Getting Rid of Hackers No Need to Get Rid of Crypto Assets

Some observers think that recent ransomware attacks can be overcome without banning the role of the crypto market. The observer is CrowdStrike co-founder and former Chief Technology Officer, Dmitri Alperovitch

He told CNBC on Tuesday (29/6/2021) that cracking down on ransomware cyberattacks does not need to block some cryptocurrencies.

"I agree that crypto is a big part of this problem because of the ability to accept payments invisibly but I don't think we should ban it, what I mean is that we will also solve the problem without involving the role of blockchain, but no one is suggesting that ." Alperovitch said on CNBC's "Power Lunch."

In contrast, Alperovitch, who left the California-based cybersecurity firm early last year, said a series of rules could be put in place to counter ransom payments made in digital currencies, such as Bitcoin.

"I think before tightening crypto regulations, you should first know about your customers, anti-money laundering regulations to ensure that large transfers are tracked, and these criminals can't be sure to receive them anonymously, this will be very important in stemming this problem." Alperovitch told CNBC International.

According to Bitdefender, a Romanian cybersecurity company, global ransomware cyber attacks reportedly increased by 485% in 2020, compared to the previous year.

The Colonial Pipeline hack incident last May forced the company to pay a ransom of US$5 million in Bitcoin and has intensified focus on the issue.

In addition to becoming more frequent, ransomware attacks are now more sophisticated than in previous years, as CrowdStrike CEO George Kurtz told CNBC International on June 9.

"Ransomware is now more sophisticated and becomes a big hunt," said Kurtz, quoted from CNBC International.

Chris Krebs, former director of the US Agency for Cybersecurity and Infrastructure Security, told CNBC Tuesday that there is a need for more intense scrutiny of the role hackers play in using cryptocurrencies as a ransom.

“I think international regulators are paying attention to cryptos lately and how they have been sliding under scrutiny for some time in terms of transparency,” Krebs said on “TechCheck.”

But in the short term, Krebs said businesses should prepare their contingency plans in case they fall victim to the next cyberattack.

"This is a serious matter that corporate executives, boards of directors and general counsel need to think about," Krebs said.

The government can play an active role in blocking the role of hackers. They can annoy these actors and make it difficult for them to operate, but what matters most is how the government deters them from hacking.

Industry experts have varying views on how cryptocurrencies impact a ransomware attack that can take a national agency's system offline when it is successfully intercepted.

To get back online, hackers demand a ransom payment, possibly in cryptocurrencies from the company or organization in return for recovering the attack and the hackers get the data of the eavesdropped victim.

FireEye CEO Kevin Mandia told CNBC on Monday (28/6/2021) that the increase in ransomware attacks is completely in line with the emergence of new cryptocurrencies and rising crypto prices.

This suggests that experts have a different view, with some believing that limiting the role of cryptocurrencies could be the key to limiting ransomware attacks.

However, many argue that crypto transactions can be used to track hackers, through their digital ledger, their digital wallet or when they use a special blockchain that can be used by perpetrators to carry out their actions.