Cyberattack leaves Hamilton with $36M in delayed tax payments

Municipal phone lines, electronic pay options and many services remain down since the Feb. 25 cyberattack

Hamilton is temporarily out roughly $36 million in tax revenue due to an ongoing ransomware attack that has delayed pre-authorized payments from residents.

About a third of the city’s tax accounts — or 50,000 — take part in pre-authorized withdrawals to pay taxes, staff told The Hamilton Spectator in an email Friday.

The cyberattack the city initially flagged on Feb. 25 has debilitated municipal IT systems, affecting an array of operations, from municipal phone lines to transit, emergency services, building permits and public health. It has also short-circuited the auto-withdrawal tax payments the city expected from residents Feb. 29 and March 1. That means about $36 million won’t make it to city coffers “until such time as city services are restored.”

What that means for the city financially, albeit temporarily, wasn’t immediately clear Friday as officials didn’t provide details. But for context, the city’s overall budget is $2.4 billion with a net levy of just over $1 billion.

As for how long the fallout will last, city manager Marnie Cluckie has said staff and cybersecurity consultants don’t know how long the recovery will take.

Meanwhile, residents enrolled in the preauthorized tax payment plan shouldn’t make additional payments, but make sure they have enough money in bank accounts for when withdrawals “eventually” do happen, the city says.

Those who aren’t enrolled in the preauthorized program can pay tax bills through their bank or by mail. They can also make cash or cheque payments at municipal service centres. Amid the cybersecurity breach, the city has posted a list of affected services on its website, Hamilton.ca.

Ransomware attacks involve hackers encrypting or swiping data and holding it hostage for payment. The technological assault can also hobble an organization’s operations.