Payments from Crypto Ransom Attacks Reach Record $1 Billion in 2023
According to blockchain analytics firm Chainalysis, payments from crypto-related ransom attacks reached a record $1 billion in 2023. This is nearly double the amount seen in 2022. Scammers targeted institutions such as hospitals, schools, and government offices for ransom, pocketing $1.1 billion last year.
Decline in Other Crypto-Related Crimes
While payments from ransom attacks surged, losses from other crypto-related crimes like scamming and hacking actually fell in 2023, as reported by Chainalysis.
New Players Attracted by High Profits
Chainalysis stated that an increasing number of new players were drawn to the crypto market due to the potential for high profits and lower entry barriers. The dominant strategy for these players has been “big game hunting,” with a significant portion of ransom revenue coming from payments of $1 million or more.
“cl0p” Group Makes $100 Million in Ransom Payments
The analytics company highlighted the case of the digital extortionist group “cl0p,” which earned nearly $100 million in ransom payments by subverting file sharing software MOVEit. This software breach affected hundreds of organizations, including government departments and major companies like Shell.
Crypto’s Role in Cybercrime Funding
Cryptocurrency theft through cyberheists and ransomware attacks also plays a significant role in funding activities like North Korea’s operations, according to UN reports. However, Chainalysis’ figures underestimate crypto’s involvement in overall crime since it only tracks cryptocurrency sent to illicit wallet addresses and does not include non-crypto-related crimes like drug trafficking deals.
Hot Take: Crypto Ransom Payments Soar to New Heights
2023 witnessed a staggering increase in payments from crypto-related ransom attacks, reaching a record-breaking $1 billion. Institutions like hospitals and government offices became targets for scammers, leading to a surge in ransom revenue. While other crypto crimes decreased, the market attracted new players seeking high profits with low barriers to entry. The dominance of “big game hunting” strategies was evident, with numerous multi-million-dollar payments reported. The case of the “cl0p” group highlighted the scale of these attacks, earning them nearly $100 million. As cryptocurrencies continue to play a role in cybercrime funding, it is crucial to address security measures and ensure robust regulations are in place.
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