US Police pay $750 ransom in bitcoins after CryptoLocker virus attack

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beeteecee

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A virus called CryptoLocker is apparently dangerous enough to foil a Massachusetts police department. Police in Swansea, Massachusetts say they were forced to pay a $750 ransom to unlock their computers after a virus hacked their files. Boston.com reports the police department noticed a problem opening their files on Nov. 6., 2013.

"After opening an e-mail attachment from what looked like a trusted source, a window popped up on the screen saying all the computer's files were encrypted, said Lieutenant Gregory Ryan."

The CryptoLocker virus has been attacking computers since late September or early October. The virus bypassed the virus protection software and firewall installed by police. The ransom could only be paid via an encrypted Bitcoin transaction, making it nearly impossible to track the source of the crime.
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http://shopping.yahoo.com/blogs/dig...oins-crypotlocker-virus-attack-183520470.html

CryptoLocker was covered in depth on 7:30 report last week, although they didn't mention bitcoins once.
 
beeteecee said:
A virus called CryptoLocker is apparently dangerous enough to foil a Massachusetts police department. Police in Swansea, Massachusetts say they were forced to pay a $750 ransom to unlock their computers after a virus hacked their files. Boston.com reports the police department noticed a problem opening their files on Nov. 6., 2013.

"After opening an e-mail attachment from what looked like a trusted source, a window popped up on the screen saying all the computer's files were encrypted, said Lieutenant Gregory Ryan."

The CryptoLocker virus has been attacking computers since late September or early October. The virus bypassed the virus protection software and firewall installed by police. The ransom could only be paid via an encrypted Bitcoin transaction, making it nearly impossible to track the source of the crime.
Click to expand...

http://shopping.yahoo.com/blogs/dig...oins-crypotlocker-virus-attack-183520470.html

CryptoLocker was covered in depth on 7:30 report last week, although they didn't mention bitcoins once.
Click to expand...

If you are pro bitcoin you should hope they dont mention them... it is criminal activities like this that will draw negative government attention to bitcoin.
 
This is an extremely good reason for authorities to outlaw crypto-currencies

All you need is a high profile kidnapping with the ransom demanded in bitcoins
 
Dabloodymess said:
If you are pro bitcoin you should hope they dont mention them... it is criminal activities like this that will draw negative government attention to bitcoin.
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I'm pro information. I think they should have covered the bitcoin aspect as it was quite integral to the subject. I'm more worried by the ABC's failings than what the government thinks of bitcoin. :)

Trew, it's not a kidnapping, but there has been one high profile ransom case earlier this year: http://www.dailydot.com/crime/mitt-romney-bitcoin-blackmail-suspect-charged/

Federal prosecutors allege that Brown sent a letter to the offices of PricewaterhouseCooper LLC, the accounting firm that handled Romney's taxes, falsely claiming to have gained access to the Republican nominee's 2010 tax return. The letter demanded $1 million worth of the digital currency Bitcoin be deposited into a specific wallet in order to prevent the release of the returns. It also invited interested parties who wanted the purportedly stolen tax document released to put $1 million in another Bitcoin account.

Similar letters were sent out to Republican and Democratic campaign officials in Franklin, Tenn. The same message was also posted on Pastebin.com, according to the indictment.

The letters were sent out at a time last summer when Romney faced heavy scrutiny for refusing to release his tax records.
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trew said:
This is an extremely good reason for authorities to outlaw crypto-currencies

All you need is a high profile kidnapping with the ransom demanded in bitcoins
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yet when criminals demand their ransom in cash this is not negative for fiat?? I sense a double standard here :P
 
Where did the massachesschuettces police get that many bitcoins?

paying randsomes just encourages the randsomers.
 
lurk@l0t said:
trew said:
This is an extremely good reason for authorities to outlaw crypto-currencies

All you need is a high profile kidnapping with the ransom demanded in bitcoins
Click to expand...

yet when criminals demand their ransom in cash this is not negative for fiat?? I sense a double standard here :P
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The issue is not the fiat per se but the risk involved in getting their hands on the ransom.
Criminals could ask for a suitcase full of cash, gold, platinum or US govt bonds - doesn't matter.

In order to actually collect the ransom the criminals have to arrange some form of physical delivery mechanism.
Obviously there is the risk of the police staking out the delivery location or tracking the location of the loot.

With bitcoins the criminals can be in another country and demand transfer to a wallet that can not be traced.
No risk whatsoever.
 
A few people (disgruntled druggies I presume) on reddit tracked down the stolen funds from when the sheep drug site got 'robbed' and publicised the address (this is after an elaborate laundering process) so I think the gubbmint could monitor those funds and when they moved to an exchange, subpoena the exchange for the users real life details.

http://www.reddit.com/r/SheepMarket...ust_chased_him_through_a_bitcoin_tumbler_and/

It seems to me like cashing out a ransom sized amount would be very difficult.
 
What this should actually read as is idiots didn't back up their data. This is the IT equivalent of going out and leaving your door unlocked and the oven on
 
2ds said:
What this should actually read as is idiots didn't back up their data. This is the IT equivalent of going out and leaving your door unlocked and the oven on
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Exactly. Cryptolocker isn't hard to find, nor isolate on a network. Thus, even if your first line defences get compromised, it's no big deal to locate, isolate and contain.

If your backup isn't up to snuff, however, that's where the real problem strikes - you need to be able to lay your hands on a backup & restore data easily and smoothly.
 
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