Data Recovery: Paying Extortionists to Protect Customers Is Not Illegal, But It May Be Risky
- Date:June 24, 2019
- Author(s):
- Sean Sposito
- Report Details: 4 pages, 2 graphics
- Research Topic(s):
- Cybersecurity
- Fraud & Security
- PAID CONTENT
Overview
The popular conversation around ransomware has shifted from detection to remediation. Hospitals, municipalities, and other victims frequently end up paying their extortionists through third parties promising data recovery services. A recent spate of media reports discuss the convenience and dilemmas of giving in to extortion:
- In May, Propublica, a nonprofit news organization dedicated to investigative journalism, reported that vendors who promise ransomware solutions mostly end up negotiating with their clients’ extortionists.1
- Earlier in the month, CBS’ “60 Minutes” described “why,” in the case of ransomware, “the best solution is often paying a ransom.”2
- And a Boston Globe Q&A with the author of the Propublica report, in part, put the city of Baltimore’s decision not to pay its extortionists demands for 13 bitcoins – roughly $104,000 – into context.3
But what about broader data recovery practices? All of this media coverage has no doubt created internal business questions about both the ethics of paying for decryption keys and the practice of paying cybercriminals in general. These are questions that security executives should be prepared to answer in the elevator, over email, and in meetings.
Learn More About This Report & Javelin
Related content
Leverage MITRE Frameworks for Effective Cyber Investment
Cyber defense strategies in 2025 will lean more heavily on open-source frameworks like MITRE ATT&CK and MITRE OCCULT as financial institutions align risk to investment prioritizati...
Trump’s Cyber Avalanche and the Impact on U.S. Financial Institutions
For U.S. financial institutions, the twists and turns of the last few weeks around political promises that have quickly resulted in short-term wins for banks should be viewed with ...
New Stakes for Cyber Resiliency in the Era of Cyberwarfare
The war in Ukraine, the Iran-Israel conflict, and increasing tension between the United States and China have raised new concerns and emphasis around geopolitical risks. Attacks ag...
Make informed decisions in a digital financial world