What is cryptojacking and how does it work?

What is cryptojacking and why has it become a pressing issue for the crypto community? Keep reading.

In 2023, there was a staggering increase in cryptojacking, breaking records set in 2022. By early April 2023, the total number of cryptojacking attacks had already exceeded the previous year’s total.

SonicWall Capture Labs’ threat researchers documented $1.06 billion in crypto theft by year’s end; This represents a jaw-dropping 659% increase compared to 2022.

This increase was not limited to a specific region; There have been three- or four-digit jumps in cryptojacking incidents almost everywhere in the world.

Let’s delve deeper into this topic and understand what cryptojacking actually is and why it has become a pressing problem for the crypto community.

Cryptojacking meaning: What is cryptojacking?

Cryptojacking, also known as cryptomining malware or cryptomining malware, is a form of cyberattack in which a hacker hijacks a victim’s computing resources to mine cryptocurrency without their consent.

The attack typically involves installing malware on the victim’s device, such as a computer, smartphone, or server, which then mines cryptocurrency in the background using the victim’s processing power and energy resources.

One of the most important features of cryptojacking is its secretive nature. Unlike ransomware attacks that demand payment, cryptojacking often goes unnoticed by victims because the goal is to secretly mine cryptocurrency without alerting the victim to the presence of malware.

Cryptojacking attacks can target organizations and businesses as well as individual users. In some cases, attackers have targeted high-profile websites by injecting malicious code into the site’s code to mine cryptocurrency using the computing resources of the site’s visitors.

The rise of crypto theft is due to the increasing popularity and value of cryptocurrencies, making mining of cryptocurrencies a lucrative business for attackers.

Additionally, the rise of cryptocurrencies like Monero, designed to be mined using the processing power of ordinary devices, has made it easier for attackers to monetize their attacks.

Types of cryptojacking

Cryptojacking can take a variety of forms, each with their own methods and impact on victims. Let’s understand its main types:

Browser-based cryptojacking: This type of cryptojacking occurs when a user visits a website that has been compromised with malicious code. The code, usually JavaScript, runs in the background of the user’s web browser without their knowledge. It then uses the computing resources of the user’s device to mine cryptocurrency. This type of cryptojacking can be difficult to detect because it does not require the installation of any software. Browser-based cryptojacking can cause increased CPU usage, which can cause the device to slow down or overheat. File-based cryptojacking: In this type of attack, the attacker distributes a malicious file, such as an email attachment or a downloadable file, that contains the cryptojacking malware. When the victim runs the file, malware is installed on his device. Once installed, the malware uses the device’s resources to mine cryptocurrency. File-based cryptojacking can be more harmful than browser-based cryptojacking because it can result in the installation of persistent malware that continues to mine cryptocurrency even after the initial infection. Cloud cryptojacking: This form of cryptojacking targets cloud infrastructure such as cloud servers or containers. Attackers exploit vulnerabilities in cloud infrastructure to gain unauthorized access and install cryptojacking malware. Once installed, the malware uses the cloud provider’s resources to mine cryptocurrency. Cloud crypto theft can be particularly damaging as it can lead to huge financial losses for the cloud provider and its customers. It may also affect the performance of affected cloud services. Cryptojacking examples

Here are some examples of cryptojacking being used maliciously:

Coinhive: Coinhive was one of the most notorious examples of browser-based cryptocurrency theft. It provided a JavaScript miner that website owners could embed into their sites to mine Monero. However, many website owners used it without notifying their visitors or obtaining permission, leading to widespread complaints and the eventual closure of Coinhive in early 2019. WannaMine: WannaMine was a file-based cryptojacking malware that targeted Windows-based systems. It spread via phishing emails and malicious attachments and exploited vulnerabilities in the Windows operating system to install itself on victims’ computers. Once installed, WannaMine used infected computers to mine cryptocurrency, causing performance issues and potentially damaging affected systems. Docker Hub crypto hack: In 2018, researchers discovered that attackers were uploading malicious Docker container images to Docker Hub, a popular repository for Docker container images. These images contained cryptojacking malware, which exploits the resources of any system running the infected container. The incident highlighted the security risks associated with using third-party container images and the importance of verifying the integrity of images before use. Android-based cryptojacking apps: There have been several examples of cryptojacking apps discovered on the Google Play Store. These apps claim to provide legitimate services, but they secretly mine cryptocurrency in the background, draining the device’s battery and draining its resources. Google has since taken measures to detect and remove such apps from the Play Store, but the threat remains. Tesla’s cloud cryptojacking incident: In 2018, Tesla’s cloud infrastructure was compromised by attackers who installed cryptojacking malware. Attackers leveraged an unprotected Kubernetes console to gain access to Tesla’s Amazon Web Services (AWS) environment, where they used malware to mine cryptocurrency. Tesla quickly addressed the issue and took steps to improve the security of its cloud infrastructure. How to detect cryptojacking?

Cryptojacking can be difficult to detect, as attackers often use tactics to evade detection. However, there are several signs that a device or system has been compromised:

Increased CPU usage: Cryptojacking malware consumes large amounts of CPU resources, which can cause the affected device to slow down or become unresponsive. Monitoring CPU usage through the task manager or system monitoring tools can help you detect abnormal spikes in CPU usage. Overheating: Cryptojacking can cause devices to overheat, especially if the malware uses large amounts of CPU power. Monitoring your device’s temperature can help you determine if it is being used for crypto theft. Increased energy consumption: Cryptojacking malware uses a lot of energy to mine cryptocurrency, so an unusually high energy bill could be a sign of cryptojacking activity. Unusual network traffic: Cryptojacking malware communicates with external servers to receive instructions and send the extracted cryptocurrency. Monitoring network traffic for unusual patterns or connections to mining pools may be indicative of cryptojacking activity. Anti-malware alerts: Some anti-malware software can detect the presence of cryptojacking malware and alert you. Regularly updating and running anti-malware scans can help detect and remove cryptojacking malware. Browser extensions: Browser extensions can be used to detect and block cryptojacking scripts on websites. Extensions like NoCoin and MinerBlock can help protect against browser-based crypto theft. How to prevent crypto theft?

Preventing cryptojacking requires a combination of technical measures and best practices to protect your devices and systems:

Use anti-malware software: Install reputable anti-malware software and keep it updated. Anti-malware programs can detect and remove cryptojacking malware from your devices. Keep software updated: Regularly update your operating system, browsers, and plug-ins to protect against known vulnerabilities that cryptojacking malware can exploit. Use ad blockers and anti-cryptojacking extensions: Browser extensions like NoScript, uBlock Origin, and MinerBlock can help block cryptojacking scripts on websites. Monitor system performance: Keep track of your device’s performance. If you notice a sudden drop in performance or an increase in energy consumption, this could be a sign of crypto theft. Use network security measures: Implement network security measures such as firewalls and intrusion detection systems to prevent unauthorized access to your network. Restrict JavaScript execution: Configure your browser to block JavaScript from automatically running, especially on untrusted websites. Future trends and emerging threats

Future trends in crypto theft will likely focus on evading detection and increasing attackers’ profitability.

One of the emerging threats is the use of more sophisticated techniques, such as polymorphic malware, which can modify its code to avoid detection by traditional anti-malware programs.

Additionally, attackers are increasingly able to target Internet of Things (IoT) devices, which often lack strong security measures and are connected to the internet 24/7.

Meanwhile, as crypto continues to gain mainstream acceptance, the incentive for attackers to commit crypto theft is also expected to increase.

To combat these emerging threats, it will be crucial to stay vigilant, keep your software up-to-date, and implement the latest security measures across all your devices and networks.