LONDON (Reuters) – A new report from blockchain analytics firm Chainalysis reveals that while overall crypto crime has decreased in the first half of 2023, payments to ransomware attackers have surged, potentially reaching their second-highest annual total on record.
Following a series of bankruptcies at prominent crypto firms in 2022, cryptocurrency prices have been steadily recovering this year. Despite this, Chainalysis has detected a rise in payments made to illicit services, including darknet markets, ransomware actors, malware, scams, fraud shops, and child abuse material. These payments reached $2.8 billion in the first six months of 2023, a decrease of 65% compared to the same period last year.
However, it is important to note that these figures exclude transactions related to entities under global sanctions. Chainalysis previously reported that transactions associated with sanctioned entities accounted for 44% of the record-breaking $20.1 billion worth of crypto crime in 2022.
The report also highlights a surprising decline in revenue from scams despite the common belief that rising prices make people more susceptible to scams. Experts suggest that this deviation may be due to the absence of “market exuberance” and “FOMO” (fear of missing out). Nevertheless, there has been an increase in the number of individuals falling victim to impersonation scams, where fraudsters pose as law enforcement officers or authoritative figures to extort money.
Ransomware attacks saw a significant spike in crypto payments, totalling $449.1 million in the first half of 2023. This marks an increase of $175.8 million compared to the same period last year. Chainalysis analysts warn that if this trend continues, it could lead to the second-highest year on record for ransomware attackers.
Chainalysis suggests that large, deep-pocketed organizations have become targets for ransomware attacks once again, a phenomenon coined as “big game hunting.” Simultaneously, smaller successful attacks have also witnessed growth.
It is worth noting that Chainalysis’s figures may not fully reflect the extent of crypto’s involvement in criminal activities, as they exclude instances where cryptocurrencies are proceeds from non-crypto-related crimes, such as drug trafficking.
(Reporting by Elizabeth Howcroft; Editing by Sinead Cruise and Mark Potter)
Credit: The Star : Tech Feed
