Australia consider banning ransoms to hackers

Australia is considering banning the paying of ransoms to cyber hackers following some high-profile cyber attacks against Australians.

Australia's biggest health insurer, Medibank Private Ltd was hit last month by a massive cyber attack. Optus, Australia's second largest telco, was also attacked.

Asked whether the government planned to look at outlawing ransom payments to cyber criminals, Home Affairs Minister Clare O'Neil told ABC television: "That's correct".

"We will do that in the context of ... cyber strategy," she added.

On Saturday, O'Neil formalised a new cyber-policing model between the Australian Federal Police (AFP) and the Australian Signals Directorate to hunt down cybercriminals. Around 100 officers would be part of the new partnership between the two federal agencies.

The idea of a ban on ransom payments generally doesn't go down well with the insurance industry. 

Last year the Australian government announced that it "does not condone" ransom payments, but stopped short of actually making them illegal.

The Geneva Association, a think tank, surveyed cyber insurers and reinsurers and found that most thought a ban on ransom payments would make attacks at least a little less common. But they also considered it a 'blunt instrument' that might have unintended consequences, including making it more difficult collate data about attacks, and reducing the appeal of insurance (which as an industry works to improve cybersecurity).