In an era where digital dependence is at its peak, state and local governments find themselves in the crosshairs of cybercriminals, facing vulnerabilities stemming from outdated technology and limited cybersecurity resources. The critical role these entities play in delivering essential public services, combined with their storage of sensitive citizen data, makes them prime targets for malicious attacks. The repercussions extend beyond service disruption, reaching the personal information of countless individuals.

With increased attention from nation-states and cybercriminals, the need for effective cybersecurity strategies and cooperation at federal and international levels is growing. This article examines the reasons behind the targeting of state and local governments, the ensuing impacts, and suggests defensive approaches that these entities can adopt to enhance their protection against cyber threats.

 Understanding the Risk Factors | Why State & Local Governments Are Vulnerable

State and local governments often grapple with tight security budgets, outdated technology, and small IT departments, rendering them susceptible to cyberattacks. Serving as repositories for sensitive citizen data, including social security numbers, tax information, and voting records, these entities are pivotal due to their diverse public service offerings in healthcare, education, transportation, and public safety. They act as a crucial link between individual citizens and the critical infrastructure of the private sector.

Adding to the challenge, many of these governments rely on legacy technology, which can be easily exploited through known vulnerabilities. Budget limitations and bureaucratic hurdles hinder core cybersecurity tasks like timely updates and patches. Local entities often lack dedicated cybersecurity teams, leaving small in-house IT professionals to manage security. This makes them attractive targets for cyber attackers, who perceive them as having weaker defenses compared to private sector organizations.

Moreover, the vast volumes of sensitive data held by state and local governments make them tantalizing to cybercriminals. Personal information, financial records, and election data can be used for identity theft, fraud, and espionage. Disrupting their operations triggers widespread chaos, and the stolen data becomes valuable currency on the dark web. Beyond individual compromise, these attacks can be leveraged for larger-scale campaigns, influencing political and economic outcomes.

The Challenge of Ransomware | Impact on State & Local Governments

While ransomware isn’t a novel threat, recent high-profile incidents like those involving Colonial Pipeline and JBS Foods have spotlighted the widespread ramifications of successful attacks. Examples such as the disruption of Dallas’s 911 computer system, water systems, and court services underscore the far-reaching consequences for citizens. Beyond operational disruption, assaults on local government entities result in recovery expenses that can run into millions, regardless of ransom payment.

Recent statistics indicate an increase in ransomware attacks targeting state and local-level governing bodies, with numbers surging from 58% in 2022 to 69% in 2023. This surpasses the global average of 66% across sectors. This surge marks a three-year peak, with over three-quarters of ransomware attacks concentrated on lower government branches, aimed at data encryption and theft by threat actors.

Exploited vulnerabilities (38%), compromised credentials (30%), and business email compromise (BEC) at 25% contribute to these ransomware attacks.

Other XDR Faced by The Public Sector

  1. Phishing Attacks: State and local governments encounter daily phishing attacks. Cybercriminals craft malicious emails that exploit victims’ trust in official-like communications. Due to the decentralized nature of government structures, security awareness training varies, enabling threat actors to deceive privileged users.
  2. Business Email Compromise (BEC): The extensive networks and financial transactions of state and local governments provide fertile ground for BEC schemes. Cybercriminals impersonate officials to manipulate employees into transferring funds or sensitive information. High levels of trust among colleagues make detecting fraud challenging, necessitating robust authentication and communication protocols.
  3. Known Vulnerabilities in Unpatched Software & Outdated Code: Limited budgets and bureaucratic challenges impede patch management in these governments, creating an environment ripe for cyber vulnerabilities. Attackers exploit known weaknesses to breach networks and compromise data, capitalizing on the interconnected nature of government operations.


Enhancing Cybersecurity in the Public Sector

For municipal-level governments, financial constraints often limit cybersecurity capabilities. The private sector offers valuable lessons, advocating for solutions that integrate existing tools and embracing a platform approach. A consolidated approach yields efficiency gains, reduces strain on IT/security teams, and maximizes budget value.

Additionally, leaders in government institutions must prioritize cybersecurity as an essential service. The cost of failing to do so outweighs the expense of consolidating tools into a single platform. Upskilling, consistent training, and a shared responsibility model are crucial components of building a stronger security posture.

Conclusion | Collaborative Defense for State & Local Governments

The Biden-Harris Administration’s pledge of $1 billion towards state and local cybersecurity initiatives showcases a united strategy. Collaborative efforts among the Department of Homeland Security, FEMA, and CISA provide resources and technology for proactive defense. Advanced solutions such as eXtended Detection and Response (XDR) with AI and machine learning play a critical role by swiftly identifying anomalies and threats, ensuring real-time system visibility. This preventive approach mitigates data encryption and infrastructure downtime risks. To enhance cyber resilience in state and local governments, consider exploring SentinelOne’s Singularity platform. Get in touch to strengthen your defense against evolving threats.

Follow us on LinkedIn:

Contact Us:

Aliado Solutions