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Baltimore Held Hostage in Ransomware Attack

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4 years ago

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  • A ransomware attack in Baltimore has shut down numerous government servers, preventing citizens from using essential services and blocking city employees from accessing their emails and computers.
  • The attack has been going on for two weeks and Baltimore has refused to pay the ransom.
  • This is the second attack on Baltimore in the last 15 months.
  • A similar attack in Atlanta last year cost the city an estimated $17 million in fixes.

Cyber Attack

Government computer servers in Baltimore, Maryland have been held hostage by hackers for two weeks, preventing citizens from accessing essential services and impending government functions.

The attack occurred on May 7, when hackers breached nearly 10,000 government computers and demanded the city pay them 13 bitcoins, now about $100,000, to get their system networks back.

According to the Baltimore Sun, who obtained a copy of the ransom note, the hackers said they would increase the ransom if the city did not pay in four days. If the city did not pay in 10 days, they said it would not get their information and data back at all.

Both those deadlines have come and gone, and the city has refused to pay the ransom, meaning that the servers that were shut down by the attack are still offline.

The hackers used ransomware called RobbinHood, which uses software to block access to servers. In order to get that access back, you need a sort of “digital key.” If the ransom is paid, the hackers would give the city that key. According to experts, replicating the key without the help of the hackers is essentially impossible.

Baltimore officials were first alerted to the ransomware attack when the Department of Public Works reported that their email servers had been shut down.

Once the city realized what was going on, the Office of Information Technology shut down most of the city’s non-emergency system, so the attack would not spread further.

Impact

It is not clear how widespread the attack was because the infected systems are still down.

City officials have said that emergency services like 911 dispatch were not affected by the attack, but it has still impacted the citizens of Baltimore and city employees.

Certain systems are down, so residents have not been able to access essential services, like the websites where they pay water bills, property taxes, and parking tickets.

City employees have been locked out of their emails for two weeks now, forcing them to use their own laptops and personal e-mail addresses to get work done.

The issue of government employees using private servers and personal accounts could raise questions about transparency and accountability, as those are practices usually not allowed under normal circumstances.

The attack has also hurt Baltimore’s property market because officials cannot access systems required for real estate sales.

“We are well into the restorative process, and as I’ve indicated, are cooperating with the FBI on their investigation. Due to that investigation, we are not able to share information about the attack.” Baltimore Mayor Jack Young said in a press release. “As I’ve mentioned previously, we engaged leading industry cybersecurity experts who are on-site 24-7 working with us.”

Mayor Young did not say how bad the damage was, nor did he give a definitive timeline for recovery.

“Some of the restoration efforts also require that we rebuild certain systems to make sure that when we restore business functions,” he said. “I am not able to provide you with an exact timeline on when all systems will be restored.”

Other Instances of Cyber Attacks

The attack on Baltimore has raised questions about the importance of safeguarding cities against cyber attacks. This is especially true for Baltimore, as the ransomware marks the second cyber attack the city has had in the last 15 months.

Just last March, a different attack shut down the city’s 911 system for nearly a whole day, forcing dispatchers to give first-responders essential information about emergencies by phone instead of electronically.

While any number of cities or companies are susceptible to being hacked, some experts have argued that Baltimore is especially vulnerable.

“I think broadly they are not prepared for these sorts of things, they do not have the budget,” said Bill Siegel, a chief executive at Coveware told the Wallstreet Journal. His firm helps various entities that have experienced cyber attacks and he said, “I think it’s pretty obvious that they have not been able to stay ahead of it.”

That is not for lack of trying. After last year’s attack, Baltimore City Council President Brandon Scott pushed city officials to invest in strengthening the city’s cyber defenses.

According to Ars Technica, Baltimore’s information security manager also warned that the city needed a formal policy to address cybersecurity during budget hearings last year.

However, the budget did not include any funding for that policy or any other investments in information technology infrastructure. Now it’s coming back to bite them.

That said, Baltimore is not alone. Just the last year, more than 20 different municipalities have been hit by cyber attacks. Last month, Greenville, North Carolina was hit with a similar attack that used the same RobbinHood ransomware.

Last year, Atlanta made headlines when hackers demanded that the city pay $50,000 in bitcoins in another ransomware attack. Like Baltimore, both Greenville and Atlanta refused to pay the ransom.

While that’s exactly what experts and law enforcement officials recommend, often times, the costs of a cyber attack can be much higher than the ransom requested.

According to a report obtained by the Atlanta Journal-Constitution and WSB-TV, the attack in Atlanta ended up costing nearly $17 million to fix.

Unlike Baltimore, Greenville and Atlanta had insurance to cover cybersecurity incidents, so hypothetically, Baltimore could pay even more than Atlanta to restore the city after the hack.

Cybersecurity experts had said it probably will take months for Baltimore to recover, and the costs are expected to be extremely high, which is a burden that could end up in the hands of taxpayers.

See what others are saying: (Vox) (The Wall Street Journal) (The Baltimore Sun)

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Survey and Census Data Shows Record Number of Americans are Struggling Financially

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1 week ago

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May 23, 2023

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Americans are choosing not to pursue medical treatment more and more frequently as they encounter money troubles.

A recent federal survey shows that a record number of Americans were worse off financially in 2022 than a year prior.

Coupled with recent census data showing pervasive poverty across much of the country, Americans are forced to make difficult decisions, like foregoing expensive healthcare. 

According to a recent Federal Reserve Bureau survey, 35% of adults say they were worse off in 2022 than 2021, which is the highest share ever recorded since the question was raised in 2014. 

Additionally, half of adults reported their budget was majorly affected by rising prices across the country, and that number is even higher among minority communities and parents living with their children.

According to recent census data, more than 10% of the counties in the U.S. are experiencing persistent poverty, meaning the area has had a poverty rate of 20% or higher between 1989 and 2019. 

16 states report at least 10% of their population living in persistent poverty. But most of the suffering counties were found in the South — which accounts for over half the people living in persistent poverty, despite making up less than 40% of the population. 

These financial realities have placed many Americans in the unfortunate situation of choosing between medical treatment and survival. The Federal Reserve study found that the share of Americans who skipped medical treatment because of the cost has drastically increased since 2020. 

The reflection of this can be found in the overall health of households in different income brackets. 75% of households with an income of $25,000 or less report being in good health – compared to the 91% of households with $100,000 or more income. 

See what others are saying: (Axios) (The Hill) (Federal Reserve)

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Montana Governor Signs TikTok Ban

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2 weeks ago

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May 18, 2023

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The ban will likely face legal challenges before it is officially enacted next year. 

First Statewide Ban of TikTok

Montana became the first state to ban TikTok on Wednesday after Gov. Greg Gianforte (R) signed legislation aimed at protecting “Montanans’ personal and private data from the Chinese Communist Party.”

The ban will go into effect on Jan. 1, 2024, though the law will likely face a handful of legal challenges before that date. 

Under the law, citizens of the state will not be held liable for using the app, but companies that offer the app on their platforms, like Apple and Google, will face a $10,000 fine per day of violations. TikTok would also be subject to the hefty daily fine. 

Questions remain about how tech companies will practically enforce this law. During a hearing earlier this year, a representative from TechNet said that these platforms don’t have the ability to “geofence” apps by state.

Roger Entner, an analyst at Recon Analytics, told the Associated Press that app stores could have the capability to enforce the restriction, but it would be difficult to carry out and there would be a variety of loopholes by tools like VPNs.

Montana’s law comes as U.S. politicians have taken aim at TikTok over its alleged ties to the CCP. Earlier this year, the White House directed federal agencies to remove TikTok from government devices. Conservatives, in particular, have been increasingly working to restrict the app.

“The Chinese Communist Party using TikTok to spy on Americans, violate their privacy, and collect their personal, private, and sensitive information is well-documented,” Gov. Gianforte said in a Wednesday statement. 

Criticism of Montana Law

TikTok, however, has repeatedly denied that it gives user data to the government. The company released a statement claiming Montana’s law “infringes on the First Amendment rights of the people” in the state. 

“We want to reassure Montanans that they can continue using TikTok to express themselves, earn a living, and find community as we continue working to defend the rights of our users inside and outside of Montana,” the company said. 

The American Civil Liberties Union condemned Montana’s law for similar reasons. 

“This law tramples on our free speech rights under the guise of national security and lays the groundwork for excessive government control over the internet,” the ACLU tweeted. “Elected officials do not have the right to selectively censor entire social media apps based on their country of origin.”

Per the AP, there are 200,000 TikTok users in Montana, and another 6,000 businesses use the platform as well. Lawsuits are expected to be filed against the law in the near future.

See what others are saying: (Associated Press) (Fast Company) (CBS News)

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How a Disney-Loving Former Youth Pastor Landed on The FBI’s “Most Wanted” List

Published

1 month ago

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April 24, 2023

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 “Do what is best, not for yourself, for once. Think about everyone else,” Chris Burns’ 19-year-old son pleaded to his father via The Daily Beast. 

Multi-Million Dollar Scheme 

Former youth pastor turned financial advisor Chris Burns remains at large since going on the run in September of 2020 to avoid a Securities Exchange Commission investigation into his businesses.

Despite his fugitive status, the Justice Department recently indicted Burns with several more charges on top of the $12 million default judgment he received from the SEC. 

Burns allegedly sold false promissory notes to investors across Georgia, North Carolina, and Florida. The SEC claims he told the investors they were participating in a “peer to peer” lending program where businesses that needed capital would borrow money and then repay it with interest as high as 20%. Burns allegedly also reassured investors that the businesses had collateral so the investment was low-risk. 

The SEC says that Burns instead took that money for personal use. 

Burns’ History 

Burns began his adult life as a youth pastor back in 2007 before transitioning into financial planning a few years later.  By 2017, he launched his own radio show, The Chris Burns Show, which was funded by one of his companies, Dynamic Money – where every week Burns would “unpack how this week’s headlines practically impact your life, wallet, and future,” according to the description. He also frequently appeared on television and online, talking about finances and politics. 

The SEC alleges that he used his public appearances to elevate his status as a financial advisor and maximize his reach to investors.

His family told The Daily Beast that he became obsessed with success and he reportedly bought hand-made clothes, a million-dollar lakehouse, a boat, several cars, and took his family on several trips to Disney World. His eldest son and wife said that Burns was paying thousands of dollars a day for VIP tours and once paid for the neighbors to come along. 

Then in September 2020, he reportedly told his wife that he was being investigated by the Securities Exchange Commission but he told her not to worry. 

The day that he was supposed to turn over his business documents to the SEC, he disappeared, telling his wife he was just going to take a trip to North Carolina to tell his parents about the investigation. Then, the car was found abandoned in a parking lot with several cashier’s checks totaling $78,000

FBI’s Most Wanted

The default judgment in the SEC complaint orders Burns, if he’s ever found, to pay $12 million to his victims, as well as over $650,000 in a civil penalty. Additionally, a federal criminal complaint charged him with mail fraud. Burns is currently on the FBI’s Most Wanted list. 

Last week, the Justice Department indicted him on several other charges including 10 counts of wire fraud and two counts of mail fraud. 

“Burns is charged for allegedly stealing millions of dollars from clients in an illegal investment fraud scheme,” Keri Farley, Special Agent in Charge of FBI Atlanta, said in a statement to The Daily Beast. “Financial crimes of this nature can cause significant disruptions to the lives of those who are victimized, and the FBI is dedicated to holding these criminals accountable.”

His family maintains that they knew nothing of Burns’ schemes. His wife reportedly returned over $300,000 that he had given to her. 

She and their eldest son, who is now 19, told The Daily Beast they just want Burns to turn himself in, take responsibility for his actions, and try to help the people he hurt. 

“Do what is best, not for yourself, for once. Think about everyone else,” Burns’ son said in a message to his father via The Daily Beast. 

See what others are saying: (The Daily Beast) (Fox 5) (Wealth Management)

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