What Is Cryptojacking? Definition, Examples, & Prevention Tips

When Bitcoin surged past the$45,000 threshold for the first time on Jan. 2, 2024, Cryptocurrency became one of the hot topics that got everyone talking.

But whoever thought hackers would also use this for malicious activities? Here comes cryptojacking, a sophisticated form of cybercrime in which hackers extract money from their targets in the form of cryptocurrency.

In this blog, we’ll understand what cryptojacking is, how it works, its impact, and, most importantly, how to protect yourself against it.

Let’s begin!

What Is Cryptojacking?

Cryptojacking, or malicious crypto mining, is a type of cybercrime in which hackers use an individual’s or organization’s computing resources to generate cryptocurrency.

Cybercriminals do not steal data or cause direct harm, but they harness the victim’s computing resources to perform the complex calculations used for cryptocurrency mining. Depending on how subtle the attack is, the reaction may vary which we are going to discuss later in this blog.

How Does Cryptojacking Attack Work?

Some cryptocurrencies are easier to mine than others, and obviously, these are hackers’ favorites.

Here’s how a cryptojacking attack looks.

• Delivery: Hackers execute the attack by distributing malware through various means, including phishing emails, malicious websites, or compromised software. These mechanisms exploit vulnerabilities in the victim’s system and allow crypto mining code to be installed.

• Execution: Once the malware is delivered and executed, it runs on the victim’s device and uses its CPU or GPU to perform computationally intensive operations required for cryptocurrency mining.

• Profit & Exit: Whenever the attackers or miners solve cryptographic puzzles, they earn cryptocurrency rewards at the victim’s expense. Unfortunately, the victims get none of the rewards but indirectly have to pay for it.

Below are some of the cryptojacking methods used by hackers.

• File-Based Cryptojacking

This cryptojacking method distributes corrupted files containing malicious codes through phishing emails or fraudulent links. Once the victim executes the file, the malicious script becomes active and begins mining cryptocurrency in the background without their consent or knowledge.

• Browser-Based Cryptojacking

Browser-based cryptojacking targets victims’ devices through their web browsers. Firstly, hackers generate maliciously programmed scripts and embed them directly into legitimate web pages.

When the victim visits the infected web page, these scripts automatically execute and allow hackers to cryptojacking unintentionally.

• Cloud Cryptojacking

Cloud cryptojacking is cybercriminals’ favorite because, through this, they target multinational organizations. They leverage the APIs used by businesses to access cloud platforms and related services.

By compromising these, attackers gain unauthorized access to the organization’s cloud resources and can consume CPU resources for cryptocurrency mining without limitations.

Also Read: What Is Public Key Encryption? Public vs. Private Key Encryption

What is Cryptomining?

Cryptomining or cryptocurrency mining is the process of validating and adding transactions to a blockchain ledger. Simply put, it defines how new cryptocurrency units are created and how transactions are verified and added to the public ledger.

Who can choose to mine for cryptocurrency? Anyone with a proper internet connection and computing power to compete with fellow miners.

Further, Cryptomining supports the security of a proof-of-work blockchain as it is decentralized by nature.

How Cryptomining Works?

Below is the typical process of how cryptomining works.

• Pooling Transactions: First, new cryptocurrency transactions are grouped together, called “pool.” These include the basic information about the transaction itself, like who’s sending and receiving, along with a transaction processing fee.

• Creating a Block: These unverified transactions are then bundled into a “block” by the miners. If there are lots of transactions waiting to be verified, miners might prioritize them based on factors like transaction size or the associated fee.

• Solving a Puzzle: Now comes the exciting part – individuals or miners compete to solve a complex math puzzle or problem. They use computing power to find a specific no. (nonce) that, when combined with the block’s data, generates a unique code known as a “hash.”

• Broadcasting the Solution: The one who cracks the puzzle first broadcasts their solution to the blockchain network.

• Verifying the Solution: Other miners in the network then verify the accuracy of the broadcasted solution. The consensus about accuracy is achieved when enough miners (as defined by the rules and regulations of the blockchain protocol) confirm that the solution is correct.

• Adding to the Blockchain: Once consensus is achieved, the new block is added to the blockchain, and all the transactions inside it are officially confirmed.

• Reward Distribution: Finally, the miner who added the new block to the chain gets rewarded. This reward typically includes transaction fees paid by users and sometimes newly minted tokens, depending on the blockchain protocol.

Is Cryptojacking & Cryptomining the same?

The purpose of Cryptomining and Cryptojacking is the same, i.e., to mine cryptocurrency.

But are these both the same? Absolutely, no!

Cryptomining is a legitimate or authorized process of validating and creating new cryptocurrency units. On the other hand, Cryptojacking is an illegal or malicious activity where cybercriminals hijack victims’ devices without their permission or consent to mine cryptocurrency. Instead of using their own resources, hackers exploit vulnerabilities in user’s devices to install cryptomining malware.

How to Detect Cryptojacking?

Cryptojacking attacks are among the malicious activities that are difficult to detect—but, of course, not impossible! Here are some tips and tricks for identifying a cryptojacking attack.

• Decreased performance: If a computing device becomes a victim of a cryptojacking attack, its performance starts slowing down. It will crash or exhibit unusually poor performance.

• Overheating: Cryptojacking’s resource-intensive process causes computing devices to overheat and higher energy consumption. So, Keep an eye on your electricity bills for unexpected spikes in energy usage.

• Browser Extensions: Hackers often inject cryptojacking scripts into browser extensions. Regularly review the browser extensions and plugins, and remove any that you don’t recognize or trust.

• Check CPU Usage: Check the CPU usage through the Activity Monitor or Task Manager. If there’s an increase in usage despite not being used by the user, it indicates that cryptomining scripts may be running. However, this might not yield accurate results because processes often mask themselves as legitimate and can’t be detected by the Activity Monitor or Task Manager. 

• Monitor Websites: Hackers embed cryptomining code into the websites. To identify that, regularly monitor the websites to find any changes to webpages or files on the web server. Also, monitor network traffic using security tools or firewalls and look for outbound traffic patterns to suspicious destinations.

• Browser Warnings: Some modern browsers also come with built-in features that detect and block cryptojacking scripts. So, if your browser has the same feature, enable it and ensure protection against this security threat.

How to Prevent Cryptojacking Attacks

Cryptojacking attack dangers can be controlled by the tips below.

●    Use Anti-Malware Software

It’s very important to install reputable antivirus and anti-malware software on all your devices, as these help in detecting and blocking cryptojacking scripts. But do not forget to update them regularly otherwise, they’ll be unable to detect all the scripts.

●    Keep Software Updated

Ensure that the operating system, web browsers, and other software are up to date with the latest security patches.

●    Implement Strong Authentication

Strong authentication involves multiple measures that verify user identity before granting them access to a specific system or website. Even if a hacker tries to hack your system, they’ll not be able to bypass MFA (Multi-factor authentication) or strong authentication easily.

●    Be Aware of New Cryptojacking Trends

Cryptojacking attacks can be prevented by staying informed about the latest trends and techniques that cybercriminals use. To do so, you can follow newsletters and blogs of cybersecurity companies.

●    Always Double Check Before Installing Any Application

With that being said above, cryptojacking malware is distributed through phishing emails or malicious websites. So, always double-check when clicking on email attachments or web links, especially from unknown or suspicious sources. Avoid downloading from untrusted or unknown sources!

●    Implement Network Security Measures

 Use firewalls, VPNs (Virtual Private Network), and other network security measures to find and block suspicious network activity associated with cryptojacking.

●    Disable JavaScript

Cryptojacking scripts often rely on JavaScript to execute. To prevent this, consider disabling JavaScript in your web browser or browser settings/extensions.

●    Use Ad Blockers

Pop-up online ads are one of the main methods that cybercriminals use for cryptomining. Install ad-blocking browser extensions or plugins to block those online ads. By doing so, you can reduce the risk of encountering malicious scripts hidden within online advertisements.

Real-World Examples of Cryptojacking Attacks

The cryptojacking attack trend started in 2017 by Coinhive, and since then, it has shown no signs of stopping.

Let’s have a look at some of the real world examples of these attacks.

●    Coinhive Miner

This was the first cryptojacking attack executed in 2017, which allowed hackers to exploit the computational power of the user’s system to mine the digital currency Monero. At that time, it became one of the top malware threats globally.

However, this success was short-lived. As cryptocurrency prices, particularly Monero’s, began to decline and awareness of cryptojacking grew, Coinhive shut down its operations in 2019. 

But despite its closure, thousands of devices remain infected with Coinhive malware even today.

●    AMBERSQUID

This cryptojacking operation targeted lesser-known AWS services such as AWS Amplify, AWS Fargate, and Amazon SageMaker. To secretly mine cryptocurrency, AMBERSQUID exploits these cloud services without triggering AWS’s usual resource approval process.

Also, the hackers didn’t created their own repositories, instead they downloaded cryptocurrency miners from GitHub repositories to make the operation less conspicuous.

●    Graboid

Back in 2019, cybersecurity researchers discovered Graboid. This sophisticated worm targeted unsecured Docker containers, which are commonly used by developers to package and deploy applications. Once it got into a container, it used that computer’s power to mine Monero, a popular cryptocurrency.

●    Microsoft Store Cryptojacking Infected Applications

Who thought that tech giant Mircosoft would also become a target of cryptojacking? But yes, it’s true! In 2019, eight applications found infected with cryptojacking JavaScript on Microsoft Store, including Downloader for YouTube Videos, Fast-search Lite, Clean Master+ (Tutorials), VPN Browsers+, Battery Optimizer (Tutorials), FastTube, Findoo Browser 2019, and Findoo Mobile & Desktop Search.

After discovering these, Microsoft removed the apps, and Google deleted the mining JavaScript from Google Tag Manager.

The Bottom Line

Looking towards all the threats of cryptojacking, it is essential to ensure protection from these with web security services from Certera, which include:

• Web application security
• Web app penetration testing
• Website vulnerability scanning
• Vulnerability testing
• Vulnerability assessment
• API security
• API penetration testing
• API security testing

Get a custom quote here.

Frequently Asked Questions (FAQs)

1.     What is Cryptocurrency?

Cryptocurrency is digital or virtual money that exists on decentralized networks using blockchain technology. There are over 3000 types of cryptocurrency, including Bitcoin, Ethereum, etc.

2.     What is a cryptojacking attack, and how can it be identified?

In a cryptojacking attack, the attacker leverages the user’s computing resources to mine cryptocurrency. Look for the below signs to identify this attack.

• Slower device performance
• Increased power usage
• Unwanted ad pop-ups
• Unknown processes in the task manager.

3.     What are the consequences of cryptojacking?

The consequences of cryptojacking can be extensive, including

• Financial losses
• higher electricity bills,
• Reduced productivity,
• Potential hardware damage
• Reputation damage and legal liabilities for organizations.