According to the University of North Georgia, hackers break into Americans’ private online spaces once per 39 seconds, leading to more than 2,215 attacks per day. While this data includes both companies and individuals, small businesses are on the receiving end of 43% of all cyber security incidents. So if you’re a small business owner, investing in cyber liability insurance is a must.
In addition to getting cyber insurance, you should also ensure that you’re following best practices for online safety. Do you know what to do when cyber attacks occur? If not, check out these answers to your questions about what to do when a hacker asks your business for a ransom.
Is It a Crime To Pay Hackers a Cyber Ransom?
Your business cannot face criminal charges for paying a cyber ransom because doing so is not a felony or criminal offense. At the same time, you could face civil charges under the Office of Foreign Assets Control’s new policies. OFAC has sanctions in place against several countries, and you don’t necessarily know where a hacker is operating. As a result, if you pay a ransom to a hacker based in a sanctioned country, OFAC may find you guilty of violating its regulations.
Because violating a sanction in this way is a civil offense, you would not face jail time. You could have to pay a steep fine, though.
What Happens if You Pay the Ransomware?
As your cyber liability insurance provider has probably warned you, paying a cyber ransom can have severe repercussions for your network’s security. The key that your hacker offers you may be corrupted, or your hacker may continue the attack regardless of your payment. Also, once cybercriminals have accessed your data, they can still sell or otherwise exploit it, meaning that your ransom is a waste.
If you or an employee does pay a ransom, notify your IT professionals immediately to recover as much data as possible. Then, reach out to your legal team and insurance provider to start the damage control process.
How Do You Keep Hackers From Striking Again?
Many businesses experience attacks from the same ransomware or hackers, even if they pay the requested ransom. As a result, it’s important to install comprehensive safety systems on all your employees’ devices. Choose programs that look for malware in your downloads and online platforms, as well as the latest hacking tactics. Ask your cyber liability insurance agent if he or she has any suggestions.
If you’re wondering whether you have the right program, determine whether it relies on indicators of behavior or indicators of compromise software. IOCs alert you when your system encounters a common hacking technique; IOBs catch new threats and are more useful for preventing ransom situations.
About Haughn & Associates
Founded by Michael Haughn in 1986, Haughn & Associates is a full-service, family-owned, independent insurance agency based out of Dublin, Ohio. H&A strives to provide the best possible price and unique insurance solutions across a myriad of industries, including construction, IT, Habitation & Commercial Property, Agriculture, and Engineering. Devoted to providing the best of business insurance, life and disability insurance, personal insurance, employee benefits, and bonds, H&A is proof that success lies in long-standing client relations and satisfaction. To learn more about how H&A can be of service to you, contact us at (877) 802-2278.
