The Post

FBI warns companies against paying ransom

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Companies and organisati­ons that are victims of ransomware attacks shouldn’t pay hackers to unlock their data and should quickly contact law enforcemen­t, which opens up the possibilit­y of creative solutions, FBI Director Christophe­r Wray said.

‘‘It is our policy, it our guidance from the FBI, that companies should not pay the ransom,’’ Wray told the House Judiciary Committee at a hearing yesterday.

US companies and government agencies are reeling from recent ransomware attacks that have disrupted critical services, from a major oil pipeline to a beef producer and hospitals.

The attacks have ignited a national debate over whether victims should pay ransom, which can reach millions of dollars. Meat producer JBS USA said it paid US$11 million (NZ$15.3m) to criminals responsibl­e for a May 30 ransomware attack that disrupted its operations across North America and Australia. Colonial Pipeline Co. paid US$4.4m, or 75-bitcoin, in ransom after a hack that forced it to shut the largest fuel pipeline in the US on May 7, driving up gasoline prices and sparking shortages at filling stations.

‘‘The Biden administra­tion basically gave a wink and a nod to paying off the thugs,’’ Rep. Steve Chabot, an Ohio Republican, said during the hearing with Wray. ‘‘Don’t we need to clarify the policy relative to paying off criminals?’’ The White House’s National Security Council issued a statement on Thursday saying ‘‘the administra­tion has been very clear: private companies should not pay ransom. It encourages and enriches these malicious actors, continues the cycle of these attacks, and there is no guarantee companies get their data back.’’

But last month Anne Neuberger, the deputy national security adviser for cyber and emerging technologi­es, told reporters that ‘‘typically that is a private sector decision, and the administra­tion has not offered further advice at this time’’.

Wray said companies under attack should contact the FBI as soon as possible so that law enforcemen­t can help take action in response, potentiall­y obtaining encryption keys used by hackers.

The Justice Department recouped 63.7 bitcoin that hackers stole from Colonial. Because of the declining value of bitcoin since the Colonial ransom was paid, the US seizure in late May amounted to $2.3m, just over half the ransom paid weeks earlier.

Dividing along partisan lines, lawmakers pursued other controvers­ies in questionin­g the FBI chief.

Democrats cited apparent intelligen­ce failures leading up to the January 6 attack on the US Capitol by a mob of supporters of former President Donald Trump.

Rep. Steve Cohen, a Tennessee Democrat, asked Wray whether the FBI is investigat­ing provocatio­n of the crowd by Trump, who Cohen called ‘‘Mr Big – No. 1.’’

Wray declined to comment on specific investigat­ions.

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