Assignment 2 Cryptocurrencies and Cyber-extortion.

Cryptocurrencies and Cyber-extortion
Name
Institution
Cryptocurrencies and Cyber-extortion
The roles of cryptocurrencies such as bitcoin in the growth of cyber-extortion involving ransomware.
Recent growth in ransomware and cyber-extortion
Every piece of information you have on your computer is not safe. Well, initially, when people heard this message, they intensified their physical security and made sure that it was difficult to get to where their computers were. However, today, such preparations are considered null and void because hackers have also intensified their ways of attack. In the recent past, the major news outlets have made it known that no one is safe by revealing how ransomware attacks have become a global issue. All over the world, businesses and individual computer owners have been complaining about ransomware attacks. Weisbaum (2017) reported that payments for ransomware in 2016, were “expected to hit a billion dollars.” The FBI provided the information above, and that amount would have been huge given that in 2015, ransomware payments were only $24 million. Each year, new attacks and small increases in the ransom demanded pushes the amount lost to new record highs. The image below shows how ransomware attacks have been intensifying as hackers find new ways of exploiting and extorting money from unsuspecting internet users.
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As seen in the image above, ransomware attacks have been on the rise as more people and businesses continue to fall victims. Aside from the above, it is also crucial to note that the ransom demanded changes. Hackers demand a different amount whenever they strike. One trick hackers use is that they never demand a lot of money. Grossman (2014) reports that “extortionists typically ask for a comparatively small amount of money, about $300 to $500.” However, it is also essential to note that they target a large number of internet users and when tabulated, they do receive millions of dollars.
Cyber-extortion has proven to be a lucrative venture and hence the upsurge. Dimension Data (2018) indicated that in 2017, ransomware attacks increased by whopping 350% and that “many organizations fell victim to the financially motivated crime via ongoing outbreaks, attracting significant media attention.” Today, hackers often target information as well as intellectual property. These are known to be quite lucrative and do attract huge ransoms. Aside from the above, people are known to be highly protective of these things and will hence be willing to pay a lot of money to have them back. As it stands, there will never come a time when people are not trying to hide certain pieces or bits of information, and this explains why hackers and their ransomware attacks will continue to be a problem. Symantec (2017) reports that “34 percent of victims will pay the ransom,” and that “this proportion rises to 64 percent of victims in the U.S.” Well, with 34% of victims willing to pay, hackers will continue to be in business for the foreseeable future.
Why cyber-extortionists demand that ransom be paid by cryptocurrencies such as Bitcoin
It is a widely known fact that cyber-extortionists prefer to be paid by cryptocurrencies. One of the reasons why cyber-extortionists prefer payments through bitcoin is because it operates as a decentralized currency. By operating as a decentralized currency, Bitcoin eliminates the necessity or need for a middleman (Usborne, 2017). This means that no banks or credit card companies will be involved in the transactions made. Aside from the above, it is crucial to mention that bitcoin buyers and sellers do not have identifiable names and therefore, cannot be traced. Every transaction made is recorded using a digital ID, and everyone remains anonymous. Rogers (2017) writes that “bitcoin currency is tracked through a system called “blockchain”.” The blockchain is considered as an online ledger which, unlike the ledgers controlled by banks, cannot be manipulated. It is obvious that hackers will want to stay anonymous and therefore, a majority will find bitcoin as their preferred mode of receiving payments. However, this makes it increasingly challenging for the victims because it is possible that a cyber-extortionist will receive the payment and refuse to decrypt the locked files. While it is being lauded as the future currency, one cannot be at fault if they fear it or the repercussions of switching to it. This is because anyone could use it and never leave a trace.
Types of victims likely to comply with the cyber-extortionists demand to pay ransom with bitcoin
Healthcare providers, i.e., hospitals
These cyber criminals target vulnerable places like hospitals. They know in hospitals lives of many people are at stake and therefore if the management and by extension the government ...