No one wants to fall victim to ransomware, but a new report from blockchain security firm Chainalysis claims that ransomware payments could be set for a record-breaking year, with criminals raking in close to half a billion dollars just seven months into 2023.
According to the analysis, ransomware payments this year have totaled $449.1 million so far. That’s $175.8 million more than this time last year, suggesting that hackers have doubled down on this method of extracting money from unfortunate victims.
The report focused on ransomware’s deployment on the blockchain, where cryptocurrencies are involved. Already in July 2023, this type of attack has collected almost the entirety of what was lost to similar attacks in the whole of 2022. If this year’s trend continues unabated, ransomware users could steal up to $898.6 million.
So why is ransomware doing so well this year? Chainalysis believes it’s largely down to criminal gangs putting an increased emphasis on targeting “big game” institutions — that is, “large, deep-pocketed organizations,” the report says. Ransomware gangs often extort a percentage of a firm’s revenue, so the larger the organization, the larger the payoff. The most lucrative ransomware strain was Cl0p, for which the median average payment was over $1.9 million.
However, that doesn’t mean that small-scale users are safe from the gangs’ clutches, as Chainalysis explains that “the number of successful small attacks has also grown” in the same time period. Across the board, ransomware profits are up.
Cybercrime profits tumbling
Interestingly, the report notes that every other form of cryptocurrency cybercrime, from hacks and dark net marketplaces to scams and child abuse material, was all down compared to 2022, which was a hugely profitable year for cybercrime. In some cases, the drop was significant.
For example, cryptocurrency scams have made $3.3 billion less than they had raked in by this point last year, for a massive drop of 77%. Chainalysis believes this is partly due to two enormous scams — named VidiLook and Chia Tai — ending and running off with user funds. VidiLook alone is believed to have bilked victims out of $120 million. So far, there haven’t been many major scams stepping up to replace them.
Elsewhere, hacks have been another big loser so far in 2023, with total revenue from intrusions falling over $1.1 billion compared to 2022. Put together (and even including the increase in ransomware profits), total crypto crime takings are down $5.2 billion year on year.
That’s an encouraging sign in the fight against cybercrime. That doesn’t mean anyone can be complacent, though. If you want to keep yourself safe, it’s a good idea to install strong antivirus software, use one of the best password managers, avoid clicking risky links, and generally keep your wits about you when browsing the web.
