Lawmaker Tries to Outlaw Ransomware used to Attack Hollywood Hospital

Hollywood, CA - State legislation authored by a legislator from the San Fernando Valley to outlaw ransomware is drawing broad support from tech leaders and lawmakers, spurred by an uptick in that type of cybercrime and a series of recent attacks on hospitals in Southern California, it was reported today.

It was a ransomware attack that prompted Hollywood Presbyterian Medical Center to pay a $17,000 ransom to regain control of its computer systems in February.

The bill, authored by state Sen. Bob Hertzberg, D-Van Nuys, would update the state’s penal code, making it a felony to knowingly use ransomware, a type of malware or intrusive software that is injected into a computer or network and allows a hacker to hold data hostage until money is paid, the Los Angeles Times reported.

Ransomware has become a lucrative industry over the last three years, affecting schools, police departments and healthcare businesses. Trojans that work like viruses, such as CryptoLocker, which began appearing in 2013, can be unleashed by users with few technical skills and reel in profits, according to The Times.

Proponents say the proposed ransomware law is the right step to counter attacks difficult to prosecute under existing statutes that are not tailored to combat computer crime. But some question just who will get caught in the dragnet, as such incidents are tough to trace and culprits are often overseas, The Times reported.

Victims nationwide lost more than $209 million in ransomware payments in the first three months of 2016 alone, compared with $25 million in all of 2015, according to the FBI. But no arrests were made.

Nor were arrests made in more than half a dozen of ransomware incidents investigated by the Cyber Investigation Response Team of the Los Angeles County district attorney’s office, which is a co-sponsor of the bill. Prosecutor Don Hoffman, head of the division, said authorities were not able to prove who was responsible, according to The Times. He supports the proposed law.

City News Service; Photo: Shutterstock