Colonial Pipeline Hackers Lost Ransom Because of a Bad Password
Last month, the Colonial pipeline, which supplies gas to the East Coast, was shut down because of a ransomware hack. The company executives eventually paid 75 bitcoin, worth approximately $4.4 million at the time. Since the hack, the value of a bitcoin has fallen from U.S. $56,755.90 on May 11 to $36,407.36 on June 10.
One of the factors taking the price down is the news that
$2.3 million of the ransom was recovered by the FBI. At first, the news was
interpreted to mean that the Feds had been able to trace the transaction to
reverse it. This was not the case. CNBC reported that the ransomware syndicate
fell prey to the problem of so many technology systems: a weak password.
Bitcoin and other cryptocurrencies are tracked by an
encrypted blockchain, so in theory all transactions are anonymous. If the FBI
had indeed broken the encryption, then one of the key selling points for
digital currency would have been eliminated. By hacking the wallet used by the
criminals, the FBI exploited a known weaknesses that affects just about
everything we do online — except for tracking cryptocurrencies via blockchain.
Wallet hacks have been used to steal cryptocurrency as well
as recover it from criminals. In 2014, a hacker took 850,000 bitcoin from Mt.
Gox, which was then the leading Bitcoin exchange.
Good passwords are key. Some people have lost bitcoin
because they forget the password that they used for their wallets. Others have
lost bitcoin because someone else figured out the password. Use a strong
password, with two-factor authentication if available, and keep a record
somewhere to protect your data and your crypto.
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