On June 5, 2020, Florence, Alabama’s information technology systems were hit with ransomware by the DoppelPaymer group demanding a ransom payment of $378,000 in bitcoin. Mayor Steve Holt confirmed that the attack shut down the city’s email system, and that the city used an outside firm to negotiate the payment of a lower ransom of close to $300,000 to avoid the publishing of the information of citizens on the internet by the attackers.

The city was hit with the ransomware simultaneously as the information technology professionals were trying to get the City Council to approve funds to hire an outside firm to review the information technology systems. The irony is that those professionals were attempting to address risk, but municipal bureaucracy got in the way of being able to quickly and efficiently address a perceived cybersecurity risk. The unfortunate outcome is that the city is paying criminals almost $300,000 instead of using that budget, and taxpayer dollars, in shoring up the city’s cybersecurity needs. It’s a double whammy.

Municipalities continue to get hit hard with ransomware attacks. City professionals and elected officials may wish to consider and address this real and very expensive risk, determine how to respond to it with appropriate budgetary funding for prevention, and use the funds to minimize the risk instead of putting the funds in criminals’ hands and then having to spend double the amount to address the risk after the fact.

Photo of Linn Foster Freedman Linn Foster Freedman

Linn Freedman practices in data privacy and security law, cybersecurity, and complex litigation. She is a member of the Business Litigation Group and the Financial Services Cyber-Compliance Team, and chairs the firm’s Data Privacy and Security and Artificial Intelligence Teams. Linn focuses her…

Linn Freedman practices in data privacy and security law, cybersecurity, and complex litigation. She is a member of the Business Litigation Group and the Financial Services Cyber-Compliance Team, and chairs the firm’s Data Privacy and Security and Artificial Intelligence Teams. Linn focuses her practice on compliance with all state and federal privacy and security laws and regulations. She counsels a range of public and private clients from industries such as construction, education, health care, insurance, manufacturing, real estate, utilities and critical infrastructure, marine and charitable organizations, on state and federal data privacy and security investigations, as well as emergency data breach response and mitigation. Linn is an Adjunct Professor of the Practice of Cybersecurity at Brown University and an Adjunct Professor of Law at Roger Williams University School of Law.  Prior to joining the firm, Linn served as assistant attorney general and deputy chief of the Civil Division of the Attorney General’s Office for the State of Rhode Island. She earned her J.D. from Loyola University School of Law and her B.A., with honors, in American Studies from Newcomb College of Tulane University. She is admitted to practice law in Massachusetts and Rhode Island. Read her full rc.com bio here.