How governments can avoid enabling ransom attacks by hackers

Efforts to reclaim extorted money must go hand in hand with regulations on insurance coverage for ransoms

Fuel holding tanks at a Colonial Pipeline station in Maryland. US authorities managed to recover US$2.3 million (S$3.1 million) of the roughly US$4.4 million ransom that Colonial paid hackers recently. This is a welcome development, but it also raises questions about who should bear the costs of ransom payments as the threat of online extortion grows, the writer says. PHOTO: AGENCE FRANCE-PRESSE
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(NYTIMES) The recent announcement that US law enforcement officials had managed to recover US$2.3 million (S$3.1 million) of the roughly US$4.4 million ransom that Colonial Pipeline paid hackers was a welcome development. But it also raises questions about who should bear the costs of ransom payments as the threat of online extortion grows.

The Colonial Pipeline ransom retrieval sends a strong message to American companies that are hacked that the government can help. This will, hopefully, encourage victims to report these attacks to the authorities.

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