Ransomware Payments Plummet 35% in 2024

Ransomware payments fell by 35% in 2024 compared to the previous year, according to a report by Chainalysis. The total amount paid to ransomware groups dropped to $813 million, down from $1.25 billion in 2023. This decline can be attributed to several factors, including increased law enforcement actions, international sanctions against crypto exchanges, and a growing reluctance among victims to pay ransoms.

Chainalysis' report highlights a significant discrepancy between the ransom amounts demanded and those actually paid in the latter half of 2024. This discrepancy is attributed to better international cooperation, more robust cyber defense measures, and enhanced crypto investigation tools that discourage cybercriminals. These factors have contributed to a decrease in successful ransomware attacks and a corresponding reduction in payments.

The report also notes that ransomware attackers are facing challenges in cashing out their ill-gotten gains. There has been a substantial decline in the use of crypto mixers, with more ransomware actors simply holding their funds in personal wallets. This trend is likely due to the disruptive impact of sanctions and law enforcement actions against services like Chipmixer, Tornado Cash, and Sinbad.

Looking ahead, while the impact of law enforcement's crackdown on ransomware gangs in 2024 is clear, it is too early to say whether the downward trend in ransomware payments will continue in 2025. Jacqueline Burns Koven, Chainalysis' head of cyber threat intelligence, cautions that all the factors are still in place for large-scale attacks to resume, highlighting the need for ongoing vigilance and cooperation among international law enforcement agencies.