The Shadow Economy Fueling Ransomware Is Bigger Than You Think

07 Aug The Shadow Economy Fueling Ransomware Is Bigger Than You Think

This week in cybersecurity from the editors at Cybercrime Magazine

Sausalito, Calif. – Aug. 7, 2025

– Read the full story in Gadget Review

Behind every ransomware attack lurking in your news feed lies an uncomfortable truth: the victims are bankrolling their own tormentors, writes Al Landes in a Gadget Review article. Like a digital protection racket that would make Tony Soprano blush, this shadow economy thrives on corporate shame and regulatory fear.

For every disclosed ransomware attack making headlines, five more companies keep it secret, quietly wire cryptocurrency payments to cybercriminals, hoping nobody notices. This isn’t just corporate cowardice—it’s the financial engine powering ransomware, which costs victims $57 billion annually, according to a Cybersecurity Ventures report, and directly threatens every device you own.

Some analysts believe that for every disclosed ransomware attack, up to five more are kept secret, with payments made quietly to avoid market panic or regulatory scrutiny.

Companies justify their silence with boardroom logic: why trigger regulatory investigations or stock price drops when you can quietly resolve the problem? The average ransom demand hits $5.2 million, but actual payments average $1 million—a “discount” that feels reasonable until you realize it’s funding tomorrow’s attacks.

Read the Full Story

Cybercrime Magazine is Page ONE for Cybersecurity. Go to any of our sections to read the latest:

• SCAM. The latest schemes, frauds, and social engineering attacks being launched on consumers globally.

• NEWS. Breaking coverage on cyberattacks and data breaches, and the most recent privacy and security stories.

• HACK. Another organization gets hacked every day. We tell you who, what, where, when, and why.

• VC. Cybersecurity venture capital deal flow with the latest investment activity from various sources around the world.

• M&A. Cybersecurity mergers and acquisitions including big tech, pure cyber, product vendors and professional services.

• BLOG. What’s happening at Cybercrime Magazine. Plus the stories that don’t make headlines (but maybe they should).

• PRESS. Cybersecurity industry news and press releases in real time from the editors at Business Wire.

• PODCAST. New episodes daily on the Cybercrime Magazine Podcast feature victims, law enforcement, vendors, and cybersecurity experts.

• RADIO. Tune into WCYB Digital Radio at Cybercrime.Radio, the first and only round-the-clock internet radio station devoted to cybersecurity.

Contact us to send story tips, feedback and suggestions, and for sponsorship opportunities and custom media productions.