(Financial News) – New York State Senators have drafted a bill prohibiting the payment of taxpayer money to hackers who spread ransomware viruses and demand cryptocurrency ransom.

Hackers are increasingly breaking into the IT infrastructures of large cities, as often their security level is far from ideal. However, New York state senators want to ban ransomware payments from the city budget and tax revenues.


New Bill S7246, introduced by New York Senator Phil Boyle, proposes restricting government access to funds to meet the demands of attackers in cities with less than a million inhabitants.

In addition, a second bill, S7289, was proposed by State Senator David Carlucci. This bill will allow the creation of funds to update the country’s outdated cybersecurity infrastructure and make local and state systems less vulnerable to ransomware attacks.

Bills S7246 and S7289 are directed primarily against hackers spreading ransomware viruses

Both of these bills are directed primarily against hackers spreading ransomware viruses. Once in the information system of a city or a separate company, these viruses encrypt data on all computers and access to them again can be obtained only by paying a ransom, which hackers usually require in cryptocurrencies.

Cities around the world are facing similar attacks. Recall that in October, hackers hacked the site of Johannesburg, the largest city in the Republic of South Africa and the capital of the province of Gauteng. The attackers demanded a ransom in bitcoins from the authorities, but the city administration refused to pay hackers.

In the same month, online operations in the Spanish city of Jerez de la Frontera were suspended as a result of an attack by hackers who demanded a ransom in bitcoins for unlocking the city’s computer systems.

In addition, in June last year, the authorities of the American city of Lake City paid ransomware in the amount of 42 BTC, and a little earlier the administration of the city of Riviera Beach paid a ransom in the amount of 65 BTC to unknown hackers who managed to take control of the computer system of the city.