Cryptocurrency Transaction Tracing: Methods Used by Forensics Companies

The Most Effective Techniques for Tracing Cryptocurrency Transactions

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Question

After a ransomware attack, a forensics company needs to review a cryptocurrency transaction between the victim and the attacker.

Which of the following will the company MOST likely review to trace this transaction?

A.

The public ledger Most Voted B.

The NetFlow data C.

A checksum D.

The event log.

D.

Explanations

After a ransomware attack, a forensics company needs to review a cryptocurrency transaction between the victim and the attacker.

Which of the following will the company MOST likely review to trace this transaction?

A.

The public ledger Most Voted

B.

The NetFlow data

C.

A checksum

D.

The event log.

D.

The correct answer to this question is option A, "the public ledger."

Ransomware attacks involve hackers encrypting a victim's files or data and then demanding a ransom payment in exchange for the decryption key. Often, these ransom payments are made in cryptocurrency such as Bitcoin, Monero, or Ethereum, because cryptocurrency transactions are difficult to trace and can be done anonymously.

To trace a cryptocurrency transaction between a victim and an attacker, a forensics company would need to review the public ledger, also known as the blockchain. The blockchain is a distributed ledger that records all cryptocurrency transactions made on a particular network.

In the case of Bitcoin, for example, the public ledger contains a record of every Bitcoin transaction that has ever occurred on the Bitcoin network, along with information such as the transaction amount, the Bitcoin addresses of the sender and receiver, and the transaction timestamp.

By reviewing the public ledger, a forensics company can trace the flow of funds from the victim's cryptocurrency wallet to the attacker's wallet. This can be done by analyzing the transaction inputs and outputs and looking for patterns or anomalies that suggest a ransom payment.

NetFlow data, checksums, and event logs are not relevant to tracing cryptocurrency transactions. NetFlow data is used for network traffic analysis, while checksums are used to verify the integrity of files or data. Event logs record system events and activities, but they do not contain information about cryptocurrency transactions.