The Alarming Rise of Crypto Ransom Payments
In 2023, cybercriminals received an unprecedented $1.1 billion in crypto ransom payments, according to a report by Chainalysis. This staggering amount represents a significant turnaround from the decline observed in 2022. The targets of these attacks were primarily high-profile institutions and critical infrastructure, including hospitals, schools, and government agencies.
An Increase in Attacks and Payments
The amount paid by victims saw a staggering 76.4% increase compared to 2022, when cybercriminals received $567 million in crypto ransom payments. Allan Liska, Threat Intelligence Analyst at cybersecurity firm Recorded Future, highlighted the exponential growth in the number of threat actors carrying out ransomware attacks. This surge in new players can be attributed to the allure of high profits and lower barriers to entry.
The Growing Threat Landscape
Chainalysis, while acknowledging the conservative nature of their estimates, expects the number of ransomware attacks to rise as new targets are identified. The rise of new groups is evident from the 538 different kinds of ransomware attacks reported in 2023, as reported by Recorded Futures. This indicates an evolving threat landscape.
Factors Influencing the Rise of Ransomware Attacks
The record-breaking ransom payments in 2023 signify a stark contrast to the previous year's decline. Several factors contributed to this resurgence. Firstly, cybercriminals shifted their focus from financial gain to political motivations amid the Russia-Ukraine conflict. Additionally, successful infiltration efforts by the FBI played a role in thwarting some crimes.
New Strategies and Tactics
While some big players carried out fewer attacks, they managed to secure larger payments per attack. This trend can be attributed to the rise of "ransomware as a service." This model allows outsiders to use a ransomware program and pay its creator a portion of the proceeds from the hack. The accessibility of these methods has significantly reduced the technical expertise required to carry out such attacks.
The Role of North Korean-Linked Hacks
Chainalysis previously reported a record high in North Korean-linked hacks of cryptocurrency platforms in 2023. However, there was a 41% decrease in the amount of crypto stolen by these groups. This suggests a shift in their tactics and priorities.
Overall, the surge in crypto ransom payments in 2023 highlights the growing threat of ransomware attacks and the need for enhanced cybersecurity measures. It is crucial for institutions and critical infrastructure to stay vigilant and adopt proactive strategies to mitigate these risks.
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By: yzhan@insider.com (Yuheng Zhan)
Title: The Surge of Crypto Ransom Payments in 2023: A Record-Breaking Year for Cybercriminals
Sourced From: markets.businessinsider.com/news/currencies/crypto-cyber-crimes-ransom-payments-record-hacks-ransomware-2023-2024-2
Published Date: Wed, 07 Feb 2024 17:47:18 +0000
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