The price of success – The cryptocurrency ecosystem is plagued by numerous attacks. Therefore, the protocols of the decentralized finance they are often targeted by hackers. Also, another category of hacks uses cryptocurrencies as part of the ransom payment. Fortunately, ransomware attacks are on the decline.
40% less ransomware
The ransomware I’m a type of malware that infects a victim’s computer. Once infected, all files will be encrypted by the malware. The goal is to demand a ransom from the victim in exchange for the data encryption key. More often than not, these attacks target businesses, which has the effect of paralyzing them until the ransom is paid.
The company chain analysis specialist in blockchain analysis has published a report on crypto crimes in the year 2022. So, this report tells us that Ransomware ransoms down by 40%.
In 2022, in fact, 457 million dollars were extorted, compared to 766 million dollars in 2021. Furthermore, 2022 seems to interrupt a trend consolidated since 2021.
However, these results do not imply a reduction in the number of attacks.
“Instead, we believe that most of the decline is due to the growing refusal of victim organizations to pay ransomware attackers. »
As we have just seen, the decline in the amount extorted has not decreased due to a reduction in the number of attacks. Actually, the number of operational ransomware exploded in 2022 with over 10,000 active ransomware in Q1 2022.
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Money laundering: where do the funds go?
Continuing its study, Chainalysis analyzed the monetary flows linked to ransoms, especially during their laundering.
According to Chainalysis, almost half of the ransom funds end up being deposited on centralized trading platforms. In practice, redemptions sent to CEXs increased from 39.3% to 48.3%.
At the same time, the use of blending protocols, such as Tornado Cash, also increased from 11.6% to 15%.
Ransomware: An Outdated Practice?
Despite an increase in the number of attacks, declining ransom payments could suggest that ransomware is on the decline.
However, ransomware remains a serious threat to businesses, as Resilience CCO Michael Phillips explains:
“Cyber insurance claims data shows that ransomware remains a growing threat to businesses. However, there have been signs that the significant outages against ransomware actor groups have resulted in less successful than expected extortion attempts. »
Most of the time, the victims get infected via social engineering methods. For example through phishing attacks. To combat this, companies should implement ongoing cybersecurity training and drills.
While ransomware has seen a decline in activity in 2022, DeFi hacks have not. Indeed, billions of dollars have been stolen, making 2022 the bloodiest year ever.
To keep your cryptocurrencies safe from hackers, nothing beats a Ledger wallet. Nano S and Nano X offer security and ease of use. In fact, they are compatible with the vast majority of cryptocurrencies and networks. They are an absolutely essential alternative to all exchanges that offer to hold your assets for you. Remember, “Not your keys, not your coins” (commercial link)!