Tyler Technologies Suffers Apparent Ransomware Attack

Plano, Texas-based Tyler provides end-to-end information management solutions to more than 15,000 local government offices in all 50 states, Canada, the Caribbean, and Australia.

Tyler Technologies – one of the largest solution providers to state and local government in the U.S. – was hit in an apparent ransomware attack, according to KrebsOnSecurity.

Cybersecurity reporter Brian Krebs said the company copped to an intrusion to its system, but told him it was limited to internal company systems and had no impact on its customers.

Plano, Texas-based Tyler provides end-to-end information management solutions to more than 15,000 local government offices in all 50 states, Canada, the Caribbean, and Australia. The company also sells solutions into the federal government. In 2019 it purchased MicroPact, a 22-year-old company that boasts deals with 98 percent of federal agencies with 500 or more employees, as well as 49 states. The company had 5,368 employees as of the end of 2019, according to a regulatory filing.

Earlier Wednesday, Krebs said tylertech.com was replaced with a notice saying it was offline. The “corporate website is temporarily unavailable,” according to a message that appeared on the site as of 8:40 p.m. ET. In a statement to Krebs, Tyler Chief Information Officer Matt Bieiri said the company discovered an intruder had gained access to its phone and IT system and shut down points of access to external systems and began investigating.

“We have since engaged outside IT security and forensics experts to conduct a detailed review and help us securely restore affected equipment. We are implementing enhanced monitoring systems, and we have notified law enforcement,” Bieiri said in the statement. “At this time and based on the evidence available to us to-date, all indications are that the impact of this incident is limited to our internal network and phone systems,” their statement continues. “We currently have no reason to believe that any client data, client servers, or hosted systems were affected.”

Tyler did not respond to an email sent by CRN seeking comment.

Tyler has been aggressive about selling security solutions to its clients in government, and using ransomware as a talking point.

In an August 2019 earnings call, Tyler’s CEO Lynn Moore said the company’s acquisition in 2018 of Sage Data Systems, a cybersecurity company, positions the company well to sell into municipal customers that may have security top-of-mind, after high profile ransomware attacks against cities and towns.

“We like where we sit with that. It’s an unfortunate reality of the business that’s out there,” he said during that call. “So, certainly, it’s a higher awareness factor. We see that as an opportunity again. And I think we are positioned with Sage to capitalize on that.”

Moore said then, that for all the attacks that make news, “there are at least that many, if not more, that have not actually hit the public windshield.”

If it proves to be ransomware, Tyler will join a long list of large and enterprise-size solution providers to get hit by various forms of the malware this year. Massive solution provider Cognizant, and business process outsourcer Conduent each were hit, as were Canon, Xerox, and Konica Minolta.