Cryptocurrency crime saw a significant decline in the first half of 2023 compared to the same period in 2022, according to the latest report from Chainalysis. The firm’s Crypto Crime Midyear Update revealed that flows to known criminal entities were down by 65%, with transaction volumes to risky entities decreasing by 42% year-on-year. However, ransomware attacks are on track to have one of their biggest years to date.
The decrease in cryptocurrency-based scams played a significant role in the overall decline in criminal activity. Crypto scammers made $3.3 billion less year-on-year, totaling just over $1 billion in the first half of 2023. This drop occurred despite the increasing prices of cryptocurrencies and can be attributed to the disappearance of two major scam campaigns: VidiLook and Chia Tai Tianqing Pharmaceutical Financial Management, which both executed classic exit scams.
On the other hand, ransomware attacks have seen a worrying increase in 2023. Attackers have extorted $176 million more than in the same period in 2022, indicating a reversal of the downward trend observed in the previous year. If this pace continues, ransomware attackers are projected to extort $899 million from victims in 2023, making it the second-largest year in terms of ransomware profits.
The report highlighted a resurgence in big-game hunting and a rise in successful smaller attacks as key factors contributing to the rise in ransomware profits. Despite the overall decrease in cryptocurrency flows to criminal entities, ransomware remains a significant threat to individuals and organizations, emphasizing the need for enhanced cybersecurity measures.
With the evolving landscape of cryptocurrency crime, it is essential for individuals and businesses to stay vigilant and implement robust security protocols to protect against ransomware attacks and other forms of cybercrime. By staying informed and proactive, stakeholders can mitigate the risks associated with the growing threat of ransomware and safeguard their digital assets.