Tech Start-Ups Are Targets of Ransom Cyberattacks
Scott Heiferman and Gary Burns had less than four minutes to decide whether to pay up or go down. One morning, an email popped into their inbox informing Heiferman, one of the founders, and Burns, the chief technology officer of Meetup, a New York Internet company that connects groups offline, that their site would go down unless they paid $300 worth of Bitcoins. Four minutes later, 40 times the company’s typical data flow crashed Meetup’s site, beginning a disruption that wouldn’t be resolved for another week.
Meetup is one of several small web start-ups that have been hit recently by a wave of so-called denial-of-service, or DDoS attacks, in which attackers knock a victim offline using a flood of traffic and refuse to stop until their victims pay their ransom in Bitcoins. The amounts demanded are typically low -- which seems like a lot of work for little payoff -- but those who have been targeted say they think the nominal amounts are bait and could lead to future extortion and demands. If their company is willing to pay $300, for example, they might also be willing to pay $3,000 or $30,000 down the road. Other start-ups that have been hit are Vimeo, the video-sharing company; Basecamp, a project management software company; Bit.ly, the link-shortening service; Shutterstock, the stock photography agency; and MailChimp, the email marketing provider.