Ransomware Rebounds Big After 2022 Decline

Chain Analysis reports that ransomware crooks pulled off successful attacks on high-profile institutions in 2023, while major supply chain breaches exploited the file transfer software MOVEit. As a result, a milestone was reached – $1 billion in extorted cryptocurrency payments from victims in 2023.

In retrospect, 2022’s decrease in ransomware activities was an anomaly. The Russia-Ukraine conflict disrupted the operations of several notorious gangs and forced them to concentrate more on espionage and destruction, and less on extortion.

Sanctions risks that discouraged some companies in the West from paying ransoms also played a role in the 2022 downturn, as did the successful infiltration of the Hive ransomware strain by the FBI.

The 2022 decline notwithstanding, the overall trend line from 2019 to 2023 shows that ransomware is an escalating problem. The $1 billion figure for payout last year doesn’t account for the productivity loss and repair costs associated with attacks.

MGM, for example, did not pay ransom when it suffered a high-profile attack, but it estimates that damages cost over $100 million.

Chain Analysis notes that tracing ransom payments made in cryptocurrencies is difficult, and its initial reporting for 2022 showed $457 million in ransoms, but that figure has been revised upward by nearly 25 percent.

There were big changes in the ransomware racket in 2023, including new tactics and new affiliations among gangs. These underline the quicksilver nature of ransom gangs, as well as their relentless search for more lucrative extortion schemes.

The news isn’t all bad. There were real victories in the fight against ransomware, often due to collaboration between international law enforcement, affected organizations, cybersecurity firms, and blockchain intelligence.