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Bitcoin hotel hack victim speaks out

An Austrian hotel manager who went public with the fact that he had been blackmailed four times into paying a Bitcoin ransom to cybercriminals has been praised for speaking out.

Bitcoin hotel hack victim speaks out
Photo: Seehotel Jaegerwirt

The story of how hackers took control of the hotel's room locks ended up being reported all over the world from CNN and Newsweek through to The Times, CNBC, Yahoo News UK, The Verge, Gizmodo, IB Times, The Register, PC Magazine, Softpedia News, Forbes, Daily Star, the Huffington Post and The Sun to name but a few.

With relatively small amounts of money involved for most businesses that fall victim to the criminals, it is believed that thousands of firms are falling prey to the cyber criminals, but that they prefer to stay silent rather than suffer public embarrassment.

But after the manager of the Romantik Seehotel Jaegerwirt, a luxurious four-star hotel with a beautiful lakeside setting on the Alpine Turracher Hoehe Pass in Austria, was hit a fourth time by the blackmailers he decided to go public with what happened to warn others of the dangers of cybercrime.

Managing Director Christoph Brandstaetter said he was speaking out because he wanted to see more done to tackle cybercriminals, as this sort of activity is set to get worse.

His hotel, like many others, has a modern IT system which includes key cards for hotel doors and in the latest incident cybercriminals had again hacked into his system and managed to take down the entire key system. The guests could no longer get into their hotel rooms and new key cards could not be programmed.

The attack, which coincided with the opening weekend of the winter season, was allegedly so massive that it even shut down all hotel computers, including the reservation system and the cash desk system.

The hackers promised to restore the system quickly if just 1,500 EUR (1,272 GBP) in the largely untraceable electronic currency known as Bitcoin was paid to them.

Brandstaetter said: “The house was totally booked with 180 guests, we had no other choice. Neither police nor insurance help you in this case.”

“The restoration of our system after the first attack in summer cost us several thousand Euros. We did not get any money from the insurance so far because none of those to blame could be found.”

The manager said it was cheaper and faster for the hotel to just pay the Bitcoin.

Brandstaetter said: “Every euro that is paid to blackmailers hurts us. We know that other colleagues have been attacked, who have done similarly.”

When the hackers got the money, they unlocked the key registry system and all other computers, making them all run as normal again.

The Seehotel Jaegerwirt, which has existed for 111 years, also has another, innovative, trick in store to keep the hackers out for good.

Brandstaetter said: “We are planning at the next room refurbishment for old-fashioned door locks with real keys. Just like 111 years ago at the time of our great-grandfathers.”

Using Bitcoin for cybercriminal activities is becoming increasingly commonplace, as tracing payments is much harder due to the way the cryptocurrency works.

TERRORISM

Austrian investigators seize devices at Munich shooter’s home

Investigators seized electronic devices at the home of a young Austrian who fired shots near Israel's Munich consulate, but found no weapons or Islamic State group propaganda material, authorities said Friday.

Austrian investigators seize devices at Munich shooter's home

German police shot dead the 18-year-old man on Thursday when he fired a vintage rifle at them near the diplomatic building.

They said they were treating it as a “terrorist attack”, apparently timed to coincide with the anniversary of the killings of Israeli athletes at the 1972 Olympic Games.

Authorities raided the gunman’s home in the Salzburg region, seizing electronic data carriers, Austria’s top security chief Franz Ruf told a press conference in Vienna on Friday.

READ ALSO: Munich Israeli consulate gunman was ‘Austrian national known to authorities’

During the raid, “no weapons or IS propaganda” material were found, Ruf added.

Despite being subject to a ban on owning and carrying weapons, the man managed to purchase a vintage carbine rifle fitted with a bayonet with around “fifty rounds of ammunition” for 400 euros ($445) the day before the attack, Ruf said.

He opened fire at around 9:00 am (0700 GMT) near the Israeli consulate, sparking a mobilisation of about 500 police in downtown Munich.

At a separate press conference in Munich, prosecutor Gabriele Tilmann said investigators were combing through the gunman’s electronic data but had yet to find conclusive evidence of his motive.

But the “working hypothesis” was that “the perpetrator acted out of Islamist or anti-Semitic motivation”, she told reporters.

Austrian police said on Thursday that the gunman, who had Bosnian roots, had previously been investigated on suspicion of links to terrorism.

Investigators last year found three videos he had recorded in 2021, showing scenes from a computer game “with Islamist content”, prosecutors said in a statement.

In one of them the suspect had used an avatar with a flag of the “al-Nusra Front”, a jihadist group active in Syria, said Ruf.

But the investigation was dropped in 2023 as there were no indications that he was active in “radical” circles, prosecutors said.

“The mere playing of a computer game or the re-enactment of violent Islamist scenes was not sufficient to prove intent to commit the offence,” they added.

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