Security Experts Warn of Online Extortion Epidemic

LONDON — Security experts warned today that thousands of organizations are paying cyber extortion bribes to hackers for fear that their servers will be the target of a distributed denial of service attack.

“The epidemic of cybercrime is growing,” said Alan Paller, director of research for the SANS Institute, at the Top 20 Vulnerabilities conference in London earlier today.

According to Paller, up to 7,000 organizations are currently paying online extortion demands.

“Every online gambling site is paying extortion,” Paller said. “Hackers are using DDoS attacks, using botnets to do it. Then they say, ‘Pay us $40,000, or we’ll do it again.’”

Such threats go largely unreported because companies often feel embarrassed to talk about it, Paller said, but the implications of them are huge. According to Paller, the same types of techniques used by cyber extortionists could be targeted against government organizations.

Paller’s concerns may not be unwarranted.

Earlier this year, Britain’s National Hi-Tech Crime United arrested three men allegedly connected with a Russian gang running an online protection scheme.

According to police, the gangs targeted online gambling companies and requested between $18,000 and $55,000 in protection.

Paller laid some of the blame for the recent growth of cybercrime on software developers, saying that software vulnerabilities should be the responsibility of the vendor.

“Applications breaking after patching is the operating system vendor’s fault,” Paller said, recommending that they take the SANS Institute’s top 20 security vulnerabilities to heart.

Copyright © 2026 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More News

UPDATED: European Commission Unveils AV App, Addresses Hacks

The European Commission’s age verification app is now technically ready and will soon be available for EU citizens to use in order to prove their age when accessing online platforms, European Commission President Ursula von der Leyen announced Tuesday.

Syren De Mer, Eddie Patrick Cap AEBN's Top Stars for 1st Quarter of 2026

AEBN has revealed its most popular performers in straight and gay theaters for the first quarter of 2026.

Report: Irish Regulator Seeks 'Industry Input' on AV Compliance

Irish media regulator Coimisiún na Meán (CnaM) will draw on “industry input” to help establish a framework for assessing platforms’ compliance with Ireland’s Online Safety Code and the EU’s Digital Services Act, news organization MLex reports.

'iDealgasmPlus' Launches Through PAYSITE

iDealgasmPlus.com has officially launched through PAYSITE.

Canadian Senate Approves National Age Verification Bill

Canada’s Senate on Wednesday passed bill S-209, the “Protecting Young Persons from Exposure to Pornography Act,” which would require commercial adult websites to verify that Canadian users are at least 18 years old.

Sara Jay Relaunches Site Through PAYSITE

Sara Jay has relaunched her membership site, WydeSyde, through PAYSITE.

UK House of Commons Moves to Tone Down Porn Amendments

The House of Commons has modified amendments to the U.K.’s pending Crime and Policing Bill, including provisions regulating “step” content, content featuring adults role-playing as minors, and performers’ ability to withdraw consent.

AEBN Reveals Ariel Demure as Top Trans Star for Q1 of 2026

AEBN has named its top trans stars for the first quarter of 2026, with Ariel Demure landing atop the leaderboard.

Final IRS 'No Tax on Tips' Rule Excludes Pornography

The Internal Revenue Service on Monday published final regulations on the “No Tax on Tips” provision included in the “One Big Beautiful Bill Act,” offering new tax deductions for tip workers but excluding revenue received for “pornographic activity.”

Pennsylvania Legislature Weighs 'Porn Tax' Bill

The Pennsylvania State Senate is considering a bill that would impose a 10% tax on the revenue of adult websites doing business in that state.

Show More