The UK Government is set to introduce legislation that will ban public bodies from paying ransoms to hackers in the event of a cyberattack. At the same time, the intention is that private companies will be required to notify authorities if they intend to meet ransom demands. These measures form part of a broader effort to combat the growing threat of ransomware attacks, which have disrupted critical services and caused significant financial and reputational harm to organisations across the UK.

Public bodies, including local councils, NHS trusts, and educational institutions, are frequent targets of ransomware attacks due to the critical nature of their services and the sensitive data they hold. Public bodies will need to consider the possibility of the following if these proposals come into effect:

• The need for enhanced cybersecurity preparedness: Public bodies will need to invest more heavily in preventative measures, such as robust cybersecurity systems, regular staff training, and incident response planning. This shift will aim to reduce the likelihood of attacks and minimise disruption when attacks occur.
• The potential for operational disruption: Without the option to pay ransoms, public bodies may face prolonged service outages if attacked. This could have serious consequences for communities relying on essential services, such as healthcare or social care.
• Increased Pressure to Report Incidents: Public bodies will need to ensure they have a culture of transparency and promptly report attacks to authorities. This will help centralise data on ransomware activity, enabling the government to better understand and respond to emerging threats.

Under the proposals, private companies would be required to notify the government of an intention to pay a ransom and may, in return, receive advice and support including guidance on whether paying could breach sanctions. Private companies will also need to consider the resilience of their systems but also: 

• The need for regulatory compliance: Companies will need to establish clear internal protocols to ensure compliance with the notification requirement as failure to report might lead to regulatory penalties and reputational damage.
• The impact on reputational risks: Disclosing plans to pay ransoms may expose companies to public scrutiny, potentially harming their brand image and stakeholder confidence.

The UK Government’s proposed measures signal a decisive shift in its approach to tackling ransomware attacks. While these changes aim to disrupt the business model of cybercriminals, they will also place significant responsibility on public bodies and private companies to enhance their cybersecurity defences and adopt transparent reporting practices. Whilst this is just a proposal at this stage, it's never a bad time for such organisations to review their cybersecurity strategies and make sure that they have resilient systems in place and an effective response plan in the event of a cyber incident. 

https://www.gov.uk/government/news/uk-to-lead-crackdown-on-cyber-criminals-with-ransomware-measures