Ransomware Payments Drop 35% as AI Tool Usage Surges; New Charter Acquires Orchestrate AI Labs

[00:00:02] It's Tuesday, February 11th, 2025 and I'm Dave Soltz. Four things to know today. The good news? Ransomware Payments are down. The bad news? Tax are up. Banning AI isn't the answer. Managing AI usage is. We talk about why. An AI can boost productivity, but two must trust in it? Well that's the problem. And the big move, new charter technologies bets on automation with Orchestrate AI Labs deal.

[00:00:29] This is the Business of Tech. I covered a lot of market data yesterday and there's a significant bit of security data to look at today. Ransomware Payments have experienced a significant decline with victims paying around $814 million in cryptocurrency last year, reflecting a 35% drop from the record-setting $1.25 billion in 2023, according to new data from Chainalysis.

[00:00:58] The second half of 2024 saw an even sharper slowdown as ransomware payments decreased after July. This decline is due to law enforcement's disruption of several notable ransomware gangs, including Lockbit and Black Cat. Moreover, many victims are increasingly refusing to pay, likely due to improved data backups and enhanced cybersecurity practices.

[00:01:22] Despite the reduction in payments, the number of reported ransomware incidents on dark web leak sites has reached an all-time high, indicating that while attackers are targeting more victims, fewer are complying with ransom demands. And in 2024, hackers became more efficient and sophisticated, targeting businesses of all sizes, according to the Huntress 2025 Cyber Threat Report.

[00:01:46] The report reveals that the gap in attack sophistication between large and small businesses has nearly disappeared, with advanced evasion techniques becoming common. Ransomware groups, including Lynx and Akira are employing high payout strategies to drive a significant increase in attacks, with incidents from these groups rising by nearly 16% compared to the previous year.

[00:02:11] Notably, the education, healthcare, and technology sectors were the primary targets, with education accounting for 21% of all attacks. The report highlights that automated tools played a role in 87% of attacks. The adoption rate of the domain-based message authentication reporting and conformance standard, known as DMARC, has doubled following mandates from Google and Yahoo for both email senders to implement it.

[00:02:38] The change began in February of 2024, resulting in approximately 2.3 million domains now utilizing DMARC, though around 87% of domains still lack a record. The latest payment card industry data security standard has made DMARC mandatory for organizations handling credit card information, underscoring the growing regulatory push for enhanced email security.

[00:03:02] And a new report from KnowBefore reveals that the average cost of a data breach surged to nearly $5 million in 2024. Significant increases in claim severity were noted in regions such as the U.S., the Middle East, and in Europe. Why do we care? A 35% decline in ransomware payments suggests that global law enforcement actions against groups like Lockbit and Blackcat are having an impact.

[00:03:28] However, the rise in reported incidents on leaked sites shows that attackers are still active, just not always being paid. I need to say this. DMARC isn't working. 87% of domains still lack implementation. Shouting about it isn't moving the needle. It's obvious that cybersecurity is in need.

[00:03:48] The key is finding the appropriate balance for customers to stay just far enough ahead that most criminals move on and have strong data backup strategies, rapid incident response, and robust employee training. Are you and your clients tired of the time-consuming ticket tennis of coordinating meetings and help desk calls?

[00:04:10] Wouldn't it be better to automate this process with a tool that connects directly to ConnectWise Manage or Autotask? TimeZest offers scheduling automation that gives you complete control of your schedule and eliminates the hassle of Calendar Paintball. As the only service designed specifically for MSPs, it integrates into your workflow and makes scheduling appointments easy on you and your clients.

[00:04:38] Plus, you can try TimeZest for free. Visit TimeZest.com slash MSPRadio and use the code MSPRadio to get 10% off your first year of TimeZest. A report from cybersecurity firm Prompt Security reveals that companies typically have 67 generative AI tools operating without proper licensing, with 90% lacking approval.

[00:05:07] This issue has been exacerbated by the rise of the Chinese-based AI tool DeepSeq, which has raised significant data privacy concerns, prompting bans from the Pentagon and U.S. Navy due to potential security risks. The report highlights the need for businesses to manage AI tool usage rather than impose outright bans, as many organizations are investing in strategies to prevent data leaks and control inputs. Why do we care?

[00:05:33] The average organization running 67 AI tools means businesses have little visibility into how sensitive data is being processed, stored, or shared. This isn't just an IT governance issue, it's a major security and compliance risk. Without clear policies, employees will continue using unauthorized AI applications to enhance their productivity, potentially exposing proprietary or regulated data. IT teams should identify and evaluate all AI tools utilized within their organization.

[00:06:04] Completely prohibiting AI tools may lead employees to access them through personal devices or VPNs, just increasing security risks. A more effective approach is governance, which entails establishing approved AI usage policies and monitoring for unauthorized access. A recent study by Anthropic has revealed that today's AI users primarily view the technology as a collaborator rather than an independent assistant.

[00:06:31] The study, known as the Anthropic Economic Index, analyzed anonymized data to track AI adoption across various industries. It found that 57% of AI use is for augmentation, where AI enhances human capabilities, compared to 43% for automation, where AI takes over tasks.

[00:06:52] The research highlighted that software engineering is the leading field for AI queries, accounting for 37%, while arts and media make up 10%. Anthropic plans to conduct follow-up studies every six months to monitor changes in AI use, emphasizing the need for transparency within the industry. A new study from Microsoft and Carnegie Mellon University examines the impact of generative artificial intelligence on critical thinking skills in the workplace.

[00:07:21] The research, involving 319 participants who use generative AI at least weekly, found that reliance on AI can lead to a decline in independent problem-solving abilities. Specifically, 36% of respondents stated they employed critical thinking to counteract potential negative outcomes of using AI.

[00:07:42] Participants expressed concerns about AI-generated outputs, with one individual noting they double-checked a performance review by creating AI to avoid submission errors. The study highlights that those who are overly confident in AI tools reported using less critical thinking compared to those who trusted their own skills. While the researchers stopped short of claiming that AI makes us dumber, they suggest that over-reliance on these tools may hinder cognitive development.

[00:08:13] Why do we care? These studies highlight two key trends in AI adoption. First, that AI is mainly used to augment human capabilities rather than completely automate tasks. And second, that an over-reliance on AI can lead to unintended consequences, such as a decline in critical thinking. For providers, enterprises, and decision makers, this indicates that AI strategies should prioritize enhancing human expertise

[00:08:40] while actively managing risks related to cognitive complacency. The study's findings that some users are overly trusting of AI raises concerns for industries where precision and accountability are essential. If left unaddressed, excessive reliance on AI could result in mistakes in compliance, finance, healthcare, and cybersecurity.

[00:09:01] Organizations should establish structured review processes to verify AI outputs before implementation, especially in high-risk scenarios. And that's your service focus. New Charter Technologies has acquired Orchestrate AI Labs, an innovative company focused on integrating artificial intelligence into managed service provider operations.

[00:09:27] The strategic acquisition aims to enhance new Charter's capabilities by combining human expertise with AI automation, positioning the company to lead in an evolving IT landscape. Peter Melby, CEO of New Charter, expressed excitement about leveraging Orchestrate AI's technology and team. Ryan Barton, the CEO of Orchestrate AI, has joined New Charter as Chief Innovation Officer, emphasizing the transformative potential of artificial intelligence in the managed service provider industry.

[00:09:57] Why do we care? New Charter Technologies' acquisition here signals a growing trend in the AI-driven transformation of MSP operations. This move isn't just about adding AI capabilities. It's about positioning New Charter as a leader in AI-powered service delivery. The MSP industry is under increasing pressure to improve efficiency, automate repetitive tasks, and enhance cybersecurity. This acquisition indicates that AI will play a central role in addressing these challenges.

[00:10:28] MSPs should assess where AI can enhance service delivery, such as automated ticket resolution, predictive analytics, and security threat detection. So then, develop an AI implementation plan. Adoption needs a strategy. Start small with automation pilots, measure results, and gradually scale AI-driven operations. And then finally, monitor industry trends and competitor moves. New Charter is making a bold move, but they won't be the last.

[00:10:57] Providers should track how AI-driven service models evolve and prepare to adopt competitive strategies accordingly. Today's episode is supported by Huntress. Most cybersecurity solutions are built for massive enterprises with big budgets. Not Huntress. They're the fully managed cybersecurity platform built for all businesses, not just the 1%.

[00:11:21] Huntress purposely builds security solutions like EDR, ITDR, SIM, and security awareness training to equip their team of elite threat hunters to handle the heavy lifting of security for you. When threat actors strike, Huntress's 24x7 Global Sock shuts them down before they're even on anyone else's radar. But they do more than just chase alerts. They lead the charge in industry research and knowledge, bringing expert protection and peace of mind.

[00:11:48] That's why users on G2 rate their EDR number one for growing businesses. To see how their expert threat hunting team gets the job done, visit Huntress.com slash MSB Radio. Thanks for listening. Today is International Day of Women and Girls in Science. It's also National Guitar Day and National Latte Day. Nerdy Ocon will be held in Palm Springs, California from April 7th through 9th.

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