Cyber Security and Resilience (Network and Information Systems) Bill (Fifth sitting) Debate

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Department: Department for Science, Innovation & Technology
We heard in oral evidence from Detective Chief Superintendent Andrew Gould that critical national infrastructure is less likely to be attacked by ransomware groups, but beyond those entities, ransomware is one of the principal security threats to businesses. For so many small and medium-sized enterprises and smaller organisations, those attacks have the potential to be fatal to business models.
Chris Vince Portrait Chris Vince (Harlow) (Lab/Co-op)
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Will the shadow Minister give way?

Ben Spencer Portrait Dr Spencer
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I am more than happy to give way to the hon. Member for Harlow.

Chris Vince Portrait Chris Vince
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I thank the shadow Minister for remembering my consistency—I have not mentioned Harlow. How is the new clause helpful, given the potential confusion it causes with listing a specific kind of incident as well as the generic one?

Ben Spencer Portrait Dr Spencer
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The Opposition are trying to make it clear that ransomware needs to be in the scope of the reporting. It is really for the Minister to answer if he thinks there are problems with the new clause, and if so, how the Government will go about taking that forward. The widespread and highly damaging nature of ransomware attacks—which are often perpetrated by criminal groups at scale and speed—means that regulators need to have a detailed oversight of this area to prevent those attacks from being deployed more widely. Therefore, the new clause is intended to ensure that all ransomware attacks on regulated entities are reported, regardless of severity or potential severity, so that the risks are picked up.

In tabling new clause 6, I am acutely aware of the existing reporting burden for regulated entities and regulators. Since tabling it, we have heard impactful evidence from Carla Baker from Palo Alto, who highlighted the number of cyber incidents and false positives that many companies encounter each day. As I said in response to an intervention, in the absence of measures brought forward by the Government to address the widespread and urgent risks presented by ransomware attacks—and as the Government themselves identify as part of the Home Office’s review—it would be proportionate to make specific reference to ransomware in the reporting requirements on regulated entities in the Bill.

New clause 7 reflects the concerns of regulated bodies and industry representatives who have set out many, many times—in oral evidence and beyond—the need to ensure that reporting obligations are clear and, as far as possible, simplified across the many different incident reporting regimes that exist for providers of digital services. The new clause would compel the Secretary of State to publish an assessment of the impact of the new reporting regime on regulated entities in the Bill within 12 months of Royal Assent. Importantly, in line with the clear requests articulated by many stakeholders who gave evidence last Tuesday, it requires the Government to publish proposals for the creation of a single cyber incident reporting channel for relevant bodies.