Posted in Bitcoin, Ransomeware
Continuing from
our earlier post, it is no surprise that hackers demand that ransomware be
paid in Bitcoin. Since wallets do not require users to share
their identities, Bitcoin is untraceable so long as a hacker keeps his
ransom in Bitcoin form. And since the blockchain only shows amounts
and wallet account numbers, there is no way to tell why Bitcoin was paid for
any given transaction.
The appeal to criminals is obvious:
simply viewing the blockchain does not reveal whether Bitcoin was paid for a
legitimate reason or for illegal purposes like purchasing drugs, funding
terrorist activities or paying off a ransomware attack.
Other appealing features of Bitcoin for
criminals include:
•lack of central authority overseeing the
transactions. This means that Bitcoin can be used in any country
without fear of authorities attempting to freeze Bitcoin accounts that may
be suspected of funding illegal activities;
•even though the blockchain is
public, the lack of a central authority means only the user with a private
key matching a specific wallet can access the Bitcoin;
•because Bitcoin transactions are
processed without a bank or other authority–all that is required is the
ten-minute verification process by miners;
•each transaction is non-reversible
and final so a hacker is guaranteed to keep any ransom payment without
fear of confiscation.
•”Bitcoin-to-other” currency
exchanges are paid to launder Bitcoins. They convert hundreds
of Bitcoin transactions to other forms of currency while ignoring the identity of the criminal seeking the
exchange.
Bitcoin was not created for criminal
enterprise, but it is clear why it has become a perfect vehicle for
ransomware attacks.
Bitcoin
has many benefits, but as long as it remains untraceable, ungoverned by a
central authority and with irreversible transfers, ransomware hackers will
continue to exploit its virtues.
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