The United States Deputy Attorney General Lisa Monaco announced two new Justice Department enforcement operations on Wednesday aimed at cryptocurrency and federal contractors that fail to report cyber intrusions.
Monaco announced the formation of the National Cryptocurrency Enforcement Team on Wednesday during a virtual speech at the Aspen Cyber Summit. The team’s mission would be to “strengthen” the Justice Department’s ability to disrupt financial platforms that enable hackers to “flourish.”
The committee will be composed of professionals in anti-money laundering and cybersecurity. “If cryptocurrency exchanges aspire to be the future’s banks, we need to ensure that users have confidence in these systems and that we are prepared to weed out misuse,” Monaco added. “The objective is to safeguard consumers.”
Cybercriminals that use ransomware, a sort of software that encrypts systems and demands payment, frequently receive payment in cryptocurrency. The hackers frequently collect and transfer these funds using a variety of different cryptocurrency services, which helps conceal them from law authorities.
Monaco also announced the establishment of a civil cyber fraud effort that will “employ civil enforcement mechanisms to target corporations that are government contractors and receive federal payments for failing to adhere to established cybersecurity standards.”
“For far too long, businesses have chosen silence in the false idea that concealing a breach is less hazardous than bringing it forward and reporting it. That is changing today “Monaco said.
The revelations follow several high-profile hacks against US companies and government organizations earlier this year. In May, cybercriminals launched an attack on a major US pipeline operator, resulting in localized gas shortages throughout the US East Coast. In July, new cybersecurity requirements for pipeline owners were implemented in response to the event.
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