( CNN ) -- Pirates off the Horn of Africa hauled in hundreds of millions of dollars in recent years -- and funneled those funds into drugs , prostitution , real estate and other ventures . Somali pirates and their peers hijacking vessels in the region made about $ 400 million in ransom over the past eight years , according to a report published Friday . The report , Pirate Trails , was conducted by the United Nations crime unit , Interpol and the World Bank . It tracks the underbelly of the pirate world in Djibouti , Ethiopia , Kenya , Seychelles and Somalia . Most of the funds came from exchanging captives for ransom , an increasingly sophisticated process mostly controlled from Somalia . In total , 179 ships were hijacked off the coast of Somalia and Horn of Africa between April 2005 and the end of 2012 . About 85 % were released for ransom . Kingpins and foot soldiers . Pirate financiers , considered the `` money kingpins , '' earned the most loot -- about 30 % to 50 % of the total ransom paid , the study shows . Low level pirates , mostly foot soldiers sent to the high seas to do the dirty work , earn between $ 30,000 and $ 75,000 a vessel . Pirates who board the vessel first or use their own weapons in an operation get a bonus $ 10,000 , the study says . Rewards aside , there is also punishment . Those who refuse to follow orders , mistreat the crew or fall asleep on the job get fined , according to the study , . And each step of the operation is tracked , with a lot of beneficiaries along the way . `` When a ship is caught , the pirates call at the city . Everybody celebrates , '' the study says . `` When the ship comes at the port , a crew comes to secure it . Everything is written down , every food , drink , any kind of transaction . The final amount will be deducted from the ransom at the end . The investor pays . '' Pimps , cooks and militia benefit too . Cooks , pimps , lawyers and the militia controlling ports also get a piece of the pie . The pirates ' money is `` typically spent on alcohol , khat , and prostitutes , '' the report said . `` Proceeds from piracy are also reinvested into the financing of future pirate operations and may support the purchase of real estate , investment in the khat trade , and other business investments and ventures . '' Pirates in Somali areas controlled by the al Qaeda-linked militant group Al-Shabaab also pay a development tax to access the ports , according to the study . Although the piracy trade is controlled from Somalia , its effects spill into surrounding areas . Proceeds are moved by the kingpins across borders through smuggling , money laundering and wire transfers , the study shows . And the funds are widely distributed among various industries . `` Pirate financiers invest into a range of sectors ... some of these proceeds are recycled into financing criminal activities , including further piracy acts , human trafficking and investing in militias and military capacities on land in Somalia , '' the study says . Expensive menace . Khat , a narcotic plant popular in the region , is another favored investment , with pirates establishing their stakes in the trade . In neighboring Kenya , the drug is traded without much government oversight , making the nation a lucrative supplier , the study shows . It may benefit some people financially , but piracy has evolved into an international nightmare , hurting economies and sending the cost of living soaring . Though incidents of piracy have plummeted since 2011 , it costs the global economy $ 18 billion a year in increased trade expenses , according to the study . It has reduced maritime activity in affected waters , affected tourism and led to the closure of money transfer services , a lifeline for some communities . `` Unchallenged , piracy is not only a menace to stability and security , but it also has the power to corrupt the regional and international economy , '' said Stuart Yikona , a World Bank senior financial sector specialist and the report 's co-author .
Pirates : Study shows low level pirates earn up to $ 75,000 a year . Low level pirates are mostly foot soldiers sent to the high seas to do the dirty work . Pirates off the Horn of Africa hauled in about $ 400 million in ransom in the past several years . Financiers , considered the ` ` money men , '' earned the most loot .