KBRA releases research on the heightened municipal cybersecurity concerns following Russia’s invasion of Ukraine. Russian-linked hackers are widely believed to be responsible for previous high-profile cyberattacks, and the risk is now higher in the current environment, even as tensions may fluctuate in the coming months. Municipalities are frequent targets of cyber criminals, as they provide many essential services. Shutting down important public systems and demanding ransom for their resumption has become a common tactic for cyber criminals.

The report examines the various challenges municipalities face regarding cybersecurity in today’s higher-risk environment, especially in light of the Russia-Ukraine war and the limits of cyber insurance.

Key Takeaways

• Cyberattacks on municipalities could increase as a spillover effect of Russia’s invasion. The essential nature of public services increases the risk of cyberattacks on their providers.
• Although municipalities are increasingly using cyber insurance, the benefits could be limited acts of war exclusions.
• The inherent difficulties of clearly identifying cyber criminals and linking them to acts of war could result in confusion, litigation, and delays in processing cyber insurance claims.

Click here to view the report.

Related Publications

• Russia-Ukraine Conflict Could Have Knock-on Effects for U.S. Public Finance
• Cybersecurity and Credit Risk

About KBRA

KBRA is a full-service credit rating agency registered in the U.S., the EU and the UK, and is designated to provide structured finance ratings in Canada. KBRA’s ratings can be used by investors for regulatory capital purposes in multiple jurisdictions.

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