White House CIO slams Cyber Insurance Companies for encouraging ransomware

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Theresa Payton, the EX CIO of White House has slammed Cyber Insurance companies for encouraging customers in bowing down to the demands of hackers and making the victims pay the ransom in exchange for a decryption key.

“I am increasingly concerned on the practice followed by the insurance companies and would like the white house take charge of the situation,” said Theresa Payton.

Speaking on the same at the CloudSec 2019 in London, Payton recommended victim companies to follow the FBI playbook and not pay the ransom which encourages the cybercrime even further.

As data recovery through backups is proving expensive, cyber insurance companies are encouraging their clients in paying up the demanded ransom as it is pitched slightly lower in cost. However, the practice not only encourages crime but also doesn’t assure a decryption key in return for sure, added the former White House CIO and Security Authority.

During the conference, Payton also stressed on a fact that a cyber insurance company which covered most of the ransomware attacked Texas counties were trying to negotiate a deal between the county’s IT staff and the hackers. When they approached Ms. Payton, she learned that the insurance firm wanted its client to listen to its advice or lose future payout.

Note- Over 23 Texas Municipalities became a target to a string of ransomware attacks launched on US state infrastructure on a recent note. The law enforcement suspects that the cyber attack could be the work of an adversary which either wanted to divert the attention of the Fed or was intending to make a start-point for a bigger digital conspiracy.