6 Ransomware Attacks that Shocked Affordable Housing Agencies

There’s a spine-chilling uptick in cyberattacks—the FBI received a record number of cyber-related complaints last year, with reported losses of over $4.1 billion. A housing organization might not seem like the most lucrative target for a hacker (compared to a billion-dollar private sector business), but criminals are opportunists.

The public sector, including affordable housing organizations and municipalities, is increasingly vulnerable to cyber attacks due to the lack of training and IT infrastructure investment. It takes far less effort to breach a small- or medium-sized public sector organization compared to a global mega-corporation. The monetary reward might not be as high for hackers, but there’s less risk of being caught.

Real-World Cyberattacks in Housing and the Public Sector

The examples below show the impacts of ransomware attacks on housing organizations and the public
sector:

• An attack on a housing organization left 700 employees and some 55,000 residents temporarily
  without access to the organization’s web portal. The hacker also leaked information about dozens
  of employees online.
• A cyberattack infected an entire county, taking the county’s systems offline, according to the FBI.
  The county had backup servers, but the servers were also hacked because they weren’t isolated
  from the county’s main network. The county paid a $132,000 ransom, the FBI noted.
• Hackers infected a city’s systems and demanded a $76,000 ransom. While the ransom wasn’t
  paid, according to the FBI, it cost the city an estimated $9 million to remediate the attack and
  restore services.
• A housing organization had its financial data held hostage at a time when the data was necessary
  for reporting. The housing authority decided not to pay the ransom. The hack still cost the housing
  authority “both time and stress.”
• A county’s computer systems were infected after a user allegedly opened a malicious email link or
  attachment, according to the FBI. County officials decided to rebuild their systems rather than pay
  the $1.2 million ransom. The county spent $1 million on new equipment and technical assistance,
  the FBI said.
• A housing organization experienced two successive ransomware attacks, which the organization’s
  leader described as “a nightmare.” The attacks forced the organization’s employees to retype and
  scan documents to recoup encrypted files.

Protect Your Organization from Cyber Threats

Ready to go on the offensive against cyber threats? Our website is packed with free cybersecurity resources. Contact an account manager to learn more about your cyber liability coverage options.

This article is for general information only. HAI Group® makes no representation or warranty about the accuracy or applicability of this information for any particular use or circumstance. Your use of this information is at your own discretion and risk. HAI Group® and any author or contributor identified herein assume no responsibility for your use of this information. You should consult with your attorney or subject matter advisor before adopting any risk management strategy or policy. 

HAI Group® is a marketing name used to refer to insurers, a producer, and related service providers affiliated through a common mission, management, and governance. Property-casualty insurance and related services are written or provided by Housing Authority Property Insurance, A Mutual Company; Housing Enterprise Insurance Company, Inc.; Housing Specialty Insurance Company, Inc.; Housing Investment Group, Inc.; and Housing Insurance Services (DBA Housing Insurance Agency Services in NY and MI).