2020-2021 — the hits just keep on coming. It started with a proliferation in ransomware attacks, featuring encryption, double extortion, and more. Then, a warning to victims and their advisors from the Department of Treasury’s Office of Foreign Assets Control that payments to banned hackers can result in sanctions to the victims and those that help them to recover. Facing systemic risk from the ransomware pandemic, cyber insurers are cutting back coverage or fleeing the market altogether. This program will provide an overview of OFAC’s Advisory on Potential Sanctions Risks for Facilitating Ransomware Payments, including (i) who the guidance applies to, (ii) what the guidance tells us (and what it does not), and (iii) the steps companies and other stakeholders should take in advance of a potential ransomware event to best position themselves for compliance with the OFAC’s cyber sanctions regulations and the advisory. It will also address changes in the cyber insurance market for ransomware coverage, including how best to proactively maximize coverage in the face of a seller’s market.
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