Introduction
Ransomware attacks have been on the rise in recent years. These malicious programs encrypt files on a victim’s computer and demand payment in cryptocurrency to decrypt them. Traditionally, the preferred cryptocurrencies have been Bitcoin and Monero. However, ransomware operators are now shifting to demanding payment in privacy coins such as Monero and Dash due to the increased anonymity they provide.
What is Ransomware?
Ransomware is a form of malware that encrypts files on a victim’s computer and renders them inaccessible. The attackers then demand ransom in the form of cryptocurrency payments in exchange for the decryption key. If the ransom is not paid, the files remain locked forever.
Some key characteristics of ransomware:
- Encryption of personal files such as documents, photos, videos etc.
- A ransom note is displayed with payment instructions.
- Threats to delete files or increase ransom amount if payment is delayed.
- Payments demanded in cryptocurrency such as Bitcoin, Monero etc.
- Use of asymmetric encryption so only attackers can decrypt.
Shift to Privacy Coins
Privacy coins such as Monero and Dash offer increased anonymity compared to Bitcoin. Transactions are obfuscated and account balances are hidden. This makes them attractive for criminal activities such as ransomware.
Some reasons for the shift to privacy coins:
- Anonymity – Bitcoin transactions can be traced to real-world identities. Privacy coins mask identities.
- Evasion – Law enforcement has gotten better at tracking Bitcoin payments. Privacy coins are harder to trace.
- Fungibility – Coins have equal value. Clean and dirty coins can’t be distinguished.
- Increased profits – Lower fees and faster transactions maximize ransom profits.
Examples of Ransomware Using Privacy Coins
Some notable examples:
REvil
- Notorious Russia-linked group.
- Switched from Bitcoin to Monero for ransom payments.
- Attacked meat processor JBS and extracted $11 million in Monero.
DarkSide
- Ransacked Colonial Pipeline networks.
- Demanded ransom in Monero cryptocurrency.
- Forced major US fuel pipeline shutdown.
Ryuk
- Targets large enterprises and public institutions.
- Earned over $150 million in cryptocurrency payments.
- Recently switched ransom demands to Monero.
Impact of the Shift
The shift to privacy coins has substantial impacts:
- Less transparency – Bitcoin offers pseudonymity while privacy coins are truly anonymous.
- Thwarting investigations – Law enforcement finds it harder to track or seize ransom payments.
- Increasing costs – Average ransom payment has risen from $115,000 to $178,000.
- More incentive – Lucrative ransoms fuel criminal business model of ransomware.
Protecting Against Ransomware
Some tips to protect against ransomware:
- Maintain offline backups of important data.
- Keep systems patched and up-to-date.
- Use antivirus and endpoint protection software.
- Restrict execution of unknown programs through whitelisting.
- Educate employees on phishing and social engineering.
- Segment networks to limit spread of malware.
- Have an incident response plan for attacks.
Conclusion
The growing use of privacy coins represents an alarming new trend making ransomware harder to trace. Companies and individuals need to take proactive measures to secure systems and backups. Paying the ransom should be an absolute last resort option. As cybercriminals increasingly leverage anonymity and cryptocurrency, ransomware presents a severe threat in coming years.
