- The recommendations were developed by the Ransomware Task Force (RTF).
- Ransomware criminals can also obscure their transactions through cryptocurrency ‘mixing services.
- The report claims that ransomware payments are made in cryptocurrency, which is difficult to trace.
A task force, set up by the Institute for Security and Technology, in a report – Combating Ransomware to the Biden administration has made 48 recommendations, some of which supposedly suggest the tightening of crypto regulation.
The recommendations were developed by the Ransomware Taskforce (RTF), which has been described as “a broad coalition of volunteer experts from the industry, government, law enforcement, civil society, cybersecurity insurers, and international organizations”. The objective is to provide a strategic framework for a systemic, global approach to mitigating the ransomware problem.
The connection between Ransomware and Cryptocurrency
The report suggests ransomware payments are typically made in cryptocurrency, which is difficult to trace. It recommends the cryptocurrency sector that enables ransomware crime should be closely regulated. Governments should require cryptocurrency exchanges, crypto kiosks, and over-the-counter (OTC) trading desks to comply with existing laws, including Know Your Customer (KYC), anti-money laundering, and combating financing of terrorism (CFT) laws.
It emphasizes the need to “develop new levers for voluntary sharing of cryptocurrency payment indicators.”
The report adds, “Incentivize voluntary information sharing between cryptocurrency entities and law enforcement”, and “centralize expertise in cryptocurrency seizure, and scale criminal seizure processes”.
The report says the use of cryptocurrency adds to the challenge of identifying ransomware criminals. As payments with these currencies are difficult to attribute to any individual. It states that ransomware criminals can also obscure their transactions through cryptocurrency mixing services.
Payments to ransomware criminals have increased by 311%
The report highlights an alarming trend of ransoms being paid by private firms siphons millions of dollars toward criminal enterprise every year. The total amount paid by ransomware victims increased by 311% in 2020. It reached nearly $350 million worth of cryptocurrency.
Moreover, as per the report, some groups demand payment in privacy coins, such as Monero. But the task force said these coins are not as liquid as bitcoin and other cryptocurrencies.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.