Riviera Beach: Hit by Ransomware Attack, Florida City Agrees to Pay Hackers $600,000

Riviera Beach Pays $600K Ransom After Crippling Ransomware Attack

Riviera Beach, Florida a city of 35,000 north of West Palm Beach has agreed to pay nearly $600,000 in ransom to hackers who paralyzed its computer systems in a recent cyberattack. On Monday, the City Council unanimously approved the payment of 65 Bitcoin (approximately $592,000) through its insurance carrier, hoping to regain access to encrypted data after a three-week disruption.

The attack mirrors a growing trend of ransomware targeting municipal governments, with Baltimore recently incurring $18 million in recovery costs from a similar breach. While larger cities have faced attacks, Riviera Beach’s ransom demand stands out for its size. City officials, working with law enforcement and security consultants, opted for payment despite federal guidance discouraging such actions, citing the need to restore critical data.

There is no guarantee the hackers will release the encrypted files, leaving the city’s recovery efforts uncertain. The incident underscores the financial and operational risks ransomware poses to local governments.

Source: https://www.nytimes.com/2019/06/19/us/florida-riviera-beach-hacking-ransom.html

Riviera Beach TPRM report: https://www.rankiteo.com/company/city-of-riviera-beach

"id": "cit1772024639",
"linkid": "city-of-riviera-beach",
"type": "Ransomware",
"date": "6/2019",
"severity": "100",
"impact": "5",
"explanation": "Attack threatening the organization's existence"

{'affected_entities': [{'industry': 'Government',
                        'location': 'Riviera Beach, Florida, USA',
                        'name': 'Riviera Beach, Florida',
                        'size': '35,000 residents',
                        'type': 'Municipal Government'}],
 'data_breach': {'data_encryption': True},
 'description': 'Riviera Beach, Florida, a city of 35,000 north of West Palm '
                'Beach, has agreed to pay nearly $600,000 in ransom to hackers '
                'who paralyzed its computer systems in a recent cyberattack. '
                'The City Council unanimously approved the payment of 65 '
                'Bitcoin (approximately $592,000) through its insurance '
                'carrier, hoping to regain access to encrypted data after a '
                'three-week disruption.',
 'impact': {'data_compromised': 'Encrypted data',
            'downtime': 'Three weeks',
            'financial_loss': '$592,000 (ransom payment)',
            'operational_impact': 'Paralyzed city computer systems',
            'systems_affected': 'City computer systems'},
 'lessons_learned': 'The incident underscores the financial and operational '
                    'risks ransomware poses to local governments.',
 'motivation': 'Financial gain',
 'ransomware': {'data_encryption': True,
                'ransom_demanded': '$592,000 (65 Bitcoin)',
                'ransom_paid': True},
 'references': [{'source': 'News Article'}],
 'response': {'law_enforcement_notified': True,
              'recovery_measures': 'Payment of ransom to regain access to '
                                   'encrypted data',
              'third_party_assistance': 'Security consultants'},
 'title': 'Riviera Beach Pays $600K Ransom After Crippling Ransomware Attack',
 'type': 'Ransomware'}