Bloomberg Law
May 12, 2021, 9:00 AM

Ransomware Rise Means Greater Regulatory, Legal Risk for Victims

Jake Holland
Jake Holland
Reporter

A nationwide rise in ransomware attacks that increasingly involve the theft of data on top of the locking out of systems owners means more regulatory and legal headaches for affected companies.

Exfiltrated data taken in what are known as double-extortion attacks can trigger breach reporting requirements and other types of disclosures. Such disclosures boost the chances a company would be subject to regulatory scrutiny and consumer-led litigation.

The uptick in ransomware comes amid a surge in cyberattacks, with nation-state actors targeting companies such as Microsoft Corp. and SolarWinds Corp. Colonial Pipeline Co. was hit last week in what’s said to ...

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