While it was not the first hacked organization to acquiesce to  attackers’ demands, the California hospital that paid $17,000 in ransom  to hackers to regain control of its computer system was unusual in one  notable way: It went public with the news.
Hollywood  Presbyterian Medical Center relented to the demands, President Allen  Stefanek said, because he believed it was the “quickest and most  efficient way” to free the Los Angeles hospital’s network, which was  paralyzed for about 10 days.
That  announcement sparked fears Thursday among hospitals and security experts  that it would embolden hackers to launch more “ransomware” attacks and  calls in California for tougher laws.
“It’s  no different than if they took all the patients and held them in one  room at gunpoint,” said California State Senator Robert Hertzberg, who  on Thursday introduced legislation to make a ransomware attack  equivalent to extortion and punishable by up to four years in prison. 
Usually embarrassment and a  desire to discourage hackers keep attacked companies quiet. Hollywood  Presbyterian did not say why it made the disclosure, but its hand may  have been forced by spreading rumors a week after the hack. Stefanek  confirmed the cyber attack after at least one doctor appeared to have  told local media. 
In addition, he  disputed media reports the 434-bed hospital had faced a ransom demand of  $3.4 million, far more than the amount paid in the hard-to-trace  cyber-currency bitcoin.
In a  ransomware attack, hackers infect PCs with malicious software that  encrypts valuable files so they are inaccessible, then offer to unlock  the data only if the victim pays a ransom.
                 The hack at  Hollywood Presbyterian forced doctors to use pen and paper in an age of  computerization. News reports said its fax lines were jammed because  normal e-mail communication was unavailable, and some emergency patients  had to be diverted to other hospitals.
Investigators said administrators were so alarmed that they may have paid ransom first and called police later.
Medical  facilities in the area plan to consult cyber security experts on how to  protect themselves, the Hospital Association of Southern California  said. “Hospitals are certainly now aware of ransomware more than they  ever were before, and this has become a very real threat,” said  spokeswoman Jennifer Bayer.
Some  experts said ransomware encryption can be so hard to crack that victims  feel they have little choice but to pay if they want their systems back.  The hackers’ success could also prompt other hospitals to make quick  payments to avoid the disruption and bad publicity Hollywood  Presbyterian faced.
                 “Our number one  fear is that this now pretty much opens the door for other people to  pay,” said Bob Shaker, a manager at cyber security firm Symantec Corp.
‘CAT AND MOUSE’
He  knew of at least 20 other attacks on healthcare facilities in the past  year and hundreds more in other industries that had been kept secret.
                 Some of those put  patients at risk and affected infusion pumps that deliver chemotherapy  drugs, risking patient overdoses, he said.
Because  hackers hide their identities and demand payment in bitcoin,  authorities may have to work harder to find them than if they used  old-fashioned methods.
But cyber-crime experts say that they can still be traced.
“The  public nature of the network does give law enforcement an angle to help  defeat them,” said Jonathan Levin, co-founder of Chainalysis, a New  York company working with bitcoin users. “But it’s a game of cat and  mouse.” 
Ransomware is big  business for cyber criminals and security professionals. Although  ransoms typically are less than the hospital paid, $200 to $10,000,  victims of a ransomware known as CryptoWall reported losses over $18  million from April 2014 to June 2015, the FBI said.
Ransomware  attacks climbed sharply in 2014, when Symantec observed some 8.8  million cases, more than double the previous year. IBM said that last  year more than half of all customer calls reporting cyber attacks  involved ransomware.