Cryptocurrency related cyberattacks grow 192%

As the price of bitcoin surged in the recent months, so too have the volume and sophistication of cyberattacks relating to the…
bitcoin

Share this article:

As the price of bitcoin surged in the recent months, so too have the volume and sophistication of cyberattacks relating to the popular cryptocurrency. This is according to new research by Barracuda Networks, Inc., a leading provider of cloud-enabled security solutions, which found that impersonation attacks relating to cryptocurrencies grew 192% between October 2020 and April 2021 – aligning with the near 400% increase in the value of bitcoin over the same period. The report found that attackers are now expanding their range of cryptocurrency attacks from extortion and ransomware, to now incorporating digital currencies into spear phishing, impersonation, and business email compromise (BEC) attacks.

“Cryptocurrency seems to be a perfect currency for criminal activity — it’s unregulated, difficult to trace, and increasing in value. For these reasons, it has fuelled and enabled a multibillion economy of ransomware, cyber-extortion, and impersonation,” said Fleming Shi, CTO at Barracuda. “The increased digitalisation of businesses since the onset of the pandemic has resulted in more data being created and stored in collaboration apps, and more information being exposed. This has created more targets and potential value for criminals. Combined with the increased price of bitcoin, these factors have presented strong motivation for cybercriminals to come up with more sophisticated schemes to cash in on bitcoin-mania.”

Barracuda’s researchers found that one of the most common methods of attack was the impersonation of digital wallets and other cryptocurrency-related apps with fraudulent security alerts to steal log-in credentials. In the past, attackers impersonated financial institutions targeting victims’ banking credentials. Today they are using the same tactics to steal valuable bitcoins.

Cybercriminals have also included bitcoin as part of their business email compromise (BEC) attacks, impersonating employees within an organisation. They target and personalise these emails to get their victims to purchase bitcoin, donate them to fake charities, or even pay a fake vendor invoice using cryptocurrency. Barracuda’s Artificial Intelligence (AI) based natural language processing of these BEC emails revealed the key phrases and calls to action that hackers are using to incite their victims. Most commonly, cybercriminals create a sense of urgency by using phrases like “urgent today” or before the “day runs” out. Their call to action is typically for their victim to go to the “nearest bitcoin machine.” They also play on their victims’ sentiments to request that a payment be made as a “charity donation,” making their victims believe they are doing a good thing.

Growing cost of ransomware

As an unregulated and difficult to trace digital asset, cryptocurrency has long been the preferred payment method for ransomware demands. Now, as the value of cryptocurrencies has surged, the ransom amounts hackers are asking for have been going up as well. In 2019 ransom demands ranged from a few thousand dollars to $2 million at the top end. By mid-2021 most demands were in the millions, with a significant number over $20 million. “Cybercriminals might still be requesting the same amount of bitcoin, but with the price of cryptocurrency going up it costs more for organisations to pay out,” said El Inati.

Offering advice to businesses that have fallen victim to ransomware, Shi said, “When faced with ransomware attack, a lot of organisations and consumers don’t know what to do other than to pay the ransom. This feeds the appetites of cybercriminals, encouraging them to attack more and ask for even bigger ransoms. If it can be avoided, don’t pay up, and work with government agencies to get a resolution.”

“As bitcoin and other cryptocurrencies become more mainstream, their value will continue to grow. But so will government intervention and regulations. It’s a rapidly evolving threat landscape and organisations and individuals must remain vigilant as cybercriminals will continue to demonstrate their ingenuity in formulating new and convincing ways to exploit the hype and ambiguity that surrounds cryptocurrencies,” Shi concluded.

 

To stay up to date on the latest, trends, innovations, people news and company updates within the global security market please register to receive our newsletter here.

Media contact

Rebecca Morpeth Spayne,
Editor, Security Portfolio

Tel: +44 (0) 1622 823 922
Email: [email protected]

About Security Buyer

Security Buyer is the leading authority in global security content, delivering expert news, in-depth articles, exclusive interviews, and industry insights across print, digital, and event platforms. Published 10 times a year, the magazine is a trusted resource for professionals seeking updates and analysis on the latest developments in the security sector.

To submit an article, or for sponsorship opportunities, please contact our team below.

Rebecca Spayne Picture

Rebecca Spayne

Group Managing Editor

Georgina Turner Picture

Georgina Turner

Sales Manager

Afua Akoto Picture

Afua Akoto

Marketing Manager

Related News

Ai Solution of the year - securitybuyer.com

Have your say: vote for AI Solution of the Year

Voting is open for AI Solution of the Year at the Security Buyer Readers’ Awards 2026, with readers invited to select their winner
Access control of the year - securitybuyer.com

Have you voted for Access Control Solution of the Year?

Voting is open for Access Control Solution of the Year at the Security Buyer Readers’ Awards 2026, with readers invited
PaxLock Pro2 - securitybuyer.com

Paxton officially launches PaxLock Pro2

Paxton the security technology manufacturer has launched a brand-new re-engineered PaxLock which is built to protect straight
KentixONE data centre - securitybuyer.com

Data centre security with KentixONE

Prior1 develops container data centers to meet the highest security and energy efficiency standards. Their containers require
Chubbsafes - securitybuyer.com

Chubbsafes explores certified storage for jewellery and precious metals

Chubbsafes, part of Gunnebo Safe Storage, has launched a new technical discussion guide examining when certified
Mercury trends report - securitybuyer.com

New Mercury Research Finds Growing Cybersecurity Gap

2026 Trends in Access Controllers Report finds interoperability, cloud connectivity and AI are reshaping long-term controller strategies.
Chris Carroll - securitybuyer.com

Comelit-PAC Promotes Chris Carroll as Sales Director

Comelit-PAC has appointed Chris Carroll as Sales Director, following an 18 year career with the company, seeing him progress
Jason Bezuidenhout - securitybuyer.com

Zygal Appoints Jason Bezuidenhout

Zygal has appointed Jason Bezuidenhout as Chief Revenue Officer (CRO), strengthening its leadership team as the company continues
Eun-Kyung-Hong_- securitybuyer.com

How AI Manages Mixed Surveillance Workloads

Eun-Kyung Hong, HDD Product Manager at Toshiba Electronics Europe GmbH discusses AI optimisation in mixed surveillance workloads
ASSA ABLOY - securitybuyer.com

ASSA ABLOY Door Group highlights importance of BS 8214:2026

ASSA ABLOY Door Group is supporting Fire Door Safety Week 2026 by raising awareness of the latest update to BS 8214:2026
Scroll to Top