Ransomware attacks using crypto on the rise due to unreported incidents

Ransomware attacks

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Crypto Crime 2020 report released by Chainalysis has revealed that most ransomware attacks using crypto go unreported. Chainalysis in the published document revealed that over $6 million was deposited into wallet addresses linked with ransomware and the figure is grossly below the real amount.

An inquiry into the matter by ProPublica in December revealed that publicly traded firms are usually subject to ransomware attacks. Thereby, investors are very skeptical, and such firms end up reducing their share price. Ransomeware attacks affect the operation, cost money, and reveals cybersecurity vulnerabilities. Firms, therefore, prefer paying ransom 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 as mere security incidence or malware. Even with blockchain analysis, it cannot be ascertained the exact amount of ransom 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 and 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 confound as the attack continues to be perpetrated. Several million incidents are recorded yearly destroying the computer system of government, private firms, and ordinary citizens.

The 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 online storage.

US Department of Homeland Security believes ransomware attacks have 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 not to 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 the attacks.

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

Featured Image by Pixabay

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Muhaimin Olowoporoku

Muhaimin loves writing on crypto news aside from being a crypto enthusiast. He has a knack for analysing issues and updating people on what's happening around the globe. He believes that blockchain and cryptocurrency are the most useful systems of mutual trust ever devised.

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