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LATEST NEWS

Gateshead Council hit by ransomware attack: Hackers demand £600,000 to delete stolen data

Marijan Hassan - Tech Journalist

In a troubling start to the year, Gateshead Council in North East England has fallen victim to a ransomware attack by the Medusa group. The attack, which began on January 8, resulted in sensitive data being stolen and subsequently leaked online. The hackers are now demanding £60,000 for the deletion of the compromised information.



The council confirmed on January 15 that it was investigating the cybersecurity incident, which involved the theft of personally identifiable information (PII). Documents uploaded by Medusa to their data leak site include full names, email addresses, phone numbers, home addresses, job applications, internal budget spreadsheets, and reports related to public housing eligibility.


Both residents and council staff appear to have been impacted.


Growing threats to the public sector

The Gateshead incident follows a string of recent cyberattacks targeting UK public sector entities, including Leicester City Council's ransomware attack in March 2024 and numerous DDoS attacks against other councils. Several hospitals across the British Isles have also been affected.


Council response

Gateshead Council has stated the incident is now contained and the Information Commissioner's Office (ICO) has been notified.


In a statement, a strategic director emphasized that "business continues as usual" and that steps have been taken to limit data loss. Affected individuals are being contacted directly, and investigations are underway to determine the full extent of the breach.


The council stressed its commitment to protecting the public and reassured residents that the situation is being taken "extremely seriously."


The hackers’ demands

Medusa, known for targeting public sector organizations, has reportedly demanded a $600,000 ransom for the deletion of the stolen data. However, cybersecurity experts warn that paying such ransoms rarely guarantees data deletion.


Coincidentally, the UK government is in the middle of consultations on whether to ban ransom payments for public sector organizations. The consultation, which began on January 14 and runs until April 8, is also considering implementing a licensing system for commercial organizations wishing to pay ransoms, similar to a model recently adopted in Australia.


In November 2024, the Aussie government passed a law requiring any organization with an annual turnover of AU$3 million ($1.845 million) or more per year, to apply for licenses to pay ransom demands.


In the UK's case, the license would be approved at the discretion of His Majesty's Government.


What residents should do

Gateshead Council has urged residents to take precautions, including:

  • Being alert to phishing emails and fraudulent communications

  • Using strong, unique passwords and changing them immediately if signs of compromise appear

  • Monitoring updates from the council and acting on any direct communications regarding potential risks

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