Payouts from insurance policies may fuel ransomware attacks

CHICAGO — Some cybersecurity professionals are concerned that insurance policies designed to limit the damage of ransomware attacks might actually be encouraging hackers.

Hackers use the attacks to lock up critical data and demand a ransom to get it back. Experts say the hackers know that insurers are paying increasingly large ransoms. And that invites attackers to target the type of institutions most likely to have coverage.

This year alone, the average ransom payment climbed from almost $12,800 at the end of March to nearly $36,300 by the end of June.

It’s difficult to know how often victims give in to the demands, but one study found that companies with insurance were more likely to pay hackers. Insurers say victims are in control of whether a ransom is paid.

Kathleen Foody, The Associated Press