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

European Commission: Age Verification App Ready For Use

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.

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.

BranditScan Rolls Out 2 New Platform Features

BranditScan has introduced its new Traffic Optimization and Doxing Protection features for creators.

NMG Management Partners With Cosplayground to Scale Distribution

NMG Management has partnered with Cosplayground to expand the studio’s digital distribution and licensing operations.

Dreamcam Adds Real-Time Speech Translation

Dreamcam has introduced Voice Translator AI to its livestreaming platform.

UK Government May Limit 'Step' Porn Ban With New Amendments

The U.K. Ministry of Justice on Friday revealed new government amendments to the pending Crime and Policing Bill, potentially limiting a planned ban on “step” content to apply only if adult performers role-play as minors.

Arizona Senate Removes 'Catch-22' Provision From Consent Bill

The Arizona State Senate has amended a bill that would impose new requirements for adult content uploaded online, removing a seemingly contradictory provision that could have effectively made it impossible for adult sites to operate in the state.

Show More