London Banks Stockpile Bitcoin to Mitigate Possible Future Ransomware Attacks

Bitcoin being used to pay ransomware attacks is nothing new. However, what is new is that major banks are starting to hoard Bitcoin to mitigate future ransomware attacks. While the funds used to hoard Bitcoin should be spent on improving IT departments, financial institutions tend to take the easier option. Although paying Bitcoin ransoms will only lead to more trouble. However, in the current cyber attack situation, London banks may find it more cost-effective to buy Bitcoin compared to the financial and reputational consequences of network breaches and data loss.

Negotiating a ransomware attack can be disastrous. Computer systems and important files are encrypted, and once attacked, there is no realistic option to restore access. One solution is to create regular offline backups of important data, but almost no one does this. Major banks and financial institutions still have a long way to go in this regard.

UK banks failed to prepare for cyberattack

Several large London banks are planning to hoard Bitcoin in case such an attack hits them. However, it is not known whether these banks realize that doing so will only attract more cyber attacks. Once criminals know which institutions pay Bitcoin fees, others will try similar tactics. Ransomware refers to rogue software designed to block access to computer systems or data until a ransom is paid. It has been around since the 1980s. Today, with the rapid development of the Internet, this has become a 'booming' business, and a large number of criminals are exploring this market.

Responding to attacks in the most convenient way and giving in to demands should never be a priority. The bank's reputation will not be better and such a compromise decision will only make things worse. In fact, people will even think that London banks have no credibility when it comes to monetary and IT security.

Ironically, banks, which have been against Bitcoin from the beginning as the decentralized digital currency is a growing threat to their existing business models, are now hoarding Bitcoin to mitigate potential future ransomware attacks. Rather than embracing Bitcoin, the world’s only truly borderless global currency, banks have chosen to refuse to accept Bitcoin and even close bank accounts associated with Bitcoin businesses as the impact of Bitcoin’s global use on their business profits becomes increasingly apparent.

Dr.Simor Moores, former technology ambassador of the British government, said:

“Police acknowledge that they do not have the resources available to handle this type of ransomware attack, as the volume of such attacks has grown significantly. From a purely pragmatic perspective, financial institutions are exploring the need to retain Bitcoin in case they themselves become the target of a high-intensity attack, as law enforcement will not be able to help them recover in a timely manner.”

It is unclear which banks are hoarding Bitcoin. Although the banks' move may have nothing to do with the recent rise in Bitcoin prices, large companies and institutions are worried that the cost of losing access to their services due to ransomware attacks will be much higher than paying the ransom. At the same time, each ransomware attack will have a different price threshold, and criminals may start to demand ransoms of millions of dollars.