Extortion is a tried and true way for cybercriminals to earn cash from their victims. They typically target organizations and demand a ransom in exchange for the security of their systems. These organizations have to pay in Bitcoin, one of the most popular digital currencies. The high price of Bitcoin makes this option unaffordable for many companies. While the extortion scheme is not new, the Bitcoin price has pushed the number of attacks up.
One of the most famous extortion schemes was perpetrated in 2014. Cybercriminals broke into the New Zealand Exchange and forced it to shut down for four days. They also stole customer data from VKontakte, a popular Russian social network. After payment, the cybercriminals promised to stay away. However, some researchers believe that the price of Bitcoin has brought some extortion gangs back to the table.
There have been other DDoS extortion gangs that use similar tactics, but the newest ones are reusing the extortion hat trick. According to security company Radware, the most common extortion letter is a nine-hour email that demands the payment of 5 to 10 Bitcoins. Depending on the company, this means it will cost the organization between $150,000 and $300,000.
It’s a good idea to find out if your company’s IT security provider offers a backup plan in case of an attack. In some cases, paying the ransom is the only option, but it may draw the attention of other extortion gangs. Also, if the company has a lot of clients, they should consider requesting extra protection from their security providers.
As the cryptocurrency continues to rise, experts say it’s likely we will see the extortion fad continue in the coming years. This is particularly true in the financial sector, where the average price of a dollar has risen by more than 50 percent over the past year. But as a rule of thumb, companies should never take a risk on the extortion scheme. That’s because they can only end up worse off than they were before.