Skewed data: How could a new US law boost blockchain analysis?
2020 was a record year for ransomware payments ($692 million), and 2021 will probably be higher when all the data is in, Chainalysis recently reported. Moreover, with the outbreak of the Ukraine-Russia war, ransomware’s use as a geopolitical tool — not just a money grab — is expected to grow as well.
But, a new U.S. law could stem this rising extortionist tide. United States President Joe Biden recently signed into law the Strengthening American Cybersecurity Act, or the Peters bill, requiring infrastructure firms to report to the government substantial cyber-attacks within 72 hours and within 24 hours if they make a ransomware payment.
Why is this important? Blockchain analysis has proven increasingly effective in disrupting ransomware networks, as seen in the Colonial Pipeline case last year, where the Department of Justice was able to recover $2.3 million of the total that a pipeline company paid to a ransomware ring.
But, to maintain this positive trend, more data is needed and it has to be provided in a more timely manner, particularly malefactors’ crypto addresses, as almost all ransomware attacks involve blockchain-based cryptocurrencies, usually Bitcoin (BTC).
This is where the new law should help because, until now, ransomware victims rarely report the extortion to government authorities or others.
“It will be very helpful,” Roman Bieda, head of fraud investigations at Coinfirm, told Cointelegraph. “The ability to immediately ‘flag’ specific coins, addresses or transactions as ‘risky’ [...] enables all users to spot the risk even before any laundering attempt.”
“It absolutely will aid in analysis by blockchain forensic researchers,” Allan Liska, a senior intelligence analyst at Recorded Future, told Cointelegraph.
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