Around the world, malicious software helps criminals to collect massive amounts of money from mostly innocent individuals and companies. The software, known as ransomware takes computers hostage and then the criminal attempts to sell the user back their information.
The FBI has estimated that the ransomware industry took around $1 billion in currency that we know about. Since the money isn’t paid in cash, it is usually untraceable. The criminals who asked for the money to be sent in the form of Western Union or by bank deposit could easily be traced. The majority of the criminals who do this in recent times have changed to using bitcoin to get their money. This method is essentially untraceable and have been extremely successful in recent times.
With research on cybercrime and cybersecurity going on for around a decade, little conclusiveness has been made on the majority of the criminal’s identities. The amount of this type of crime has skyrocketed in the past few years as it has become easier and easier to get away with. With the rapid growth in the popularity of cryptocurrency, some are seeing the industry as sketchy given its criminal ties.
Given that the payout rate of those who use this form of crime is around 0.4% of those that they try to get the information from, it is usually unsuccessful. With new machines being able to send out malware and ransomware at higher amounts and in shorter time, this type of crime seems to be only increasing in popularity.
One case of an attack hit around 150 servers owned by a South Korean company named Nayana. Nayana had to take out loans of around $1 million just to cover this amount of money in bitcoin.
Hopefully instances like this will not ruin the cryptocurrency industry for those who are using it to better the financial world but only time will tell.