Via ArsTechnica:
The Economic Development Administration (EDA) is an agency in the Department of Commerce that promotes economic development in regions of the US suffering slow growth, low employment, and other economic problems. In December 2011, the Department of Homeland Security notified both the EDA and the National Oceanic and Atmospheric Administration (NOAA) that there was a possible malware infection within the two agencies’ systems.The agency employees probably got the malware surfing porn sites...
The NOAA isolated and cleaned up the problem within a few weeks.
The EDA, however, responded by cutting its systems off from the rest of the world—disabling its enterprise e-mail system and leaving its regional offices no way of accessing centrally held databases.
It then recruited an outside security contractor to look for malware and provide assurances that not only were EDA’s systems clean, but also that they were impregnable against malware. The contractor, after some initial false positives, declared the systems largely clean but was unable to provide this guarantee. Malware was found on six systems, but it was easily repaired by reimaging the affected machines.
EDA’s CIO, fearing that the agency was under attack from a nation-state, insisted instead on a policy of physical destruction. The EDA destroyed not only (uninfected) desktop computers but also printers, cameras, keyboards, and even mice. The destruction only stopped—sparing $3 million of equipment—because the agency had run out of money to pay for destroying the hardware.
The total cost to the taxpayer of this incident was $2.7 million: $823,000 went to the security contractor for its investigation and advice, $1,061,000 for the acquisition of temporary infrastructure (requisitioned from the Census Bureau), $4,300 to destroy $170,500 in IT equipment, and $688,000 paid to contractors to assist in development of a long-term response. Full recovery took close to a year.
