September 03, 2019

The Rise of Municipal Ransomware

America’s smallest cities and towns stand on the frontlines of cyber warfare.

Last month’s coordinated ransomware attacks against 23 cities in Texas reflect a troubling trend for America’s cities: bad actors are addicted to the payoff. In the 30 years since the first ransomware attack, the digital environment has changed beyond recognition, and it will only continue to mutate—by next year, approximately 30 billion devices will be connected to the Internet, and by 2025, almost 5 billion people will have access to the web. This presents an ever-growing opportunity for cybercriminals to wreak havoc—with local governments frequently in their crosshairs.

In the simplest terms, ransomware is malware that locks up data until the victim pays money to regain access. Established ransomware tactics involve holding a user’s data hostage for a few hundred dollars in Bitcoin. But attackers also make use of new ransomware strains like “Ryuk” and “SamSam” that target and infect entire organizations, and the demands for money increase exponentially. For instance, SamSam’s ransomware extortions average about $50,000 per attack. In August, a “single threat actor” likely compromised a managed-service provider—a company that manages numerous IT systems or services—to conduct attacks against Texas municipalities, demanding a collective 2.5 million dollars. But even after cities pay up, attackers may continue to target them and their insurers.

Read the full article in the Manhattan Institute's City Journal.

  • Reports
    • May 28, 2025
    Atomic Advantage

    Executive Summary One of the most consequential national security contests now unfolds on battlefields invisible to the naked eye—across the faint radiofrequency signals of th...

    By Constanza M. Vidal Bustamante

  • Commentary
    • May 27, 2025
    Semiconductor Imports and U.S. National Security

    The Secretary of Commerce has initiated a Section 232 investigation to determine the effects on the national security of imports of semiconductors and semiconductor manufactur...

    By Geoffrey Gertz & Caleb Withers

  • Commentary
    • May 22, 2025
    Sharper: America’s Edge

    A volatile global security environment requires the United States and its allies to develop new tactics and capabilities to deal with novel global threats. On June 3, policyma...

    By Charles Horn

  • Commentary
    • May 20, 2025
    Artificial Intelligence Infrastructure on DOE Lands

    Maintaining America’s lead in AI data centers is critical for U.S. AI dominance....

    By Caleb Withers, Janet Egan & Spencer Michaels

View All Reports View All Articles & Multimedia