Spike in ransomware attacks ‘absolutely aligns’ with rise in crypto

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Closely linked to the advent of cryptocurrency is the rise in ransomware attacks, FireEye CEO Kevin Mandia told CNBC on Monday.

“There is a direct correlation,” the cybersecurity firm’s executive said on “Closing Bell.” “When you look at the rise of ransomware, it fits perfectly with the rise of anonymous digital currencies. “

“There is no doubt that this is an enabler that you can enter anonymously and get paid anonymously, and now you can commit a crime 10,000 miles away in a safe harbor,” Mandia added.

Mandia said that while awareness of cybersecurity issues is at an all time high, following a series of headline-grabbing incidents including the Colonial Pipeline hack, challenges remain to prevent every attack. .

“We are better protected today than ever. But what we see is that we are just playing the goalie. There are limitless opportunities to hack us, and no risk or repercussions for those who do the trespassing, ”Mandia said. “So over time you’re going to see successful intrusions. You know, we can’t play successful defense every day.”

Banning ransomware payments per se is not an adequate solution, Mandia said, while alluding to the incident involving Colonial Pipeline last month. The company paid a ransom of $ 5 million after its computer network was hacked, although US law enforcement was able to recover some of the bitcoin used in that payment.

The government also has a crucial role to play, Mandia said.

“We need to consider all the tools of diplomacy to support the desired outcome we want, which is quite frankly to ensure that there are risks imposed on those who profit from cyberspace and anonymity. that it offers, ”he said.

Not everyone agrees with Mandia’s take on a connection between cyberattacks and cryptocurrency. Katie Haun, partner at venture capital firm Andreessen Horowitz which invests in crypto start-ups, told CNBC last week that she thought it was a “myth that bitcoin is good for criminal activity.” .

“The point is, you see investigators and prosecutors solving cases in which crypto has been used as the technology of choice by criminals,” said Haun, who is also a former federal prosecutor who has investigated cybercrimes involving the cryptocurrency.

“Crypto is an improvement of the top-level function to the existing financial system in terms of traceability,” said Haun, who now sits on the board of the crypto exchange Coinbase. “People often say, ‘How is that possible? Isn’t cryptography anonymous? The point is, when crypto is used for illicit activities it leaves… digital breadcrumbs, and I can tell you that, firsthand, I have used blockchain technology to solve crimes.

David Kennedy, a former NSA hacker turned founder and CEO of security firm TrustedSec, told CNBC on Monday that he believed banning companies from paying for ransomware in cryptocurrency would, over time, lead to a decrease in these attacks.

However, the cost would be high in the short term, he said, as companies suffering from security breaches find it difficult to get their systems back up and running.

“What would happen is you would have an influx of ransomware groups trying to eliminate as many attacks” as possible before the payment ban goes into effect, Kennedy said.

“During that time, you would see an increased attack surface around a lot of compromised companies, and then you would see a big drop because they essentially cut the currency of those organizations,” he said.

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