This is horrific. So the hacker is claiming to have a copy of our data. 0.03 BTC is less than $1000. Regardless of you being able to restore from backups, I assume you're paying the ransom to hopefully avoid the leak, right?
I paid Samuel and entrusted him with my data. Not too much, but enough for it to matter. When faced with a massive leak like this, he downplays everything, calls the hacker a "script kiddie" and calls this "good practice for what will be the first of many sleepless nights", looking at it only from a "service disruption" perspective.
So far we've gotten no indication of what's been leaked, if it contains deleted feeds, or what he's doing to prevent the data from being leaked by the hacker, if anything. He's been solely focused on restoring the service and ignoring the leak. Compared to not having access to an RSS reader for any random period of time, the leak is orders of magnitude more serious to me and I'd wager to most of Newsblur customers.
I honestly don't care if paying a ransom or interacting with the hacker makes him more likely to be targeted in the future, his duty towards his customers was to keep their private data private and not only he failed at that, but he doesn't even seem to register that as his main priority. As far as I'm aware, if he allows the data to leak publicly, then there's no "recovering from there", he's not getting any more of my money.
I'm on the same side of the argument as you and indeed I believe I feel as strongly about it as you. Especially in regards to brushing it off, calling them script kiddies[1], generally being "well aw shucks aren't I great for not deleting my copy of the data, I'm so great"[2] about the whole thing grinds my gears too.
I'm saying whoever is ransoming the data already has the data, the data is out of Newsblur's control, therefore the data is already leaked.
The data leak is past tense. It has already happened, not will happen. No amount of money will undo that. If that means they've lost you as a customer, that's how it is.
What we now need to know is what data was leaked?
[1]: which to be fair Newsblur, they are, but if a script kiddie hacks you using something so basic as a missing firewall rule.. Arguably not knowing Docker's quirks but using it anyway is the same damn thing as what script kiddies do. Sys kiddie if you will.
[2]: Why is that cause for celebration? Do you not have backups?
There is a material difference to users between a single attacker having (and possibly ignoring) a data dump, and that attacker publishing that dump publically, or selling it to someone who plans to exploit its contents.
The attacker has offered to not publish if they are paid. Their word probably isn't worth much, but $1,000 seems like an affordable sum for a business to gamble on them being honest about it. And if Newsblur doesn't fix their security problems they'll be targeted again either way.
As someone who has a decade of data in Newsblur, if there's any chance that an affordable ransom will keep my data from spreading further I want Samuel to take it.
The fact that you believe paying the ransom is even an option shows that you really aren't even qualified to be discussing this topic. People with your mindset are a big part of the reason that ransomware is still going strong. The other big part is people who don't run their systems correctly in the first place.
Giving them $1000 confirms the value, allowing them to list the dump at a higher price than the usual $10-50 spammers would pay (each) for the email addresses alone