Reuters reported that a report from S& P Global Ratings indicates that credit “risks stemming from cyberattacks on U.S. cities, school districts and other municipal bond issuers are likely to grow as the public sector remains an easy target for hackers.” The August 22, 2018 report entitled “Cyberattacks heighten credit risks in U.S. public sector: S&P” included these comments:
- The U.S. public sector has broadly and quickly adopted new technologies to provide public services, such as online bill payment systems, but it has had a hard time guarding against increasingly frequent and sophisticated cyberattacks…
- While S&P has never downgraded a municipal issuer because of a cyber incident, repeated successful attacks can eat away at credits over time by eroding public trust, the report said. That would potentially make it harder for municipal issuers to increase tax rates and take other measures needing public support.
- The public sector struggles with retaining information security talent and keeping an aging workforce up to speed on emerging cyber risks, …
- The transparent nature of government, where information is more accessible compared private companies, makes public entities increasingly vulnerable.
No surprises in this report! But local governments need to be alert to protect themselves!!!
This blog is made available by Foley & Lardner LLP (“Foley” or “the Firm”) for informational purposes only. It is not meant to convey the Firm’s legal position on behalf of any client, nor is it intended to convey specific legal advice. Any opinions expressed in this article do not necessarily reflect the views of Foley & Lardner LLP, its partners, or its clients. Accordingly, do not act upon this information without seeking counsel from a licensed attorney.
This blog is not intended to create, and receipt of it does not constitute, an attorney-client relationship. Communicating with Foley through this website by email, blog post, or otherwise, does not create an attorney-client relationship for any legal matter. Therefore, any communication or material you transmit to Foley through this blog, whether by email, blog post or any other manner, will not be treated as confidential or proprietary.
The information on this blog is published “AS IS” and is not guaranteed to be complete, accurate, and or up-to-date. Foley makes no representations or warranties of any kind, express or implied, as to the operation or content of the site. Foley expressly disclaims all other guarantees, warranties, conditions and representations of any kind, either express or implied, whether arising under any statute, law, commercial use or otherwise, including implied warranties of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Foley or any of its partners, officers, employees, agents or affiliates be liable, directly or indirectly, under any theory of law (contract, tort, negligence or otherwise), to you or anyone else, for any claims, losses or damages, direct, indirect special, incidental, punitive or consequential, resulting from or occasioned by the creation, use of or reliance on this site (including information and other content) or any third party websites or the information, resources or material accessed through any such websites.
In some jurisdictions, the contents of this blog may be considered Attorney Advertising. If applicable, please note that prior results do not guarantee a similar outcome. Photographs are for dramatization purposes only and may include models. Likenesses do not necessarily imply current client, partnership or employee status.