Ransomware is often cited as a reason that “Bitcoin is used by cybercriminals”. It is true that Bitcoin is the preferred method of payment for ransomware criminals. However, it is also important to understand that
- Ransomware represents a small portion, approx 0.33%, of overall cybercrime
- According to the US Treasury’s 2024 National Money Laundering Risk Assessment Report, fiat is by far the preferred vehicle for cyber-criminals
Key stats
Estimated total losses due to cybercrime by 2025: 10.5 Trillion (source: Cybercrime Magazine)
Estimated total losses due to cybercrime today: $6 Trillion (Source: Cybercrime Magazine, 2021 figure)
Percentage of total cybercrime that is ransomware: 0.33 %
Losses due to ransomware: $20 Billion. Source: Cybercrime Magazine. (0.33% of all annual cybercrime)
Note: Chainalysis puts the direct cost at just over 1Billion. However for an apples-for-apples comparison for other types of cybercrime we use the total estimated damages figure (including downtime, loss of business continuity). Estimates range, but $20Billion is a commonly quoted number
So in summary, there is a small subcategory of cybercrime where criminals prefer Bitcoin. For the other 99.67% of cybercrime: criminals prefer fiat.
Breakdown of all categories of Cybercrime
1. Data Breaches
- Description: Unauthorized access to confidential or sensitive information, often involving theft of personal, financial, or corporate data.
- Estimated Loss: $3.5 trillion
2. Financial Cybercrime
- Description: Criminal activities involving the theft of financial assets through fraudulent transactions, scams, and deceptive practices.
- Estimated Loss: $2 trillion
3. Hacking
- Description: Unauthorized access to systems and networks, often leading to data theft, system disruptions and other forms of cyber attack.
4. Malware
- Description: Malicious software designed to damage or disrupt systems, steal data, or perform other harmful activities.
5. Online Harassment and Cyberstalking
- Description: Using digital platforms to harass or stalk individuals, often resulting in personal and emotional harm.
- Estimated Loss: €49.0 billion to €89.3 billion (approximately $53 billion to $98 billion)
- Source: EU Parliament Study 2021
6. Identity Theft
- Description: Theft and misuse of personal information to commit fraud. This includes account takeovers and fraudulent transactions.
- Estimated Loss: $56 billion (U.S. alone; global figures are higher)
- Source: Javelin Strategy & Research 2020
7. Cyber Espionage
- Description: Theft of sensitive or classified information such as IP theft, trade secret theft
- Estimated Loss: not yet quantified, although initial estimates suggest in the $10-30billion range.
8. Ransomware
- Description: Cybercriminals encrypt data or lock users out of their systems, demanding ransom payments to restore access.
- Estimated Loss: $20 billion
- Source: Cybercrime Magazine
9. Cyberterrorism
- Description: Cyber attacks aimed at causing physical damage or major disruption to critical infrastructure and public services.
10. Dark Web and Illegal Marketplaces
- Description: Buying and selling illegal goods and services such as drugs, weapons, and stolen data.
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