Europol has found that Bitcoin is still the chosen cryptocurrency of the internet underworld. Since cryptocurrency demand is high due to its decentralized network, it seems that ISIS is also interested in it.
The insight comes from Europol’s Internet Organised Crime Threat Assessment (IOCTA) 2018 report.
Among other things, the research claims cybercriminals still favor Bitcoin over other cryptocurrencies, despite its lack of anonymity features.
"The abuse of cryptocurrencies by cybercriminals continues to play a pivotal role in the commission, perpetration and monetisation of cybercrime," the new IOCTA reads. "They remain the primary payment mechanism for the payment of criminal services, a plethora of goods on Darknet markets and for extortion demands, whether as a result of ransomware, DDoS attacks, or other methods."
In particular, members of terrorist organization ISIS are also interested in using Zcash, instead of just Bitcoin.
With the rise in popularity of cryptocurrencies, terrorist groups used such cryptocurrencies to purchase hosting services, website domains, and to download social media platforms "in their efforts to recruit, fundraise, and organize attacks."
According to the Europol, ISIS seems to prefer Zcash “in a bid to evade detection.”
The Europol suggests that “investigators should identify and build trust relationships with any cryptocurrency related businesses operating in their jurisdiction, such as exchangers, mining pools or wallet operators.” It further declares that “investigating cryptocurrencies must become a core skill for cybercrime investigators.”
The analysis also explores the rise of cryptojacking, which is being utilized by cybercriminals to raise money. Cryptojacking refers to the act of infecting websites or devices to mine cryptocurrency, all without the owners' permission.
Previously, hackers injected more than 200,000 routers with a modified CoinHive script. It was also found that CoinHive mining have generated at least $250,000 per month..
"We anticipate a more pronounced shift towards more privacy orientated currencies," the paper said. "This shift will be exemplified by an increase in extortion demands and ransomware in these currencies."
Despite the many malicious deeds have been tied to cryptocurrencies, those digital coins are not all bad. There are many legal businesses that rely on cryptocurrencies for legitimate purposes. And this is where the Europol may face an uphill battle.
Cryptocurrency users have gotten used to the idea that regulators see them as bad actors, despite never spending any of their digital coins on illegal or unethical things.
What this means, there are many businesses and entrepreneurs who may refuse to cooperate with Europol investigations, if they have reason to believe that cooperation is not in their best interest.
If those investigators don’t ignore the occasional irregularity among those cryptocurrency users, then they may not make much progress in addressing the problems of cybercrime and terrorist activity that makes good use of cryptocurrencies and blockchain technologies.
Reassuringly its finding, Europol does said that the terrorists did not directly finance any attacks on European countries with cryptocurrency.
"While IS sympathizers have demonstrated their willingness to buy cyberattack tools and services from the digital underground, their own internal capability appears limited," explained the Europol.
“Law enforcement and industry action has pushed IS sympathizers into using encrypted messaging apps which offer private and closed groups, the dark web, or other platforms which are less able or willing to disrupt their activity.”