Ransomware

Ransomware is malware that uses encryption to collect victim data for ransom.

Malware refers to both "harmful" and "software." The term malware encompasses all malicious software that can harm your computer, including viruses and hacks.

There are different types of ransomware which is often distributed by using email spam campaigns or through targeted attacks. The malware requires an attack vector to establish a state on its destination. After the status is created, the malware will remain on the system until the job is done.

Attrackers usually encrypt sensitive user or organization data so that the files, databases, or applications. Then, make it inaccessible. After successfully locking up the files, the attacker will start correspondence with the victim. The attacker offers to send the decryption file in exchange for funds, often cryptocurrencies.

Ransomware is often designed to spread across networks and target databases and files, which could quickly paralyze the entire organization.

Ransomware and Cryptocurrency

Ransomware has been plaguing the cryptocurrency space lately. Even large global organizations paid high amounts of cryptocurrencies to ransomware attackers, for example, colonial Pipeline.

According to the crypto's nature, transactions are trackable for both the recipient and the sender. Over the past few years, the increasing demand for crypto has made it easier to buy and sell those virtual coins and get real money.

As a result, cryptocurrencies have become the preferred method of cyber criminals to get your ransom without being tracked and give those organizations access to their files.

Discover more about blockchain crypto and compliance with our Glossary.

About Scorechain

Scorechain is a Risk-AML software provider for cryptocurrencies and digital assets. As a leader in crypto compliance, the Luxembourgish company has helped over 200 customers in 40 countries since 2015, ranging from cryptocurrency businesses to financial institutions with crypto trading, custody branch, digital assets, customers onboarding, audit and law firms, and some LEAs.

Scorechain solution supports Bitcoin analytics with Lightning Network detection, Ethereum analytics with all ERC20 tokens and stablecoins, Litecoin, Bitcoin Cash, Dash, XRP Ledger, Tezos, and Tron with TRC10 and TRC20 tokens. The software can de-anonymize the Blockchain data and connect with sanction lists to provide risk scoring on digital assets, transactions, addresses, and entities. The risk assessment methodology applied by Scorechain has been verified and can be fully customizable to fit all jurisdictions. 300+ risk-AML scenarios are provided to its customers with a wide range of risk indicators so businesses under the scope of the crypto regulation can report suspicious activity to authorities with enhanced due diligence.