---
title: "Ransomware Attack: Why Do Organizations Need To Pay A Ransom? | Phish Protection"
description: "Ransomware Attack: Why Do Organizations Need To Pay A Ransom?: Ransomware Attack: Why Do Organizations Need To Pay A Ransom? How ransomware causing."
image: "https://phishprotection.com/images/og-default.png"
canonical: "https://phishprotection.com/ransomware-attack-why-organizations-pay-ransom/"
---

#  Ransomware Attack: Why Do Organizations Need To Pay A Ransom? 

## Ransomware Attack: Why Do Organizations Need To Pay A Ransom?

### How ransomware causing considerable emotional and financial losses to its victims.

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```
	###### [SECURITY RESOURCES](/resources/)
```

### [WHAT IS PHISHING?](/resources/what-is-phishing/)

### [PHISHING PROTECTION](/)

New Jersey Health Network tried protecting its information assets but failed to do so and had to _pay a hefty ransom to the cybercriminals_. Let’s see how it happened and the compelling scenario that made the health network lose its funds in the **ransomware attack**. By following the incident, we can learn an essential lesson and make it a point to implement the same in this digital transformation age.

To be protected from such malicious **phishing attack**s and implement [anti-phishing solutions](/), the Federal government expects the organizations to identify PII (Personally Identifiable Information) and PHI (Protected Health Information) and handle them securely. _Unauthorized exposure of these confidential and sensitive data by an individual could result in severe consequences_ for the individual as well as the governing body safeguarding the information.

_Any loss of critical information can hamper its integrity and confidentiality and make the data get into the wrong hands_. Thus, first, it is imperative to know about what PII and PHI are, their importance, and how neglecting these can result in disastrous outcomes. We will also have a glance at the countermeasures to prevent it, thus implementing **anti-phishing** steps whenever needed.

![Anti Phishing Services 1](https://media.mailhop.org/phishprotection/images/2019/01/anti-phishing-services-1.png) 

### What Are PII And PHI?

To have a fair idea, let’s look into both Personally Identifiable Information (PII) and Protected Health Information (PHI):

#### Personally Identifiable Information (PII)

Personally Identifiable Information is any data used to identify, locate, or contact any specific individual, either by itself or using other easily accessible sources.

PII can include individual data related to medical, financial, educational, or employment history. It could also consist of a name, email address, biometric data, telephone number, fingerprints, or social security number. Federal agencies _safeguard any sensitive information_, including the PII of an individual, to **prevent a hacking** attempt.

#### Protected Health Information (PHI)

_Protected Health Information is any information related to the health status_, health care provision, or health care payment, including any medical payment history or records created by an individual’s health care provider about their present, past, or future health.

Some of the vital laws about PII and PHI include HIPAA, the Privacy Act, GLBA, FERPA, COPPA, and FCRA.

![Ransomware Prevention](https://media.mailhop.org/phishprotection/images/2021/05/ransomware-prevention.png) 

### The New Jersey Health Network Ransomware Attack Incident

Reportedly, one of the most [prominent incidents](https://threatpost.com/ransomware-attack-new-jersey-largest-hospital-system/151148/) happened on the 2nd of this month, i.e., December, 2019, which _led the hackers to take undue advantage demanding a hefty ransom amount_ from the Hackensack Meridian Health, the largest hospital of New Jersey. It resulted in the disruption of its services and rescheduling of around 100 non-emergency appointments and surgeries. The organization that operates 17 acute clinics and hospitals has informed that fortunately, no patients were harmed due to the attack. However, they haven’t disclosed how much amount they paid as ransom to resume the medical systems which were intentionally locked by the adversaries.

The areas of the attack were digital information systems like scheduling and billing, labs, and radiology.

### What Countermeasures Should Have Been Taken To Prevent The Attack

_[Ransomware attacks](https://statescoop.com/ransomware-attacks-map-state-local-government/?%5F%5Fhstc=143679850.50a237f7aff1b2bbc269f7bf225d59d0.1576851132256.1576851132256.1576851132256.1&%5F%5Fhssc=143679850.1.1576851132257&%5F%5Fhsfp=472692116) start with an email containing a malicious link_, or a document which ones accessed facilitates the criminals to peek into sensitive network areas, **encrypting user data** or disabling services. The hackers assure to unlock those systems only under the condition of an exchange of payment, generally in cryptocurrency, which is called the ransom amount.

Thus, _one should never click on a skeptical link or open a suspicious attachment received from an unknown sender_. Along with this, there are three control measures to follow

#### Streamlined Operating System

_Old, outdated operating systems are highly vulnerable to cyberattacks_. For sufficient **levels of security**, it’s an excellent safeguard to _update the operating system in time to be able to remain protected from malicious attacks_.

#### Data Backup

_Have a good system data backup to avoid losing your valuable digital information resources_ in case the attackers get access to your files and ask for a ransom. A **data backup** will ensure that even if the malware gets into the system and locks your files, you can quickly restore them.

#### Update Security Patches Regularly

_Patches ensure that your system has the least security flaws_. They must be applied regularly for finding issues and fixing them in time.

Known ransomware, _WannaCry has used these security flaws in the past to spread malware throughout the network once it entered a single device_.

### Should The Organization Pay Ransom? What Are The Alternatives?

_Losing millions in a cyber warfare attack can cause significant losses to the organization’s funds_. Although the FBI never supports paying the ransomware fee, serious discussions are ongoing among organizations as to whether to pay a ransom or not to such frauds that disturb the organization’s smooth functioning. Let’s have a look at _why you should not pay them to safeguard the organization’s prestige_

#### There Are Free Alternatives

The National High Tech Crime Unit of the Netherlands’ Police takes up the ‘No More Ransom’ project to help victims of **ransomware attack** retrieve their encrypted data without paying the criminals.

#### It’s Going To Be An Endless Process

Once you pay them the demanded ransom, _criminals may presume that you will continue to pay them and will keep on targeting your enterprise_.

#### No Certainty Of Getting The Data Back

Cyberattackers do not think the way you think; they may take the money from you and, after posing a threat to your data, _may never agree to give it back_.

#### Enhancing Ransomware Network

FBI says paying ransom encourages cybercriminals to target additional organizations and may also give rise to other illicit activities.

### Final Words

The New Jersey Health Network **ransomware attack** is an excellent example from which you can learn how worst the outcomes can be and how they can lead to significant financial losses and [identity theft](/products/email-impersonation-protection/). One must be well aware of the repercussions and stay prepared by implementing the necessary safeguards in advance. _Prevention is always better than cure_.

## Protect your inbox from phishing attacks

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