Hackers often use cryptocurrency for ransomware attacks because it offers several advantages that make it appealing for criminal activities:
1. Anonymity and Pseudonymity: Cryptocurrencies like Bitcoin are pseudonymous, meaning that while all transactions are recorded on a public ledger (the blockchain), the identities of those involved are not directly tied to the transactions. This makes it harder for authorities to trace the hacker.
2. Decentralization: Cryptocurrencies operate on decentralized networks, meaning no central authority can freeze or reverse transactions. This ensures that once the ransom is paid, the hackers can safely receive the funds without fear of interference from banks or government agencies.
3. Global Accessibility: Cryptocurrencies are accessible globally, allowing hackers to receive payments from victims in different countries without worrying about international financial regulations or currency conversion issues.
4. Irreversible Transactions: Once a cryptocurrency transaction is confirmed on the blockchain, it cannot be reversed. This guarantees that hackers will retain the ransom payment without fear of chargebacks or disputes, which can happen with traditional payment methods.
5. Easy to Launder: Hackers can use various methods like mixing services or "tumblers" to obfuscate the trail of cryptocurrency transactions, making it even more difficult for law enforcement to track the movement of the funds.
These factors combined make cryptocurrency an attractive and relatively secure option for cybercriminals to extort victims without easily getting caught.
A cryptocurrency tumbler (or mixing service) is a tool used to enhance the privacy and anonymity of cryptocurrency transactions. It works by mixing potentially identifiable cryptocurrency funds (e.g., Bitcoin) with others, obscuring the trail of the original source of the funds. This process makes it much harder for anyone, including law enforcement, to trace the funds back to their original owner.
Here’s how a tumbler typically works:
1. Receiving Funds: The user sends cryptocurrency to the tumbler service.
2. Mixing Process: The service combines the user’s funds with other users' funds or its own reserves. It often splits the funds into smaller amounts and processes them through multiple random transactions.
3. Redistribution: After the mixing process, the user receives the same amount of cryptocurrency back, but from different sources and often in different amounts spread over time, making it difficult to associate the outgoing funds with the original deposit.
Why Hackers Use Tumblers:
Hackers use tumblers to further obfuscate the path of stolen or extorted cryptocurrency (such as ransom payments). By "mixing" their transactions with others, they can effectively break the connection between the ransom and their wallet, making it significantly harder for investigators to track them.
However, tumbling services are controversial and often scrutinized by governments because they can be used for money laundering and other illegal activities. Many jurisdictions have begun to regulate or ban them entirely due to their association with criminal use.
