https://www.chainalysis.com/blog/2024-crypto-crime-mid-year-update-part-1/
Ransomware attacks are seeing a surge in profitability in 2024, with victims on track to pay a record-breaking $459.8 million in the first half of the year alone. This is a 2% increase compared to the same period in 2023, which ultimately saw a record $1.1 billion in total payments.
The trend suggests that while ransomware attacks may be decreasing in number, attackers are focusing on larger targets and demanding higher ransoms. This is evidenced by the $75 million ransom payment made by a Fortune 50 company earlier this year, the largest ever recorded. The median ransom payment has also jumped significantly, from under $200,000 in early 2023 to $1.5 million by June 2024.
Experts believe this shift in tactics is due to a combination of factors, including:
- Disruption of major ransomware operations: Law enforcement efforts have disrupted major ransomware groups like LockBit, forcing others to adapt.
- Focus on larger organizations: Targeting larger companies with deeper pockets allows attackers to demand and potentially receive higher ransoms.
- Data exfiltration: Stealing sensitive customer data alongside encryption adds pressure on organizations to pay to avoid leaks.
Despite the rise in ransom demands, there’s a positive trend: the number of victims paying ransoms continues to decline. Chainalysis reports a 27% decrease in total ransomware payment events compared to the first half of 2023. This aligns with earlier reports suggesting a decrease in the overall ransom payment rate.
The report also highlights a significant increase in stolen cryptocurrency. The total value of stolen crypto has doubled year-over-year, reaching $1.58 billion by July 2024. This suggests a shift in focus by cybercriminals, with centralized exchanges becoming more targeted than DeFi protocols.
While these numbers paint a concerning picture for ransomware profitability, the overall decline in illicit cryptocurrency activity suggests that legitimate crypto use is growing at a faster pace.