How Ransom Payments Actually Work, And Why Experts Warn Against Paying

Until you find yourself in the situation, it can be tough to tell what you would do if you received a demand for ransom. Any urge to pay up is understandable, of course — what wouldn't you do to protect yourself and the ones you love? Unfortunately, it's not that simple. The reality is that paying ransom is generally ill-advised and can actually lead to even more problems.

The concept of ransom is well-publicized, from crime movie plots to real-life reports of kidnappers demanding payment for a loved one's return. Case in point: a ransom note demanding millions in Bitcoin (yes, despite the cryptocurrency's recent grim warning) for the release of "Today" show host Savannah Guthrie's mother has been a major news topic in January and February 2026. Nevertheless, most ransom demands these days involve carefully crafted cyber attacks instead of kidnappings. While there are ethical hackers out there earning an honest living, an estimated 1.7 million ransomware attacks occur daily as malicious hackers steal personal data or lock someone out of their accounts and demand payment to either return control or prevent further leaks.

Specifics aside, it's important to stop and think before giving in to the demands. You should also contact law enforcement. If you or someone else is in danger, call 911 right away. With ransomware attacks, the FBI asks that you contact your local FBI field office. Ransom demands typically include instructions for how to pay, but providing this information to law enforcement may actually help them track down the culprits.

Despite seeming like a costly yet effective means to an end, paying ransom provides no guarantee that you'll be in the clear. A CrowdStrike survey found that a whopping 83% of organizations that paid ransoms after cyber attacks were targeted again, and 93% still lost data anyway. Additionally, the person demanding ransom may not actually be in control of the situation. A man arrested on February 5, 2026 in connection with the Nancy Guthrie disappearance case is alleged to have made imposter ransom demands, aka attempting to profit off of a case he doesn't have any connection with. 

With law enforcement discouraging paying up though, some victims may seek out private negotiators to facilitate things. But these professionals are often quite costly themselves (especially when it comes to kidnappings). According to CNBC, daily rates for ransom negotiators can add up to more than the ransom demand itself. Even worse, The American Prospect reports some are even getting their own share of the spoils from the crime.

There's also the societal aspect. The FBI states that paying ransom may encourage copycat perpetrators and worsen the issue. Americans lose billions to scams and cybersecurity attacks every year, so not paying up is key to helping prevent ransomware attacks in particular. And depending on where you live and where you work, you may find yourself in your own legal trouble. That's because it's illegal for state and local government entities in Florida and North Carolina to make any ransom payments, regardless of the circumstances.