Ransomware Attackers Almost Universally Choose Cryptocurrency

Cryptocurrency is one of the more interesting technological innovations that has been introduced over the past 15 years.

The rise of cryptocurrency has changed finance, but it has also provided cybercriminals with a powerful tool to monetize their illicit activities, primarily through ransomware. Ransomware is a form of malware that encrypts a victim's files, extorting payment in cryptocurrency—usually Bitcoin—in exchange for the decryption key. Understanding why criminals favor this digital asset and what businesses can do is essential for modern defense.

Why Crypto is the Preferred Currency for Extortion

Cybercriminals choose cryptocurrencies over traditional payment methods for a compelling set of reasons that align perfectly with their need for speed, distance, and low-traceability:

• Anonymity - Wallets are not tied to a name, address, or bank account. While transactions are recorded on a public ledger (the blockchain), tracing the funds back to the criminal's real-world identity is a complex, difficult, and time-consuming process for law enforcement.
• Irreversibility - Unlike credit card or bank transfers, cryptocurrency transactions cannot be reversed or canceled by a central authority once confirmed. This guarantees the criminal receives and retains the payment.
• Speed and borderlessness - Cryptocurrency can be transferred globally, across any border, in minutes, without needing a bank, intermediary, or third-party approval. This makes it ideal for fast, high-stakes international crime.
• Decentralization - Since cryptocurrencies operate without a central governing body, no single authority can easily intercept, monitor, or freeze the transferred funds. This allows criminals to operate outside of traditional financial regulations and controls.

How a Business Acquires Cryptocurrency for Ransom

When a business is faced with a ransomware demand, the urgent need to acquire crypto is often the biggest hurdle. The most common methods for a victim business to procure the demanded cryptocurrency include:

Direct Purchase from an Exchange

The business can open an account on a major cryptocurrency exchange and transfer fiat currency to purchase the required amount of Bitcoin or other specified crypto. This process involves Know Your Customer (KYC) and Anti-Money Laundering (AML) checks, which can sometimes slow down the urgent payment process.

Using Incident Response Firms/Negotiators

In corporate attacks, a victim organization often hires a specialized cybersecurity or incident response firm. These firms are experienced in dealing with ransomware negotiations and may have established relationships with brokers that can facilitate the rapid purchase and transfer of the ransom.

Using Bitcoin ATMs or P2P Transfers

For smaller demands or more technically savvy criminals, they might instruct the victim to use Bitcoin ATMs or engage in peer-to-peer (P2P) transfers, though this is less common for large business ransoms.

How to Avoid Extortion Efforts Altogether 

Paying a ransom is a desperate, last-resort action that does not guarantee the recovery of data and may fund future attacks. The best defense is a robust prevention strategy. Businesses should prioritize these three key actions to make themselves a difficult target:

Implement a 3-2-1 Backup Strategy

This is the single most critical defense against ransomware. If your data is safely backed up, you can restore your systems without paying the criminal.

• 3 copies of your data.
• 2 different media types (e.g., local hard drive and cloud storage).
• 1 copy stored off-site/offline to ensure it can’t be encrypted by the ransomware that hit your network.

Harden Your Network Security

Strong network hygiene removes the entry points criminals rely on:

• Multi-Factor Authentication (MFA) - Enforce MFA for all remote access, including VPNs and web applications. This blocks over 99% of simple hacking attempts.
• Regular patching - Keep all operating systems, software, and firmware up-to-date to close known security vulnerabilities (the holes cybercriminals exploit).
• Network segmentation - Divide your network to limit an attacker's movement, preventing a breach in one area from spreading to your entire system.
• Train your employees - Your staff are your first line of defense. Ransomware attacks often begin with a successful phishing email.
• Security awareness training - Make regular training mandatory to help employees recognize and report phishing emails, suspicious links, and social engineering tactics.
• Principle of least privilege - Limit employee access rights only to the resources absolutely necessary for them to do their job. 

Ransomware is a real problem and can completely ruin your business. To get a professional perspective on your organizational cybersecurity, give the IT experts at WatchPoint Solutions a call today at (848) 202-8860.