Crypto-currencies and Cybercrime

This research paper analyzes the role of crypto-currency in cyber-attacks, different types of malware used by cybercriminals to hack crypto-currencies, and prevention methods to improve the security of consumer personal data.

Crypto-currencies and Cybercrime.

CRYPTO-CURRENCIES AND CYBERCRIME 1
Table of Contents
Stage 1 – Identify the Research Question..............................................................................................2
Stage 2 – Literature Search & Annotated Bibliography.........................................................................2
Stage 3: Research Paper........................................................................................................................3
Introduction.......................................................................................................................................3
Literature review...............................................................................................................................4
Crypto locker.................................................................................................................................5
Wanna cry ransomware.................................................................................................................5
Crypto jacking................................................................................................................................6
Mitigation processes......................................................................................................................6
Two mitigation points....................................................................................................................7
Drawbacks of the mitigation..........................................................................................................7
Overcome that drawbacks.............................................................................................................8
Conclusion.........................................................................................................................................8
References.............................................................................................................................................9

CRYPTO-CURRENCIES AND CYBERCRIME 2
Stage 1 – Identify the Research Question
 What malware, e.g., Crypto lockers have been used by cybercriminals to obtain
crypto currencies, which vulnerabilities did they exploit and what mitigation can
be adopted against them?
 What attack vectors have been used to exploit crypto currencies (e.g. Skype and
Yahoo and how to counter them?
 What attacks on crypto currencies have been theoretically identified (e.g., Double
Spending Attack and Block Discarding Attack and how could they be
avoided/mitigated?
 What incidents affecting crypto currencies (e.g. security breaches on Mt. Gox–
the largest Bit coin exchange and on Bit coinica [8] online trading site for Bit
coins) show us about risks and possible mitigations?
Stage 2 – Literature Search & Annotated Bibliography
Higbee, A., (2018) the role of crypto-currency in cybercrime. Computer Fraud &
Security, 2018(7), pp.13-15.
The title of this journal paper is the role of crypto-currency in cybercrime that was
written by Aaron Higbee. According to this paper, the first crypto-current observed in
the year 2009 when bit coin was developed and in the last few years the market for
crypto-currencies has increased by 40%. The main objective of this journal article is to
analysis the role of crypto-currency in the area of cyber-attacks and key factors that
influence the issue of hacking. There are many other currencies that also play a
significant role in the cyber-crime which are described in this paper and ransom ware is
one of the common attacks that take payment through bit coin.
Brown, S.D., (2016) Crypto currency and criminality: The Bit coin opportunity.
The Police Journal, 89(4), pp.327-339.
The title of this article is Crypto currency and criminality: The Bit coin opportunity that
was produced by Steven David Brown. This paper describes the concept of bit coin and
how hackers use crypto currency in order to block the user's personal data. In few
respects, the crypto-currencies are still watched as an unacquainted, peripheral

CRYPTO-CURRENCIES AND CYBERCRIME 3
occurrence limited to the purview of specialists. The bit coin constitutes is a substantial
danger for the consumer's in terms of criminal enterprise and most of criminal involve
such kind of stage to attack the human-computer networks. It is observed that most
hackers use malicious software to control and monitor the user peripheral devices and
hacks their personal information.
Irwin, A.S. and Milad, G., (2016) the use of crypto-currencies in funding violent
jihad. Journal of Money Laundering Control, 19(4), pp.407-425.
The main title of this paper is the use of crypto-currencies in funding violent jihad that
was published by Angela S.M. Irwin. According to this article in this generation, it is very
complex to identify con concrete evidence of large-scale utilize of bit coins and another
crypto currencies by criminals. This paper reviews on the topic of crypto currencies like
bit coin and their importance of this in a cyber-crime. In which relevant data or
information is gathered from various sources like press releases, journal papers, and
other publications. Today, numbers of bit coin ATMs and exchanges process are placed
in countries and hackers uses such kind of platform to receive payment from consumers
and organizations. It presents significant risks or issues because they allow for the
anonymous, unified transfer of money to hackers and their supporters.
Stage 3: Research Paper
Introduction
A crypto currency is defined as a digital asset which is designed to work as a process to
exchange money one form to another. The use of crypto currency in growing rapidly
and many hackers use this step during cyber-crimes. Cybercrime refers as the attack in
which hackers block the computer networks of consumers and store the personal
information of consumers (Ahn, et al., 2014). Cybercriminals use the advanced malware
software to access the personal information, financial documents and bank details of the
consumer. In the last five years the rate of cyber-crimes has increased by 40% and
many companies are facing the issue of cyber-attack. The aim of this report is to analysis
the different types of malware used by a cybercriminal to hack the crypto-currency and
prevention method to improve the security of consumer personal data. There are

CRYPTO-CURRENCIES AND CYBERCRIME 4
mainly three kinds of malware used by hackers to obtain crypto-currencies for example,
crypto locker, wanna cry, and crypto-jacking which will be discussed in this report.
Literature review
Term cybercrime is defined as an attack in which hackers use more advanced computer
networks to develop unauthentic servers and transfer to the networks of consumers to
block their personal data or information (Zimba, Simukonda, and Chishimba, 2017). It is
observed that many hackers use malware software to design and implement a large
number of traffic signals and transfer to the companies private networks by which they
can easily enter into their personal devices. In the year 2016, the rate of cyber-crimes
has increased by 49% because of lack of security and hackers use crypto-locker to
obtain the crypto currency. According to the Broadhead, (2018) term, cyber-crime
currently poses an important threat in the field of information technology because
many consumers use third-party application and unauthentic servers by which they can
lose their personal information. The main aim of the literature review is to analysis the
cybercrime and importance of crypto-currency in the field of cyber-attack and evaluates
the views of other researchers. The use of the internet is growing rapidly due to which
some cyber-threats are also increased like ransom ware, crypto locker, malware and
many more. A recent study shows that crypto-currency play a significant role in the area
of cyber-crime because it provides a platform to take money from consumers and many
hackers use bit coin (crypto-currency) to convert money. Higbee, (2018) identified that
lack of security is one of the biggest issues due to which the rate of cyber-crime is
growing and crypto locker is the very common approach which is used by hackers to
obtain the crypto-currency. Around 3 million people have faced the issue of cyber-crime
in between 2015-2017 and hacker used the crypto locker to obtain the crypto-currency
(Lim, 2015). In the year 2017 bit-coin started their business in the field of market
capitalization that time they increased their business by 40%. The recent survey
investigated that there are mainly two kinds of cyber-attack occur in the area of
computer science such as ransomware and crypto-locker and most hackers involves
malware to hack the personal data of consumers. According to Irwin, and Milad, (2016)
crypto-currency mining is one of the advanced cyber crooks which is used by hackers to
earn money and cybercriminals are successful because the mining malware hides their
information. While increasing in the rate of internet and mobile devices hackers can
easily communicate with consumers and they first identify the IP address and location

CRYPTO-CURRENCIES AND CYBERCRIME 5
of the user after that they transfer traffic signal on the computer network to reduce the
performance of their devices (Sahi, 2017). The main reason for crypto-currency mining
is that malware developed more complex techniques to control and monitor the human
peripheral devices and many employees use third-party application by which hackers
can easily block their private accounts (Irwin, and Turner, 2018).
There are various kinds of malware used by cyber-criminal to obtain the crypto-
currencies which are described below:
 Crypto locker
 Wann cry
 Crypto-jacking
 Bot
Crypto locker
It is a part of a malware attack which is used by hackers to obtain the crypto currency
which is also called as a cyber threat. It is also a Trojan horse which affects the
performance of the human-computer system and encrypts their personal data files. In
the last few years, the use of crypto-locker has increased by 30% and many hackers use
this step during hacking because it has the potential to block the consumer private
networks (Ducklin, 2015). First criminals develop a complex algorithm to design a large
number of traffic signals after that they identify the type of networks used by
consumers. In the end, hackers send unauthentic networks on their computer devices
that reduce the performance of the computer system and encrypt their personal data. A
recent study observed that consumers click on unwanted links by which they lost their
account details like login ID and password. This process involves the main two keys
such as public and private key and when any person found such type of issue in their
computer then hackers demand money to restore back their information.
Cybercriminals encrypt user data with the help of public key but it can be decrypted by
using a unique code. The crypto locker virus will provide a message on the screen of a
computer which indicates that your data will be destroyed if you do not pay a ransom to
collect beck personal data (Pascariu, BARBU, and Bacivarov, 2017).

CRYPTO-CURRENCIES AND CYBERCRIME 6
Wanna cry ransomware
A wanna cry is a kind of ransomware that attacks the human-computer devices and it is
a very serious problem for every organization. It affects the performance of computer
networks and encrypts the data files of consumers with the help of malware software.
The main concept of this approach is that first hackers block human-computer system
after that they encrypt their data files and demand money to restore them. Such kind of
issue occurs due to lack of security and use of unauthentic servers because many
hackers develop unwanted signals and transfer to the user’s personal accounts. It is
observed that more than 200,000 computers were affected across 150 countries
between 2014 and 2016 (Mago, and Madyira, 2018). This rate is growing very fast due
to which many IT companies are facing financial issues and they lost their personal data
or information.
Crypto jacking
It is a type of cyber-threat in which an attacker hijacks targets processing power in
order to mine crypto currency. It is an advanced version of the crypto locker that uses a
more complex approach to encrypt the personal information of consumers. The main
aim of hacker is to earn money by collecting the private details of consumers,
companies and government authorities and recent study observed that it is very
harmful to the computer and mobile networks (Mohurle, and Patil, 2017). It has the
potential to develop a huge amount of unauthentic servers and hackers send a fraud
mail to the consumer by which they can reduce the performance of their computer
system. Many hackers use this approach to obtain the crypto-currency and they
communicate with the user by using social media websites and demand money to
restore their personal data files. There are main two tricks used by hackers to get a
victim’s computer to secretly mine crypto-currencies in which one is to produce crypto
mining code into the human computer. This is done by using phishing like process and
user got a fraud message in their private accounts. Another method is to inject a script
on a website which is transferred to many consumers and companies. Whichever
technique is used, the code turns multifaceted exact difficulties on the victims’
processors and conducts the consequences to a server that the hacker controls.

CRYPTO-CURRENCIES AND CYBERCRIME 7
Mitigation processes
To address such kind of issues information technology developed different types of
processes and methods which are the following:
 Use a full-service internet security suite
 Adopt security tools and policies
 Use strong passwords
 Update software on a regular basis
 Manage social media settings
 Adopt high-level computer networks
 Use only authentic servers
 Make a report and analysis the cyber-attacks
 If any cyber-crime occur in computers than communicate with IT specialist
 Use backup plans
 Use firewall and antivirus
 Adopt encryption and cryptography technologies (Srinivasan, 2017).
Two mitigation points
To control and manage the malware attack people can use only authentic servers
because it is estimated that most individuals use the unauthentic networks and
websites which can create a big problem in the system. An authentic server is defined as
an application which facilitates authentication of the entity which attempts to access a
computer network. So, by using this technique people and companies can reduce the
traffic signals and unauthentic networks from the system. Firewall is an advanced
computer technology which is a combination of hardware and software that has the
ability to decrease the rate of security risks and malware attacks. Such kind of approach
first scan computer system and identify the malicious signals and malware from the
computer devices. If any traffic or unwanted virus occurs in the system then it blocked
them and provides a notification to the users.
Drawbacks of the mitigation
It is observed that the security in the authentication is completely depended on the
confidentiality and the strength of the password. If any person uses simple passwords
in their authentic networks then they can suffer from the data breaches and malware
related issues in the system. The other drawback of this process is that Mainly, hackers

CRYPTO-CURRENCIES AND CYBERCRIME 8
use the malicious software and spam links to obtain the passwords of their system and
in the case of authentic networks it is very easy to enter into the computer server. The
main drawback of the firewall technique is that it does not protect devices from the
insider attacks due to which users can lose their personal information and mainly it
occurs in the crypto-currencies. In which many users and employees are still
downloading the sensitive information and third-party applications which create a big
issue in the networks because they are offered by the cyber-criminals.
Overcome that drawbacks
The problem of passwords and can be handled and reduced by adopting the high-level
passwords that involve characters, numeric and special character. If users and
companies use strong passwords rather than simple then they can improve the
efficiency of their authentic servers. The issue of confidentially can be removed by
following the proper guideline and users should ensure that they use the advanced
computer networking during generation of the authentic system. To avoid the insider
attacks in the system individuals can use the antivirus and cryptography technologies
that have the potential to identify the malware and fraud signals from the computer
system. People should ensure that they do not download any sensitive data or
information and reduce the use of third-party applications.
Conclusion
Security of information is a very complex problem which is faced by many organization
and consumers and cyber-crime is also a serious problem by which user can lose their
personal data files. This report is completely based on the crypto-currencies and cyber-
crimes and with the help if this investigation reader can enhance their skills in the area
of cyber-crimes. This report explained the role of crypto-currencies in the area of cyber-
crimes and types of malware used by hackers to obtain the crypto-currencies. People
should ensure that they use only authentic networks and update their software on a
regular basis by which the issue of cyber-crimes like malware, crypto-locker, and
ransomware can be addressed.

CRYPTO-CURRENCIES AND CYBERCRIME 9
References
Ahn, G.J., Doupe, A., Zhao, Z. and Liao, K., (2016) Ransomware and crypto currency:
partners in crime. In Cybercrime Through an Interdisciplinary Lens, 12(1), pp. 119-140.
Broadhead, S., (2018) The contemporary cybercrime ecosystem: A multi-disciplinary
overview of the state of affairs and developments. Computer Law & Security
Review, 34(6), pp.1180-1196.
Brown, S.D., (2016) Crypto currency and criminality: The Bit coin opportunity. The
Police Journal, 89(4), pp.327-339.
Ducklin, P. (2015) Destructive malware ”CryptoLocker” on the loose - here’s what to do.
[online] Available from: http://nakedsecurity.sophos.com/ 2013/10/12/destructive-
malware-cryptolocker-on-the-loose/ [Accessed on 13/12/18].
Gómez-Hernández, J.A., Álvarez-González, L. and García-Teodoro, P., 2018. R-Locker:
Thwarting ransomware action through a honey file-based approach. Computers &
Security, 73, pp.389-398.
Higbee, A., (2018) the role of crypto-currency in cybercrime. Computer Fraud &
Security, 2018(7), pp.13-15.
Irwin, A.S. and Milad, G., (2016) the use of crypto-currencies in funding violent
jihad. Journal of Money Laundering Control, 19(4), pp.407-425.
Irwin, A.S. and Turner, A.B., (2018) Illicit Bit coin transactions: challenges in getting to
the who, what, when and where. Journal of Money Laundering Control, 21(3), pp.297-
313.
Lim, J.W., (2015) A Facilitative Model for Crypto currency Regulation in Singapore.
In Handbook of Digital Currency, 12(2), pp. 361-381.
Mago, M. and Madyira, F.F., (2018) Ransomware Software: Case of
WannaCry. Engineering and Science, 3(1), pp.258-261.
Mohurle, S. and Patil, M., (2017) A brief study of wanna cry threat: Ransomware attack
2017. International Journal of Advanced Research in Computer Science, 8(5), pp. 12-15.
Pascariu, C., BARBU, I.D. and Bacivarov, I.C., (2017) Investigative Analysis and Technical
Overview of Ransomware Based Attacks. Case Study: WannaCry. Intel J. Info. Sec. &
Cybercrime, 6(1), p.57.
Sahi, S.K., (2017) A Study of WannaCry Ransomware Attack. International Journal of
Engineering Research in Computer Science and Engineering, 4(9), pp.5-7.

CRYPTO-CURRENCIES AND CYBERCRIME 10
Srinivasan, C.R., (2017) Hobby hackers to billion-dollar industry: the evolution of
ransomware. Computer Fraud & Security, 2017(11), pp.7-9.
Zimba, A., Simukonda, L. and Chishimba, M., (2017) Demystifying Ransomware Attacks:
Reverse Engineering and Dynamic Malware Analysis of WannaCry for Network and
Information Security. Zambia ICT Journal, 1(1), pp.35-40.