Lodi City Was Asked to Pay Ransom of 75 Bitcoins worth $400,000

Lodi City Was Asked to Pay Ransom of 75 Bitcoins worth $400,000

Lodi City Manager Steve Schwabauer recently confirmed that computer issues they faced earlier their year, which led to disruption in phone lines and financial data systems, were due to a ransomware attack.

Another attack for crypto ransom

The manager also highlighted that the parties behind the attack demanded a ransom of 75 Bitcoins, which were worth about $400,000 at the time.

Lodi City Was Asked to Pay Ransom of 75 Bitcoins worth $400,000

Ransomware attacks that demand digital currency from the victims have become very common in the past few years, especially since the massive jump in crypto prices in 2017. It is a malicious software program that can block access to a computer or files on a computer. The files are unlocked only when the victim pays the sum demanded by the hackers.

The malicious program that Lodi City received was sent via email attachment and looked like an invoice. As soon as a staff member clicked on the attachment, it quickly spread to the City’s computer network and blocked access to critical files and encrypted them. The malware then severed the connections of several crucial phone lines. Even the non-emergency number of the Lodi Police Department, the main number of City Hall, the main number of finance division and emergency outage line for Public Works was disrupted.

The attack is one of the latest in a series of hacks of public organizations like hospitals, schools, and police departments. Hackers want to get hold of the massive amount of data held within these organizations’ systems.

What did the hackers demand?

Schwabauer said,

“The ransom demanded 75 Bitcoins (approximately $400,000 at the time of the inquiry) be paid to restore our systems. We did not pay the ransom. Instead, we rebuilt our systems from our back-ups.”

Instead of accepting the demands of the hackers, the city hired a legal team as well as security experts to conduct forensic audits. The experts found that the public information stored on the network was not compromised. The manager added, “We did not come forward with this information because we were following the advice of legal counsel. To say anything more would be a violation of attorney-client privilege.”

The problem, which was detected on April 1, was corrected within a month. However, it struck them again when the Police Department’s phone lines were disrupted in May. Bitcoin has become a preferred method of demanding ransom as the transactions made on this network are anonymous, which gives hackers added protection from authorities.

Top brokers for buying and trading cryptocurrencies

  • Platform
  • Features
  • Rating
  • Visit Site
  • US-Friendly
  • Paypal accepted
  • 12+ cryptocurrencies

Visit Site
75% of retail investors lose money.
eToro Reviews

    eToro Reviews your account
    Hide eToro Reviews
    • Best broker for non-US countries
    • Trade crypto CFDs, forex and stocks
    • No withdrawal or deposit fees

    Visit Site
    80.5% of retail investors lose money.
    Plus500 Reviews

      Plus500 Reviews your account
      Hide Plus500 Reviews
      Remember, all trading carries risk. Past performance is no guarantee of future results.

      Sherlock Gomes loves to write and express his views on anything related to Crypto. He has been covering Crypto for more than two years now. He likes Bitcoin and Cardano. He also writes on Finance, Healthcare, and Technology among other stuff. He can be reached by e-mail on