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

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

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.