US banks processed over $1 billion in ransomware payments last year
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US banks processed nearly $1.2 billion worth of ransomware (opens in new tab) payments last year, a new report has claimed.
The Financial Crimes Enforcement Network (FinCEN) used data from the ransomware-related Bank Secrecy Act (BSA) filings in 2021 and found that such incidents have increased “significantly” year over year, with about 75% of reported incidents occurring. in the second half of 2021.
Russian actors are responsible for most of these incidents, the report added.
Ransomware on the rise
Last year, FinCEN received a total of 1,489 ransomware-related requests, together worth nearly $1.2 billion, an increase of 188% compared to the previous year. In 2020, the organization claims, FinCEN applications totaled $416 million. This doesn’t necessarily mean that ransomware attacks have increased in volume — it could also mean that reporting on these incidents has improved, the report claims.
The report also noted that the values of these incidents did not differ significantly from month to month in 2021, with the median incident amount for these transactions being $135,000, up slightly from $102,273 for the first half of the year.
“Today’s report reminds us that ransomware – including attacks by Russian-affiliated actors – remains a serious threat to our national and economic security,” said FinCEN Acting Director Himamauli Das. “It also underscores the importance of BSA submissions, allowing us to uncover trends and patterns to support government-wide efforts to prevent and combat ransomware attacks.
Usually, ransomware operators would demand payment in bitcoin, monero or other cryptocurrencies, not fiat. The transactions are faster and cannot be stopped by an intermediary (unless they are sent to a third party such as a cryptocurrency exchange). Coin mixing services like Tornado Cash (whose developer was arrested earlier this year) allow hackers to launder the stolen cryptos.
Researchers have found that state-sponsored actors in Russia and North Korea are using ransomware to fund various state operations.