There has been a recent wave of ransomware attacks across the globe.
From the major data theft of a few months ago affecting thousands of companies, to the more recent pirating (pun intended) of the new Pirates of the Caribbean film.
In each case, ransomers were able to hack into the company's data base and steal valuable intellectual property.
In many of the recent cases, the hackers are demanding Bitcoin as their preferred means of payment. They want Bitcoin for several reasons, a major one being it's anonymity.
How common are these ransomware attacks?
Ransomware attacks have gotten so common and wide spread that companies have been arming themselves with a little side pool of bitcoins just in case it happens to them.
Check out this statistic from companies polled in the UK:
Roughly a 3rd of UK companies are buying Bitcoin in case of ransomware attacks.
That is a startling high number.
Why are they paying the ransom you might ask?
Companies want to be able to pay the fee and get back to business as quickly as possible, especially in cases where their data might be needed in a timely manner such as a hospital and certain financial institutions.
For them it makes MORE sense to just comply with the demands of the hackers than it does to try and fight them.
The hackers in turn know this, and target those organizations specifically.
I touched on this a few weeks ago if you'd like to read more:
https://steemit.com/bitcoin/@jrcornel/an-unexpected-source-of-demand-for-bitcoin
However, there is one little caveat to keep in mind. In most cases where the company has paid the ransom, their data was never returned back to them. So, there is that...
This is where "Tools for the Investigation of Transactions in Underground Markets" (TITANIUM) steps in.
A group of government agencies, law enforcement, and academic researchers have all partnered on a new digital currency surveillance project backed by over $5 million dollars from the European Union. The project, dubbed TITANIUM (as mentioned above), will be conducted over the next 3 years.
According to the news release, the specific participants are as follows:
"Interpol, Interior Ministries from Spain and Austria, Finland's Bureau of Investigation, and the University College London, among a handful of others."
This sounds all well and good, but what about privacy rights?
That is the big question.
One of the major allures of cryptocurrencies is their anonymous transactions. If these things start leaving a paper trail, do they lose much of their luster?
TITANIUM pledges not to violate users privacy rights, although that seems like a tall order.
Specifically, the duty of the group is as follows:
"The consortium will analyze legal and ethical requirements and define guidelines for storing and processing data, information, and knowledge involved in criminal investigations without compromising citizen privacy."
Basically it sounds much like what Russia was talking about a few days ago. It sounds like they are looking at ways to regulate the currencies at least to some degree.
It's not surprising the EU is taking this action given all the ransomware attacks of late.
It will be interesting to see how effective it is though, and it will also be interesting to see exactly how this effects cryptocurrencies and their users desire to remain mostly anonymous.
The times they are a changin!
Stay informed my friends!
Sources:
http://www.coindesk.com/eu-commits-e5-million-fund-blockchain-surveillance-research/
Image Sources:
http://www.socialistworkeronline.net/ireland-and-the-case-for-a-left-exit-from-eu/
http://www.nbcnews.com/storyline/hacking-of-america/companies-stockpiling-bitcoin-anticipation-ransomware-attacks-n761316
http://www.youtube.com
