Ransomware Payments Soar Into A Record Breaking $1.1 Billion in 2023

In the ever-evolving landscape of cybercrime, ransomware has emerged as a formidable threat, with cybercriminals raking in record-breaking sums through their malicious activities. The year 2023 saw a staggering $1.1 billion paid in ransom payments, underscoring the urgent need for heightened cybersecurity measures and increased awareness. 

Join us as we delve into the intricacies of this alarming trend, uncover the factors driving the surge in ransom payments, and explore strategies to combat this growing menace.

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​On 2023 Ransomware Payments 

Ransomware payments soared in 2023 to $1.1 billion, and broke the previous record of $983 million in 2021. Unfortunately, this indicates that the decrease in ransomware activities in 2022 was an anomaly. This anomaly could be attributed to several reasons such as geopolitical events (e.g. Russian-Ukrainian conflict), an overall reluctance to pay ransoms due to potential sanction risks, and also law enforcement taking on ransomware groups (e.g. Hive intervention). 

This overall trend line, created by Chainalysis, from 2019 to 2023 indicates that ransomware is an escalating issue. Furthermore, it is important to note that the numbers calculated did not reflect the monetary impact in terms of productivity loss and repair costs. For instance, the MGM ransomware attack was estimated to cost MGM over $100 million. Furthermore, not all ransom payments, especially cryptocurrencies payments, were traceable. Hence, the figures made are all conservative estimates, and are likely to increase when new ransomware addresses are found. 


Ransomware Resurgence: Understanding the Surge in Payments 

According to a new Chainalysis report, the 2023 record can be attributed to: 

• High Profile Targets: There have been escalating attacks against major institutions and critical infrastructure. This includes hospitals, schools, and government agencies.
• Major Ransomware Supply Chain Attacks: Last year, there were huge massive supply chain attacks such as the MOVEit attack by Clop, which led to thousands of organisations globally being impacted. 
• Increased Complexity of Attacks: Cybercriminals are employing increasingly sophisticated tactics such as double extortion, embracing data exfiltration as a strategy rather than encryption, and ransomware-as-a-service (RaaS) to maximise their profits. 
• Increased Volume in Attacks: Ransomware attacks were carried out by a variety of actors - from large syndicates to smaller groups and individuals. These numbers are increasing. Recorded Future reported 358 new ransomware variants in 2023 - this indicates the rise of new independent groups. 
• Spread of RaaS & Easy Availability of Hacking Tool: Growth of initial access brokers (IABs), who penetrate the networks of potential victims then sell that access to ransomware attackers, has made it easier to carry out ransomware attacks. IABs combined with RaaS means much less technical skills are needed for a ransomware attack. 
• Adapting To Decline in Ransomware Payments: Ransomware groups are shifting towards a strategy of “big game hunting” whereby they target very large companies who are more likely to pay large ransom demands rather than target smaller companies for more small ransom payments.  

Combating the Ransomware Epidemic: Strategies for Prevention & Mitigation

• Implement Robust Security Measures: Ensure your organisation has robust cybersecurity measures in place, including regular software updates, employee training, and the use of multi-factor authentication (MFA). 
• Backup and Recovery: Regularly back up your data and ensure you have a comprehensive recovery plan in place to minimise the impact of a ransomware attack.
• Engage Law Enforcement: Report ransomware attacks to law enforcement agencies, as they may be able to assist in investigating and mitigating the attack. *In some countries, it is a necessity to report ransomware attacks to law enforcement agencies.
• Training and Awareness Programs: Educate employees and individuals about the risks of ransomware and how to recognize phishing attempts and other common attack vectors.

​Conclusion

The surge in ransom payments in 2023 serves as a stark reminder of the evolving nature of cyber threats and the critical need for proactive cybersecurity measures. The ransomware landscape in particular has evolved significantly in 2023 via the changes in tactics and affiliations among threat actors which has led to a more aggressive and efficient approach. Although ransomware attackers have innovated and adapted to regulatory changes and law enforcement actions, there were also significant steps made against ransomware via collaboration of government agencies, affected organisations, and blockchain intelligence. 

By understanding the factors driving this trend, implementing robust security practices, and fostering a culture of awareness and collaboration, we can collectively combat the ransomware epidemic and protect our digital future. 

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