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Former UK Cybersecurity Chief Says Laws Are Needed to Stop Ransomware Payouts
“People are paying bitcoin to criminals and claiming back cash” via insurance claims, Ciaran Martin said.
Updated Sep 14, 2021, 11:00 a.m. Published Jan 25, 2021, 9:43 a.m.
The U.K.’s former cybersecurity chief said companies paying hackers to recover from ransomware attacks are funding organized crime, and new laws may be needed to stop the practice.
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- Ciaran Martin, who was the founding chief executive of the National Cyber Security Centre (NCSC), told The Guardian that insurance firms sending funds on behalf of affected companies have made it “OK to pay out to criminals.”
- “People are paying bitcoin to criminals and claiming back cash” via insurance claims, Martin said.
- Criminal gangs often from Russia or other former Soviet states are fueling the ransomware problem, according to the report.
- The U.K.’s extortion laws were formed mainly in response to the threat of kidnapping and forbid the payment of ransoms to terrorists, but don't apply to ransomware demands.
- “In the last year, experts are saying this is close to getting out of control,” said Martin. “You have to look seriously about changing the law on insurance and banning these payments, or at the very least having a major consultation with the industry”.
- Chainalysis recently reported ransomware attacks were up 311% in 2020 when compared to the year before.
See also: This Elusive Malware Has Been Targeting Crypto Wallets for a Year
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Canadian Province Wins Forfeiture of $1M QuadrigaCX Co-Founder's Cash & Gold via Default Judgment
The ruling transfers cash, gold bars, watches, and jewelry seized from a CIBC safety deposit box and bank account into government hands after Patryn did not defend the case.
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- The Supreme Court of British Columbia has forfeited $1 million in cash and gold tied to QuadrigaCX's co-founder, Michael Patryn, to the government.
- Patryn did not contest the forfeiture, which involved 45 gold bars, luxury watches, and over $250,000 in cash seized under an Unexplained Wealth Order.
- The forfeiture may lead to a process determining if any assets can be directed to QuadrigaCX's creditors, who received 13 cents on the dollar in the bankruptcy settlement.
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