By David Fleet
Editor
Atlas Twp.-In the early morning hours of Feb. 14 the township office computers were victimized by ransomware.
Township Clerk Katie Vick reported the malware computer program that infects then locks and takes control of a system, demanding a ransom to undo it, during the township board of trustee meeting on Monday night. Ransomware infected the township computers, about 2 a.m. with the intention of extorting money to recover the files.
Dawn Yon deputy treasurer reported the message that all the township files have been encrypted with the ransomware called PHOBOS. Money in the form of Bitcoin was requested by the suspect. Bitcoin is a digital currency, a form of electronic cash. The currency can be converted into cash when deposited into accounts at prices set in online trading.
The ransomware email offered five files for decryption for free. The total ransom cost was contingent on how fast the victim responded, reported Vick.
“We contacted our IT guy right away and he was able duplicate the treasurers computer because they were similar (to the deputy treasurer) make, model and programing,” said Vick. “He was able to wipe out the deputy treasurer’s computer (and) ghost image it, up load the treasurer’s programs and put that on it. This sped up the replacement process for the hardware.”
The ransomware also impacted the building inspectors computer, however due to the age of the computer it would not be replaced, said Vick.
“Now we are faced with our insurance situation with a $2,500 deductible,” she said. “At this point we don’t have a lot of actual damage, but do we move forward for the protection of the community and fulfilling our legal obligations in notification?”
The township is insured by The Travelers with a new policy that just went into effect on Jan. 27. The premium is $1,300 per year. The insurance company recommends a coach that would assist the township through the process, said Vick.
“The coach recommends a forensic investigator or possible attorney that will actually try to identify where and how we were breached,” she said. “(They will determine) which file had been affected in the office that may or may not have been compromised. To give a sense of security to know what has been touched (by the ransomware) and what was not in the township office.”
Vick said there is a responsibility for the township to notify (people) if any information has been breached. It does not appear to have touched any software, third party data or Chase Bank log in. But, the insurance is there if the township wants to move forward with a claim.
“It’s up to us if we want to move forward with a claim,” she said. “It will cost us $2,500 out of pocket. The going rate is $300 to $375 per hour to investigate the ransomware.”
David Lattie, township attorney responded to the insurance claim.
“I’m not aware of any compelling legal reason that you need to pursue the source of that breach,” said Lattie.
The township board made no decision on Monday night regarding the next step in the process.