As I was reading my morning news, I came across something that was rather startling.
It turns out that in the last couple years, major companies have been stockpiling Bitcoins in anticipation of ransomware attacks.
Say what?
Apparently this is a trend that has only been accelerating as of late.
If you have been living under a rock and are not familiar with the "WannaCry" malware attack, you can learn more about it here:
Basically, it was a large ransomware attack where hackers took hundreds of thousands of computer's data files hostage in exchange for payments of $300 to $600 in Bitcoin.
Not many people have paid the ransom to date as the scheme has only netted something like $80,000 USD and most of the transactions were done via individual transactions. Which means that large companies likely didn't pay the ransom.
On a side note I read the other day that most of the people who had paid the ransom had not received their data back, so there is that...
Nevertheless, there has been a growing trend of companies stockpiling the virtual coins in case of hacks.
There are certain institutions where data is often needed to be accessed immediately, such as hospitals and financial institutions. For them it makes MORE sense to comply with the demands of the cyber-criminals than it does to try and fight them.
Hackers know this and because of this, these institutions are often their targets. Sad that hospitals would be a target, but it is what it is at this point.
This seems like something that only a few companies might be doing right?
Wrong!
Check out these statistics from the UK:
Over a third of British companies have admitted to stock piling cryptocurrencies in the last year in case of hacks. With medium sized companies being the most likely to do the stockpiling.
But wait, this is just giving into a form of terrorism is it not?!
Governments haven't really developed a way to counter a lot of these hackings at this point so companies have decided that stockpiling virtual coins has become just a cost of doing business.
They are likely to be hacked at some point and the preferred method of payment seems to be Bitcoin by these bad actors. So, it is better to have some on hand just in case, is a common thought process shared by many companies.
Britain's former technology ambassador and chairman of the annual international e-Crime Congress expanded on this a bit by saying:
"Once it's into your system, there's not much they can do about it."
"It's all well and good to catch up to the actors and prosecute them, but that doesn't help you if you happen to be a financial institution or a business and data is mission critical."
As you can see, at this point it appears that a lot of these companies don't have many other options. Especially if their data is needed urgently.
The total number of ransomware attacks quadrupled in 2016 and it is projected to double from that number in 2017.
This is the world we are living in folks.
It is a shame that this is driving some of the demand for virtual currencies at the moment but it looks like this is just one more small step in the long process of eventually gaining mass and main-street adoption.
Stay ransomware free my friends!
Sources (including images):
Follow me: @jrcornel
Really amazing data and facts you just shared with us. Thanks a bunch, I can hardly wrap my mind around it! I guess what is happening in relation to this whole story is that it gives exposure to cryptocurrencies, on some level attaching the idea to a form of terrorism, then it might be exposing the whole idea of cryptocurrencies as being used by terrorists... Though a lie, many people would still gladly want to believe it in order to fight the war on terrorism right!?! Meanwhile, many people would also be curious and inquire about this new term "cryptocurrencies" and might get involved with the ones having the best exposure and marketing. Let's see how far Steem can go with that! ;)
Namaste :)
How far is the moon?! ;)
No publicity is bad publicity?
Bitcoin is in the news every day now... and I don't care why :)
Thanks for sharing. Good point.
Hardly anyone I know has any. A few years out I see that being completely different. Perhaps the ransomware thing was to put bitcoin into the mass pyschi?
Haha now that would be some dark magic right there... I doubt that was the plan, but it might push it further along that's for sure!
Amazing posts. Tons of great info. I have upvoted and resteemed it. Thanks
@digestingreality
Thank you! I appreciate that!
Your welcome. Have a great weekend.
This sentence summed it up perfectly! "It is a shame that this is driving some of the demand for virtual currencies at the moment but it looks like this is just one more small step in the long process of eventually gaining mass and main-street adoption. "
Great article!
Yep, I thought that was a good one myself ;) Hopefully hospitals figure out a way to beef up their security so this kind of stuff doesn't end up hurting people who are there to get treatment...
Ugh I know! Being in the healthcare technology industry it has us freaked out, but not surprised. Most of the technologies are so outdated in hospitals and other healthcare facilities
That is not what I wanted to hear... that needs to change asap.
I know.. I think many hospitals are reluctant to adapt new technology because they don't completely understand, but fail to realize the importance and improvements many of the newer technologies offer.
Yes, exactly. Plus the costs...
You are right about that..
I agree 100%. Great comment. I have added you to my following.
Thanks! Followed you back.
I think they might be doing this our of sheer diversification. Many companies have bitcoin, they just don't like to advertise it. Any sane economic advisor would have to include it in their report.
I believe even Buffet owns some (even though he doesn't like to admit it)
Really? I have followed Buffet quite a bit (although not as much recently). I know he doesn't buy anything he doesn't understand... perhaps he understands it now ;)
He understands that if he approves bitcoin publicly his portfolio might suffer ;)
That and he might want a few more first ;)
I think at this point everyone has been stacking up but most are afraid to admit it. Wait until that market cap brakes 100 billion and they flash their bitcoins on each others' faces.
Haha! I can't wait till stocks start stalling out because all that money starts flowing into the virtual currency space...
Great points.
Things get messy when the ransoms don't do anything.
Yes they do. The next couple years are going to be very interesting.
Great content man, thanks for sharing. This really opens my eyes and everyday I realize how this is cryptocurrency space is growing the more I can raise my up my middle finger to them non-believers who doubted me.
nice info.
What was your favorite part?
these lines are main part of your article i think.
"Hackers know this and because of this, these institutions are often their targets. Sad that hospitals would be a target, but it is what it is at this point."
I have a kitte hacker.. See :D
That is one fast kitty!
I need that cat to be my online assistant!! :)
I definitely agree that fear and preparation; and I think also financial maneuvering comes into play some on this crypto-currency price action.
Check TGV's though provoking post on #WannaCry is it just a move by these occult leaders... why is the news reporting on something with such low volume of ransom...
https://steemit.com/money/@dollarvigilante/wannacry-ransomware-virus-is-a-globalist-false-flag-attack-on-bitcoin
There's also the dip in the dollar...
https://steemit.com/money/@marketreport/alert-the-us-dollar-is-now-being-dumped-by-investors-by-gregory-mannarino
And the US volume over taking Japan and China for bitcoin lately...
https://cointelegraph.com/news/how-us-briefly-overtook-japan-and-became-largest-bitcoin-exchange-market
Do you think at this point even bad news will only further the spread of cryptocurrency to mass adoption? (Even if it might sometimes cause short term scares.) What barriers do you see to helping the masses use these tools?
very interesting, this makes perfect cents...business minded folks always weigh cost vs benefit of security...credit card fraud is a case in point...it took billions in bank losses before the case of EMV chip cards was viable. You see the hypocrisy in 'fraud concern' clearly when you see dramatic increase in online fraud (which merchants vs. banks bear the cost of).
Yep, great points!
is there any way to know what regions BTC is being purchased from? Using time-zone analysis perhaps? I know China was a big source when their government started cracking down on money transfers out of country...based on this great article, looks like that trend would be shifting to developed countries (target rich, unpatched businesses).
The best way I know of is you can check what currency the coin is being bought in. As of late a lot of Bitcoin has been bought in Yen. Which would mean Asia has been a big buyer of late.
It's scheme to zap Bitcoin off circulation.....how can 850,000 Btc go missing in trading?
Good question! How did my $38 (it bitcoin) go missing during a transfer?! These are questions I would very much like the answers to!
Oh my Gosh!.....You was affected too?My bad @jrcornel ,when i lost my 18 SBD on polo i wanted to give up on Steemit cos that was the first tangible thing i could gather since joining in March.....Sorry mate!
From my detective work it looks like it was actually more of a problem with Coinbase than anyone else... although Polo has been having it's fair share of problems as well!
JESUS!..coinbase?that's where i store the lil btc have been gathering.
I'm in trouble oh Lord!
You should never store Bitcoin on ANY exchange. Always transfer it to a personal wallet ASAP.
i was a rookie until then,now i got my first lesson😢
I totally did not know this. Whilst is sad that that is the reason to obtain some crypto and hoard it, it's quite impressive that old fashioned organisations can actually have the savvy to actually do this.
Yes it is. Wonder what wallet they hold it in?! Perhaps they would look to buy some steem? I hear that one has an awesome wallet ;)
And savings to double ensure the safety of their holdings!!
Wow... I did not know this, at ALL. Although-- on some level-- it makes sense. Corporations hedge all the time... if some risk assessor decides there's a real cause for alarm, why not put in some BTC at $500, "just in case" you need to pay a ransom note when BTC could be $1500?
I remember when Southwest Airlines were kicking all the other airlines' butts because someone at SWA had the foresight to buy huge volumes of fuel futures when they were super cheap.
There you go. One step ahead... always.
It supports the THEORY that WANNACRY is a DEEP STATE operation!
Haha of course!
Great article. It would make more sense to use their money to beef up their cyber-security especially in light of the fact that paying the ransom doesn't also get the files back. I knew we were heading to increased Bitcoin ransoms when Chicago Med show did an episode on it.
Good points. I am not sure which is the "cheaper" route. Although if you don't get your data back anyways, what's the point?!
Agreed!
Many of our Corporations are run by fearful sheeple. Preparation and risk mitigation is the only way they can sleep at night-
Peaceful sleep is a wonderful thing! :)
Gotta get those Zzzzs...! crypto has many capable, secure business execs nervously scrambling to get up-to-speed
Yes it does.
interesting.. thanks
Interesting.
What company's are stockpiling>
The data table above shows "medium sized" companies in the UK. They didn't list names though.
I've seen some news accounts trying to disparage Bitcoin because the hackers wanted it as a form of payment. I guess they hate cash too. The Bitcoin phenom really seems to scare some people.
Yea, I think it is here to stay. People fight it and fight it until they turn and jump on the wave...
I actually came to see if you'd put up any recent scenic/family posts, I love those :) I know people get really into the crypto posts but I have to admit I let my husband figure that all out, haha! But I still wanted to say Hi!
Yea the family stuff doesn't seem to do nearly as well... perhaps when there is more people on here?!
I understand, and I hope so!
Sold all my ripple this week for the big jump in bitcoin. Anyone else read the webbot here? Those reports made me a killing on XRP, ETH, BTC, LTC.
Great post! But I doubt that large number of PUBLIC companies are doing this. The reason is that they MUST report by the law each quarter their revenue, profit, expenses etc. Also by the law they MUST be audited by solid firms at least once per year. So, now imagine that the auditor find an expense by the company: "spent $1800 to buy 1 Bitcoin. Reason: just in case of ransomware". I would love to see the auditor's face at that moment! :) So, I guess you data is mostly from private companies, which do not have so many legal requirements as public ones. Would you agree?
Yes, perhaps it is an "off balance sheet item" disclosed in the fine print at the bottom. That or listed in the "investments" section. But yes you make a good point, I believe a lot of the companies that were polled were private companies. The data I used specifically talks about European companies.
Thanks!
I would appreciate an upvote, if you like it. :)
Well, $300 is nothing to a big company, but to individuals, it's a lot. Personally I wouldn't pay it.
Me neither, but say you are a hospital and need the data quickly in order to save a person's life... perhaps you have no choice?!
Does "stockpiling" means they have bought digital currencies in the UK in 2017. ?
Nice text and info. Keep going.
Yes, it means they have been buying in 2016 and 2017 and will continue to do so in order to protect themselves against cyber criminals.
Data war is just starting.
I agree. I bet it gets a lot worse before it gets better...
de echo aquí en méxico,el virus fue mas fuerte,pero gracias a un chico estadounidense que encontró una falla en el virus,ya que entre todos los archivos,encontró uno que estaba libre,así que compro el dominio de ese,y así logro desviar el ataque por el momento,así logro que afectara a menos personas.
muy buen aporte amigo c:
That's sad indeed. Bad Hackers are really causing a nuisance nowadays. God knows how many of them are connected to terrorist organizations worldwide and fueling their cruelty............
Not to mention funding it... :/
No way... I wouldn't have even thought its possible.
It was pretty surprising to me as well! :)
Really wish I had this info last year!
Really wish I had bought Bitcoins (and just about every other altcoin) last year!
I feel like a bad person. I shouldn't be happy that something awful like ransomware is increasing the value of my holdings!
I'm just a greedy monster.
Nice article. I'm following you.
Thanks, and rest assured, it is only a very small portion of the overall demand. There are much bigger forces driving this thing. Likely only to get bigger...
very interesting information.
Thank you!
I will be following you as this is a good article. And I think they simply target hospitals due to their lack of cybersecurity and demand bitcoin as it is easily transferable.
Yep and they know the hospitals will pay. They have to in some instances in order to save lives...
They will always pay to save lives and I feel like thats what makes them an easy target. Life will always be worth more than the hundreds they ask for. That is why I think they will keep targeting them.
Yep exactly.
Very interesting.
But the BTC's deal is more and more congested
I prefer ETH as a bargaining chip to BTC
More and more ICOs receive only BTC / ETH and US dollars
Thanks a lot for the informative post, I'll be following from now on. Thanks!
I appreciate that, thank you!
Would it not be smarter to invest in security instead of holding coins for the day you will get attacked. Maybe I'm just an uneducated fool but that's like buying a bunch of penicillin for the day you get an STI instead of just practicing safe sex, But who am i to judge.
Haha perhaps the Bitcoin purchases is the much cheaper option, but I can't say for sure...
Yes but it is also the short term option. I watched an interview with John Mcafee and he himself said that firewalls are obsolete. Security shouldn't be just reactive, but the only consumer tools we have are simply defensive
really nice information
I doubt nbcnews numbers but there surely is some companies preparing for such hacks.
HA! I'm glad we can trust them not to steal them, anonymously, from themselves ...
Isn't paying taxes giving in to terrorism? You pay to avoid problems with the same organisation.
Excellent analysis!
These coins could also be dumped on the market crashing the price.
Great informative post..!!! appreciate your effort to share this post here.... Upvoted...Resteem and followed..
That's really interesting thank you!
Many have guessed (correctly, it seems) that the worldwide WannaCry incident is really a false flag attack on bitcoin.
#WannaCry Ransomware Exposed as a False Flag to Attack Bitcoin
activistpost | May 19, 2017
In this video, software and blockchain developer Vin Armani examines the WannaCry ransomware that the corporate media acted like it was the end of the world. Ultimately it appears to be an amateurish false flag attack on bitcoin. But upon digging into the bitcoin addresses used in the attack, Vin discovers a more potentially much more nefarious attack on bitcoin.
It makes good business sense if your computer generates $$$ and every minute of downtime means 0. On the other hand it also says how much one can trust the damn boxes. I've never been hacked. I have got viruses mailed to me. But those are PC malware. I just delete them.
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