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Not in My Backyard: NC Becomes First State to Prohibit Public Entities from Paying Ransoms

As part of the budget appropriations law enacted on November 18, 2021,[1] North Carolina became the first state in the nation to prohibit state agencies and local government entities from paying a ransom following a ransomware attack.[2]  The new law also prohibits public entities from communicating with a malicious actor following a ransomware attack.  Instead, such entities must consult with the North Carolina Department of Information Technology (the “Department”) when they experience such an attack.[3]  Passage of this law follows a sharp increase in ransomware attacks against state and local governments

Contributed by Nelson Mullins Riley & Scarborough

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