Hackers extorting money out of tech startups in exchange for protection from DDoS attacks

[Himanshu Arora]

Cyber criminals have recently targeted several small technology startups with an aim to extort money. According to a New York Times report, startups like Meetup, Vimeo, Basecamp, Bit.ly, Shutterstock, and more, have already been hit by such attacks.

Attackers typically employ a distributed denial-of-service (DDoS) attack, which is used to make a machine or network resource unavailable to its intended users. Through DDoS, they first knock a victim offline using a flood of traffic, and then ask for ransom in exchange for protection from the attack.

The report highlights a similar attack in which Meetup, a New York-based Internet company that connects groups offline, was asked to pay $300 worth of Bitcoins. The company decided not to bow down, following which a DDoS attack was launched, disrupting the company's website for several days.

Although $300 may seem quite a small amount, the victims think these nominal amounts are bait and could lead to future extortion and demands. According to Arbor Networks, a Burlington, Massachusetts-based company that sells network security and network monitoring software, there has been an eightfold increase in the frequency of DDoS attacks from the previous year.

Although a surprising percentage of victims pay the ransom, the attacks have worked in favor of companies like Cloudflare and Akamai that specialize in protecting against DDoS attacks. Depending upon the service, these companies charge customers $20 to $2000 a month.

According to Cloudflare CEO Matthew Prince, the company witnessed a 450 percent jump in revenue last year.

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https://www.techspot.com/news/56284-hackers-extorting-money-out-of-tech-startups-in-exchange-for-protection-from-ddos-attacks.html

 

[MilwaukeeMike]

The report highlights a similar attack in which Meetup, a New York-based Internet company that connects groups offline, was asked to pay $300 worth of Bitcoins.

Of course they were told to pay in Bitcoins. No way for the authorities to track them down for extortion then. I have a feeling this will be one of many stories to come about Bitcoins being the new cyber mafia's currency of choice.

 

[GhostRyder]

Been waiting to make a joke like this for awhile

Hello, we're the robot Mafia:

But in all seriousness, I remember when DDOS was something extreme, now its become a child's play thing in which kids threaten to DDOS one another for beating them in a video game. The fact that people are now offering protection services like this is just getting plain old stupid.

 

[Neojt]

And where back with bullies asking for your lunch monney!

 

[theBest11778]

Been waiting to make a joke like this for awhile

Hello, we're the robot Mafia:

But in all seriousness, I remember when DDOS was something extreme, now its become a childs play thing in which kigs threaten to DDOS one another for beating them in a video game. The fact that people are now offering protection services like this is just getting plain old stupid.

Hahaha, exactly what I was thinking.

 

[cliffordcooley]

Well if people are willing to pay, why blame the salesman for making what could be a false claim?

 

[Gamesinner]

The method is new but the game is the same.