Ransomware Payments Plummet Despite Surge in Attacks

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A new report from Chainalysis reveals a dramatic 35% decline in ransomware payments in 2024, dropping to $814 million from the previous year's record of $1.25 billion. This decrease comes even as ransomware attacks intensified, targeting major entities like Change Healthcare, which suffered a $22 million breach. According to Jackie Burns Koven, a leader in cyber threat intelligence at Chainalysis, the drop in payments is attributed to recent law enforcement actions against significant ransomware groups, particularly BlackCat and Lockbit, which had previously extorted substantial sums from victims.

The report highlights that from July to December 2024, ransomware payments fell to $321 million, marking the steepest decline between two six-month periods on record. Chainalysis suggests that heightened defenses and an increase in regulatory scrutiny of cryptocurrency have contributed to this trend. Despite the reduction in payments, ransomware incidents rose to 4,634, as newer, less skilled cybercriminal groups emerged, often resorting to lower ransom demands. Analysts caution that while this decline is notable, it does not guarantee future dampening of ransomware threats.

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