Role of Cryptocurrencies in the Growth of Cyber-Extortion

Role of Cryptocurrencies in the Growth of Cyber-Extortion
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Role of Cryptocurrencies in the Growth of Cyber-Extortion
Introduction
Whenever hackers manage to install malicious software on the servers of organizations and other institutions worldwide, they demand ransom, threatening to decode and share the information if the owners fail to meet their demands. Sometimes the companies hire security researchers who realize a fix that enables the owners to decrypt their computers without submitting to the demands by the hackers. However, a majority of organizations and individuals are forced to pay the ransom to free up their data. According to the report by the FBI in 2016, a total of $1 billion was paid as ransom to extortionists (Kshetri, 2017). Before the existence of cryptocurrencies, the money was transferred using services like Western Union. Such means of transfer were easily traced. However, the introduction of cryptocurrencies like Bitcoin has created an anonymity and a quick process of transfer.
Ransomware is a group of malware that denies the user access to their computer or servers. Infected third party sites or emails are the most common means of delivering the malware to computers. To regain the data, users need to pay a ransom. Bitcoin is the most popular cryptocurrency and for this reason, extortionists demand payments in the currency. Several attacks have been recorded in which the hackers demanded payment in bitcoins. An example is the Petya ransomware, who demand a fee of $300 for every computer before giving the owners a code to decrypt their data (Kshetri, 2017).
Growth in Ransomware and Cyber-Extortion
In 2016, the number of ransomware attacks significantly increased due to the sophistication of the malware (Weisbaum, 2017). The sophistication has encouraged most criminals to switch to ransomware since they can purchase ransomware that is readily available from highly professional hackers. The proliferation of cyber extortion tools has greatly decreased the chances of coming up with barriers to blur the ability of security researchers to assess the malware in time. As such, individuals can launch attacks that are highly sophisticated with basic computer skills.
The potential growth of ransomware has seen many companies fall to the attacks worldwide. In 2017, Shadow Brokers leaked a gigabyte worth of the weapon software exploits of the U.S National Security Agency and made the tools freely available to the online community (Yamashita, 2017). Thereafter, WannaCry launched an attack on government agencies, hospitals, and companies as the world watched in dismay. Despite their low demand of $300 in bitcoins for every computer infected, the damages done to these companies was far much worse than previous attacks. The malware affected 300,000 firms in 150 countries (Kharpal, 2018).
Majority of these attackers do so with the intent of gaining money, satisfying their ego, or for revenge and political reasons. The existence of marketplaces in the dark web and hacking tools among others has also greatly contributed to the growing number of attacks. Politically motivated attacks have also been witnessed in countries such as Europe, in which case, the...