Stephen Kong Interviewed by Compliance Week Regarding Cryptocurrencies Giving Rise to a New Hacking Threat

March 2018
Stradling shareholder Stephen Kong, chair of the firm’s Technology Transactions practice group, was interviewed by Compliance Week regarding a new wave of threats known as “crypto-currency mining attacks” that are creating risks for corporate websites. Hackers are adding malicious code to websites and hijacking them to mine bitcoin. Kong stated that crypto-mining “is particularly tough, because it falls into a bit of a gray area. It is definitely invasive to the affected companies, and it causes harm because they have to use more electricity while losing processing power. The reason why it is a gray area, however, and also a bit of a legal conundrum, is that unlike other viruses and hacks, it doesn’t cost companies in terms of lost data or money.” According to most laws, companies are liable if they expose their customers’ data to outsiders. However in this situation, Kong stated, “for the most part so far, all these outsiders want is access to processing power. That causes harm, but not the direct harm that loss of data does.” Read the full article.
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