Increased law enforcement actions, improved international collaboration, and a growing refusal by victims to pay extortion demands has led a drop in ransomware payments by around a third.
Total volume of ransom payments dropped from $1.25 billion in 2023 to $811million last year, according to a recent study by blockchain data analytics firm Chainalysis.
In response to a tougher operating environment, attackers have shifted tactics by becoming more agile.
For example, new ransomware strains have emerging from rebranded, leaked, or purchased code. Meanwhile ransomware operations have become faster paced, with negotiations often beginning just hours instead of days after data exfiltration.
Anatomy of a ransomware attack
Ransomware attackers tend typically to gain initial access into victim networks with the aid of a vulnerability, but access can also come via stolen network credentials. After breaching the network, attackers try to increase their privileges and gain access to parts of the network that store sensitive data.
This sensitive data is routinely extracted before the ransomware payload is triggered. The whole process can take anywhere from two weeks to six months.
Ransomware threat actors are increasing the impact of their thefts to ensure payment by leveraging the threat of ‘public exposure’ via leak sites in order to blackmail victims — a widely used tactic commonly known as double extortion.
Leaked communications logs from notorious ransomware gang Black Basta shed detailed light on how one group gains access to its victims, including specific vulnerabilities and common misconfigurations the group targeted.
One major evolution in how ransomware attacks play out: The vast majority (94%) of ransomware attacks involved data exfiltration, making encryption-only attacks nearly obsolete, according to a study by specialist data exfiltration prevention vendor BlackFrog.
Moreover, an alarming 48 new ransomware groups emerged last year — a 65% year-on-year increase and the fastest surge in new ransomware groups to date, according to BlackFrog. LockBit and RansomHub dominated ransomware variants.
“Of the top thirteen ransomware groups of 2024, only one emerged last year — RansomHub,” according to Dov Lerner, staff security researcher at cyber risk management firm Bitsight. “This makes sense; existing groups are well-oiled operations of managers, coders, operators, and affiliates, while new groups need to build capabilities and scale.”
Lerner added: “The new ransomware groups appear to be ‘more of the same.’ There is no significant difference between the new and incumbent groups in either victim location or sector.”
Ransomware-as-a-service (RaaS) is booming as offers for new partners to join RaaS programs surged by 44%, according to the annual High-Tech Crimes Report from threat intel firm Group-IB.
Healthcare, government, and education were the hardest-hit sectors. These industries accounted for 47% of publicly disclosed attacks, according to BlackFrog.
Cybersecurity testing and reviews site Comparitech logged 288.8 million records breached across 1,317 ransomware incidents — a significant increase on the 265.6 million noted across 1,497 attacks in 2023. Group-IB reports that a much higher total of 5,066 ransomware incidents resulted in data leaks during 2024.
Runners and riders on the rise
Smaller, more agile ransomware groups like Lynx (INC rebrand), RansomHub (a LockBit sub-group), and Akira filled the void after major takedowns, collectively accounting for 54% of observed attacks, according to a study by managed detection and response firm Huntress.
RansomHub RaaS has quickly risen in prominence by absorbing displaced operators from LockBit and BlackCat.
The rise of double extortion tactics, with data exfiltration now a common occurrence in ransomware incidents, are creating additional pressure on victims to pay even if backups are available.
Ransomware cases handled by cybersecurity services firm NCC Group more than doubled last year.
The infamous threat group LockBit was the top threat of 2024, accounting for 10% (526) of all attacks despite a slowdown following a takedown operation early last year. RansomHub became the dominant threat actor in the second half of 2024, racking up 501 attacks during last year as a whole, according to NCC’s latest annual report.
These trends continued into the new year with NCC’s ransomware cases in January up by 3% from December, with 590 attacks. Akira was the most active ransomware group in January, responsible for 74 attacks. Almost three quarters of total ransomware cases handled by NCC targeted North America and Europe.
“There are a range of factors contributing to this high volume of attacks, including a turbulent global geopolitical landscape, the introduction of new threat groups and changes in their methods of attack,” said Matt Hull, head of threat intelligence at NCC Group. “The rise of new ransomware groups, like Funksec, and cybercriminal tools, such as infostealer malware, is also making it much easier for cyber attackers to conduct attacks that are causing mass disruption.”
Ransomware whack-a-mole
David Sancho, senior antivirus researcher at cybersecurity software vendor Trend Micro, told CSO that although the ransomware landscape is dynamic a small subset of threat actors tend to make the most impact.
“At any given moment, there’s typically four to five main groups and a long tail of lesser-known groups with much smaller footprints,” Sancho explained. “When some of these groups become too big, they tend to become the target of law enforcement action and they either fall soon after, they rebrand, disband entirely, or somehow reform into different entities.”
LockBit (despite a law enforcement-led takedown operation in February 2024), Clop, and BlackCat/ALPHV are currently among the most active ransomware groups.
“Law enforcement takedowns have disrupted major groups like LockBit but newly formed groups quickly emerge akin to a good old-fashioned game of whack-a-mole,” said Jake Moore, global cybersecurity advisor at ESET. “Double and triple extortion, including data leaks and DDoS threats, are now extremely common, and ransomware-as-a-service models make attacks even easier to launch, even by inexperienced criminals.”
Moore added: “Law enforcement agencies have struggled over the years to take control of this growing situation as it is costly and resource heavy to even attempt to take down a major criminal network.”
When bad actors are taken down and their servers seized, they often reappear as new gangs.
“RansomHub has emerged as a dominant player in this space by recruiting former operators from LockBit and ALPHV, both of which were impacted by law enforcement efforts,” said Jim McGann, VP of strategic partnerships at AI-powered analytics firm Index Engines.
Countermeasures
Meanwhile, enterprises are taking proactive measures to defend against ransomware attacks. These include implementing zero trust architectures, enhancing endpoint detection and response (EDR) solutions, and conducting regular exercises to improve incident response readiness.
Anna Chung, principal researcher at Palo Alto Networks’ Unit 42, told CSO that advanced tools such as next-gen firewalls, immutable backups, and cloud redundancies, while keeping systems regularly patched, can help defend against cyberattacks. Greater use of gen AI technologies by attackers is likely to bring further challenges, Chung warned.
“In 2025, adversaries will look to leverage gen AI capabilities like threat actor-trained LLMs to enhance RaaS for conducting more advanced attacks,” Chung said. “There’s even the possibility of chatbots being utilized by threat actors to more quickly and easily negotiate ransom demands.”
Cheung concluded: “To stay a step ahead, it is necessary that businesses integrate AI for threat detection and automated responses to preempt attacks.”
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