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Cyber-attack on BWL results in $2.4 million cost largely covered by insurance

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A cyber-attack against the Board of Water & Light last spring resulted in a $2.4 million cost that was largely covered by insurance. The costs were mostly used to pay for a cyber-emergency response team, restoration efforts, and to prevent future attacks.

The cost included a $25,000 ransom which was paid to the criminals who launched the attack.

BWL's General Manager Dick Peffley called the payment, "distasteful and disgusting but sadly necessary" to restore the BWL's internal corporate communications systems.

Utility officials indicated that the BWL has filed an insurance claim for $1.9 million, which includes $2 million in covered losses less the cyber policy’s $100,000 deductible.

No electric or water utility services were interrupted during the cyber attack, and there was no evidence that customer or employee information was compromised.