What is crypto malware? Definition, detection & how to prevent

Cryptocurrencies have revolutionized the financial landscape in many different ways, offering lucrative opportunities to investors from all manner of backgrounds. Unfortunately, with this explosion in popularity, comes criminality – specifically cybercriminals. The major threat to crypto investors across the globe is crypto malware. Crypto malware is a malicious software that has been designed to exploit cryptocurrencies and digital wallets by infecting the user’s computer. It has the potential to transfer cryptocurrency to the attacker’s account, steal private keys or passwords and even hold this data to ransom.

This article will cover a broad range of topics around the subject of crypto malware, including how it works, the difference between malware and ransomware, how crypto worms fit in and how you can protect yourself from all the threats mentioned on this page.  

What is Crypto Malware?

Crypto malware is a form of malicious software that aims to steal cryptocurrency from users and exploit their digital wallet. It is capable of wreaking havoc on any device in a variety of ways, including malicious downloads, phishing attacks or the theft of sensitive information such as vital passwords. Once these details have been compromised, the crypto hackers are able to control your funds, transferring them wherever they please. They may also use your device’s processing power to facilitate their own cryptomining – a process known as cryptojacking.

Crypto Malware vs. Crypto Ransomware

Crypto malware and crypto ransomware both carry a great deal of danger for cryptocurrency holders. Both are designed to generate income for the attackers, however they operate in very different ways and it is important to be aware of these differences.

• Crypto Malware: Crypto malware is a malicious software that is more subtle in its behavior than crypto ransomware. It aims to remain undetected on your system for as long as possible so that it can carry out malicious activities – most commonly utilizing processing power to mine cryptocurrency. It is likely to slow down the infected system and increase electricity consumption.
• Crypto Ransomware: This is a type of malware that encrypts the victim’s sensitive cryptocurrency information and demands a ransom for its decryption. It differs from crypto malware in that it will announce its presence as quickly as possible after blocking access to the victim’s files – demanding payment for decryption.

Crypto Worms

A crypto worm is another type of crypto malware that also shares characteristics with computer worms. They work by spreading themselves across an entire network, exploiting system vulnerabilities in order to mine cryptocurrency. They propagate in a number of different ways, including:

• Exploiting system vulnerabilities: Taking advantage of weaknesses in operating systems and applications, particularly those that have not been updated and remain unpatched.
• Phishing attacks: Deceptive emails and websites can be used to trick users into downloading crypto worms.
• Removable media: They can spread through USB drives or other external memory sources.
• Network shares: Crypto worms often travel through network shares having exploited overly simplistic passwords or mismanaged security settings.

How does crypto malware work?

As discussed, crypto malware leverages the victim’s processing power on their device in order to mine cryptocurrency and financially benefit. This can infect a device in a number of ways:

• Malicious downloads: Crypto malware can often disguise itself as legitimate software in a similar way to PUPs (Potentially Unwanted Programs). Once the user downloads and installs the software, the cryptomalware begins its mining operations in the background, consuming vast amounts of processing power.
• Phishing attacks: Phishing emails or malicious links disguised as genuine which appear to be from legitimate sources allow the crytpo malware to download on to the device.
• Exploiting system vulnerabilities: Operating systems with particular weaknesses, or that have not been updated recently and are thus unpatched, can allow a route in to your device for crypto malware. It is crucial to keep your systems and software up to date with the latest patches.
• Compromised websites and ads: Visting an infected website, or clicking a compromised ad may well prompt an automatic download and running of cryptomalware. It is known as a “drive-by download” as it requires no action from the user besides visiting the website or viewing the ad in question. The crypto malware code is then delivered via JavaScript before it hides stealthily within the browser.

How to detect crypto malware

Although crypto malware can be incredibly difficult to detect, due its stealthy nature, there are a handful of symptoms or signs that one can keep eye on if they suspect that their device may be compromised:

• Electricity bill soaring without explanation
• Processors or graphic cards degrade without explanation
• Overheating of your computer
• Devices running noticeably slower than usual (resources being used to mine elsewhere)
• CPU usage above the typical average of 20-30% with unexplained spikes. This can be viewed via Task Manager on Windows, or Activity Monitor on macOS.

How to protect yourself against crypto malware

In reality, protecting yourself against crypto malware is not too different defending your device against any other type of malware. A degree of common sense and good cybersecurity practices can help to reduce your risk significant.  Here are a few useful tips from us to help keep you safe:

• Ensure your software is update: This includes applications, antivirus software and most importantly your operating system. Ensure you are always updated with the most recent security patches.
• Exercise caution with your downloads: Avoid pirated content and only download software from sources that you trust.
• Avoid phishing scams: Be wary of unsolicited emails or links that could be a phishing attempt. Ensure that you always verify the sender prior to downloading attachments or opening links.
• Use strong passwords: Ensure that you create lengthy, unique and strong passwords for all of your crypto accounts. It is strongly recommended to use a password manager to store them all and keep track.
• Enable Two-Factor Authentication (2FA): Add an extra layer of security to your accounts by enabling 2FA across your accounts. This would mean that one device becoming compromised is not as catastrophic as it would be otherwise.
• Install Security Software: Ensure that use a reputable antivirus and antimalware software, such as SUPERAntiSPyware’s Professional X Edition, to detect and remove any potential threats.
• Back up regularly: It is crucial to back up your data to either cloud storage or an external hard drive in order to protect yourself from data loss incurred by cryptomalware attacks.

Famous examples of crypto malware attacks

Although crypto malware is typically used to mine cryptocurrencies such as Bitcoin or Monero, it can be used for other malicious activities too. Here are a few examples of some of the most famous crypto malware attacks:

• Prometei Botnet: Prometei is a botnet that specifically mines Monero cryptocurrency and possesses the ability to steal vital credentials. It exploits vulnerabilities such as EternalBlue and BlueKeep which allows it to continue spreading and infecting devices across various networks.
• PowerGhost: PowerGhost is an especially troublesome cryptomalware to detect due to its fileless nature. It infects devices through Windows Instrumentation vulnerabilities, before mining cryptocurrency, disabling antivirus software and removing other miners.
• Graboid: Graboid is a crypto worm that spreads through unsecured Docker Engine instances. It is the first worm to use container technology for cryptojacking by mining Monero after installing a Docker image on the compromised device. 
• Darkgate: Darkgate combines ransomware, identify theft, cryptomining and remote access trojan (RAT) functionalities. It has been causing havoc for a while now, targeting Windows systems in particular since December 2017.
• Coinhive: Coinhive was a JavaScript cryptojacker that facilitated the mining of Monero. It was shut down in March 2019 after being abused by multiple websites without user consent.

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Conclusion

You should now have a comprehensive understanding of the threats of crypto malware and crypto ransomware having read this article. By examining famous examples and understanding the appropriate detection and protection methods, you should be well set to ensure an effective defense.

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