Why Hackers Demand $ 4.5 Million In Bitcoin From A Travel Company
Last week it became known that travel management company CWT paid a ransom demand of $ 4.5 million in Bitcoin.
Initially, the hackers had demanded $ 10 million to release the damage inflicted with a solution, saying that it is likely cheaper than the legal action that would occur if their demands are not met, not to mention the cost of damage to the reputation of the business.
Negotiations between the two sides saw hackers accept and curtail their demands, as CWT cited widespread financial difficulties as a result of the ongoing pandemic situation.
Blockchain analysis showed that the hacker’s wallet had received 414 Bitcoin on July 28. At the current market price of $ 11,200 according to TradingView, 414 BTC is worth $ 4.63 million.
In a statement issued by CWT, after the payment, the firm said that normalcy has returned. They attempted to reassure interested parties that there had been no breach of personally identifiable data according to their initial investigations.
“We can confirm that after temporarily shutting down our systems as a precautionary measure, our systems are back online and the incident has now ceased.”
The importance of cybersecurity in today’s digital world
The criminals involved had used a variety of ransomware, known as Ragnar Locker, to steal files and remove terminals.
According to IT security expert Tomas Meskauskas, this ransomware changes the name and encrypts the files by altering the names of the extensions.
“Ransomware victims generally cannot decrypt compromised files without the correct tools that only the cybercriminals who designed the program possess. Unfortunately, this is the case with the Ragnar Locker ransomware. “
Victims have few more options to pay, but Meskauskas claims that victims can often recover systems for free if they maintain adequate backups.
On that, Binance CEO Changpeng Zhao commented that as we become increasingly digital, every business needs to update their IT practices first to prevent such incidents from happening.
Furthermore, Zhao felt it was necessary to delineate Bitcoin from the hack itself, once again bringing to light the association between cryptocurrency and criminality in the eyes of the public.
But this is a totally unwarranted vision.
Bitcoin and its association with crime
When it comes to misprints, it doesn’t take much to see that lawmakers and government agencies often have incorrect information about Bitcoin and cryptocurrency.
According to the World Government Summit website, criminals are attracted to Bitcoin because of its anonymity.
“To begin with, the addresses of Bitcoin users are not tied to individuals or corporate identities, and the individuals or groups behind them are difficult to trace.”
However, Dr. Tom Robinson dispels this myth by saying that Bitcoin is, in fact, the most transparent payment method ever devised, and described as a pseudonym, rather than anonymous.
“Any bitcoin transaction with a party that knows its identity filters information that can be used to identify its activity, past and future, on the blockchain. For example, if you transfer bitcoins to an online retailer, an exchange, or many of the other services that take customer identity information, it allows them to link that identity with their pseudonym blockchain. “
What’s more, in a recent Butler study titled, “Criminal Use of Cryptocurrencies: A New Big Threat or Is Cash Still King?” The author concluded that cash, not cryptocurrencies, continues to reign as the payment method chosen by the criminal.
“Contrary to popular opinion, this article shows that cryptocurrencies are currently used for a very small percentage of crimes and are not the great future threat that many claim.”
Bitcoin is already struggling to gain acceptance as a legitimate asset class among the general public.
Not only do you have to deal with associations with crime, but when governments exert their misinformed trickle influence, it’s no wonder Bitcoin largely divides opinion.
Disclaimer: This press release is for informational purposes information does not constitute investment advice or an offer to invest. The views expressed in this article are those of the author and do not necessarily represent the views of infocoin, and should not be attributed to, Infocoin