For many organizations and startups, 2023 was a rough year financially, with companies struggling to raise money and others making cuts to survive. However, one group of individuals has had an extremely profitable year – ransomware and extortion gangs.
A Record-Breaking Year for Ransomware Gangs
Recent reports indicate that known ransomware payments almost doubled in 2023 to surpass the $1 billion mark, calling the year a ‘major comeback for ransomware.’ According to new data from crypto forensics startup Chainalysis, this is the highest figure ever observed, and almost double the amount of known ransom payments tracked in 2022. However, Chainalysis suggests that the actual figure is likely far higher than the $1.1 billion in ransom payments it has witnessed so far.
The State of Ransomware
Last year saw hackers continue to evolve their tactics to become scrappier and more extreme in efforts to pressure victims into paying their increasingly exorbitant ransom demands. This escalation in tactics, along with the fact that governments have stopped short of banning ransom payments, led to 2023 becoming the most lucrative year yet for ransomware gangs.
The MOVEit Attack: A Prime Example of Ransomware’s Devastating Impact
One notable example of this is the MOVEit attack, which affected organizations worldwide and resulted in significant financial losses. This type of attack highlights the devastating impact that ransomware can have on businesses, with many struggling to recover from such incidents.
The Controversy Surrounding Ransom Payments
To pay or not to pay the ransom is a contentious issue. Some argue that paying ransom payments only encourages hackers to continue their malicious activities, while others believe it’s a necessary evil in order to retrieve critical data. However, as we will explore later, there are potential consequences of imposing a blanket ban on ransom payments.
The Argument for and Against a Ban on Ransom Payments
Allan Liska, a threat intelligence analyst at Recorded Future, has long opposed banning ransom payments – but now believes that for as long as ransom payments remain lawful, cybercriminals will do whatever it takes to collect them. He argues that a ban on ransom payments will be painful and may lead to a short-term increase in ransomware attacks. However, he also believes that this is the only solution with a chance of long-term success.
The Potential Consequences of a Ban on Ransom Payments
While more victims are realizing that paying hackers cannot guarantee the safety of their data, it’s clear that these financially motivated cybercriminals aren’t giving up their lavish lifestyles anytime soon. Until then, ransomware attacks will remain a major money-making exercise for the hackers behind them.
The Need for Action
In light of this information, it becomes increasingly apparent that urgent action is needed to combat the rise of ransomware and extortion gangs. As we explore in our other articles on this topic, understanding the complexities surrounding ransom payments and their impact on victims and society as a whole is crucial.
Reading Further
For those interested in learning more about this issue, TechCrunch has published several articles exploring different aspects of the problem:
- Why Ransomware Victims Can’t Stop Paying Off Hackers: This article examines the reasons behind why ransom payments continue to be made and what steps can be taken to prevent such incidents.
- Do Government Sanctions Against Ransomware Groups Work?: This piece discusses whether government sanctions are an effective way of combating ransomware groups and their impact on the wider cybersecurity landscape.
Conclusion
In conclusion, 2023 has been a record-breaking year for ransomware gangs, with billions of dollars in ransom payments made. While there is no straightforward solution to this problem, it’s essential that governments, organizations, and individuals work together to find effective ways to combat these financially motivated cybercriminals.
Reading Suggestions
- Why Extortion Is the New Ransomware Threat: This article highlights the shift from ransomware to extortion in cybersecurity threats.
- Cybercrime, Cybersecurity, Evergreens, Extortion, Ransomware, Security: These topics are explored further in this comprehensive guide.
About the Author
Carly Page is a Senior Reporter at TechCrunch, covering the cybersecurity beat. She has spent more than a decade in the technology industry, writing for titles including Forbes, TechRadar, and WIRED.
