(Des Moines) U.S. Representative Zach Nunn (IA-03) introduced bipartisan legislation to require coordination between federal agencies and private companies to prevent ransomware attacks. The Public and Private Sector Ransomware Response Coordination Act, which is co-led by U.S. Representative Josh Gottheimer (NJ-05), will establish private-public partnerships to avert and recover from the rapid increase in ransomware attacks on U.S. financial institutions.
“Our country is in a better position when all companies stand firm against ransomware hostage-taking. We can strengthen our position by deterring these attacks, which have cost American businesses more than $1 billion in bounties over the last year,” said Rep. Nunn. “When I was working on the White House’s National Security Council, I witnessed firsthand how important it is to prioritize cybersecurity. As we continue to work towards preventing these attacks, private-public partnerships are key.”
Unfortunately, the frequency of ransomware attacks increased by 74% according to the U.S. Director of National Intelligence, in part due to the high reward for criminal hackers. On average, a ransomware attack costs a company nearly $5 million.
“Ransomware attacks are incredibly costly — and increasingly common. As a member of both the House Permanent Select Committee on Intelligence and the Financial Services Committee, I understand the dual security-economic risk that these attacks pose. We must develop a coordinated approach to prevent ransomware attacks and respond when they happen,” said Rep. Gottheimer. “That’s why I’m proud to lead the Public and Private Sector Ransomware Response Coordination Act with Congressman Zach Nunn. This timely, bipartisan legislation will bring the U.S. Department of Treasury and private sector experts together to develop a game plan that can reduce these critical attacks.”
In January 2024, the Cybersecurity and Infrastructure Security Agency (CISA) and the Federal Bureau of Investigation (FBI) emphasized the risks associated with evolving threats related to ransomware that disrupt critical infrastructure. In response, CISA and the FBI urged both public and private entities to implement cybersecurity defenses, conduct regular system backups, and enhance incident response plans.
The Public and Private Sector Ransomware Response Coordination Act will bolster national cybersecurity by requiring the U.S. Secretary of the Treasury to create a plan to improve threat detection, information sharing, response, and threat suppression of ransomware attacks on financial institutions.
