Nihon Cyber Defence

The Ransomware Dilemma: Regulation, Reporting, and the Road Ahead

Why ransomware regulations fall short—and why a smarter, more flexible approach is needed

A security analyst monitors three screens showing a "System Hacked" alert after a ransomware attack in a corporate environment.

Ransomware: An Old Crime with a New Twist

Extortion is one of the oldest crimes: threaten harm, demand payment, repeat. The digital world just made it easier, from webcam blackmail to DDoS extortion. But for businesses, ransomware is the real disaster, bringing both predictable and unexpected impact.

Responses have been mixed. The public sector leans on Active Cyber Defence (ACD), while private companies rely on UK’s Cyber Essentials. Yet, attacks still break through. Law enforcement frustrates criminals but rarely stops them. Sanctions? Criminals regularly dodge them with ease.

Regulations keep piling up, adding financial penalties to an already painful ordeal. Now, the UK Government is considering mandatory ransomware reporting and banning ransom payments for critical sectors. This debate has dragged on for years, but without fixing the gaps, neither solution will work.

The Problem with Ransomware Reporting and Payment Bans

If we’re going to mandate cyber attack reporting, we need a system that actually works. The UK’s Action Fraud has had its fair share of critics, and fixing it won’t be cheap. It’s not just about tallying stats, victims need real support. When you call emergency services, you expect help—right now, that’s not something this system can deliver. Forcing reporting goes against Peel’s policing principles, which rely on public cooperation, not penalising victims. And as for the legal quagmire? Let’s save that headache for another day.

“Sometimes paying is the only viable option”

Now, onto banning ransom payments (read: criminalising them). Public funds can’t be used for ransoms, which makes sense. Governments have backup plans. But the private sector is not so lucky. In extortion, the goal is survival, to minimise damage, recover, and move on. Sometimes, paying is the only viable option. We hate it, but when all else fails, it can save the day. Yes, criminals are unreliable, and yes, it might not work—but—with the right intelligence and support, it sometimes does. We track payments, share intel, and chase them down. Hopefully, one day, we’ll catch them. Until then, we need every option on the table.

To live, to survive, to recover ... to fight another day

I started this blog by demonising the efforts of the agencies, and this was deliberate. Not to highlight inefficiencies, but to emphasise that these initiatives, when working together, not in isolation, are making a difference. They reduce risk, raise awareness, and protect organisations. Of course, we need more, but they need to be the right initiatives. We all have a role to play in defeating ransomware, or whatever the next cyber nightmare will be.

The UK Government’s consultation will be an interesting test of that. But whatever the outcome, Nihon Cyber Defence is here to help organisations prepare, respond, and recover. Whether it’s proactive security, incident response, or cyber resilience planning, we provide the intelligence and expertise to keep your business secure. The threats aren’t slowing down, but with the right strategy, neither are we.

Incident Response & Five-Strand Methodology​

NCD’s comprehensive multi-strand response methodology for technical, communication, mitigation, and resolution efforts in parallel.

Incident Response & Five-Strand Methodology​
Dougie Grant - Executive Director
Dougie Grant

Executive Director and Head of Global Incident Management @ Nihon Cyber Defence

With 30 years’ experience in law enforcement and the UK’s NCSC, Grant leads NCD’s global cyber incident management and response.

Edit Template

More from NCD​

Susumu Toriumi Appointed COO of Nihon Cyber Defence

NCD appoints Susumu Toriumi as Chief Operating Officer to lead growth and scale Japan-built cyber defence solutions across critical infrastructure...

Why Software Is Reshaping Global Warfare

Software is redefining national defence. Explore how Japan, the US, and allies are adapting to software-defined warfare and cyber security leadership...

UNC3944: What Business Leaders Need to Know

UNC3944 is not traditional ransomware. Learn how critical sectors can prepare for persistent access, real-time disruption, and identity-based attacks...

Robert Stevenson Appointed CRO of Nihon Cyber Defence

Robert Stevenson joins Nihon Cyber Defence as Chief Revenue Officer, bringing decades of experience in cyber security, OT, and enterprise tech in Japan...

What Cyber Leaders Need to Know About RansomHub’s Collapse and the Ransomware Cartel Model

Learn how RansomHub’s collapse signals a shift to ransomware cartel models. NCD CTO Toshio Nawa explains what Japanese cyber leaders must know to defend critical sectors...

John Moore Appointed CFO of Nihon Cyber Defence

Nihon Cyber Defence names John Moore as CFO to guide financial strategy and scalable growth. Moore brings over 20 years of leadership experience across Japan, APAC, and global markets, strengthening...

China’s APT Threats to Japan’s Critical Infrastructure

China-linked APT groups—Salt, Volt, and Silk Typhoon—are reshaping cyber warfare. Learn how these threats target Japan’s critical infrastructure and how to respond effectively...

Empowering the Next Generation of Cyber Security Talent

NCD joined the Empower Girls event in Belfast, inspiring 600 young girls to explore careers in cyber security through hands-on learning and role models...

Nihon Cyber Defence and Netcraft Strategic Partnership

NCD and Netcraft are teaming up to deliver real-time phishing detection and takedown in Japan. Learn how this partnership boosts national cyber resilience...
Edit Template