Source URL: https://www.theregister.com/2025/02/07/ransomware_costs_analysis/
Source: The Register
Title: If Ransomware Inc was a company, its 2024 results would be a horror show
Feedly Summary: 35% drop in payments across the year as your backups got better and law enforcement made a difference
Ransomware extortion payments fell in 2024, according to blockchain analyst biz Chainalysis this week.…
AI Summary and Description: Yes
Summary: The decline in ransomware extortion payments in 2024, as reported by Chainalysis, reveals both an increase in ransomware attacks and a decreasing willingness among victims to pay ransoms, driven by factors such as financial constraints and improved recovery strategies. This trend hints at a potential shift in the ransomware landscape that could have implications for security practices and policies.
Detailed Description:
– **Ransomware Payments Drop**: In 2024, ransom payments observed on public blockchains decreased significantly to $813.55 million from a record $1.25 billion in 2023.
– **Increase in Ransomware Attacks**: Despite the drop in payments, ransomware attacks reportedly increased, suggesting that while more victims were targeted, fewer succumbed to the demands of the attackers.
– **Varied Reasons for Decreased Payments**:
– Organizations may struggle to afford ransom payments.
– Ethical considerations and company policies might deter payments.
– Improvements in incident response and recovery capabilities have made paying ransoms less appealing.
– **Market Dynamics**:
– After major law enforcement actions against groups like LockBit and BlackCat/ALPHV, new and smaller players began to emerge, indicating a shift in the criminal marketplace.
– A notable rise in attacks from lone actors has occurred, targeting small to mid-sized businesses with more modest ransom demands.
– **New Recovery Strategies**: Many businesses now find that recovering data from secure backups is often quicker and more cost-effective than paying ransoms, challenging the traditional ransomware business model.
– **Evolving Criminal Tactics**: Ransomware attackers are facing increased pressure due to tighter regulations and enhanced scrutiny of cryptocurrency payments, making it harder for them to launder the proceeds.
– **Government and Industry Responses**: There is growing governmental and industry awareness regarding the ineffectiveness of paying ransoms, with authorities in the UK and US strongly advising against such payments. The insurance industry is also becoming more cautious regarding practices that encourage ransom payments.
Key Insights for Professionals:
– **Security Preparedness**: Organizations should continue to enhance their incident response plans and backup strategies, as effective recovery may greatly reduce the incentive to pay ransoms.
– **Regulatory Compliance**: With evolving regulatory attitudes toward ransom payments, organizations must stay informed about legal implications and best practices to guide their responses to ransomware incidents.
– **Monitoring Ransomware Trends**: Keeping abreast of the changing dynamics in the ransomware landscape, including the rise of lone actors and evolving group strategies, is crucial for maintaining robust defensive postures.
Overall, the emerging trends in ransomware underscore a critical need for organizations to adapt their security strategies and reinforce their defenses to mitigate risks effectively.