Regulatory Crackdown on Ransomware
Seetha Ramachandran, Nolan Goldberg and Hena M. Vora of Proskauer write:
It is increasingly common for Ransomware attacks to be associated with large sophisticated cyber-criminal organizations, with a central entity providing the tools, training, and ability to collect ransoms and sending its “associates” out to cause harm. As long as victims continue to pay ransoms, Ransomware is able to expand. Ransomware is also being adapted for new, criminal purposes. Increasingly, hackers associated with countries like Iran and North Korea are using Ransomware to generate an influx of cash into their economic streams and bypass economic sanctions. Faced with an urgent need to stop the spread of Ransomware, law enforcement is now moving past its old strategy of strongly discouraging victims from paying ransoms. Regulatory agencies – such as OFAC and the SEC – are implementing regulations to prevent victims from paying ransom to buy their way out of a Ransomware attack. These regulations arm law enforcement with a new enforcement mechanism – allowing them to punish companies who choose to pay ransom in the face of a Ransomware attack. Accordingly, they signal a new area of regulatory enforcement that will likely become the government’s most powerful tool to curb the spread of Ransomware.
Read more about the regulatory responses and the takeaways these lawyers see on The Capital Commitment.