Despite Increase in Ransomware Attacks, Payouts Decreased in 2022

A report shows that cryptocurrency payouts to ransomware hackers “totaled a mere $16 million, compared to nearly $74 million USD in 2021,” as stated by the Crystal Blockchain, a blockchain intelligence firm. 

Given that ransomware assaults have grown since 2021, according to cybersecurity researchers, this may come as a surprise. 

Although the infamous Conti ransomware gang, which was probably best known for threatening American hospitals during the COVID-19 pandemic, stopped operating this year, new groups are still forming.

The director of blockchain intelligence at Crystal, Nick Smart, told CoinDesk that it might be inappropriate or too early to draw the conclusion that ransomware assaults are on the decline permanently. 

Smart states that “since the Conti leaks, we were able to gather a lot more information on historical ransomware and extortion activity, which is to say we have a better idea of what it was like before.”

“Due to the way ransoms generally work, it’s not possible to tell what happened now as many companies don’t disclose payment information publicly.”

On-chain Analysis of Ransomware Attacks

According to the study, on-chain activity analysis reveals a decline in popularity for cryptocurrency businesses that have a high money laundering risk score, suggesting they are more likely than others to obtain cash from frauds and criminality. 

The report reads: 

“We can see that overall, crypto funds are increasingly exchanged between lower-risk [virtual asset service providers] likely due to increased regulation, registration and client expectations.”

Simultaneously, businesses and exchanges that successfully block “dirty” crypto have been tightening their anti-money laundering regulations in an effort to deter criminals. The report further reveals that the “volume of funds sent to low-risk exchanges from scams fell by 24% in 2022 compared to 2021.”

Meanwhile, it was recently disclosed that hackers may use the Metaverse to target unsuspecting users in 2023, in a research titled “Consumer Cyberthreats: Predictions for 2023” released by the cybersecurity company Kaspersky.