Monero and the rise of privacy coins in ransom demands

Bitcoin had long been a synonym for ransomware when cyber criminals encrypted the hard disk. Today, ransomware is often required of other cryptocurrencies, such as Monero and other privacy tokens. In this article, we will look at the conditions of these configurations, the principles of these currencies, and what cyber specialists actually need.

Conventionally, the ransomware screen ends with the text "₿" of bitcoin and the number indicating that there are many units of unexpected banknotes, making it a feeling of unfortunate day for the IT team. However, the villain is increasingly changing to cryptocurrency, and "confidentiality" and "anonymity" are considered to be the main features. This is not surprising, as hiding fraudulent funds is one of the most important aspects of cyber crimes. These cryptocurrencies are often called privacy tokens. The example is Monero.

This blog post does not specialize in blaming or condemning cryptocurrencies and privacy tokens. In fact, I don't think Monero itself is a genius. Of course, as you become famous among criminals, it causes a lot of problems for our cyber security experts, but it's just a code. Cords have no essential good and evil abilities. However, it is surprising to make it difficult to read almost all identical components of transactions.

Why do I need to know about this?

Speaking of ransom wigs after ransomware attacks and double extortion, we usually imagine bitcoin immediately. Bitcoin has long been the most prominent cryptocurrency for cyber criminals. The entire ecosystem was built on the Bitcoin blockchain, and I tried to hide where and who moved. Everything was very difficult. But the situation has begun to change advantageously to us. The chain analysis tool has begun to deeply insight into bitcoin transactions. And a terrible thing happened. Ransomware attack has destroyed American colonial pipeline. The colonial pipeline paid $ 4. 4 million to the Darkside Group. Surprisingly, with the support of Chainalysis, the FBI was able to seize $ 2. 3 million out of the ransom. It was a great victory for us, a great hit for the extortion group.

As a result, the blackmail group has secured its cryptocurrency operation.

Authorized criminal business transactions have been whenever a room for criminals was chained to their beds. This is a more likely route so that they can be caught or at least confiscate their illegally acquired assets. There are numerous circumstances on how attackers have fought against how to effectively and quickly launder large sums of money. Cryptocurrencies, especially privacy coins, suggest a good way to move the usual difficulties.

Following the fast breeder FBR in the fight against the dark side, we in this IRGE, "Cybersecurity - Avers", have begun to track a significant increase in the number of groups demanding ransoms in Monero. Monero is completely different from Bitcoin. Monero and Bitcoin are completely different. It is not a new development, it was launched in 2014 as a scheme with undisclosed initial code, but its prominence has increased in recent years. Spokespeople quibble with the fact that "censorship" transactions are guaranteed. This is indeed true, but it also guarantees reliable confidentiality for blackmail groups.

In this note, we will briefly discuss how Monero works and what it means for an organization if they actually need to settle, pay, or not pay a ransom in Monero.

What is cryptocurrency?

Let's start from the beginning. Monero is a cryptocurrency, a digital monetary unit that uses encryption technology. Transactions are monitored and added to a public ledger known as the blockchain, a decentralized system. This ledger of transactions claims to guarantee everyone the highest level of censorship regarding the fairness of these transactions.

I’ve heard of Bitcoin but how is Monero different?

Although Bitcoin is perhaps exclusively famous among the cryptocurrencies, it does not actually guarantee people the greatest confidentiality or anonymity.

Cryptocurrencies have all sorts of possibilities and proprietary built-in confidentiality as built-in features at the protocol level, and this confidentiality can also be application-based. Bitcoin employs the latter system, while Monero is the former. This has a lot of implications for us, for example, cybercriminals.

What is “privacy” in this context?

Confidentiality in the provided context means hiding information about who is actually preparing the transaction and where. In fact, there are two prominent substances that distinguish the "privacy" of cryptocurrencies.

• Unrelated - This means that the payment or the required amount cannot actually be connected to your address.
• Unvalued - This means that it has been "mixed up" with an actual payment or transaction.

True confidentiality means you can't tell one from the other, but there is a chance to prenit without the first.

Monero is doing both, but it is important to understand who is behind the transaction, how much, and where it has disappeared. Therefore, there is no doubt that it is the best tool for money laundering.

Let's take a look at these two elements:

Unlinkability

Suppose you buy Monero for yourself. You will receive a public address (like a bank account number), but the funds you can use freely will not be linked to the public address. In other words, unlike Bitcoin, even if your public address is an account, you do not know how much money you have in this "account".

Now you have monero and decided to send some to me. You understand my public address and I will consider your public address. How can monero guarantee that the transaction you want to do at my address is hidden from your favorite eyes? She prepares this in a pretty insidious way.

If you send the method, a random address that can be used only once will be generated. This on e-time address is recorded in the ledger. So I can't declare that I received the method. If you want, my public remarks will be hidden from the prying eyes. The same is true for your public address. In other words, other people have many opportunities to see that they have been traded and that they have been registered correctly, but cannot be associated with you or me. Such a on e-time address is popular as a "stealth address". You and I know the truth about transactions, but that's it.

In other words, this is a privacy function, but the monero guarantees that the recipient (in this case, in this case I used the method you sent me to me) Is it? Here, the second element of privacy, tracking, appears.

Untraceability

Monero solves this problem by supporting the ring signature. "Transaction mixing" is enabled. In other words, when you send me a method, the method of other users is randomly included in the transaction. This allows you to hide the dented money key. No one knows who the actual remittance is. The number of people added to this list varies. It cannot be denied that the more people you add, the higher the reliability of embezzlement. If you add people to your transactions unreasonably, the other person will do the same. The innocent result has two excellent features. First, all the "noise" you have added will not be able to claim you are you. Second, even when the account is not active, it is not easy to identify a "large transaction" account, as everyone seems to be doing a large amount of transactions.

In addition, the amount of each transaction is hidden. This uses mathematical functions, so only the sender and the recipient can know and see the real transmission amount.

The confidential puzzle has the last piece: What happens to your location information? Monero uses what is called "Tapestry" and also supports this. In fact, this works in the same way. By encrypting and routing traffic, you cannot identify who has traded and where.

Therefore, it is not possible to connect funds and transactions to a specific address, and identify the person behind the transaction or the executed amount, and specify where the person was when the transaction was executed. I can't do it. Very wonderful and very relative.

In its design, monero is not only useful for activists who are active in compressive mode, but also "Know Your Customer" / "Know Your Transaction" Regulations, Money Laundering, Tax Evasion. It helps to avoid laws to fight other illegal financing. All of these are essential for compromising between privacy and private life.

Monero uses hidden addresses, so people are not a target of targeted attacks or robbery. Therefore, there is no doubt that there are more advantages than bitcoin.

Monero has some other advantages of "warm and fuzzy" than bitcoin. It operates much faster than bitcoin, and generally has low transaction costs. Like Bitcoin, it uses a proof mechanism, but it doesn't consume much resources, so if it's really important mentioned above, it's more environmentally friendly!

Monero and Ransomware

This reliable level of anonymity has the advantage of various groups, and it is certain that it has a function to avoid censorship, as PR activities emphasize. In addition, for groups involved in the atonement program, it is easy to understand why no n-confidentiality and no n-alliance are desirable. < SPAN> In addition, the amount of each transaction is hidden. This uses mathematical functions, so only the sender and the recipient can know and see the real transmission amount.

The confidential puzzle has the last piece: What happens to your location information? Monero uses what is called "Tapestry" and also supports this. In fact, this works in the same way. By encrypting and routing traffic, you cannot identify who has traded and where.

Therefore, it is not possible to connect funds and transactions to a specific address, and identify the person behind the transaction or the executed amount, and specify where the person was when the transaction was executed. I can't do it. Very wonderful and very relative.

What should you do with this information?

1. Monero uses hidden addresses, so people are not a target of targeted attacks or robbery. Therefore, there is no doubt that there are more advantages than bitcoin.
2. This reliable level of anonymity has the advantage of various groups, and it is certain that it has a function to avoid censorship, as PR activities emphasize. In addition, for groups involved in the atonement program, it is easy to understand why no n-confidentiality and no n-alliance are desirable. In addition, the amount of each transaction is hidden. This uses mathematical functions, so only the sender and the recipient can know and see the real transmission amount.
3. Therefore, it is not possible to connect funds and transactions to a specific address, and identify the person behind the transaction or the executed amount, and specify where the person was when the transaction was executed. I can't do it. Very wonderful and very relative.

In its design, monero is not only useful for activists who are active in compressive mode, but also "Know Your Customer" / "Know Your Transaction" Regulations, Money Laundering, Tax Evasion. It helps to avoid laws to fight other illegal financing. All of these are indispensable for compromise between privacy and private dignity.

Recent Posts

• Monero has some other advantages of "warm and fuzzy" than bitcoin. It operates much faster than bitcoin, and generally has low transaction costs. Like Bitcoin, it uses a proof mechanism, but it doesn't consume much resources, so if it's really important mentioned above, it's more environmentally friendly!
• Bitcoin is still in strong demand for extortion, but large extortion groups are increasingly offering payment in Monero. There is a serious business joke in this. If you pay in Bitcoin, they have to spend time and money to route the funds through a blending service on the Bitcoin blockchain, trying to achieve the same illicit value that you could get with Monero. Apart from this, there is a significant high-risk that the method will be intercepted or stolen to another criminal society. Almost all these mixes of "applications" on the Bitcoin blockchain are considered guardians, i. e. the perpetrators must practically broadcast their Bitcoin to another, fastest, criminal organization's "account". And then it is mixed with other methods and translated. So it can be stolen by the mixing service. Because there is no honor among robbers. As a result, we want to encourage our victims of extortion to pay in Monero.
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