In 2022, a few crimes decreased following years of steady increases. Must we give crypto credit?
WHAT ENABLES CRYPTO CRIMES?
Ransomware, DDoS extortion, cryptojacking, and crypto theft are the four main forms of cybercrime that primarily depend on—or completely require—the usage of cryptocurrencies like Bitcoin, Ethereum, and Monero.
For example, ransomware is typically made possible by cryptocurrencies. Usually, the data in question are encrypted with malware, which the con artists promise to decrypt once the victim pays a ransom. Via cryptocurrency payments, criminals may remain anonymous and untraceable. (In the more popular “double extortion” version, criminals further threaten to make the data publicly available in the event that victims refuse to pay.) Ransomware and DDoS extortion are comparable. Nevertheless, cybercriminals initiate a persistent denial-of-service assault (DDoS) until a cryptocurrency ransom is paid, rather than accessing and encrypting files.
Cryptojacking, or the unlawful mining of cryptocurrencies, is another serious crime. Malicious hackers typically use specialized malware to obtain access to other people’s computer resources. They then illicitly mine cryptocurrency using it. Cryptojackers, in contrast to other computer-related crimes, do not immediately steal money or data or demand ransom payments. Rather, they pilfer resources from computers. Higher energy expenses, worse user experience, and quicker battery performance degradation are the results of this.
In 2022, cryptojacking did in fact increase. According to an Atlas VPN investigation, there was a 3.8-fold increase in cryptojacking incidents during the third quarter of 2022. It’s interesting to see that fewer people were victims. Cryptojackers are believed by analysts to be planning for a rebound in cryptocurrency once it reaches its lowest point and to be actively mining illegally in an attempt to make money.
Lastly, the act of directly stealing coins from their legitimate owners by hacking cryptocurrency exchanges and other platforms is known as crypto theft. The decline in the value of cryptocurrencies has caused the crypto exchanges to go out of business, which has decreased this type of assault.
HOW CHANGES IN PRICES AFFECTED THESE CRIMES?
Because dark web exchanges do not verify user identities, they are used by cybercriminals. These mostly facilitate the transaction of cryptocurrency from one service to another, sometimes at exorbitant costs, rather than storing money. In many aspects, these exchanges function similarly to reputable companies. For example, they must invest much in advertising in order to gain the trust of dishonest people who also wish to avoid being taken advantage of.
Dark web exchanges are feeling the pinch of plummeting bitcoin prices. Because of the decreased income, increased cost of vulnerability purchases, and decreased revenue required to support Malware-as-a-Service companies, this lessens the incentives for threat actors. To put it another way, declining cryptocurrency prices severely limited the purchasing power of businesses that use cryptocurrency for illicit purposes.
Exchanges attempted to convert their cryptocurrency to fiat currencies—a government-issued money not backed by gold or silver—during the sharp drops in early 2022, but the value of the converted money was insufficient to keep the firm afloat. In the spring of 2022, advertising for dark web exchanges all but halted. Many went out of business or went bankrupt.
The sharp decline in bitcoin values significantly reduced financial crimes, such as illicit dark web transactions. According to blockchain data startup Chainalysis, losses for the first half of 2022 were significantly lower. The revenue of scammers decreased over the first seven months of the year by two thirds, or 65%.
