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Canadian City Says Timescale for Recovering from Ransomware Attack 'Unknown'

 

The Canadian city of Hamilton is still getting over a ransomware attack that compromised nearly every facet of municipal operations. 

Since February 25, when the ransomware attack was first reported, city officials have been working nonstop. Foundational services, such as waste collection, transit, and water and wastewater treatment, are functioning as of Wednesday.

However, the attack has impacted nearly every online payment system, forcing the city to rely on cash transactions and other manual processes. All fines, tickets, and tax payments must be made in person. 

Numerous municipal services, including cemeteries, child care centres, and public libraries, were reported by the city as having phone system or website issues. Before March 15, there will be no more city council meetings, and the city's libraries will no longer provide WiFi, public computers, printing services, or other services. 

“The City of Hamilton took swift action to investigate, protect systems and minimize impact on the community. We engaged a team of experts, insurers, legal counsel, and relevant authorities and [are] working diligently to restore the City’s system in a safe and secure manner,” the city said in a statement. “While a timeline for recovery is not yet known, the City is committed to resolving the situation as quickly and effectively as possible.” 

Hamilton is located roughly 40 miles from Toronto and has a population of nearly 600,000. The city stated that it is currently investigating whether citizen data was stolen. No ransomware group has claimed responsibility for the attack yet, and local officials have not responded to calls for comment. 

City officials held a press conference on Tuesday, and City Manager Marnie Cluckie stated that it is "impossible to know how long it will take us to get up and running again.” 

Cluckie declined to comment on whether the city is in talks with the ransomware group, stating that they will "do what is best for the city." She confirmed that the city has cyber insurance. 

During the press conference, Cluckie was asked if the attack would follow the same schedule as the Toronto Library, which dealt with troubles for more than four months after a ransomware attack. Cluckie claims the hired cyber specialists would only advise her that each assault and recovery is unique.

Hamilton is the second municipality in Canada to deal with a ransomware attack over the last week. Ponoka, a small town about an hour west of Edmonton, recently dealt with a ransomware attack that caused system failures for the government.

Hamilton City's Network is the Latest Casualty of the Global Cyberwar.

 

The attack that took down a large portion of the City of Hamilton's digital network is only the latest weapon in a global fight against cybersecurity, claims one of Canada's leading cybersecurity experts. 

Regarding the unprecedented attack on the municipality's network that affected emergency services operations, the public library website, and the phone lines of council members, not much has been stated by city officials. Although the specifics of the Sunday incident are yet unknown, Charles Finlay, executive director of Rogers Cybersecure Catalyst, believes that the attack is a part of a larger campaign against a shadow firm that is determined to steal money and data. 

“I don't think that the average citizen of Hamilton or any other city, fully understands what's at play here,” Finlay stated. “Our security services certainly are, but I don't think the average citizen is aware of the fact that institutions in Canada, including Hamilton, are at the front lines of what amounts to a global cybersecurity conflict.” 

On Sunday, city hall revealed service delays caused by what it later described as a "cybersecurity incident" that had far-reaching consequences for the city's network and related services. 

The specifics of what took place, however, remain unknown as local officials maintain a cloak of secrecy. So far, the city has refused to divulge the amount of the damage or how affected departments are operating. Emergency services are described as "operational," with some activities now being completed "manually," but officials refuse to disclose specifics.

The city also refuses to reveal whether sensitive data was stolen or is being held ransom.

According to Vanessa Iafolla of Halifax-based Anti-Fraud Intelligence Consulting, a municipality may prefer to delay reporting the extent of the harm in order to preserve an impression of security and control. 

Finlay and Iafolla said they can only speculate about what transpired because city hall hasn't provided any information. However, given the available details and the consequences of other institutions' attacks, a ransomware attack is a realistic possibility. 

A ransomware assault is one in which malicious software is installed on a network, allowing users to scan and grab sensitive data. In the case of the city, Iafolla could refer to personal information on employees and citizens, such as social insurance numbers and other identifying information.

“It's a safe bet that whatever they took is likely of real financial value,” concluded Iafolla. “It's difficult to speculate exactly what may have been taken, but I would be pretty confident in thinking whatever it is, is going to be a hot commodity.”