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Silver Lining for Ransomware Victims: Payments May be Tax Deductible

Image of "laundered" cash.

A silver lining for ransomware victims: payments may be tax deductible.

Credit: Computing (U.K.)

The rising number and severity of ransomware attacks has made 'to pay or not to pay' an impossible dilemma in most cases. But an investigation by The Associated Press has revealed that payments may not hold quite the sting they used to.

Last year, the FBI issued a public service announcement advising organisations on how to handle ransom demands.

The main advice is not to pay, and instead report the incident as early as possible. The agency also warned that paying ransoms only funds criminals' efforts.

However, while the FBI has been advising against paying ransoms, experts have drawn attention to the fact that the US government itself offers a little-known incentive that could swing the decision in the other direction.

According to The Associated Press (AP), a business in the US can normally claim tax deduction on ransoms.


From Computing (U.K.)
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