According to blockchain analytics company Chainalysis, payouts from ransom attacks involving cryptocurrencies will almost quadruple in 2023 to a record $1 billion (roughly Rs. 8,304 crores). This information was released on Wednesday.
Scammers targeting institutions like hospitals, schools and government offices for ransom raked in $1.1 billion (roughly Rs. 9,133 crores) last year, while that is expected to hit $567 million (roughly Rs. 4,708 crores) in 2022.
However, losses from other crypto-related crimes such as scamming and hacking declined in 2023, Chainalysis said.
The largest cryptocurrency, Bitcoin, has surged 60% since late September to $43,134 (roughly Rs. 35,81,500), fueled by excitement over a new US Bitcoin ETF and signs that interest rates could be cut by central banks globally.
“The potential for large profits and low barriers to entry have attracted an increasing number of new players,” Chainalysis said.
According to Chainalysis, over the past few years, “big game hunting” has emerged as the most popular strategy, involving payments of $1 million (about Rs 8.3 crore) or more, accounting for a large portion of the total ransom revenue stream.
Posing as a data analytics company, a group of hackers going by the name “cl0p” took down the file-sharing program MOVEit and received nearly $100 million (roughly Rs. 830 crores) in ransom payment.
Hundreds of organizations including government departments, the UK telecommunications regulator and energy giant Shell have reported cybersecurity breaches linked to the MOVEit software tool, commonly used to transfer large amounts of sensitive data, including pension information and Social Security numbers. goes.
A report in November revealed that the cybercrime group “Black Bag” had extorted at least $107 million in Bitcoin, with the majority of the looted ransom payment going to sanctioned Russian cryptocurrency exchange Garantex.
The theft of cryptocurrencies through cybercriminals and ransomware attacks is also an important source of funding for North Korea, according to a UN report.
Because Chainalysis primarily tracks cryptocurrencies transferred to wallet addresses that have been flagged as illegal, its data underestimates the role played by cryptocurrencies in all crimes. It does not include payments for cryptocurrency-related crimes, including using cryptocurrencies in drug trafficking.