What type of currency do cyber criminals often demand as ransom payment due to its difficulty to trace?

Cyber criminals frequently demand cryptocurrency as ransom payment because it offers unique characteristics that make transactions difficult to trace. Unlike traditional fiat currencies, cryptocurrency operates on decentralized networks using blockchain technology, which provides a level of anonymity. This anonymity is appealing to criminals because it obscures the identities of both the sender and the recipient, making it challenging for law enforcement to track the flow of funds.

Additionally, cryptocurrencies like Bitcoin can be quickly transferred across borders without the need for intermediaries like banks, further complicating efforts to trace these transactions. While other forms of payment, such as fiat currency, gold, or bank transfers, have more established tracking systems and regulatory oversight, cryptocurrency’s nature allows criminals to exploit it for illicit purposes, fostering a preference for this payment method in ransom scenarios.