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Hamilton to Shoulder $18.3M Cyberattack Bill After Insurer Denies Claim Over MFA Lapse

A staff report found that incomplete multi-factor authentication voided $5 million in insurance coverage, leaving Hamilton on the hook for its rebuilding costs under a renewed cyber resilience plan.

Overview

  • A July 30 staff report to the general issues committee identified the city’s partial rollout of multi-factor authentication as the breach’s root cause that voided $5 million in insurer payouts.
  • Hamilton declined to pay the $18.5 million ransom demand and has so far spent $18.3 million on system recovery, expert support and ongoing rebuilds.
  • The city faces nearly $400,000 in monthly technology and recovery costs through November 2026 to restore municipal services.
  • New cybersecurity measures have been implemented and the city’s insurance coverage has been renewed to strengthen defenses.
  • Hamilton Police Service continues its investigation while city councillors raise concerns over accountability for pre-breach security shortcomings.