Cyber Ransom Payments Set a Bad Precedent But Happen Often
The U.S. government’s fight to choke off ransom payments collected by hackers hit a major snag Thursday, following news that Colonial Pipeline Co. paid a hefty sum to hackers who for several days this week effectively shut down the country’s largest fuel pipeline and created gas shortages along the East Coast.
The decision went against FBI and Treasury Department warnings that such payouts will only spread pain down the line by encouraging more hacking, raising questions around the ethics of paying the ransoms.
Cybersecurity experts, lawyers and insurers say those pleas run up against the hard logic faced by many ransomware victims. Often the quickest way to restore their debilitated computers systems is to pay, and victims typically have insurance to cover the cost. And, for those who resist, hackers have found new ways to increase the pain.