Governor Signs Bill Co-Authored by Senator Patricia Bates to Combat "Ransomware"

Tuesday, September 27, 2016

Governor Jerry Brown has signed Senate Bill 1137 authored by Democratic Senator Bob Hertzberg (D-Van Nuys) and co-authored by Republican Senator Patricia Bates (R-Laguna Niguel) and others that will make “ransomware” the criminal equivalent of extortion. It will be a crime punishable by up to four years in jail.

“Today’s signing of the bipartisan anti-ransomware bill will give California law enforcement another tool to combat cyber-attacks,” said Bates. “I commend Senator Hertzberg for his leadership on addressing this issue as it shows that Democrats and Republicans can work together to make our state safer.”

Ransomware involves infecting a user’s computer with a virus that locks it until a ransom is paid. Senate Bill 1137 will define “ransomware” in state law and make it a crime to introduce it into any computer, system or network. The range of punishment (up to four years imprisonment) is equivalent to the punishment under current law for extortion.

Earlier this year, the Orange County Transportation Authority spent $660,000 to fix servers that were held for ransom by unknown hackers. In another case, Hollywood Presbyterian Medical Center paid a $17,000 ransom in bitcoin to a hacker who seized control of the hospital's computer systems and would give back access only when the money was paid. In addition, computer systems at two Southern California hospitals were held hostage by hackers after being hit with ransomware. While patient records were not compromised, such attacks have become more common and more brazen.

Last year's 2,453 reports of ransomware hackings to the FBI totaled a reported loss of $24.1 million, making up nearly one-third of the complaints over the past decade. They also represented 41 percent of the $57.6 million in reported losses since 2005.

SB 1137 is supported by TechNet, Los Angeles County District Attorney Jackie Lacey, Association of Orange County Deputy Sheriffs, California Statewide Law Enforcement Association, California State Sheriffs’ Association, California Police Chiefs Association and other organizations.