Ransomware Payments Plummet 35% in 2024 as Victims Refuse to Pay

Ransomware Payments Fell 35% in 2024 as More Victims Refuse to Pay: Chainalysis

In 2024, ransomware payments decreased by 35% year-over-year, according to a report by Chainalysis. The total amount paid in ransomware dropped from $1.25 billion in 2023 to $813 million in 2024. Despite an increase in the number of ransomware attacks, the overall revenue generated by ransomware gangs declined.

The decline in ransomware payments can be attributed to several factors. Firstly, there has been an increase in law enforcement actions and sanctions against crypto exchanges, making it more difficult for ransomware gangs to cash out their ill-gotten gains. Secondly, victims are becoming more reluctant to pay ransoms, as they are increasingly distrustful that complying with attackers' demands will result in the deletion of their stolen data. Lastly, victims are improving their cyber hygiene and are better equipped to resist attackers' demands, often opting to restore data from backups instead of paying ransoms.

Chainalysis' report also highlights the challenges faced by ransomware attackers in cashing out their funds. There has been a substantial decline in the use of crypto mixers, which the report attributes to the disruptive impact of sanctions and law enforcement actions against services like Chipmixer, Tornado Cash, and Sinbad. As a result, more ransomware actors are holding their funds in personal wallets, demonstrating increased caution and uncertainty about where they can safely put their funds.

While the impact of law enforcement's crackdown on ransomware gangs is evident, it is too early to determine whether the downward trend in ransomware payments will continue in 2025. The factors that contributed to the decline in 2024 are still present, and the potential for large-scale attacks to resume remains a possibility.