Why ransomware often demands small amounts of Bitcoin

A while back I told you about my enthusiasm for cryptocurrency, like Bitcoin.

Bitcoin was riding high at almost $20,000 and I was making money almost every day in the crypto market. Things have settled down since then and prices have dropped significantly. I still am bullish on the long term prospects of crypto, but stories like this one on do not help.

I need to acknowledge the darker side of crypto with this new hacker attack at Boeing and with the City of Atlanta. Boeing has been fairly tight lipped about the status of their situation, but we do have more information about what’s happening in Atlanta.

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Here’s the basic scam:

A shadowy group called SamSam has written a piece of virus software. They specifically target entities that cannot afford to be shut down for any length of time like a large corporation, a city government, or a hospital.

SamSam then uses various techniques to get their virus into a target network. Once inside, the virus is written to execute a plan. First rename all the files on the entire network “I’m Sorry.” Second, lock down the files and do not allow any users to access their computers, and third, destroy the files if the ransom isn’t paid.

Bitcoin ransom

Now here’s the part that confuses many people. The size of the ransom price. You’d think if you held Boeing or the City of Atlanta hostage, you’d ask for millions of dollars, but SamSam ransom price is $50,000 in Bitcoin. There have been around 30 documented cases with SamSam and they have made off with over a million dollars in ransoms.

Could SamSam pull off this theft without the technology of Bitcoin?

Probably not. Does that make blockchain technology evil? Not in my book.

While it’s not impossible to figure out the identity of an individual Bitcoin address on the blockchain, it is extremely difficult. That’s where the $50,000 number becomes so important. The amount of money you’d need to spend to track down this $50,000 makes it easier to just pay the ransom. For these big entities, it’s much easier to just pay the ransom, and then chide the staff about internet security.

I bet that Boeing will quietly pay the $50,000 ransom and ask the FBI to take a look at the case. Remember, don’t click on that suspicious email attachment.