My business's systems were hit by ransomware, what are my legal obligations and options?

Question

Our company's servers were encrypted by ransomware and attackers are demanding payment in crypto. What I am unsure about is the procedure — where the application goes, what it costs, and how long ransomware matters usually take. A plain explanation of the steps, in order, would help more than a general answer.

MyVakeel Legal Desk · Accepted Answer

The law that applies to ransomware here is Information Technology Act, 2000 – Section 66, Information Technology Act, 2000 – Section 43, Digital Personal Data Protection Act, 2023 – Section 8(6) and CERT-In Directions, 2022. The detail below matters, because Information Technology Act, 2000 – Section 66 draws the line differently depending on what your documents show.

Under the CERT-In Directions of April 2022, ransomware attacks must be reported to CERT-In within 6 hours of noticing the incident, regardless of severity — this is mandatory, not optional, for all body corporates.

Section 66 of the IT Act covers the attacker's conduct (unauthorised access, data destruction/encryption) with imprisonment up to 3 years or fine up to Rs 5 lakh, and Section 43 provides for civil compensation for the damage caused.

If personal data of customers/employees was compromised, Section 8(6) of the DPDP Act, 2023 requires you to notify the Data Protection Board and the affected individuals of the breach without undue delay.

Paying the ransom is not illegal per se but is strongly discouraged by CERT-In and law enforcement since it funds further crime and does not guarantee decryption; document any payment for insurance/investigation purposes if made under advice.

Maintain logs and a forensic image of affected systems before remediation, as this evidence is essential both for the CERT-In report and for any cyber-insurance claim.

What this means for you: 1) Isolate affected systems immediately to stop the spread; 2) Report to CERT-In within 6 hours as mandated; 3) File a police complaint at the cyber cell and cybercrime.gov.in; 4) Notify affected data subjects and the Data Protection Board if personal data is involved.

Where the facts are disputed, what usually decides a ransomware matter is the paper trail — dated complaints, acknowledgments and written replies under Information Technology Act, 2000 – Section 66. You can post the details on the MyVakeel forum for a practising advocate to review, or book a paid consultation with a Bar Council verified lawyer in cyber law.