Government Should Incentivize Information Sharing for Ransomware Attacks, Experts Say
‘Information sharing between the government and the private sector, while integral to tackling ransomware, is inconsistent.’
WASHINGTON, July 27, 2022 – The federal government should incentivize the reporting of cyberattacks through safe harbor and shield laws, said experts at an Atlantic Council event Tuesday, as a recent law requiring companies in critical infrastructure sectors to report such attacks to the federal government is limited and currently unclear on who exactly it impacts.
The Cyber Incident Reporting for Critical Infrastructure Act passed in March does not cover private companies who do not operate in the critical infrastructure sectors and does not include safe harbor and shield laws that would encourage private companies to engage in the process.
Oftentimes, companies will avoid interacting with law enforcement to avoid the stigma associated with being a victim of a cyberattack and out of fear of being held liable by regulators and investors, said Trent Teyema, senior fellow at technology policy university collaborative GeoTech Center.
Teyema called for a safe harbor framework, a law that provides protection against legal liability when other conditions are met. Such a provision would decrease the risk of companies being held liable for cyberattacks from regulators, investors, and the public.
He also called for shield laws that would protect against revealing certain information to the government as a requirement for receiving law enforcement assistance.
The government needs to make it easy for the private sector to share information with law enforcement, said Teyema.
“Information sharing between the government and the private sector, while integral to tackling ransomware, is inconsistent,” read a report written by Teyema and David Bray, fellow at GeoTech Center. Information sharing across sectors allows cybersecurity experts in both sectors to learn about new vulnerabilities in software and new attack vectors. It strengthens collective resiliency and can influence the processes used to anticipate and respond to threats, continued the report.
Ransomware on the rise
Ransomware attacks in which bad actors demand money to release encrypted data are increasing dramatically, reported the White House last year. Ransomware incidents often disrupt critical services, such as banks, hospitals and schools that require constant access to data. In 2021, there was approximately $20 billion in damages from ransomware attacks in the United States, with $11 billion in 2020 and $5 billion the year before, said Bray.
This follows on the heels of the 2021 Colonial Pipeline hack that targeted the billing system and led to the shutdown of the largest fuel pipeline in the United States. The Russian-speaking cybercrime group responsible, DarkSide, received $4.4 million in ransom from Colonial, part of which was later recovered by the United States law enforcement.
Research firm Cybersecurity Ventures predicts that there will be a ransomware attack every two seconds by the year 2031 with global costs exceeding $265 billion.
