© Reuters. In this illustration taken on October 24, 2023, physical representations of the cryptocurrency bitcoin are seen. REUTERS/Dado Ruvic/Illustration/File photo
By Medha Singh
(Reuters) -Payments from cryptocurrency-related ransom attacks nearly doubled to a record $1 billion in 2023, blockchain analysis firm Chainalysis said on Wednesday.
Scammers who target institutions such as hospitals, schools and government offices for ransom pocketed $1.1 billion last year, compared to $567 million in 2022.
However, losses from other cryptocurrency-related crimes, such as scamming and hacking, decreased in 2023, Chainalysis said.
The largest cryptocurrency, has risen 60% since late September to $43,134 on enthusiasm for a new US bitcoin ETF and signs that central banks around the world will begin cutting interest rates.
“An increasing number of new players were attracted by the potential for high profits and lower barriers to entry,” Chainalysis said.
“Big game hunting” has become the dominant strategy in recent years, with a dominant share of all ransom revenue volume made up of payments of $1 million or more, Chainalysis added.
A digital extortion group called “cl0p,” which subverted MOVEit file-sharing software, made nearly $100 million in ransom payments, the analytics company said.
Hundreds of organizations, including government departments, the UK telecoms regulator and energy giant Shell (LON:), have reported cybersecurity breaches related to the MOVEit software tool, which is typically used to transfer large amounts of data to often confidential, including pension information and social security numbers. .
A report from November showed that the cybercrime group “Black Basta” had extorted at least $107 million in bitcoin, with much of the laundered ransom payments reaching the sanctioned Russian cryptocurrency exchange Garantex.
The theft of cryptocurrencies through cyber heists and ransomware attacks is also a major source of funding for North Korea, according to UN reports.
Chainalysis figures underestimate the role of cryptocurrencies in all crimes, as it only tracks cryptocurrencies sent to wallet addresses identified as illicit. It does not include payments for non-cryptocurrency crimes, such as cryptocurrencies used in drug trafficking deals.
