In 2023, the realm of cybercrime saw a staggering surge in crypto ransom payments, hitting an unprecedented $1.1 billion. This marked a stark reversal from the decline experienced in 2022.
The unfortunate victims of these attacks were predominantly high-profile institutions and critical infrastructure, ranging from hospitals and schools to government agencies. According to data released by Chainalysis on Wednesday, the total amount paid by victims skyrocketed by 76.4% compared to the previous year, when criminals received $567 million in cryptocurrency.
Allan Liska, a Threat Intelligence Analyst at Recorded Future, highlighted the concerning trend, noting the exponential growth in the number of threat actors orchestrating ransomware attacks. Chainalysis attributed this surge to the allure of substantial profits and relatively low entry barriers, cautioning that their reported figures likely underestimate the actual extent of ransomware attacks, with expectations for further increases as new targets emerge.
The unprecedented ransom payments in 2023 starkly contrast with the prior year’s downturn, attributed to various factors including cybercriminals shifting their focus from financial motives to political agendas amid the Russia-Ukraine conflict. Additionally, successful infiltration efforts by the FBI played a role in thwarting some of these crimes, as noted by Chainalysis.
Recorded Future reported a total of 538 ransomware variants in 2023, signaling the emergence of new threat groups. While some major players executed fewer attacks, they managed to secure larger payments per incident, indicating a shift in tactics.
The rise of “ransomware as a service” has further fueled the proliferation of attacks, allowing outsiders to utilize ransomware programs and compensate their creators with a portion of the proceeds from the cyberattacks. Chainalysis emphasized that these methods require significantly less technical expertise on the part of criminals.
In addition to the surge in ransomware attacks, Chainalysis previously reported a record high in North Korean-linked hacks targeting cryptocurrency platforms in 2023. However, there was also a notable 41% decrease in the amount of cryptocurrency stolen by these groups during the same period.
