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Chronicles

The story behind the story

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Sources: in 2019, major labor union Teamsters refused a ransomware demand of $2.5M, against the FBI's advice, and instead rebuilt its systems from scratch

some of it from hard copies. Records mgmt ++ Jonathan Allen / @jonallendc : When the Teamsters called the FBI to report they were being extorted for $2.5 million in a ransomware attack, the FBI told the union to “just pay it,” sources said. https://www.nbcnews.com/... Jonathan Allen / @jonallendc : SCOOP: Teamsters were hit by ransomware attack in 2019. The FBI advised them to pay the $2.5M demand. Their insurance company said not to do it. Here's what happened. W/⁦@kevincollier⁩ https://www.nbcnews.com/... John FitzGerald / @thetweetofjohn : The FBI advised the union to “just pay” the ransom, according to sources. Union officials chose to rebuild their computer network instead. https://www.nbcnews.com/... Charlie J. Johnson / @charliemagne : “Union officials in Washington were divided over whether to pay the ransom — going so far as to bargain the number down to $1.1 million” https://www.nbcnews.com/...

NBC News

Context & Ripple Effects

This report lands amid a string of ransomware payment stories with mixed outcomes: CWT handed over $4.5M in BTC to unlock files, and Colonial paid ~$5M within hours only to find the hackers' decryption tool so slow it fell back on its own backups anyway. The Teamsters case is the counterfactual — a refusal, taken against FBI guidance, that still ended in recovery.

It also exposes a three-way split among the advisers victims actually call first: sources say the FBI told the union to 'just pay,' while its insurance company said not to. That echoes earlier reporting where intermediaries who promised hi-tech recovery were themselves just quietly paying attackers — as ProPublica found with two US data recovery firms in 2019 (link) — making the pay-or-rebuild decision one victims must make without a trusted referee.

First-order effects

  • The Teamsters absorbed the cost of rebuilding its network from scratch — partly from hard copies — rather than transferring $2.5M, meaning its recovery timeline and expense were self-chosen rather than hostage to an attacker's decryptor.
  • Victims now have visibly contradictory official guidance: the FBI's reported 'just pay it' advice puts it on the opposite side of the decision from the insurers who underwrite these events.

Second-order effects

  • Colonial's experience strengthens the insurers' position: even after paying ~$5M, it had to restore from backups, so the marginal value of paying shrinks for any victim with usable backups — pricing leverage shifts toward cyber-insurance terms that penalize weak recovery posture.
  • Attackers lose negotiating power against hardened targets like the Teamsters, pushing ransomware groups toward organizations they can assume lack offline backups — the pattern Baltimore's $10M-plus cleanup bill illustrates for underprepared public institutions.

Third-order effects

  • If paying increasingly doesn't spare you the rebuild, ransomware defense structurally migrates from incident response to resilience — offline backups and records management become the real insurance, and payment becomes a last resort rather than a default.
  • A gap between law enforcement's public anti-payment stance and agents' field advice invites formal policy reckoning — whether the government should standardize guidance or leave the call to insurers, whose financial exposure already makes them the de facto decision-makers.

The trend: Ransomware outcomes are splitting along a preparedness line — victims with real backups can refuse demands like the Teamsters did, while unprepared ones like Colonial pay and still rebuild — shifting the decision from negotiators to insurers.

Discussion

  • @ruthbrarian @ruthbrarian on x
    Teamsters made public that they didn't pay a ransomware demand in 2019 https://www.nbcnews.com/... of interest: The Teamsters decided to rebuild their systems, and 99 percent of their data has been restored from archival material — some of it from hard copies. Records mgmt ++
  • @harrymccracken Harry McCracken on x
    I always enjoy reading about people who refuse to play ball with criminals. https://www.nbcnews.com/...
  • @jonallendc Jonathan Allen on x
    When the Teamsters called the FBI to report they were being extorted for $2.5 million in a ransomware attack, the FBI told the union to “just pay it,” sources said. https://www.nbcnews.com/...
  • @jonallendc Jonathan Allen on x
    SCOOP: Teamsters were hit by ransomware attack in 2019. The FBI advised them to pay the $2.5M demand. Their insurance company said not to do it. Here's what happened. W/⁦@kevincollier⁩ https://www.nbcnews.com/...
  • @thetweetofjohn John FitzGerald on x
    The FBI advised the union to “just pay” the ransom, according to sources. Union officials chose to rebuild their computer network instead. https://www.nbcnews.com/...
  • @charliemagne Charlie J. Johnson on x
    “Union officials in Washington were divided over whether to pay the ransom — going so far as to bargain the number down to $1.1 million” https://www.nbcnews.com/...