A ransomware attack targeting one of America’s leading software providers has again raised concerns over the security of state and local governments’ IT systems, just weeks before those officials are set to run a pivotal national election.
Tyler Technologies, a Texas-based firm that supplies data visualization software to some US election officials, acknowledged last week it had been hit by hackers. The attack, which the company confirmed was ransomware, targeted the firm’s internal corporate network and phone systems.
Though hardly a household name, Tyler Technologies underpins many critical public sector functions. It sells what it calls “back-office” software to 9-1-1 dispatchers, county and state courts, property appraisers and public accounting officials. Last year, it booked more than $1 billion in revenues, according to its financial filings.
It also offers software that can format and display election results, campaign finance data and information about polling places drawn from third-party sources.
In a statement on its website, Tyler Technologies said those customer-facing systems are separate from the internal corporate systems affected by the ransomware attack. The software capable of displaying election information runs on Amazon servers, it said, and “very few Tyler clients enlist the application for this use.” The company is investigating the incident with the FBI. The company declined to comment for this story.
Some background: Ransomware is a type of malicious software that locks up a victim’s computer and holds it hostage for payment, often in bitcoin or other cryptocurrency.
The attack on Tyler Technologies is one of hundreds that have prompted growing alarm among security experts, law enforcement and government officials, who point to the growing boldness and sophistication of ransomware hackers as a cause for concern. The range of targets — from hospital systems to first-responders to government contractors — highlights the disruption that ransomware could cause at a national scale.
“Ransomware is probably — globally — maybe between a $50 billion and $100 billion industry,” said James Lewis, a cybersecurity expert at the Center for Strategic and International Studies.
Tyler Technologies is merely the latest victim in a string of attacks against public sector institutions. In June, the University of California – San Francisco paid more than $1 million to ransomware hackers. Earlier this month, public school administrators in Fairfax County, Va. disclosed that some of its systems had been compromised by ransomware, and after Emsisoft, a cybersecurity firm, noted that some of the school district’s data had been posted to a hacker website.
Emsisoft, which has been tracking incidents of ransomware, said 113 governments or agencies were hit last year alone, and 75 this year.