Page 65 - Cyber Defense eMagazine July 2024

Dangers of paying ransoms

Paying ransoms can have severe consequences that jeopardize businesses financially, reputationally,
and legally. The following are the main negative consequences of paying the ransom demand and why
any payment or communication with the threat actors should be avoided.

1. Encourages cyber criminals in their activities

When victims pay the ransom demand, they financially support cyber criminals, inadvertently enabling
them to launch more attacks and perpetuating a cycle of cyber extortion globally. The financial support
provided by ransom payments can also fuel other forms of illegal activity, including terrorism and
organized crime, exacerbating global security challenges.

2. No guarantee of data recovery

Often, cybercriminals disappear after receiving the ransom payment and do not deliver the decryption
key as promised. In this case, the organization will suffer additional financial losses, as they must hire a
data recovery company to retrieve or decrypt the files.

3. Incomplete data decryption and corruption
Even if a decryptor is provided, the process may result in incomplete data recovery or corruption,
complicating an attack's aftermath.

Legal and ethical considerations

Under the International Emergency Economic Powers Act (IEEPA), ransom payments may be considered
a sanctionable offense. This legislation and other regulatory frameworks aim to prevent the flow of funds
to criminal enterprises, including those involved in cyber extortion. Compliance with these laws is
crucial, as violating them can lead to severe penalties, including hefty fines and legal action
against the offending organization. Programs like the Office of Foreign Assets Control (OFAC) are
essential to mitigate legal risks associated with ransom payments and help ransomware victims recover
data while adhering to regulatory requirements.

The ethical implications of paying a ransom are profound since, as mentioned, when organizations
succumb to ransom demands, they directly fund criminal enterprises and perpetuate the ransomware
economy. This funding enables cybercriminals to enhance their capabilities, launch more sophisticated
attacks, and expand their operations, leading to a broader impact on other organizations and individuals.
This cycle of crime not only emboldens existing attackers but also attracts new perpetrators into the
lucrative field of cyber extortion.

Cyber Defense eMagazine – July 2024 Edition 65
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