Why Ransomware Gangs Are Profiting Immensely?

2023 proved to be a highly lucrative year for ransomware gangs, driven by an escalation in threats and tactics.

For many organizations and startups, 2023 was a rough year financially, with companies struggling to raise money and others making cuts to survive. Ransomware and extortion gangs, on the other hand, had a record-breaking year in earnings, if recent reports are anything to go by.

It’s hardly surprising when you look at the state of the ransomware landscape. Last year saw hackers continue to evolve their tactics to become scrappier and more extreme in efforts to pressure victims into paying their increasingly exorbitant ransom demands. This escalation in tactics, along with the fact that governments have stopped short of banning ransom payments, led to 2023 becoming the most lucrative year yet for ransomware gangs.

The billion-dollar cybercrime business

According to new data from crypto forensics startup Chainalysis, known ransomware payments nearly doubled in 2023, surpassing the $1 billion mark and marking the year as a “major comeback for ransomware.”

This figure represents the highest amount ever observed and is nearly double the known ransom payments tracked in 2022. However, Chainalysis noted that the actual figure is likely significantly higher than the $1.1 billion in ransom payments it has documented so far.

Despite the record-breaking numbers, there is a glimmer of good news. Toward the end of 2023, other cybersecurity observers noted a decline in ransom payments. This reduction is attributed to enhanced cyber defenses and resilience among targeted organizations, as well as a growing skepticism among victims regarding hackers’ promises to delete stolen data.

As ransomware remediation company Coveware stated, “This has led to better guidance to victims and fewer payments for intangible assurances.”