Choosing Security: Why Companies Should Reject Ransom Payments


With ransomware attacks reaching unprecedented levels, businesses face tough decisions when their data is held hostage. While the temptation to pay the ransom to recover data quickly is strong, this approach poses significant risks and ethical dilemmas.

One of these dilemmas is that victims may fuel cybercriminal activities by paying ransoms, empowering criminal networks, and perpetuating attacks globally. Also, legal risks loom large, as payments may violate regulations and support criminal enterprises, potentially leading to sanctions.

Experts encourage robust preventive measures, such as comprehensive backup systems, enhanced cybersecurity solutions, and professional incident response plans, to mitigate ransomware risks effectively.

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.

  1. 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.

  1. 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.

Beyond immediate financial and operational impacts, ransom payments can have long-term consequences for an organization. When companies comply with ransom demands, they contribute to normalizing extortion as an acceptable business practice. This normalization can erode trust and credibility among stakeholders, including customers, partners, and investors, who may view the decision as failing to uphold ethical standards and a sign of vulnerability. Over time, this can damage the organization’s reputation and undermine its competitive position in the market.

Proactive cybersecurity measures

Implementing strategies such as regular security audits, employee training, and robust backup, among other strategies, are crucial steps in defending against these relentless threats. By taking these measures, businesses can protect their assets and maintain their stakeholders’ trust and confidence in an ever-evolving cyber landscape.

Regular security audits and assessments

Regular security audits involve systematically reviewing and evaluating an organization’s IT infrastructure to identify vulnerabilities and weaknesses that could be exploited by cybercriminals.

Organizations can detect potential threats early by conducting regular security assessments, implementing necessary patches, and updating security protocols to mitigate risks.

Employee training and awareness

Since human error is often a significant factor in successful cyberattacks, educating employees about security best practices can significantly reduce this risk.

Comprehensive training programs should cover topics such as recognizing phishing attempts, safe internet usage, password management, and the importance of reporting suspicious activities.

Creating a culture of cybersecurity awareness encourages vigilance and proactive behavior, making employees the first line of defense against potential breaches.

Backup strategy

Organizations should implement a comprehensive backup strategy that includes regular, automated backups of all critical data and systems. These backups should be stored in secure, off-site locations to protect them from being compromised during attacks. To enhance data security, adopt the 3-2-1 backup strategy—three copies in two devices with one stored offsite.

Effective backup and recovery plans ensure business continuity by enabling organizations to resume operations with minimal downtime and data loss.

Incident response plan

An incident response plan outlines the steps an organization should take in the event of a security breach, from initial detection and containment to eradication, recovery, and post-incident analysis.

A well-defined incident response plan includes roles and responsibilities, communication protocols, and procedures for documenting and analyzing incidents.

Regularly updating and testing the plan through simulations and drills ensures the response team is prepared to act swiftly and effectively in a real incident.

Engage with cybersecurity experts

Cybersecurity experts can conduct thorough assessments, identify vulnerabilities, and recommend tailored security solutions. They offer insights into the latest threat intelligence and emerging attack vectors, helping organizations stay ahead of cybercriminals.

Collaborating with external experts ensures that organizations benefit from a broader perspective and expertise that may not be available in-house. Additionally, experts can assist in developing and implementing comprehensive cybersecurity strategies, conducting employee training, and responding to incidents.

About the Author

Bogdan Glushko is the Chief Information Officer of Proven Data. Glushko actively leverages his years of experience restoring thousands of critical systems after incidents. Glushko is a trusted voice guiding organizations on resilient data strategies, ransomware response protocols, and mitigating evolving cyber threats. Through proven leadership, he continues delivering cutting-edge data preservation and recovery solutions that fortify business resilience against breaches, outages, and data loss from modern cyber attacks.

Bogdan Glushko can be reached online at https://www.linkedin.com/in/donglushko/ or via [email protected], and at our company website https://www.provendata.com/.



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