Why Bitcoin Emboldens Hackers?
Doesn’t it seem like more and more cybersecurity horror stories are popping up in your news feed? Cybercrime is affecting businesses of all sizes, with attackers often demanding ransom payments in bitcoin to regain access to stolen data. The ambiguous nature of Bitcoin and the difficulty of apprehending cybercriminals have emboldened them to make audacious demands.
Bitcoin transactions are largely unregulated and can be completed without revealing personal information, which makes them appealing to cybercriminals seeking ransom payments. Here are three devious reasons cybercriminals collect ransom payments using Bitcoin in exchange for confidential company data:
A legit bank account is not required.
All that’s needed is a digital Bitcoin wallet. No legal identification or real name and address are required to start a Bitcoin account. Law enforcement agencies cannot freeze these accounts, and unlike government-issued currencies, bitcoin operates under a decentralized authority.
Funds can be transferred anonymously.
Funds can be transferred quickly and anonymously, often moving through multiple wallets, making tracing and recovery extremely difficult. Transactions are recorded in a permanent, public ledger known as a blockchain, which shows activity but not necessarily identities.
Hackers play “catch me if you can” better than you and me.
Hackers play “catch me if you can” better than most. Cybercriminals are smart and understand their activity can be traced, so they move funds quickly and anonymously, often transferring bitcoin earnings across multiple wallets. This makes recovering stolen funds extremely difficult.
It’s safe to say that once a ransom is paid, it is often gone for good. Small- and midsize-business stakeholders should ask: "Is our data safe from a hacker?" and whether they can afford to pay a ransom to regain access. As cyberattacks become more sophisticated, implementing a multi-layer security strategy, maintaining regular backups, and actively monitoring for suspicious activity are essential steps to prepare for and protect your business from ransomware and other evolving digital threats.