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The Hidden Costs of Cybercrime

Arete Analysis

By Kevin Baker, Director of Cyber Strategy and Defense

This year, the global cost of cybercrime is expected to hit $6 trillion.[i] Up from $3 trillion in 2015, it’s nothing short of a big, flourishing business whose operators are relentless innovators.

Since COVID, the FBI recorded a 300% increase in cybercrime[ii], with pandemic-related scams baiting people to click on malicious links or attachments. Even ransomware attacks have recently soared — in fact, one is said to be occurring every 11 seconds.[iii] And why not? It’s a lucrative business model!

In the past, kidnappers were always caught at the money-transfer point. But digital currency changed all that, facilitating anonymous handoffs. With Bitcoin, for example, organizations can no longer trace ransoms back to individuals and threat actors can sit in Russia, Eastern Europe, China, Brazil, the United States, often where they may be protected from extradition.

The Evolution of Ransomeware

Ransomware began as a game of keep away. The bad guys didn’t have to steal anything; they simply denied companies or individuals access to their data. This tactic worked well until companies caught on and started to move their backups offline, so they could restore their critical systems without having to pay the ransom.

Like legitimate businesses, cybercriminals looked to pivot, innovate, and find new revenue streams. When encryption alone began to fail, they concocted the double extortion scheme, whereby they opted to encrypt and exfiltrate data. First, they demanded payment for decrypting the stolen data. Next, they asked for a second payment to prevent its public release.

Depending on the sensitivity of the data stolen, companies had to weigh the potential reputational damage related to its exposure along with the broken client trust of not protecting it in the first place.

A Case Study in Costs

In a 2019 Radware survey[i], 43% of participants said they’d experienced negative customer trust and reputational loss because of a successful cyberattack.

Let’s examine the SolarWinds attack. Dubbed the Pearl Harbor of American IT, the SolarWinds hack impacted 18,000 government and private networks. That’s a lot of customers to have mad at you.

SolarWinds had been a reputable, long-time provider of IT monitoring services. But immediately after the hack, its stock price tanked, presumably due to the potential for reputational damage, material loss of customers, a slowdown in business performance, and high remediation and legal costs.

It’s easy to think that only big companies are targets — Microsoft was also recently hacked — but cybercriminals are often emboldened by such successful hacks. While advanced persistent threat actors may not hit smaller targets themselves, they have no qualms about selling their proven exploit methods to other players in the threat actor marketplace. Often, the smaller, less sophisticated players are willing to take smaller pay days.

Thus, no matter an organization’s size and scope of activities, it will be targeted, baited, and attacked.

So, Let's Count the Costs

The direct cost of exploitation includes remediation, repair, restoration of data and IT infrastructure, ransom payment, and legal counsel to help navigate through these complex problems. And if a breach notification to customers is required, those costs can quickly skyrocket, especially depending on how much personally identifiable information (PII) may have been lost.

Not to be forgotten is the cost of business downtime. While production ceases, organizations must continue to pay salaries, rent, the electric bill, the telephone bill, all the normal operating expenses. None of these go away while organizations are trying to restore operations.

Next, there are the indirect costs of reputation damage and lost customer trust, which impacts the ability to gain future customers. There’s also the potential for litigation defense costs should customers decide to sue for what they believe was a failure to protect information that a company had pledged to protect. On top of all that, multiple state attorneys general, the Federal Trade Commission, the Security Exchange Commission, and other regulators may fine the “hacked” company.

And lastly, insurance rates go up. It’s a bit different than with car insurance. For cyber carriers, there’s less actuarial science available and thus, increases go up faster than they would in any other form of insurance right now.

In a worst-case scenario, if the sum proves too high, a company could confront the greatest cost of all: going out of business.

[i] Radware Report Shows That Respondents Claim Average Cost of Cyberattack Now Exceeds $1 Million

[i] Cybercrime to Cost the World $10.5 Trillion Annually By 2025 (cybersecurityventures.com)

[ii] COVID-19 News: FBI Reports 300% Increase in Reported Cybercrimes – IMC Grupo

[iii] Ransomware Attacks Predicted to Occur Every 11 Seconds in 2021 with a Cost of $20 Billion | Robinson+Cole Data Privacy + Security Insider – JDSupra

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Article

Europol Disrupts AudiA6 Crypto Laundering Service

European authorities have dismantled AudiA6, a major cryptocurrency laundering service linked to ransomware groups and broader cybercriminal networks. Between 2022 and 2025, the platform is believed to have processed over €336 million in illicit funds, enabling threat actors to obscure financial trails and monetize cybercrime proceeds. Its operators are also suspected of running Dark2Web, a dark web forum that facilitated collaboration, services, and connections among cybercriminals globally. This development underscores the expanding role of sophisticated, large-scale cryptocurrency laundering services in sustaining the cybercrime economy, enabling threat actors to obscure illicit funds and evade regulatory controls.

What’s Notable and Unique 

  • Following law enforcement disruption of Cryptex and Garantex, AudiA6 emerged as another platform involved in financial activities linked to ransomware groups. Investigators believe that AudiA6 became a central hub for cybercriminals seeking to launder stolen digital assets while obscuring the transaction trail from authorities.

  • On June 10, 2026, a coordinated operation resulted in two arrests in Georgia, the dismantling of key infrastructure (30+ servers, 25 domains), the freezing or seizure of over €778,000 in crypto, and the takedown of the AudiA6 and Dark2Web platforms. 

Analyst Comments

Ransomware groups and cybercriminal networks are increasingly leveraging sophisticated techniques, including chain-hopping, decentralized exchanges, and mixer-as-a-service platforms, to rapidly move illicit cryptocurrency across multiple blockchains, effectively obscuring transaction trails. Concurrently, the widespread use of fraudulent exchange accounts, mule wallets, and privacy-enhancing tools has elevated cryptocurrency laundering to a core enabler of the cybercrime ecosystem, allowing actors to bypass anti-money-laundering controls at scale. This investigation identified over 6,000 KYC records linked to money-mule accounts, many of which were tied to Russian-speaking intermediaries specifically recruited to facilitate the movement of illicit proceeds. These threat actors systematically used both commercial and domain-controlled email services to establish mule accounts across multiple cryptocurrency platforms. Collectively, these findings underscore the growing scale, coordination, and professionalization of cryptocurrency-enabled crime, highlighting the critical need for sustained, intelligence-led, and internationally coordinated efforts to disrupt these evolving financial ecosystems.

Sources

  • Ransomware gangs cut off from EUR 336 million ‘AudiA6’ crypto laundering pipeline

Article

Threat Actors Leverage AI for EDR Evasion

A threat actor has developed and deployed a ransomware attack toolkit enhanced with AI-assisted development workflows, enabling automated Active Directory (AD) discovery and improved EDR evasion capabilities. The toolkit leverages agent-based AI systems, such as Claude’s Opus and Cursor agents, for iterative malware development, testing, and refinement. 

What’s Notable and Unique 

  • Researchers have highlighted that this toolkit can not only generate ransomware code but also bypass sophisticated security defenses and identify AD networks for malware distribution. 

  • The framework incorporates multiple capabilities, including automated AD discovery and reconnaissance mechanisms, iterative EDR testing environments to refine evasion techniques, and a command-and-control (C2) infrastructure that leverages Telegram APIs and Cloudflare redirectors for stealth. 

  • Additionally, some agents were tasked with checking security research and technical posts for various bypass techniques. The agents recognized what was required for reproduction, extracted the techniques, mapped them to the MITRE ATT&CK knowledge base of adversary behaviors, set up a test lab, carried out the methodology, and reported the results. 

  • After a few repetitions, the modules seemed to avoid nearly all EDR solutions, despite the agent’s initial suggestion of a high failure rate. Although researchers found no evidence that AI was embedded in deployed malware or was operating independently in victim environments, the technology was still used to accelerate the iterative process of developing, testing, and refining payloads against security products, shortening the period between the publication of offensive security research and its practical implementation by threat actors. 

Analyst Comments 

AI-driven tools like this could accelerate the pace and sophistication of ransomware attacks, enabling even relatively inexperienced actors to launch high-impact campaigns. This development underscores the urgent need for security solutions to adapt to AI-assisted threats. Organizations must respond by strengthening detection engineering, improving visibility across environments, and maintaining robust security fundamentals.  

Sources 

  • AI-built ransomware toolkit automates EDR evasion, AD discovery  

  • Pointing a Cursor at evading detection

Article

Arete's 2026 Q1 Crimeware Report

Harness Arete’s unique data and expertise on extortion and ransomware to inform your response to the evolving threat landscape.

Article

CMS Vulnerability Leads to ClickFix Campaign

Threat actors compromised at least 700 education and technology websites in a recent ClickFix campaign by exploiting a critical SQL injection flaw (CVE-2026-26980) in the Ghost content management system (CMS). Adversaries combined the vulnerability with the ClickFix social engineering tactic to steal admin keys and inject a malicious JavaScript that delivers a fake Cloudflare or CAPTCHA verification pop-up, tricking victims into copying and pasting a malicious command into their systems.

What’s Notable and Unique

  • Rather than targeting the end user first, this campaign is unique in its initial exploitation of the system, followed by social engineering attempts. This hybrid attack style is likely being leveraged to bypass traditional defenses.

  • This recent campaign also highlights how trusted web properties can be weaponized at scale and coupled with unpatched CMS vulnerabilities. Rather than using the CMS compromise to perpetrate a single attack, threat actors turned it into a supply-chain attack that ultimately affected over 700 trusted websites.

Analyst Comments

As network defenders and their tools enhance threat detection capabilities, adversaries increasingly seek methods to bypass these defenses. By combining vulnerability exploitation, social engineering techniques, and staging for ancillary attacks, this campaign successfully bypassed traditional defenses and inflicted significant impact. Defending against hybrid cyberattacks requires comprehensive security controls beyond simply patching vulnerabilities. Organizations should focus on limiting movement within the environment, detecting abuse of trusted applications, and preventing end-user manipulation.

Sources

  • 700+ education and tech websites hijacked in huge ClickFix malware campaign

  • Under the engineering hood: Why Malwarebytes chose WordPress as its CMS

  • Think before you Click(Fix): Analyzing the ClickFix social engineering technique

  • Ghost CMS Vulnerability Exploited to Infect 700 Sites With ClickFix Malware