Ransomware attack on Pimpri Chinchwad Smart City servers managed by Tech Mahindra

Pune: Pimpri-Chinchwad Municipal Corporation Smart City said on Monday that it had not suffered any data loss due to a ransomware attack late last month and that it had also not paid ransom to the hackers.

This is perhaps the first known instance of a cyberattack on a Smart City project, which took place late in February.

Following the attack, Tech Mahindra—which manages the Pimpri Chinchwad Smart City project—filed a complaint estimating loss of Rs 5 crore, Indian Express reported. Nilkanth Poman, joint chief executive officer of PCMC Smart City, told ET there had been no data loss and no ransom was paid.

Tech Mahindra was informed of the cyberattack on February 26, following which it lodged a complaint with the police stating that the attackers had demanded that the ransom be paid in bitcoins. A criminal offence was registered at the Nigdi police station in the city on March 9.

“After detailed analysis of the situation in the last 10 days, we have come to the conclusion that 25 servers are impacted which need to be rebuilt along with implementation of a robust security system. Though the FIR mentions damage of about Rs 5 crore which is not for any material cost or data, the only loss would be the rework efforts,” said Sujit Baksi, Head-APAC Business and President-Corporate Affairs, Tech Mahindra.

Baksi added that the team was monitoring the situation regularly and that the infected servers were recoverable and that there would be no commercial impact.

Last year, IT services provider Cognizant suffered a Maze ransomware attack, causing disruptions to clients and an estimated business impact of $50-$70 million.

India is the second most impacted by cyberattacks in the Asia Pacific region after Japan, according to a recent study by IBM. About 40% of these were ransomware attacks.

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