Cybercrime threatens finances and credit ratings of local governments
- Municipal bond market faces hidden risk from hackers
- Cyberattacks on local governments are increasing
- Schools, hospitals, and utilities are struggling to pay ransom and restore services
- Financial losses threaten credit ratings
- Investors need to be aware of cybersecurity risks in the municipal bond market
Local governments are facing a hidden risk in the municipal bond market – cyberattacks. Hackers are increasingly targeting schools, hospitals, and utilities, leaving them struggling to pay ransom, restore services, and boost security. These cybercrimes have resulted in financial losses that threaten credit ratings. Investors need to be aware of the cybersecurity risks associated with investing in municipal bonds.
Factuality Level: 7
Factuality Justification: The article provides information about the increasing threat of cybercrime on local governments and the financial implications they face. It mentions specific examples of schools, hospitals, and utilities being affected. However, it does not provide extensive evidence or data to support the claims made, and there is a lack of specific details about the financial impact on credit ratings. Overall, the article seems to be based on real-world events but could benefit from more in-depth research and evidence.
Noise Level: 7
Noise Justification: The article discusses the increasing threat of cybercrime on local governments and the potential impact on investors who buy their bonds. It highlights the challenges faced by schools, hospitals, and utilities in dealing with cyberattacks. The article provides some information on the financial consequences and credit ratings. However, it lacks in-depth analysis, evidence, and actionable insights to fully understand the long-term trends, antifragility, and accountability aspects of the issue.
Financial Relevance: Yes
Financial Markets Impacted: The article mentions that local governments are spending big to mop up after hacks and prevent new ones. This can impact the financial markets as it may lead to increased government spending and potential credit rating downgrades.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article discusses the financial impact of cybercrime on local governments and the potential threat to credit ratings. While it does not describe an extreme event, it highlights the financial implications of cyberattacks on public sector entities.
Key People:
www.wsj.com 
