Paying ransom is never worth the long-term costs. Once you've proven to the criminal that you're someone who will pay, they usually try again in the future because you're an easy mark.
Not only that, there is a power imbalance that shouldn't be ignored: the criminal has more experience in these kinds of confrontations than you do. Sam Harris has a very good article on this topic[1]; while he is discussing violent interactions on a personal level (e.g. mugging), the principles apply to many situations. The short version is that the criminal is trying to draw you onto their turf and to play by their rules. Almost always you will only make your situation worse when you let the criminal set the rules.
Not only that, there is a power imbalance that shouldn't be ignored: the criminal has more experience in these kinds of confrontations than you do. Sam Harris has a very good article on this topic[1]; while he is discussing violent interactions on a personal level (e.g. mugging), the principles apply to many situations. The short version is that the criminal is trying to draw you onto their turf and to play by their rules. Almost always you will only make your situation worse when you let the criminal set the rules.
[1] http://www.samharris.org/blog/item/the-truth-about-violence