British jeweler Sued its insurer for not covering a $7.5 Million bitcoin ransom payment. To prevent the publication of sensitive customer information, the hacker was paid by the jeweler.
Insurance Company Sued for Not Covering Bitcoin Ransom Payment
Bloomberg last week reported that Graff is a British luxury jeweler who sued The Travelers Companies because it refused to pay a ransom for bitcoin payments.
The jeweler paid a bitcoin ransom of $7.5 million to the Russian hacking gang Conti after the group threatened to leak data of the company’s big clients, including Middle East royalty. Graff worked with hackers to negotiate the ransom amount and was able to lower it from $15 millions.
Graff was attacked last September by Conti, who leaked details about Saudi Arabian royal families and Qatari citizens. The hackers apologized to the families but said that they may need to leak more of Graff’s data.
“Our goal is to publish as much of Graff’s information as possible regarding the financial declarations made by the US-UK-EU neo-liberal plutocracy, which engages in obnoxiously expensive purchases when their nations are crumbling under economic duress,” the hacking group reportedly said.
Although authorities discourage ransom payment from individuals or businesses, it is possible to pay them in some circumstances. This is especially true when ransom is not required.
Insurers offer policies for cyber insurance that can cover ransom payment. Experts warn that insurance companies are funding organized crime through ransom payments.
Ciaran Martin, the founding CEO of the British National Cyber Security Centre (NCSC), explained last year that “People are paying bitcoin to criminals and claiming back cash.” He stressed: “I see this as so avoidable. Companies are currently tempted to give ransoms in order to ensure that this happens. You have to look seriously about changing the law on insurance and banning these payments, or at the very least, having a major consultation with the industry.”
Regarding Graff’s ransom payment, a company spokesperson said: “The criminals threatened targeted publication of our customers’ private purchases. We were determined to take all possible steps to protect their interests and so negotiated a payment which successfully neutralized that threat.”
This is what the jewelry company has added
We are extremely frustrated and disappointed by Travelers’ attempt to avoid settlement of this insured risk. We have no other choice but to sue Travelers for this recovery.
Are you a believer that insurance companies should be able to cover ransom payments for bitcoin? Please comment below.
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