Hackers demand $2 million in BTC from Chinese electric car maker NIO

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Bitcoin is becoming one of the top cryptocurrencies demanded by cybercriminals in exchange for information they steal from businesses.

In the automotive industry, data security issues have become a major concern.

As corporations allocate large sums of money to beef up their defenses, so do the bad guys who also use the latest technology to get what they want.

On Tuesday, cybercriminals broke into NIO Inc’s database and acquired user and vehicle sales information, the company said, as reported by various media outlets.

Hackers on the move to get their Bitcoin

The incident marks the latest move by bitcoin hackers to infiltrate global automotive industry databases.

Shanghai-based NIO is a Chinese multinational that focuses on the design and development of electric cars.

As information is vital to the reputation and security of any business, owners will do everything in their power to prevent an untoward incident from blowing up and causing further damage.

This includes accepting requests by paying a ransom in the form of crypto to hackers so that sensitive information doesn’t fall into the wrong hands.

For its part, NIO says it strongly opposes submitting to the hackers’ demands and has instead reported the matter to the authorities.

Image: Vicki Thompson The $2.25m BTC blackmail

According to NIO, the hackers are demanding $2.25 million worth of Bitcoin (BTC) via email for the stolen data. Failure to pay would result in disclosure of the information to the public.

In a statement, NIO said:

The company strongly condemns such illegal acts and will not comply with cyber crimes.

NIO said it deeply regrets the incident and pledged to take responsibility for any potential harm to customers.

Some of the automaker’s user and vehicle sales data before August last year has been compromised, according to an internal investigation.

The Bitcoin ransom demand comes regardless of whether China has banned cryptocurrency transactions. Additionally, the use of cryptocurrency for ransom has emerged as a regulatory issue.

BTC Total Market Cap Dropped To $324 Billion Today | Chart: TradingView.com Will banning crypto solve the problem?

NIO is a key rival to US electric car maker, Tesla Inc, which is led by its CEO Elon Musk.

The Shanghai-based stock was down almost 5% in morning trading, but has since recouped some of its losses and is now up more than 3%. NIO stock, valued at nearly $20 billion, is down 60% year-to-date.

One of the main disadvantages of paying a ransom in bitcoins is that it encourages criminals to improve their techniques, thus enhancing the ability of ransomware gangs to reach larger targets.

However, there is a lot of debate in the cybersecurity community about whether or not banning cryptocurrencies is the best way to prevent criminals from wreaking havoc in the automotive industry and other industries.

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