{"id":1053,"date":"2020-10-15T20:10:38","date_gmt":"2020-10-16T00:10:38","guid":{"rendered":"https:\/\/www.amp.legal\/blog\/?p=1053"},"modified":"2020-10-16T09:25:34","modified_gmt":"2020-10-16T13:25:34","slug":"ransomware-payments-warning","status":"publish","type":"post","link":"https:\/\/www.amp.legal\/blog\/ransomware-payments-warning\/","title":{"rendered":"Ransomware Payments Warning"},"content":{"rendered":"\n

The U.S. Treasury Department warned that making ransomware payments could violate federal sanctions programs and anti-money laundering regulations. The warnings<\/a> appeared in two advisories issued by the Office of Foreign Assets Control (OFAC) and the Financial Crimes Enforcement Network (FinCEN).<\/p>\n\n\n\n

The OFAC advisory<\/a> focuses on the \u201csanctions risks associated with ransomware payments related to malicious cyber-enabled activities.\u201d OFAC warns that companies facilitating ransomware payments to cybercriminals encourage future ransomware payments. Importantly, a payment that a business or individual makes could risk violating OFAC regulations. <\/p>\n\n\n\n

The FinCEN advisory<\/a> addresses companies that provide services to victims of ransomware attacks and cyber insurance companies that \u201cfacilitate\u201d a ransomware payment. FinCEN warns that a ransomware payment could constitute a money transmission, which depends on the facts and circumstances of the transaction.<\/p>\n\n\n\n

Online Reliance<\/h3>\n\n\n\n

The pandemic compelled many companies to have their employees\nwork from home. As a result, these companies rely on remote desktop protocols to\nconduct business online. <\/p>\n\n\n\n

OFAC reported an increase in ransomware<\/a> payments as cybercriminals target online systems. Over the past several years, OFAC designated \u201cnumerous malicious cyber actors under its cyber-related sanctions program and other sanctions programs, including perpetrators of ransomware attacks and those who facilitate ransomware transactions.\u201d <\/p>\n\n\n\n

Sophisticated Methods<\/h3>\n\n\n\n

FinCEN warns of increasing sophistication in ransomware\noperations. Cybercriminals are deploying schemes that include:<\/p>\n\n\n\n