REvil and others: why hackers prefer bitcoins? | World Events – Estimates and Forecasts from Germany and Europe | >

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REvil and others: why hackers prefer bitcoins?  |  World Events – Estimates and Forecasts from Germany and Europe |  >

The hacker group REvil, which launched a cyberattack that has blocked the work of thousands of companies around the world, has agreed to lower its ransom demands. Instead of the initial $ 70 million for restoring access to damaged computer systems, the crackers are ready for $ 50 million, they said on Tuesday, July 6.

REvil demands payment of the ransom in bitcoins. According to cryptocurrency broker Joseph Edwards of Enigma Securities, the desire to get such a large amount of bitcoins is unusual: “It sounds more like a publicity stunt.”

Bitcoins made hacker extortion popular

Usually blackmailers extort relatively small sums – from $ 100,000 to $ 2 million, Edwards said in an interview with >. “Firms are often willing to pay such sums quickly to avoid negative media coverage and prolonged downtime,” he explains.

Criminals try not to bring the case to the intervention of law enforcement agencies, because if investigators find a clue, then more and more often in the end “criminals can be tracked down, they lose money and avoid imprisonment just because they are outside the jurisdiction of the United States – for example, in Russia or China. “, says the expert.

However, Bitcoin made such blackmail by hackers more widespread, says Mikko Hipponen, head of research at the Finnish cybersecurity company F-Secure: “It started in 2013. Attackers then thought that Bitcoin was anonymous and the transactions could not be traced. But later they realized that he was not as elusive as they thought. “

The think tank Chainalysis studies the movement of cryptocurrencies. One of the Center’s studies focuses on cases of extortion that have become public knowledge. And in this area, the share of cryptocurrencies is growing. Most often, blackmailers demand the same bitcoins, but another cryptocurrency, Monero, is also popular, says the head of Chainalysis Duncan Hoffman in an interview with >. “There are probably many other cases that we do not know about, when organizations pay ransom without much hype,” he is convinced.

When bitcoins stop being anonymous

The advantage of bitcoins is obvious – it is the most popular cryptocurrency. “This makes it easier for victims of extortion to meet the demands,” says Thomas Faber of the Frankfurt School of Finance and Management. To trade bitcoins, you need an electronic wallet. And this wallet has its own address, which is forever saved and visible to everyone with each transaction. “Everyone can see the data on the account and all the transactions that went through it,” explains Faber.

You can hide who is behind this or that electronic wallet, but “nevertheless, someday bitcoins must be exchanged for real money, otherwise they are useless in most cases.” Here, as a rule, it is already impossible to do without identity confirmation, so bitcoin cannot be called anonymous, the expert says.

Shop in El Salvador accepting payment in bitcoins

It is at the moment of exchanging cryptocurrencies for money that investigators have good chances, emphasizes Joseph Edwards of Enigma Securities: “Almost all exchange exchanges have high requirements for verification of identity for all transactions.”

Chainalysis estimates that up to 80 percent of the funds received by ransomware in bitcoins are exchanged on just five exchanges. This means that most exchangers follow all the rules. “On the other hand, it also shows that several platforms are turning a blind eye to security requirements or simply not tracking transactions,” says Duncan Hoffman.

Even the darknet and bitcoin mixers won’t help cybercriminals?

Another way to cash out bitcoins is the so-called decentralized exchanges, that is, those where the exchange takes place directly between two persons. In addition, blackmailers can spend the received cryptocurrency to buy goods and services on the darknet, says Thomas Faber of the Frankfurt School of Finance and Management. But in both cases, we are still talking about bitcoins, whose belonging to the funds that served as the ransom can be established. But there are also ways to further cover your tracks – with the help of so-called bitcoin mixers. Such services collect bitcoins from different users into a single account, and then distribute them back in random order.

Bitcoins are not a guarantee of successful blackmail

However, according to Joseph Edwards, tools for tracing the origin of cryptocurrencies are improving: “If the ransom is large enough and law enforcement agencies are attentive, then it is not so difficult to get on the trail of criminals.”

The fact that bitcoins are not a guarantee of successful blackmail was convinced from their own experience by the hacker group Darkside, which presumably operates from Russia. The hackers requested more than $ 4 million in bitcoins to unlock the computer systems of the American company Colonial Pipeline. However, the Federal Bureau of Investigation (FBI) traced the cryptocurrency to 23 wallets and was able to recover about half of the funds.

However, shortly thereafter, the same group, together with REvil, received a ransom of $ 11 million from another firm – JBS. And in this case, it was still not possible to establish where the cryptocurrency flowed away.

See also:

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    Bitcoin is the leading cryptocurrency

    Bitcoin is the world’s most popular cryptocurrency. It has no denominations, it is impossible to touch it, as it is completely based on cryptographic methods. Its most important principle is complete decentralization, it does not have a central administrator, it does not obey financial regulators and banks. This makes Bitcoin radically different from any payment unit in the world.

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    The mystical founding father of bitcoin

    For the first time they started talking about bitcoin after in October 2008 an anonymous developer (or a group of developers) under the name Satoshi Nakamoto published a file describing the protocol and how the payment system works. In January 2009, the world’s first 50 bitcoins were generated.

  • What is bitcoin and how does it work

    How do I get bitcoins?

    There are several ways to get bitcoins. The easiest one is to buy cryptocurrency on one of the Internet platforms for ordinary money, for example, euros. You can accept bitcoins as payment for your services or goods. Finally, you can learn the mining procedure and get bitcoins for it.

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    A wallet is also needed for bitcoin

    Cryptocurrencies are stored in electronic wallets (Wallet). More precisely, electronic keys are stored there, which are proof of the legitimacy of bitcoins belonging to their owner. Wallets can be located on computers, smartphones, USB sticks, cloud storage, and so on. The main thing is the reliability of storage, since with the loss of keys, the loss of bitcoins also occurs.

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    Chairs first, then money (bitcoins)

    Here is an example of a Bitcoin transaction. The buyer (in the picture on the left) is going to purchase a product from the seller – for example, a hat. Both require a public and private key to complete a transaction. The public key can be compared with the bank account number, the private key with the secret code for confirming a bank transaction.

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    What does blockchain have to do with it?

    The seller presents the public key to the buyer. He, in turn, confirms the payment with his private key and thus begins the process of sending money. Computer information about this transaction, together with hundreds of other transactions, forms a special structure – a “block”, which is attached to a chain of other blocks containing data from other previous transactions.

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    What miners do

    This new block with information about the payment for the hat will soon appear on all computers of the participants in the cryptocurrency system. They are also called miners. Their computers validate and validate block transactions. In theory, anyone can become a miner, but in practice today this role is played by professional miners with powerful server hardware.

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    Mining: speed competition

    Before finally confirming a transaction (like paying for a hat), miners have to validate it, which requires huge server and graphics card processing power. In fact, miners participate in a kind of speed competition: whoever verifies a block with information first will receive bitcoins for this.

  • What is bitcoin and how does it work

    Blockchain: anonymous blockchain

    As a result, the block with the “packed” and verified information about the payment for the hat becomes part of a long chain of blocks – the blockchain. This chain contains all Bitcoin transactions that have taken place. In this open “ledger” you can find all transactions and wallets of all participants – however, all participants in the settlement remain anonymous.

  • What is bitcoin and how does it work

    Where do miners live

    The world’s largest mining capacity – and the highest energy consumption for this purpose – is in China today. So say researchers from the University of Cambridge, the authors of the Bitcoin Electricity Consumption Index. Next on the list are the United States, Russia, Kazakhstan, Iran and Malaysia. Mining is most profitable where electricity prices are low.

  • What is bitcoin and how does it work

    Huge electricity consumption for mining

    Scientists at the University of Cambridge estimate the total electricity consumption for mining at 120 TWh (terawatt-hour) per year. That’s more than each of the blue-colored countries in the map above consumes annually.

    Author: Goodrun Haupt

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