City of Dallas Reveals Extent of May Cyberattack, Cost of Data Breach

The city of Dallas recently released a report detailing a cyberattack that occurred on May 3, 2023. The attack was carried out by a cybercrime gang known as Royal, who had gained unauthorized access to the city’s network approximately a month prior. During this time, the attackers engaged in data exfiltration and ransomware preparation activities, resulting in an estimated 1.169 TB of data leakage.

Upon discovering the attack, the city promptly took high-priority services and specific servers offline and initiated restoration operations. The Royal ransomware was successfully eliminated from the network. The Texas Attorney General’s office was notified on August 7, revealing that personal information of current and former personnel had been compromised. This included names, addresses, health and health insurance information, social security details, and other sensitive data.

To address the aftermath of the attack, the Dallas City Council approved a budget of $8.5 million for computer-based interdiction, mitigation, recovery, and restoration efforts. This includes hiring external cybersecurity professionals, providing identity theft and fraud protection services, and engaging breach notification services for affected individuals and business partners.

While the removal and remediation efforts are nearing completion, the final cost related to the attack is yet to be determined. The city plans to provide an estimate by the end of the year. Additionally, a second round of notifications will be sent to impacted individuals, potentially incurring additional costs.

The Royal ransomware, operated by a private group since September 2022, has been used in attacks targeting various sectors in the United States, including critical infrastructure, communication, education, healthcare, and manufacturing.


Author: CrimeDoor

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