A Deep Dive Into Crypto Malware

17 Dec 2023 by Rory Kejzerko 7 min read

Crypto malware refers to malicious software that exploits your computer in order to engage in cryptocurrency mining without your awareness.

For the crypto enthusiasts out there that have noticed a decline in their computer's performance and/or responsiveness, conducting a thorough device scan is perhaps a wise idea, as the source of such performance slump could be the presence of crypto malware.

To overcome such annoyance, it’s then crucial to understand the nature of crypto malware attacks, as well as how to implement preventive measures that can safeguard your devices from harm.

So without further ado, let’s take a deep-dive into understanding what crypto malware really is.

What is Crypto Malware?

Crypto malware is a form of malicious software that’s designed to execute cryptojacking attacks. These attacks involve seizing all available resources on the victim's computer in order to mine cryptocurrencies.

It's a common misconception that individuals who don't own or use cryptocurrencies shouldn’t be concerned with crypto malware. This is because the act doesn't necessarily involve hackers pilfering funds from the victim's cryptocurrency wallet - as instead, it entails the unauthorised use of their device for crypto mining purposes.

The Differences Between Crypto Malware, Cryptojacking, & Crypto Ransomware

Crypto malware, cryptojacking, and crypto ransomware are three illicit cybercrimes that people often confuse. With this in mind, let’s provide a clear distinction between them all.

When it comes to crypto malware versus cryptojacking, the latter refers to the unauthorised hijacking of an individual's computer for the purpose of mining cryptocurrency. Intuitively, this aligns with the functionality of crypto malware, as in essence, cryptojacking and crypto malware are intricately connected.

Further, the intricate distinction between the two of them is that cryptojacking constitutes the malicious act of mining cryptocurrency on others' devices, whilst crypto malware is the malicious code that facilitates and enables this particular activity.

Crypto ransomware, on the other hand, is a type of malicious software that seizes control of a computer, encrypts its entire content, and then demands a ransom in order for owners to restore control over their devices (typically to be paid in cryptocurrencies).

Unlike crypto malware - which tends to remain covert within the infected device for an extended period - crypto ransomware takes the opposite approach by actively notifying the user of its presence and outlining the attackers' demands.

Interestingly, some ransomware attacks don’t even involve the use of malicious files for encryption purposes, as instead they employ a direct notification strategy that aims to induce panic and fear into victims. In doing so, payments may be made without victims even examining their devices.

With this in mind, if you even fall victim to a crypto ransomware attack, your only options are to either pay the ransom, try to restore your system from a backup, or look online for a key that breaks that encryption.

How Crypto Malware Attacks Work

To understand how crypto malware attacks take place, it's first a good idea to familiarise ourselves with ‘why’ they take place.

First of all, for cryptos to be acquired, a process known as ‘mining’ often has to take place - unless the coin is one such as Ethereum (ETH), which now employs a mine-free Proof-of-Stake (PoS) consensus mechanism.

Anyhow, crypto mining involves verifying and recording transactions on a decentralised public ledger (a.k.a. a blockchain). Here, miners leverage their computer power to solve intricate mathematical puzzles, thereby adding new blocks of transactions to the blockchain. Upon successfully solving all the problems in a block, miners receive their rightful share of rewards.

While it's technically feasible for individuals to mine cryptocurrency from their own devices, the practicality is hindered by the sluggish pace and the substantial processing power required. In fact, the electricity costs incurred by your computer could outweigh the cryptocurrency earnings.

This inefficiency prompts cybercriminals to seek alternative methods…such as utilising other people's devices in order to conduct cryptocurrency mining. Here, legitimate miners typically use apps that display resource consumption and earning projections, however in contrast, crypto malware operates with less sophistication, sometimes running directly within web browsers without the users’ knowledge.

The Prevalence of Crypto Malware Attacks

As cryptocurrencies are fluctuating assets, so is the prevalence of crypto malware attacks. In turn, this means that crypto malware occurrences tend to positively correlate with the fluctuations in the cryptocurrency market.

The exception to this trend might be crypto ransomware attacks, which don't necessarily hinge on the absolute value of cryptocurrency, but rather on the anonymity it offers. This is because in instances of the value of Bitcoin (BTC) or other cryptocurrencies being relatively low, attackers can compensate by demanding a higher quantity of cryptocurrency ransom. Additionally, the inherent capability to receive payments through pseudonymous wallets makes crypto ransomware attacks more persistent and less susceptible to slumping in prevalence.

Crypto Malware Examples

Here are some examples of crypto malware solutions on the market - with each having the primary purpose of engaging in cryptocurrency mining on a targeted device (although they can also be employed for other malicious purposes).

Rakhni Trojan: Employed by hackers to assess the victim's system and determine the course of an attack. Weaker systems may be locked with ransomware, while more powerful ones are infected for cryptocurrency mining.

Coinhive: Initially, websites utilised Coinhive as an alternative to displaying ads. Through being one of the most well-known cryptojackers to use JavaScript, many illicit web users implemented Coinhive without victims’ consent.

WannaCry Ransomware: WannaCry Ransomware attacks have been deployed on a worldwide scale. Here, attackers encrypt everything on the devices of victims, before demanding a ransom for data recovery.

Graboid: A cryptojacking worm that spreads through the Docker Engine and mines Monero (XMR).

PowerGhost: This malware exploits Windows Management Instrumentation vulnerabilities to infiltrate a device, to then engage in cryptocurrency mining. PowerGhost can also disable antivirus software and other cryptocurrency miners.

Prometei: Botnets like Prometei form networks of infected computers controlled remotely, often used in distributed denial-of-service (DDoS) attacks. Prometei primarily mines XMR, but can also be used to steal users' credentials.

MassMiner: A crypto malware designed to mine XMR by leveraging popular exploits, including EternalBlue.

How to Detect & Protect From Crypto Malware

And now it’s time for the most important section of this article; how to actually detect and prevent crypto malware attacks on your computers.

Here, the process of safeguarding computers from crypto malware follows similar principles to protecting against other types of malware. First and foremost, it’s therefore important to consistently employ common-sense practices, such as obtaining software updates and media from trusted sources, as these can significantly reduce the risk of attacks.

However to maximise your protection against crypto malware attacks, here are some more critical steps to follow:

1. Keep all devices and applications up to date

Ensure your software and operating system are regularly updated to patch vulnerabilities. Automatic updates or prompt manual updates are effective ways to stay ahead of potential threats.

2. Monitor and protect your network

Utilise antivirus and VPN services to enhance network security. In practice, this will be experienced through securer network connections and enhanced safeguarding against inadvertent malware downloads.

3. Regularly back-up your devices

Regular backups act as a defence against crypto ransomware and unforeseen disasters. Whether using cloud storage or an automatic backup feature, this simple task ensures recovery options in the face of cyberattacks or other system failures.

4. Use strong passwords and password managers

Create unique, robust passwords for each digital account and avoid reuse (a very simple - yet effective - practice).

5. Learn about cybersecurity

Familiarise yourself with common online scams and phishing techniques - such as recognising signs of suspicious activity, understanding email phishing tactics, and being cautious with downloads from unfamiliar sources.

Crypto Malware- FAQ

How do I know if I have crypto malware?

The presence of crypto malware on your computer can be signalled in many ways, with the most common being sluggish performance, noticeable lag, and increased device overheating.

Is crypto malware the same as ransomware?

While crypto malware leverages a victim's computational resources for cryptocurrency mining, crypto ransomware is a type of malware that empowers attackers to encrypt files on the victim's device. In turn, crypto ransomware involves demanding payment - often in the form of cryptocurrency - in exchange for decryption.

Is crypto mining a malware?

Cryptojacking is a form of malware software, as it hides itself on victims’ devices in order to steal computing resources and mine cryptocurrencies.

What is crypto hijacking?

Cryptojacking is a type of cybercrime that involves attackers gaining unauthorised access to a victims’ devices (be it computers, smartphones, tablets, or even servers). From here, attacks then use such resources to mine cryptocurrencies from themselves.

Can antivirus detect crypto miners?

Antivirus programs have the capability to identify and eliminate crypto miners, treating them like any other form of malware. Illicit crypto miners represent a category of malicious software that appropriates a computer's processing power for cryptocurrency mining, operating without the user's awareness or consent.

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