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PTFM? Is It Legal to Pay the Hacker? Canvas, Uber and the Criminal Law of Cyber Extortion

ID: 845bf525-5692-57e6-bc49-ba29610a26d8

STIX ID: report--845bf525-5692-57e6-bc49-ba29610a26d8

Feed Name: Security Boulevard

Threat Score
75/100

Date Published: 2026-05-19

Date Updated: 2026-05-19

Author: Mark Rasch

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This piece examines the Canvas/Instructure ransomware/data-breach scenario and similar incidents (notably the Uber case) to explain the complex legal risks of paying extortion demands: while ransom payments are not per se illegal, they can trigger OFAC sanctions violations, AML/money-transmission obligations, criminal exposure, breach-notification and contractual duties, and evidentiary and disclosure liabilities; "shred logs" and criminal promises do not negate these obligations.

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