Hacked software provider acknowledges ransomware attack

A major U.S. provider of software services to state and local governments acknowledged Friday it was hit by a ransomware attack two days after telling clients an unknown intruder had compromised its phone and information technology systems.

Tyler Technologies said in a statement that it confirmed the intruder used ransomware but did not provide further details on its response, citing an ongoing investigation. A spokesperson for the Dallas-area company did not directly answer a question about whether it had paid to have its systems unlocked.

Ransomware purveyors are increasingly breaking into company and government networks and siphoning out valuable data before scrambling them and demanding payouts. They threaten to make the stolen data public if the victim doesn’t pay up.

Tyler, which is a a publicly traded S&P 500 company, had informed clients across the country that use its software of the data breach Wednesday, but said the impact appeared limited and that there is no reason to believe its customers were affected. The company said it brought in outside information technology experts and informed law enforcement.

The FBI has declined to comment on the breach.

Tyler provides software services for everything from jail and court management systems to payroll, human resources, tax and bill collection and land records to local and state governments across the country.

Some governments also use one of its platforms to post election data online, although that use appears limited and Tyler has said data for that software is hosted on Amazon Web Services, not on the network that was hacked.

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