A Look at Chainalysis Crypto Incident Response Service

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Yesterday, blockchain and transaction analytics provider Chainalysis launched its Crypto Incident Response tool, a new service designed to help businesses that have been targeted by threat actors who have demanded ransom in cryptocurrencies.

In the event of a breach or ransomware attack where cryptocurrency funds are demanded or stolen, the victim organization can contact Chainanalysis’s team of advisors and data scientists via a 24/7 hotline. days of the week, who will then track the funds and tag them for recovery.

This relatively new approach of combining cryptocurrency protection with incident response provides businesses with a tool they can use to try to recover lost or stolen funds.

Why are crypto incident response services emerging now?

The release of the crypto incident response solution comes as the number of ransoms paid by companies continues to rise.

Research shows that in 2021 alone, payments linked to ransomware attacks totaled $590 million, compared to $416 million in 2020.

One of the main reasons for the high level of payouts is the evolution of the ransomware-as-a-service (RaaS) industry and the ability of attackers to identify, encrypt, and exfiltrate critical data assets to make the most of their victims. .

Victims of these cyberattacks not only have to worry about the tremendous cost of a ransomware attack, which can cause initial disruption, but they also have to worry about advanced techniques and what can happen next when attackers threaten filter data that they have publicly accessed. .

The growing threat landscape has contributed to the average cost of a ransomware breach totaling around $4.62 million in 2021.

How Crypto Incident Response Services Can Help Protect Businesses

While many anti-ransomware solutions exist, crypto incident response services are unique in that they can provide support to businesses that have been “checkmated” into paying a ransom demand by a threat actor.

“After an incident such as a hacking attack, ransomware attack, code exploit, or flash loan attack occurs and cryptocurrency funds are demanded or stolen, the victim can contact the incident response hotline 24/7 Chainalysis crypto assets,” said Erin Plante, Senior Director. research and special programs in Chainalysis. “Chainalysis will then assign a dedicated team of experts who will leverage advanced investigative capabilities to work 24/7 and side by side with the victim organization. If needed, the Chainalysis team can help communicate with law enforcement and asset recovery attorneys.”

By offering this service, Chainalysis aims to provide a way for organizations to respond immediately. This allows business teams, if they are ever forced to pay a ransom, to begin tracking funds immediately, with support and the potential to recover some of the funds.

Calling in an incident response team to track down stolen funds gives organizations another tool they can use to de-leverage an attack in the early stages of a ransomware attack or to run damage control and try to track down their funds. after a rescue has been performed. been paid

The Crypto Incident Response Market

The launch of this service comes as the incident response market continues to grow, with researchers valuing the market at $3.48 billion in 2020. It is projected to reach $10.13 billion by 2026 as more organizations seek support. to detect and respond to security incidents. .

It is important to note that Chainalysis is not the first provider to offer an incident response service tailored to cryptocurrency theft, but the market as a whole is still in its infancy.

One of the organization’s most comparable competitors is blockchain investigation agency CipherBlade, which offers incident investigation and response services that can monitor crypto movements in real time to help seize and recover stolen funds of more than $100,000. .

CipherBlade’s crypto incident response service reportedly helped Ian Balina, an influential blockchain and cryptocurrency investor, recover his funds after $2 million worth of crypto was stolen by attackers. The organization also works with cryptocurrency exchanges and wallet providers including Bittrex, Bitbuy, Coinomi, EtherDelta, Changelly, ShapeShift, Shakepay, and My Crypto.

While there are other similar less defined incident response services dabbling in crypto recovery services, Chainalysis and CipherBlade stand out as two of the most comprehensive in terms of asset recovery.

Though, Plante argues that Chainalysis’s data pedigree is what sets it apart from competitors, leveraging more than seven years of historical blockchain data to maximize the chance of being able to trace stolen funds.

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