))
Is Paying Ransomware Extortion Illegal? Navigating the Legal and Ethical Minefield
Manage episode 433203209 series 2911349
Content provided by David Pelligrinelli. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by David Pelligrinelli or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://player.fm/legal.
Introduction
- Recent news highlights major ransomware and cyber attacks, such as the CDK Automotive and AT&T hacks.
- These attacks impact millions and involve hackers locking down company systems.
How Ransomware Attacks Work
- Hackers infiltrate systems, lock them, and demand a ransom to restore access.
- Companies face the choice of paying the ransom or spending time and money to recover, often weighing the cost-benefit of paying.
Risks of Paying Ransoms
- Increased Ransom Demands
- Hackers may increase ransom demands over time, potentially making it an unsustainable practice.
- Regulatory and Legal Risks
- Foreign Corrupt Practices Act (FCPA)
- This law prohibits bribes to foreign officials, which might extend to paying ransoms if hackers are linked to foreign governments.
- Funding Illegal Activities
- Ransom payments could inadvertently support terrorism or other illegal activities.
- Money Laundering
- Payments made through cryptocurrencies or complex transactions could be scrutinized for money laundering.
- Foreign Corrupt Practices Act (FCPA)
The Role of Cyber Liability Insurance
- Many companies use cyber liability insurance to handle ransom payments and mitigate legal risks.
- Insurance companies are adept at managing these transactions to avoid issues like bribery or money laundering.
Future Implications
- Increasing ransom payments might prompt government intervention.
- Potential for future regulations or prosecutions to deter companies from paying ransoms.
Case Study
- CDK Automotive hack involved a $25 million ransom paid in Bitcoin.
Conclusion
- The ongoing rise in ransomware payments and future government responses will shape how companies and hackers interact.
Call to Action
- Visit Actual Human and Describe.TV for more insights and expert consultations.
- Engage with experts in various fields, including investigations, insurance, business development, and more.
Contact and Feedback
- Questions or comments? Leave them in the link below.
- For live consultations, use the link provided.
1171 episodes
Share
