Insurers defend covering ransomware payments

Insurers defend covering ransomware payments

1/27/2021 11:53:00 AM

Insurers defend covering ransomware payments

Insurers reject claims that by covering ransomware bills they are funding organised crime.

Getty ImagesThe Association of British Insurers (ABI) has defended the inclusion of ransomware payments in first-party cyber-insurance policies.It said insurance was "not an alternative" to doing everything possible to first minimise the risk.

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However, it added that firms could face financial ruin without the cover.Prof Ciaran Martin, former head of the National Cyber Security Centre, said the UK needed to rethink its policies on ransomware.'Funding organised crime'Ransomware is a form of malware in which infected computers are remotely locked by cyber-criminals, who then demand a ransom, often in the form of Bitcoin, to unlock them and return the data they hold.

There are many examples of businesses and public bodies which have chosen to pay because they do not have the data backed up, or cannot afford - or do not have time - to rebuild their systems from scratch.The Guardian reported that Prof Martin, now at Oxford University's Blavatnik School of Government, said he believed insurers were "funding organised crime" by accepting ransomware claims, but he told the BBC the issue of how to tackle ransomware was far broader than just the insurance sector. headtopics.com

While official advice is not to pay the demand, it is not illegal to do so in the UK, he said."I have some sympathy with insurers, because as long as it's legal, there are incentives to pay."While the ransom demand may be high, the alternative impact can also be devastating.

Read more: BBC News (UK) »

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