Sunday, February 5 2023

The European Council extended a framework that penalizes cyber-attacks against EU or member countries for another year. The framework, part of the EU cyber diplomacy toolbox, aims to strengthen Europe’s resilience against cyber threats.

The measures include travel restrictions and freezing assets of individuals or entities responsible for facilitation of cyberattacks. The sanctions currently apply to Russian, Chinese, and North Korean individuals and entities, although the framework is important for all organizations because parties beyond the cyber attackers can be penalized.

In a recent blog post, Steptoe & Johnson LLP warned companies facing ransomware payment requests to consider the framework. Despite attribution challenges, “payment to listed persons amount to a violation of sanctions regime.” Financial institutions and insurance companies are similarly affected by facilitating payments or providing cyber coverage that includes ransom payments.

Indeed, in the start of what could be a trend, global insurer AXA said earlier this month that it would no longer issue cyber-insurance policies in France that reimburse customers for ransomware payments to criminal groups.

The EU framework is part of a regulatory trend towards increased scrutiny of ransomware payments. The Biden administration’s Executive Order “sets the stage for an uptick in similar actions” in the US, said Alex Sharpe, principal at Sharpe Management Consulting.

While certainly “a step in the right direction,” the Executive Order does not go far enough, according to XPAN Law Partners managing partner Rebecca L. Rakoski. US domestic organizations face a “patchwork of guidelines and standards without clear guidance” from the Federal Government, she stated.

Considering the current lack of clear, substantial legislative and regulatory frameworks, legal ambiguities, and competing interests, the world finds itself at a crossroads. Until fundamental changes are made to legislative and regulatory frameworks, we remain at an “uncomfortable time,” said Sharpe.

Previous

US Infrastructure Plan Includes Billions for Cybersecurity Improvements

Next

Third-Party Cloud Service Misuse Exposes Over 100M Users’ Data

Check Also

Widget

Don’t Miss

Cyber Executive Moves: Appgate, Trellix, Rubrik

Julia Bischoff

Appgate appoints a new CEO, Trellix hires loanDepot’s CISO, SANS Institute taps new CISO director. Secure access solutions provider Appgate appointed Leo Taddeo as chief executive officer and president. Taddeo stepped into the new role after serving as Appgate’s chief information security officer since February of 2022. The SANS Institute, a cybersecurity training company, appointed […]

Cyber Deals: Drata, Field Effect investments, and Veracode acquisition

Julia Bischoff

Cybersecurity venture funding and merger activity: This week’s largest deals were MDR and security automation investments, as MSP consolidation continues to attract corporate buyers. Funding Cork, Ireland-based, data encryption company Valutree acquired $12.8 million in their series A funding round, led by investors Molten Ventures and Ten Eleven Ventures. Funds will be used to expand […]

Cyber Deals: Spin Technology, CyberArk, Mesh Security

James Hu

Cybersecurity Venture Funding and Mergers: This week’s deals involved cloud security services, data privacy, and industrial cybersecurity companies. Funding Cloud cybersecurity firm Mesh Security has secured $4.5 million in venture funding. The round was led by Booster Ventures with participation from other investors. Spin Technology, a firm providing SaaS security solutions, raised $16 million in […]

Cyber Deals: Cybrary, Ping Identity, Axio Global

James Hu

Cybersecurity Venture Funding and Mergers: Key investments were made in cybersecurity training, secure enterprise browser, and risk management companies. M&A activity this week involved identity security, zero trust, and threat intelligence firms. Funding Cybrary, a cybersecurity training platform, raised $25 million in a Series C funding round. The round was led by BuildGroup and Gula […]

Cybrary Secures $25 Million in Series C Funding Round

James Hu

Cybrary, a Maryland-based cybersecurity training platform provider, raised $25 million in a Series C funding round. The round was led by BuildGroup and Gula Tech Adventures, two of its current investors. Following its $15 million Series B round announced in November 2019, this latest investment brings Cybrary’s total funding to date to $48 million. Cybrary […]

Cyber Deals: Exterro, Naoris Protocol, Cybit Sec

James Hu

Cybersecurity Venture Funding and Mergers: This week, notable funding and M&A activity involved compliance, enterprise security, and vulnerability assessment firms. Funding Exterro, a legal governance, risk, and compliance software provider, completed a strategic recapitalization valuing the firm at over $1 billion. The company, currently owned by Leeds Equity Partners, is targeting a potential 2023 initial […]