VICTIMS OF RANSOMWARE ATTACKS REFUSING TO PAY: CHAINALYSIS

Decline in Ransomware Attacks: Victims Refuse to Pay: Chainalysis

In 2022, the crypto industry experienced a surge in hacking and fraudulent activities, including ransomware attacks. These attacks involve malicious software that encrypts users’ data, demanding a ransom for its release. However, a positive trend has emerged as victims are now refusing to pay, leading to a decline in revenue for attackers.

According to a blog post by Chainalysis, ransomware attackers extorted $456.8 million from victims in 2022, a decrease from $765.6 million the previous year. This shift can be attributed to increased regulatory measures and the crypto industry’s crackdown on developers involved in illicit activities.

However, this doesn’t imply a significant decrease in ransomware attacks, at least not to the extent suggested by the sharp decline in payments. Instead, the decline is largely attributed to victim organizations taking a stand and refusing to succumb to ransomware attackers’ demands.

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Chainalysis reports a rise in ransomware funds being directed to mainstream exchanges, increasing from 39.3% in 2021 to 48.3% in 2022. In contrast, funds going to high-risk exchanges decreased from 10.9% to 6.7%. Usage of illicit services for ransomware money laundering declined, while the use of mixers increased.

Moreover, Chainalysis highlights that most ransomware operates on a ransomware-as-a-service (RaaS) model, where developers allow attackers to use their software for a share of the revenue. Notably, Microsoft detected a specific attack called DEV-013 targeting crypto startups.

Stay informed about the decline in ransomware attacks and the changing dynamics of the crypto industry.