Ransomware attacks have been on the rise in the US since late 2020, but they are especially booming in 2021. This year, hackers have hit several US companies in large-scale hacks. One such attack on the Colonial Pipeline resulted in a temporary fuel shortage on the East Coast of the United States. The hackers also targeted an Iowa-based agricultural company, raising fears of disruption to grain harvesting in the Midwest. Schools, insurance companies and police departments also suffered from these attacks.
Related reading | Questions remain as the FBI recovers colonial ransom pipeline crypto funds
In response, the US Treasury’s Financial Crimes Enforcement Network (FinCEN), which is tasked with protecting the financial system from illicit use, released a financial trends analysis. FinCEN published the report on Friday, October 15, 2021.
The report analyzed the significant growth in ransom payments in the first six months of 2021 and the relative difference from last year.
Ransomware attacks in the United States
US Treasury Secretary Janet L. Yellen recently noted that “ransomware and cyber-attacks are falling victim to businesses large and small across America and pose a direct threat to our economy.” According to the report, FinCEN’s analysis of suspicious activity reports (SARs) submitted during the first half of 2021 indicates that they represent a growing threat to the United States.
Between January 1 and June 30, 2021, 635 Saudi riyals were deposited and 458 deals were reported. This was 30% higher than the total of 487 SAR made for the whole of 2020. The total value of suspected ransomware payments during the first half of 2021 was $590 million, which is more than the $416 million reported for the whole of 2020.
Source: FinCEN Financial Trend Analysis
The US Treasury said the average amount of ransom transactions reported per month in 2021 was $102.3 million. FinCEN has identified Bitcoin (BTC) as the most popular payment method for reported transactions. Approximately $5.2 billion in outgoing BTC payments have been linked to the 10 largest variables over the past three years. You notice that the USD numbers mentioned in this analysis are based on the value of BTC when the transactions occurred.
BTC trading at over $60.7K | Source: BTCUSD on TradingView.com
If trends continue, hackers could reap more ransomware this year than they did in the previous 10 years combined.
US government response
The US government is cracking down on hacker attacks. The Biden administration has made the government’s response to cybersecurity a top priority following a series of attacks this year that threatened America’s energy and food supplies.
Earlier this month, the Department of Justice announced the launch of a National Cryptocurrency Executive Team to pursue exchanges that accelerate crime-related transactions, such as ransomware demands.
Related reading | US Recovers Millions Paid in Bitcoin for Ransom Pipeline
In September, the Wall Street Journal reported that the Biden administration was “preparing a range of measures, including sanctions, to make it more difficult for hackers to use digital currency.”
Also last month, the Treasury Department’s Office of Foreign Assets Control sanctioned crypto exchange SUEX OTC, SRO (SUEX) for facilitating financial transactions for ransomware representatives. This action was the first such move against virtual currency exchange due to ransomware activity.
Concurrent with the release of the report, the Treasury Department issued virtual currency guidance. The directive stated that “the virtual currency industry, including technology companies, exchanges, managers, miners, wallet providers, and users, plays a critical role in preventing sanctioned persons from exploiting virtual currencies to evade sanctions and undermine US foreign policy and national security concerns.”
Featured image by Bitcoin News, Chart from TradingView.com
