(CNN) A cyber-attack this week on Florida-based IT provider Geographic Solutions disrupted unemployment and labor benefits for thousands of people in multiple states and Washington, DC.
Unemployment payments for people are delayed in Tennessee, where about 12,000 people depend on the program, and in Nebraska, according to statements from state labor departments. In Washington, the outbreak prevented residents from filing new paid family vacation claims and conducting job searches using a tool provided by Geographic Solutions.
In a statement, Geographic Solutions described “anomalous activity” on its computer network but did not specify the cause; the Nebraska Department of Labor called it a “cyberattack”.
After discovering the activity, Geographic Solutions immediately “provided some offline systems to stop the activity,” his statement said.
“With the help of third-party specialists, we are conducting a full investigation to determine the cause and scope of the incident,” Geographic Solutions said. “That investigation is still ongoing, and we are taking steps to help prevent this from happening again. Our current focus is on caring for our customers and the 2012 operation to overhaul all systems.”
Geographic Solutions did not respond to questions emailed as to whether ransomware was involved in the incident and how soon it was expected to return. It has sold workforce-related software products to state and local governments in more than 30 U.S. states and territories, according to the company’s Facebook page. The company’s website was down Friday afternoon.
This incident comes when the Federal Reserve tried to curb historically high inflation by raising interest rates, a measure predicted by some analysts that could trigger a recession next year.
CNN requested comment from the U.S. Department of Labor on the cyber-attack that would disrupt Geographic Solutions.
On Friday afternoon, Nebraska’s state unemployment benefits system was still offline, Nebraska Department of Labor spokeswoman Grace Johnson told CNN. “The vendor is actively working to bring the system back online,” Johnson said.
The episode highlights how a single software provider can be disrupted across the country.
U.S. officials have repeatedly warned of the possibility of a cybercrime strike over a long holiday weekend, when IT staff are sometimes out of office.
A year ago, a ransomware attack on another Florida – based IT vendor, Kaseya, hit up to 1,500 businesses worldwide.
