Home Scam Ransomware attacks through crypto continue to surge

Ransomware attacks through crypto continue to surge

2020 Crypto Crime report released by Chainalysis has revealed that ransomware attack manifested using crypto is unknown. Chainalysis in the published document revealed that over $6 million was deposited into wallet addresses linked with ransomware, as the report emphasizes that the figure is grossly below the real amount.

An inquiry into the matter by ProPublicia in December revealed that publicly traded firms are usually subject to ransomware attack thereby investors are very skeptical and such firms end up reducing their share price. Ransomeware attacks affect operation, cost money and reveals cybersecurity vulnerabilities. Firms, therefore, prefer paying ransome instead of alerting authorities like the SEC and FBI.

These regulated firms prefer revealing distorted operations using unclear terms in their legally mandated findings calling the attacks a mere security incident or malware. Therefore with blockchain analysis, it cannot be ascertained the exact amount of ransome paid if attacks are not reported.

Firms are also always discouraged because of the amount of hiring a consultant, fixing damaged machines’ insurance premium cost and continuous supervision. In the same light customers’ dissatisfaction, loss of sensitive data are too much to be experienced by the companies.

Continued hike in ransomware attacks

Getting to ascertain the effect of these attacks continues to compound as the attack continues to be perpetrated. Several million incidents are recorded yearly destroying the computer system of government, private firms, and ordinary citizens.

FBI in 2019 warned that the attacks continually getting high become more sophisticated and more expensive. These type of incidents leads to loss of money alongside sensitive data.

Former SEC officer, John Reed Stark through a statement said attacks started as really frightening. He said that the issue comes frequently discouraging private firms from using ransomware.

US Department of Homeland Security that has declared cyberattack a serious threat believes ransomware attacks have been hiked by over 250%. At least daily since 2016, more than 3500 ransomware attacks are perpetrated unlike 1000 daily in 2015.

Authorities seek companies’ compliance

The FBI, SEC having found out companies prefer to not report ransomware attacks has encouraged them to reveal attacks.

Federal Bureau of Investigation recent in a press release said that the impact of these attacks threatens businesses and organization in the US and said paying ransoms only encourage further attacks.

SEC otherwise advised companies to not use generic cybersecurity terms and err on the side of specificity when revealing information to people who want to invest.

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Muhaimin Olowoporoku
Muhaimin is a journalist and a crypto enthusiast. He believes in the Africa project and sees blockchain technology as a possible solution alongside developmental journalism

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