What Cyber Insurers Should Know About the Federal Ransomware Advisories
As the COVID-19 pandemic and the switch to remote work have highlighted cyber risks and drawn attention to the various methods cyber attackers are using, ransomware has continued to steal the spotlight. Just this October, the U.S. Treasury Department issued a warning that individuals or businesses, including cyber insurers, that help facilitate ransomware payments could be violating anti-money laundering and sanctions regulations. On the latest episode of the Insuring Cyber Podcast, Chief Privacy Officer Josh Mooney discusses the potential impact of the advisories issued from the Financial Crimes Enforcement Network (finCEN) and the Office of Foreign Assets Control (OFAC).
“[The advisories] are going to create potential exposures and potential costs that arguably were not there before,” said Josh Mooney, Chair of the firm’s Cyber Law and Data Protection Group. “Cyber carriers are now going to have to take a look at what are some additional liabilities out there? And are they going to run afoul with U.S. law if they honor the obligations they have under their policies to help pay for a ransom caused by a ransomware attack?”
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