(CNN) A Florida city is paying $600,000 in Bitcoins to a hacker who took over local government computers after an employee clicked on a malicious email link three weeks ago.

Riviera Beach officials voted this week to pay 65 Bitcoins to the hacker who seized the city's computer systems, forcing the local police and fire departments to write down the hundreds of daily 911 calls on paper, CNN affiliate WPEC reported.

The 65 Bitcoins, which equals $600,000, will come from the city's insurance, officials said.

Once the payment is made, they hope to get access to data encrypted by the hacker. Even with the plans to pay the ransom, the city said, an investigation is under way.

Riviera Beach has a population of 35,000 and is about 80 miles from Miami.

Read More </s> FORT LAUDERDALE (CBSMiami/AP) — An act of cyber hacking has cost a Florida city hundreds of thousands of dollars.

Riviera Beach, Florida agreed to pay $600,000 in ransom to hackers who took over its computer system, the latest in thousands of attacks worldwide aimed at extorting money from governments and businesses.

The Riviera Beach City Council voted unanimously this week to pay the hackers’ demands, believing the Palm Beach suburb had no choice if it wanted to retrieve its records, which the hackers encrypted. The council already voted to spend almost $1 million on new computers and hardware after hackers captured the city’s system three weeks ago.

The hackers apparently got into the city’s system when an employee clicked on an email link that allowed them to upload malware. Along with the encrypted records, the city had numerous problems including a disabled email system, employees and vendors being paid by check rather than direct deposit and 911 dispatchers being unable to enter calls into the computer. The city says there was no delay in response time.

Spokeswoman Rose Anne Brown said Wednesday that the city of 35,000 residents has been working with outside security consultants, who recommended the ransom be paid. She conceded there are no guarantees that once the hackers received the money they will release the records. The payment is being covered by insurance. The FBI on its website says it “doesn’t support” paying off hackers, but Riviera Beach isn’t alone: many government agencies and businesses do.

“We are relying on their (the consultants’) advice,” she said. The hackers demanded payment in the cryptocurrency bitcoin. While it is possible to trace bitcoins as they are spent, the owners of the accounts aren’t necessarily known, making it a favored payment method in ransomware attacks.

Numerous governments and businesses have been hit in the United States and worldwide in recent years. Baltimore refused to pay hackers $76,000 after an attack last month. The U.S. government indicted two Iranians last year for allegedly unleashing more than 200 ransomware attacks, including against the cities of Atlanta and Newark, New Jersey. The men, who have not been arrested, received more than $6 million in payments and caused $30 million in damage to computer systems, federal prosecutors have said.

The federal government last year also accused a North Korean programmer of committing the “WannaCry” attack that infected government, bank, factory and hospital computers in 150 countries. He is also believed to have stolen $81 million from a Bangladesh bank. He also remains in his home country.

The FBI had no comment Wednesday on the Riviera Beach attack, but said 1,493 ransomware attacks were reported last year with victims paying $3.6 million to hackers — about $2,400 per attack. Some of those were against individuals.

Tom Holt, a Michigan State University criminal justice professor, said hackers often attack common and known vulnerabilities in computer systems. He said organizations’ technology managers need to examine their systems for such flaws and teach their employees not to open suspicious email or click suspect links. The FBI says businesses also need to back up their data regularly on secure computers.

Holt said most attacks originate outside the U.S., making them difficult to police. He said many victims wind up like Riviera Beach: They pay their attacker because it is likely the only way to retrieve lost data.

“They might not pay the initial ransom that was suggested, but they may work with a third-party provider to negotiate the ransom down,” Holt said.

He said in almost all cases, the attackers decrypt the computers after payment, allowing the victims to retrieve their data. He said the WannaCry attacks were an exception — the hackers took the money but often didn’t release the data. </s> City officials in Riviera Beach surprised residents and even government experts on Wednesday, after they announced they are ready to pay 65 bitcoin, or $600,000 in ransom, to a hacker.

The problem began several weeks ago, when a city employee opened an email that contained malware and which quickly took down the city’s computer system.

Now, Councilor Douglas Lawson says that city leaders need to put the situation behind them and “restore normalcy to our city.”

He adds that the city’s insurance should cover most of the ransom payment, but taxpayers will be responsible for the $18,000 deductible.

According to cyber security expert and former CIA agent Lisa Ruth, paying the ransom could set a problematic precedent and encourage other hackers.

Ruth explains, “It creates this opportunity for more targeting that could really cost you a lot in the long run. My concern for Riviera Beach is that they are now on the top of the list for that hacker or for other hackers because they know you’ve made that payment once.”

It could take several more weeks for the City of Riviera Beach to have its systems fully functioning again.

In the meantime, payment processing features remain unavailable, and dispatchers are having to record 911 call information by hand.

City spokesperson Rose Anne Brown says that the city has reserved about $900,000 to buy new computer equipment and upgrade security systems, in order to avoid another attack. </s> The city council for Riviera Beach, Florida, voted this week to pay more than $600,000 to a ransomware gang so city officials could recover data that has been locked and encrypted more than three weeks ago.

The city's decision, as reported by CBS News, came after officials came to the conclusion that there was no other way to recover the city's files.

City will also pay $941,000 for new computers

Access to Riviera City data has been locked since May 29, this year, when a Riviera Beach police department employee opened an email and unleashed ransomware on the city's network.

The ransomware locked files and shut down all the city's services. Operations have been down ever since, with the exception of 911 services, which were able to continue to operate, although limited.

The city's website, email server, billing system, and everything else has been down ever since, with all city communications being done in person, over the telephone, or via posters.

The city has been having a hard time recovering from the incident ever since.

City officials held a first meeting on June 3 when they authorized $941,000 for 310 new desktop and 90 laptop computers and other hardware so that the city could rebuild its IT infrastructure following the incident.

Initially, the city didn't plan on paying criminals, but it became apparent in recent weeks that they wouldn't be able to regain access to all their past data, which hadn't been properly backed up.

On Monday this week, city officials met again, and with a unanimous vote of 5-0, they gave the go-ahead to the city's insurer to pay 65 bitcoins (~$603,000) to the crooks holding their network for ransom.

The vote lasted only two minutes, local news outlet The Palm Beach Post reported.

The city of Riviera Beach is a suburb north of Palm Beach, Florida. Last year, another Palm Beach suburb -- Palm Springs -- also paid a ransomware demand, but lost two years of data, nevertheless.

In March, earlier this year, officials in Jackson County, Georgia, also agreed to an astronomical ransomware demand, paying hackers $400,000 to regain access to their files.

However, Riviera City won't be the victim who paid the largest ever ransom demand, though. This "honor" goes to South Korean web hosting firm Internet Nayana, which paid 1.3 billion won ($1.14 million) worth of bitcoins to a hacker following a ransomware attack in June 2017.
• New Echobot malware is a smorgasbord of vulnerabilities
• Scranos malware has returned with new attacks and nasty upgraded features
• New Plurox malware is a backdoor, cryptominer, and worm, all packed into one
• More than 3B fake emails sent daily as phishing attacks persist TechRepublic
• Game of Thrones has the most malware of any pirated TV show CNET </s> Everyone knows that crime doesn’t pay, or at least that’s what we’re all led to believe. For hackers who broke into the computer systems of a Florida city a few weeks back, crime seems to be paying rather well, and the local government has agreed to pay the hefty sum of $600,000 to regain access to its own files.

As AP reports, the saga began three weeks ago when a hacker or team of hackers gained access to the government computer systems of Riviera Beach, Florida. The hackers encrypted the city’s files, holding them for ransom and demanding a huge chunk of cash. This week, the city council voted unanimously to pay the hackers in order to regain access to the files.

This is a classic case of ransomware, where a hacker gains access to a computer or computer system via some underhanded means — sometimes sketchy links in emails or malware-laced downloads — and holds the owner’s most important files for ransom. It’s a growing trend, and hackers are increasingly targeting large companies and governments who they believe will fork over huge sums of money to regain control of their files.

In the case of Riviera Beach, the city’s records weren’t the only aspects of their computer systems that were compromised. The city also reportedly had issues with its email and payment system, and even local emergency dispatchers were locked out of their computers.

The hackers, hoping to cover their tracks as best they can, demanded to be paid via cryptocurrency. In this case, $600,000 worth of bitcoin. A spokesperson for the city said that they are proceeding with the payment on the advice of consultants, but there’s still no guarantee that the city will be able to retrieve its files.

While ransomware attacks do often result in payment and then the return of file access, some hackers choose to go an even darker route and refuse to unlock the encrypted files after being paid. In some cases, the files are lost forever. </s> A city in Florida has decided to pay $600,000 to the hackers behind a ransomware attack that's locked down the local government's data.

On Monday, the city council of Riviera Beach voted unanimously to let the city's insurer pay 65 bitcoins to the hackers. Why the council authorized the payment wasn't discussed at the emergency hearing. But the city is hoping to recover municipal files the hackers encrypted during the ransomware attack.

According to The Palm Beach Post, the attack occurred back on May 29 when a police department employee opened an email containing the malicious code. The attack quickly spread to the rest of Riviera Beach's IT systems, taking them all offline.

In response, Riviera Beach has already spent $941,600 in upgrading the city's IT systems, which has involved purchasing 310 desktops and 90 laptops to replace its old legacy hardware. The city, which is home to 35,000 residents, has also been cooperating with law enforcement on the investigation.

Ransomware attacks generally work by encrypting your computer's files and then forcing you to pay up to get them back. However, the FBI recommends against giving into the hackers' demands. One reason why is because you may end up receiving nothing in return. Paying the hackers can also incentivize them to strike again.

In this case, it isn't clear if paying the ransom released the city's data. But a Riviera Beach spokesperson told The New York Times: "We are well on our way to restoring the city system." During Monday's emergency meeting, the city's interim IT manager said that Riviera Beach had already restored the city's website and access to email, along with several finance-related systems.

The incident occurs after the city of Baltimore was also hit with a ransomware attack that shut down local government computers. Since 2013, at least 169 ransomware-related incidents have affected state and local governments, according to the security firm Recorded Future. A common way the attacks can strike is by exploiting unpatched software and using emails containing malicious attachments. </s> In brief: Ransomware victims are often advised not to pay money to unlock their files, usually because there’s no guarantee the hackers will oblige. But the council of one Florida city has voted to hand over more than $600,000 in the hope of getting back data that has been encrypted for more than three weeks.

According to The Palm Beach Post, the attack on Riviera Beach, Florida, a small city north of West Palm Beach, was launched on May 29 when a police department employee opened an email attachment containing the ransomware. It spread to other IT systems, locking down the city's website, email server, billing system, and others, even affecting 911 dispatch operations.

On June 3, city officials agreed to spend $941,000 on 310 new desktops and 90 laptops to rebuild its IT systems, but as the original data hadn’t been backed up, a unanimous 5-0 vote took place this week that will see the council’s insurance carrier pay the hackers 65 Bitcoin, around $592,000.

City spokeswoman Rose Anne Brown told the New York Times that Riviera Beach was working with law enforcement and security consultants, and that it is “well on our way to restoring the city system.”

We’ve seen numerous US cities hit with ransomware attacks in recent times. Jackson County paid hackers $400,000 to regain access to its systems back in March, and the attack on Baltimore, which didn’t pay the $76,000 ransom, still cost the city $18 million in damages. We’ve also seen instances in Albany, San Diego, and Sarasota, along with those on several hospitals. </s> The small city of Riviera Beach, Florida, has agreed to pay attackers over $600,000 three weeks after its systems were crippled by ransomware.

The city council has authorised its insurance company to pay 65 bitcoins to the cybercriminals who infected their system on 29 May 2019.

The Palm Beach Post reported that an employee in the City Police Department infected machines across its network by opening an email.

The attack on the city, a suburb of West Palm Beach with a population of 35,000, took all its operations offline. Email went down and officials had to resort to hand-printed cheques to pay employees. 911 dispatchers were also unable to enter calls into computer systems, said reports.

On 5 June 2019 the City posted a terse online notice reporting a ‘data security event’. No further updates appeared on its website or Twitter account.

Councillors had already authorized $941,000 to pay for 310 new desktop computers and 90 laptops after the attack, expediting an already overdue refresh of old equipment.

In paying the ransom, the council is relying on advice from external security consultants, said spokesperson Rose Anne Brown, adding that there was no guarantee the files would be restored.

Waiting to make the payment has cost Riviera Beach even more money. On 30 May 2019, the day after the infection, the ransom equated to $540,765 at Bitcoin’s closing price (via CoinMarketCap). As of yesterday, 20 June 2019, it amounted to $619,265. Bitcoin’s volatility can make an already tense situation even more problematic for victims.

Coveware, which advises companies on ransomware recovery, said in its Q1 2019 report that 96% of companies paying a ransom received a working decryption tool, but the recovery success rate varied according to the type of ransomware used. GandCrab’s attackers issued the decryption tool reliably (their system was automated), while Dharma was much riskier. On average, decryption tools recovered 93% of the decrypted data, again varying by ransomware type.

Email phishing – the technique that nobbled Riviera Beach – accounted for 30.4% of ransomware infections during Q1, Coveware added.

This attack follows a ransomware attack on the City of Baltimore, which refused to pay its attackers 13 bitcoins (worth about US $100,000 at the time). The attack will ultimately cost over $18m, including lost or deferred revenue due to slowed payments.

Successful attacks on local governments in the US demonstrate a need for better cybersecurity. In 2016, the International City/County Management Association (ICMA) surveyed 2,423 local US governments and got 411 responses. It found that only 34% had a formal, written breach recovery plan and only 48% had a formal, written cybersecurity plan. The biggest barrier to effective cybersecurity was a lack of funds.

This isn’t the only cyberattack this month on a Florida community. The State’s Lake City suffered a malware infection on 10 June 2019, which used three attack methods in concert. The attack, which was not followed by a ransom demand, took down city email systems, landline phones and credit card services according to a statement from the City. Two days later, it was recovering from the attack and had emails back online. </s> RIVERA BEACH CITY, Fla. — Rivera Beach City agreed to pay $600,000 in Bitcoin to hackers who took over its computer system.
• Hackers got into the city's computer system
• Thousands of ransom hacker attacks across the U.S
• No guarantee the city will get the records back

Recently, there have been thousands of attacks worldwide aimed at extorting money from governments and businesses.

The Riviera Beach City Council voted unanimously this week to pay the hackers' demands, believing the Palm Beach suburb had no choice if it wanted to retrieve its records back from the hacker.

The hackers got into the city's system when an employee clicked on an email link that allowed them to upload malware.

Along with the encrypted records, the city had numerous problems including a disabled email system, employees and vendors being paid by check rather than direct deposit and 911 dispatchers being unable to enter calls into the computer.

The council already voted to spend almost $1 million on new computers and hardware after hackers captured the city's system three weeks ago.

Spokeswoman Rose Anne Brown said the city of 35,000 residents has been working with outside security consultants, who recommended the ransom be paid.

She claimed that there are no guarantees that once the hackers receive the money that they’ll release the records.

Brown said they’re relying on the security consultants’ advice. The hacker specifically demanded payment in cryptocurrency bitcoin because the owner of the bitcoin account can’t always be identified.

Numerous government agencies and businesses in the U.S have been attacked by hackers in exchange for ransom money.

The U.S. government indicted two Iranians last year for allegedly unleashing more than 200 ransomware attacks that cost $30 million in damages, but the pair have not been arrested yet.

Officials say even with the plans to pay the ransom, an investigation is under way.
Riviera Beach, Florida, is paying $600,000 to a hacker who took over local government computers three weeks ago.