead of through computers, leading to delays in normal operations [88067]. (f) Non-human: The software failure incident impacted non-human entities such as computer systems, networks, and data, which were encrypted and rendered inaccessible [88067]. (g) unknown (h) Theoretical_consequence: There were discussions about potential consequences of the software failure incident, such as loss of confidence in the integrity of systems handling basic services like water, power, emergency communications, and vote counting, even after the restoration of information and networks [88067]. (i) Other: The software failure incident led to financial losses for the affected cities, with recovery costs amounting to millions of dollars, including expenses on computers, contractors, lost revenue, and city expenditures [88067].
Domain information, utilities, finance, government (a) The failed system was intended to support the information industry, specifically affecting the operations of local city halls, public libraries, and police departments by encrypting their data and disrupting their computer networks [88067]. (b) The transportation industry was indirectly impacted as police officers in Wilmer, Texas, resorted to writing tickets by hand due to the failure of the computer network [88067]. (c) The incident did not directly affect the natural resources industry. (d) The sales industry was not directly involved in the software failure incident. (e) The construction industry was not directly involved in the software failure incident. (f) The manufacturing industry was not directly involved in the software failure incident. (g) The utilities industry, which provides power, gas, steam, water, and sewage services, could potentially be impacted as the integrity of systems handling basic services like water and power was compromised due to the software failure incident [88067]. (h) The finance industry, which involves manipulating and moving money for profit, was indirectly impacted as some cities paid ransom demands in cryptocurrency to recover their systems [88067]. (i) The knowledge industry, encompassing education and research, was not directly involved in the software failure incident. (j) The health industry, including healthcare, health insurance, and food industries, was not directly involved in the software failure incident. (k) The entertainment industry, covering arts, sports, hospitality, and tourism, was not directly involved in the software failure incident. (l) The government industry, which includes politics, defense, justice, taxes, and public services, was significantly impacted by the software failure incident as numerous municipalities, city halls, and government agencies were targeted by ransomware attacks, leading to disruptions in services, loss of revenue, and increased cybersecurity measures [88067]. (m) The software failure incident did not directly relate to any other specific industry mentioned in the options.

Sources

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