Crypto Crimewave: Hundreds of victims blackmailed for bitcoin

UK Police forces received a total of 562 reports of blackmail for bitcoin according to research from Parliament Street think tank throughout 2018 and 2019, according to official figures.

The data, obtained via the Freedom of Information Act (FOI) provides an insight into the substantial amount of crimes involving the bitcoin, widely believed to be the most popular cryptocurrency. A total of 13 police forces gave responses to the request.

The research found that North Yorkshire Police was the force with the most reports of bitcoin related crimes. In 2018, they only had 6 accounts but in 2019 this rose to 115 cases, a 1,817 per cent increase, suggesting a surge in incidents.

In one incident in Cumbria, an unknown suspect remotely accessed the server of the victim’s business and encrypted all files in a Ransomware attack. The Ransomware stated to pay in bitcoins to a nominated bitcoin address within 72 hours. If not paid the ransom will increase.

In Derbyshire, a victim received blackmail email saying that if money is not paid, then details of visiting a porn site will be released.

Interestingly, Durham Constabulary’s response included a case of Facebook being used to send a link and pay bitcoins into their account, suggesting that social media is also a place for these digital assaults to take place.

Additionally, Greater Manchester Police gave details of 83 incidents relating directly to blackmail as well as 6 cases of sending letters with the intent to cause distress or anxiety. One of these victims was being harassed to put money into an account to purchase Bitcoins.

The next two constabularies with the highest accounts was Hertfordshire, which provided information of 82 bitcoin related crimes, involving blackmail and Leicestershire Police which had 21 incidents.

The Police force with the least amount of reports was Lincolnshire Police with only 8 counts of bitcoin blackmail over 2018 and 2019.

Of the bitcoin crimes reported, blackmail was by far the most common attack and had the most harmful effect on victims financially, as well as emotionally. In some cases, phishing emails were sent, and criminals would demand bitcoin and commit criminal extortion in an attempt to separate people from their money. Threats, intimidation and high-pressure tactics are classic signs of a scam.

Andrew Martin, CEO, Retail Financial Consulting comments:

“The rising tide of digital financial crime will bring a shiver down the spine of consumers, who are already acutely aware of the risk of fraud and blackmail from malicious hackers. These incidents underline the risks associated with online currencies, which are often an easy way for anonymous third parties to extort money from victims, without detection.

“Moving forward, it’s time for the big banks to recognise that the aggressive push towards a cashless society is forcing many people to experiment with new forms of investment, some of which come with significant risks. Restricting consumer access to cash limits choice, leaving many people in our society behind and in an increasingly dangerous online world, this can only be a bad thing.”