U.S. Treasury warns cyber insurers payments to hackers may violate sanctions

By Suzanne Barlyn
(Reuters) - Cyber insurers and other financial institutions that facilitate payments to hackers to end cyberattacks risk running afoul of sanctions rules, the U.S. Treasury Department warned on Thursday.
The warnings, which referenced malicious programs known as ransomware, came in advisories from Treasury's Office of Foreign Assets Control (OFAC)and Financial Crimes Enforcement Network (FinCEN).
Hackers use ransomware to take down systems that control everything from hospital billing to manufacturing. They stop only after receiving hefty payments, typically paid in cryptocurrency.
The warnings add another layer of concern for cyber insurers, who have been ramping up rates and trying to curb exposure to vulnerable customers because of surging costly ransomware claims in recent years.
Cyber policies often cover ...


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