Tuesday, August 20, 2019 10:02:29 AM
2:41 pm ET June 7, 2017 (Benzinga)
European banks are stockpiling bitcoin as a hedge against ransomware attack, driving the virtual currency up 200 percent this year, The Street’s Jim Cramer said, quoting a panel talk with the CEO of Citrix Systems, Inc. (NASDAQ: CTXS).
“Bitcoin is what the bad guys demand you pay if you have a cybersecurity breach,” Cramer said. “The European banks...European companies are buying bitcoin to be ready for the next ransom attack.”
The “WannaCry” outbreak was unleashed on the world on May 12, when bitcoin was $1,697; It's now trading at $2,826.
Bitcoin Boom Mainly Coming In Europe, Hit Hardest By WannaCry
The worst attack of ransomware on record has largely abated -- at least until next time -- and there’s evidence only a relative handful of people or institutions paid up to have their data freed from the malware’s encrypted jail.
Among the computers affected worldwide were those integral to Britain’s National Health Service. A tech-savvy Samaritan found a fix that was widely deployed, but cyberattack experts warned that the next round of ransomware could be worse.
The link between the bitcoin boom and the WannaCry malware surfaced at The Deal's Corporate Governance Conference on Monday in New York, when Cramer spoke with Citrix CEO Kirill Tatarinov about the recent ransomware attacks.
Tatarinov said that companies are buying up bitcoin to pay off the hackers in the case of an attack.
”These cyber attackers have customer service desks,” to handle payment, Cramer said on CNBC. “They give you an 800 number.”
He said the digital currency could reach $1 million.
Experts generally warn against paying ransom.
“In general, any kind of extortion is problematic to pay. Not only does it encourage the people (who spread the worm) but there is no guarantee that they are going to return the data,” Eugene H. Spafford, executive director of Purdue University's Center for Education and Research in Information Assurance and Security, told Benzinga.
Successful Trading is the art of minimizing long term risk and maximizing capital allocation.
VHAI - Vocodia Partners with Leading Political Super PACs to Revolutionize Fundraising Efforts • VHAI • Sep 19, 2024 11:48 AM
Dear Cashmere Group Holding Co. AKA Swifty Global Signs Binding Letter of Intent to be Acquired by Signing Day Sports • DRCR • Sep 19, 2024 10:26 AM
HealthLynked Launches Virtual Urgent Care Through Partnership with Lyric Health. • HLYK • Sep 19, 2024 8:00 AM
Element79 Gold Corp. Appoints Kevin Arias as Advisor to the Board of Directors, Strengthening Strategic Leadership • ELMGF • Sep 18, 2024 10:29 AM
Mawson Finland Limited Further Expands the Known Mineralized Zones at Rajapalot: Palokas step-out drills 7 metres @ 9.1 g/t gold & 706 ppm cobalt • MFL • Sep 17, 2024 9:02 AM
PickleJar Announces Integration With OptCulture to Deliver Holistic Fan Experiences at Venue Point of Sale • PKLE • Sep 17, 2024 8:00 AM