Officials from 32 governments who met virtually this week to coordinate their response to the ransomware boom said uneven cryptocurrency standards are helping hackers cash in.
The representatives pledged to share information about cyberattacks and investigations, push firms to shore up security, and disrupt the financial infrastructure of a criminal hacking economy that has flourished in recent years. Consistent international scrutiny of cryptocurrencies will be key, the officials said, as ransomware groups that extort victims for digital payments can quickly transfer the funds to countries with lax standards for monitoring illicit transactions.
“We are dedicated to enhancing our efforts to disrupt the ransomware business model and associated money-laundering activities,” the representatives said in a joint statement Thursday.
The officials from the U.S., European Union, Japan and elsewhere met Wednesday and Thursday to discuss ways to counter a surge in ransomware, which the Biden administration has labeled the criminal hacking national security threat. Hacking groups have increasingly targeted U.S. critical infrastructure, disrupting the East Coast’s largest gas pipeline in May and a major meat processor in June.
Law-enforcement officials are sometimes able to track crypto payments made by such victims, which can reach into the millions, across a public ledger known as a blockchain. The Counter-Ransomware Initiative convened by the White House this week called on countries to use such techniques alongside more aggressive enforcement of anti-money-laundering and know-your-customer rules that prevent cryptocurrency companies from facilitating such transactions.
The officials pointed to standards created by the Financial Action Task Force, an initiative from the Group of Seven countries, but acknowledged their “uneven global implementation.”
“We also recognize the challenges some jurisdictions face in developing frameworks and investigative capabilities to address the constantly evolving and highly distributed business operations involving virtual assets,” officials from the summit said in their statement Thursday.
U.S. officials in recent months have ramped up their efforts to disrupt ransomware groups, expanding the government’s ability to track cryptocurrency and seize illicit funds. The Treasury Department last month issued first-of-their-kind sanctions on a cryptocurrency exchange, while the Justice Department has launched a National Cryptocurrency Enforcement Team.
But cybersecurity experts say international collaboration will be key to slowing criminal groups that often operate across borders and with relative impunity in countries such as Russia.
Kremlin officials, who have denied such charges, weren’t invited to the Counter-Ransomware Initiative this week, a senior U.S. official said. The official added that Washington is engaging directly with Moscow on the matter.
The meetings in recent days included conversations on how to pressure such countries and create international cybersecurity norms. The officials also pledged to bolster the security of their nations’ computer networks, including through public-private partnerships, consistent regulation and basic improvements to private-sector cyber hygiene.
Taking down international hacking groups, they said, could also require stepped-up law-enforcement collaboration across borders.
“No one country, no one group can solve this problem,” U.S. national security adviser Jake Sullivan said Wednesday.
Write to David Uberti at [email protected]
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