Ransomware hackers are getting less successful

Ransomware victims are increasingly reluctant to pay ransoms.

Ransomware victims are increasingly reluctant to pay ransoms. In 2022, earnings for extortionists and hackers declined, according to Chainalysis.

In 2020 and 2021 you’d hear about ransomware attacks every week. In that period, extortionists raked in more than $1.5 billion from businesses and individuals. But the heyday looks like it's over for now. As Chainalysis notes in a recent report, ransomware revenue dropped to $457 million in 2022. That’s surprising since extortion attempts rose sharply in 2022. Cybersecurity firm Fortinet logged 10,000 confirmed cases in just the first half of the year.

The drop in the value of the ransom is mostly due to victims’ growing reluctance to pay. There are several reasons. One is legal consequences victims can expect if payments violate laws and regulations. The Office of Foreign Assets Control (OFAC) published a ransomware advisory in September 2021. Another factor is the tightening of various cyber insurance policies around the use of ransom payments.

Coveware CEO Bill Siegel agrees. His firm fights cyber extortion. In 2022, 59 percent of his clients reportedly refused ransom payments. Additionally, the "lifecycle" of attacks has been cut in half, from an average of 153 to 70 days.

Business Model: Ransomware-as-a-Service

Another notable development comes from the distribution among extortionists. The rising number of attacks implied a colorful mix of players, Chainalysis says. However, the sector is still dominated by a group that allows other cybercriminals (so-called affiliates) to use their malware.

In exchange, the programmers of the ransomware take a share of the loot. This business model is called ransomware-as-a-service. As Chainalysis notes, criminals use multiple programs from different providers concurrently.

If you look at illegal transaction volumes in crypto, ransomware played little to no role in 2022. Unfortunately, that wasn’t the case with other crypto crimes. other crypto crimes.