Ransomware – A New Internet Crime in California
In February 2016, a computer hacker was able to seize control of the computer system at Hollywood Presbyterian Medical Center. This prevented the hospital from accessing its own data. It wasn’t a prank. The hacker demanded ransom in the form of “bitcoins.” Bitcoin is a new currency created about 8 years ago. They can be used to buy merchandise anonymously, are not subject to regulation, and there are no banks or other middle men involved in bitcoin transactions.
The medical center initially tried to handle the situation on its own. They paid the bitcoin equivalent of $17,000 to the hacker in order to obtain the “key” codes to reopen the system. After paying the ransom, they notified law enforcement of the problem. Eventually, the hospital was able to regain control over its computer system.
What is Ransomware?
Ransomware is a relatively new problem. There are different types of ransomware. It can stop you from accessing your operating system, encrypt files so that you cannot access the data, and stop some applications from running. The essence of ransomware is the demand for money to get back control of your PC, your files, and/or your system. Ransomware can target an individual PC, a business network, and even servers used by the government.
Is Using Ransomware a Crime?
Until late last year, the use of ransomware was not, in and of itself, a crime. That does not mean that events such as the hack at Hollywood Presbyterian were legal. But the prosecutions were based upon existing laws prohibiting computer hacking, extortion, and in some cases money laundering.
Last year, however, the California legislature focused specifically on ransomware, which has become a common problem worldwide. The state Senate passed SB 1137, which was signed into law (now codified at Penal Code section 523) by Governor Jerry Brown in September 2016. The new law defines ransomware, and states that its introduction into any computer, computer system or computer network, with intent to extort money or other consideration, is a felony punishable by 2, 3 or 4 years in prison. The new law, simply stated, makes using ransomware, in and of itself, a crime.
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David P. Shapiro, the managing partner and founder of a leading San Diego criminal defense firm, is driven by an unwavering commitment to providing the best possible representation to his clients facing criminal charges. With a deep understanding of the fear, uncertainty, and concern for one’s future that his clients experience, David approaches each case with empathy and dedication, advocating tirelessly for their rights and freedoms.
Focused on complex and high-stakes cases, David handles a wide range of serious charges, including felonies, violent crimes, sex crimes, drug offenses, and white-collar crimes. Since establishing his practice in 2010, David has earned a reputation as one of San Diego’s most respected criminal defense attorneys.
His firm has been recognized by LawFirm500 as one of the nation’s fastest-growing law firms and was a 2022 Better Business Bureau Torch Award for Ethics Winner. The San Diego Business Journal named David’s firm the 17th Fastest Growing Private Company in San Diego from 2019-2021 and recognized David as one of San Diego’s 500 Most Influential People in 2022. With a strong dedication to his clients and community, David continues to be a driving force in the San Diego legal landscape.
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