"We have taken immediate remedial action to limit data loss and business continues as usual now we have isolated this incident, but investigations continue into this," said Mike Barker, strategic director for corporate services and governance for Gateshead Council.
"Work is ongoing with relevant parties to understand how this incident happened and any wider implications it may have. A number of files have been accessed as part of this incident and we are now contacting those people impacted directly to ensure they are protected from any further harm."
"As investigations continue there is a possibility of further issues arising, and we will work to mitigate this should that be the case," said Barker.
"The incident has been claimed by ransomware gang Medusa, which has added Gateshead Council to its data leak site. The group has demanded $600,000 for the data to be deleted or it will be released in nine days."
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