FBI admits crypto is a "huge challenge"

The Federal Bureau of Investigation has reiterated their concern with cryptocurrencies when it comes to cybersecurity and extortion. Bryan Vorndran, assistant director of the FBI’s Cyber Division shared the Bureau's views on crypto and extortion in a Bloomberg virtual panel discussion on cybersecurity. 

Vorndran admitted that blockchain provides opportunities, but also outlined several concerns in the virtual panel discussion:

“Crypto is the primary currency, the primary vehicle, to facilitate extortion payments. It’s the only game in town. We all know the blockchain offers us some opportunities, but the ability to pay crypto, script it immediately into a tumbler, whether through an extortion payment or theft, is a huge, huge challenge for us.”

Ransomware groups and rogue organisations have taken to using cryptocurrencies to enact their ransomware businesses, with the largest ransomware hack of 2021 involving the criminal hacking group DarkSide and Colonial Pipeline. 

A report was released last week by the FBI, outlining the rise in online romance scams and statistics showing the correlation with crypto and “romance scammers”. The report noted that some $64 million was lost last year to romance scams, with cryptocurrency forming part of that sum.

"The FBI San Francisco has seen a rising trend in which romance scammers are persuading individuals to send money to invest or trade cryptocurrency. After gaining the confidence and trust of the victim, the scammer then directs the victim to a fraudulent website or application for an investment opportunity," 

Regulation and consumer protection in the US has grown in correlation with the development of the crypto industry. The volatility of cryptocurrency and the way that certain dark web groups have manipulated the untraceability of cryptocurrencies such as Bitcoin has led to federal agencies such as the FBI to release tips on how users can protect themselves from cryptocurrency scams. 

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.