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What is Cryptojacking, and how does it affect your Cybersecurity?

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How do you know if cryptojacking is impacting your business? Learn how to spot infections and how to deploy solutions to protect your network and endpoints.

The good news for cryptocurrency is that the model is an established fixture in global finances. It’s highly portable, holds value, is tradable for products and services, and is gaining popularity among mainstream consumers.

It can also be a rewarding investment tool if you’re truly adventurous. Of course, fortunes are won and lost in a wink as many cryptocurrency issues (e.g., Bitcoin, Ethereum, Cardano) are highly volatile, with values sometimes soaring to astronomical highs and plummeting into white-knuckle lows within days or weeks. However, there are other less scary ways to make money from cryptocurrencies, and one of them is through “cryptomining.”

What is Cryptomining: An Explainer

Cryptomining is a process that validates cryptocurrency transactions in distributed public ledgers. Each transaction is linked to the previous and subsequent transaction, creating a chain of time-stamped records. This is essentially what a “blockchain” is all about.

One of the advantages of cryptomining is that just about anyone can participate without investing in the currency. For example, if you mine for Bitcoin, you receive Bitcoin as compensation for completing blocks of verified transactions added to the blockchain. It takes about 10 minutes to process a single block of currency.

All you need is a little knowledge about connecting to the cryptocurrency network, a reliable connection to the internet, one or two decent servers, and a steady power supply. The more server power you can enlist for your legitimate cryptomining operation, the more blocks you can process and the more money you make.

But there’s a twist to this process, and this is where the bad news comes in. Miners only earn cash when they complete the data process faster than others, and there are literally hundreds of miners trying to process the same block simultaneously. For that reason, miners are constantly looking for ways to scale up their hashrate (a metric for computational power to process blocks). The more hashes produced each second, potentially the more money you make.

Some people dodge the legitimate process entirely and turn to “cryptojacking.”

Why Cryptojacking is a rising threat.

It’s pretty simple: cryptojacking is cryptomining, but now the miner is using someone else’s computer without permission. Victims usually have no idea that their computers have been pressed into this kind of use, often through malware introduced by phishing or other hack.

In April 2018, SonicWall started tracking cryptojacking trends. Back then, the company recorded nearly 60 million cryptojacking attacks in one year. But as reported in the 2022 SonicWall Cyber Threat Report, cryptocurrency prices hit new highs in 2021, and with it, hacking incidents soared to 97 million, increasing nearly 62% since 2018.

Cryptojacking is on the rise

Unlike ransomware which relies on the visibility of phishing emails and messages, cryptojackers do their work invisibly in the background. The only sign your network or devices are affected is by monitoring a CPU performance graph or noticing that a device fan is running harder than usual.

Over the last two years, we’ve noticed that ransomware teams tend to switch to other activities like cryptojacking. One apparent reason they change is that the return on investment for a ransomware scheme and strain (that took months of development work) diminishes when it ends up on public feeds like VirusTotal.

Like anyone else running a profitable business, cybercriminals tend to be agile and flexible about their work. As a result, they’re actively searching for different ways to fulfill their financial targets. Cryptojacking offers agility thanks to the relative ease operators can deploy it with other criminal activity.

The allure of cryptomining.

With such low cost and practically zero risks, cybercriminals see many strong incentives to engage in cryptomining as a base business model. Much of the operation itself is automated through software. However, volatility in cryptocurrency plus rising energy costs is putting a lot of pressure on miners. In 2018, legitimate crypto miners could earn $100/day, but that profit has been halved nowadays, and staying “legit” is more complicated and harder to do.

Consequently, according to SonicWall’s threat report, illegal cryptojacking is again on the rise. The first quarter of 2021 saw 34.2 million hits in cryptojacking, making it the highest quarter since SonicWall began tracking this data point. But more worryingly, the worst month for cryptojacking in 2021 was, by far, December, with 13.6 million recorded. While December 2021 doesn’t eclipse the 15.5 million hits observed in March 2020, it makes for an easy second place, which was, by any comparison, a suboptimal starting point for 2022.

Am I infected by cryptojacking malware?

Cryptominers are interested in your processing power, and cryptojackers must trade stealth against profit. So how much of your CPU resources they take depends on their objectives.

Siphoning less power makes it harder for unsuspecting users to notice; stealing more increases their profits. Of course, there will be a performance impact in either case, but if the threshold is low enough, it could be challenging to distinguish the miner from legitimate software.

Enterprise administrators may look for unknown processes in their environment, and end-users of Windows software should start a Sysinternals Process Explorer to see what they are running. Linux and macOS users should investigate using System Monitor and Activity Monitor, respectively, for the same reason.

How to defend against malicious cryptojackers.

The first step in defending against cryptominers is to stop this type of malware at the gateway through firewalls or email security (perimeter security), which is one of the best ways to scrub out known file-based threats.

Since people like to reuse old code, catching cryptojackers is relatively simple. However, SonicWall predicts there will still be a surge in new cryptojacking variants and techniques as cryptojackers have time to develop more tools. In addition, cryptojacking could still become a favorite method for malicious actors because of its concealment; low and indirect damage to victims reduces chances of exposure and extends the useful lifespan of a successful attack.

If the malware strain is unknown (new or updated), it will bypass static filters in perimeter security. If a file is unknown, it will be routed to a sandbox to inspect the nature of the file.

The multi-engine SonicWall Capture Advanced Threat Protection (ATP) equipped with Real-Time (RTDMI)™ is proven to be highly effective in preventing evasive malware that may evade one engine but not the others.

If you have an endpoint not behind this typical setup (e.g., it’s roaming at the airport or hotel), you need to deploy an endpoint security product that includes behavioral detection.

Cryptominers can operate in the browser or be delivered through a fileless attack, so the legacy solutions you get free with a computer are blind to it.

Behavioral-based cybersecurity solutions like Capture Client ATP can detect malware that allows cryptomining and shut down the operation. Then, an administrator can quickly quarantine and delete the malware or, in the case of hacks that have done damage to system files, roll the system back to the last known good state before the malware was executed.

By combining a mixture of perimeter defenses and behavioral analysis, organizations can fight the newest malware forms no matter the trend or intent.

Cryptocurrency, Ransomware and the Future of Our Economy

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History is full of people who’ve labored over missed opportunities. Like all other non-bitcoin-owning people, I am one of them.

I first heard of cryptocurrency in early 2013 and scoffed at the idea that something with no intrinsic or collectable value would trade for $20. The concept of owning a portion of a cryptographic code — and it having actual value — is still hard for many to swallow.

Now that an available bitcoin (BTC) is valued at over $19,000 (USD), I languish the fact that an investment of $1,000 in 2013 would have net me half of a million dollars today. Furthermore, had I been tuned into the movement in 2010, I would be a billionaire today. You too. Stings a little, doesn’t it?

At no point in history has it been so easy to become extremely wealthy out of thin air. And it is not just people like you and me who think about this, but criminals as well. This is not only causing major shifts in financial markets, but also in malware development.

What is Cryptocurrency?

With all of the noise about cryptocurrency, here is what we know as we near 2018:

  • There are, or have been, over 1,300 other cryptocurrencies on the market. These are called altcoins.
  • Most people have never owned a single “coin” from any blockchain.
  • Most have no basis for value, which means it’s subjective and speculative (e.g., like a baseball card or an artistic sketch). The community dictates the value.
  • Some are tied to a real currency (e.g., 1 Tether coin = $1 USD).
  • Governments struggle with regulation and don’t want to encourage the use of decentralized currencies.
  • They often function like startups. Founders get an early crack at the supply chain and hold an equitable stake in the algorithm. Instead of a stock IPO they release them as part of an Initial Coin Offering (ICO).
  • Most of the popular coins cannot be mined by your computer anymore. Today, it’s only achieved through professional-grade mining operations.
  • No one knows how high or low bitcoins and cryptocurrency will go; either they will die or become the basis for our future economy.
  • The popular coins today are desired by cybercriminals and are the main form of payment within ransomware.
  • Like a TLS digital certificate, cracking the actual encryption is nearly impossible. Bitcoins are, however, fairly easy to steal and even easier to lose or destroy.
  • Malware is used to steal coins and to also turn infected endpoints into mining bots.

Bitcoin Is the Great Ransomware Enabler

Because cryptocurrency is virtually un-trackable, holds great value and is easily traded online, they are the preferred way to get paid on the black market. Without the value of bitcoin, you wouldn’t have heard about ransomware.

Ransomware is responsible for causing billions of dollars (USD) in damage across the world. Furthermore, the actual cost of the problem isn’t the cost of bitcoin to return your files (if you ever get them back), but the fallout from an attack.

Ransomware is fun for the media because you can easily quantify the ransoms and take photos of the demand screens, but not so fun for hackers. Through the development, updates and propagation of the malware, only between five and 10 percent of people pay the demands. But there is another way.

Bitcoin Mining

Instead of having your victims pay you once, what about having your victims unknowingly work for you? Well, that is what a lot of malware is doing today. By leveraging a portion of your compute power to form a bitcoin mining pool, hackers don’t have to kill the goose that lays the golden egg.

The result? The home computer has less power to run normal processing and incurs higher energy costs. When this approach works its way into a corporate network, it could cause major productivity and service issues.

For some hackers, these two attack vectors are small-time thinking. Instead of counting on a distributed attack vector across a global landscape of endpoints with mixed vulnerabilities, what about a single targeted attack?

Hackers don’t attack the algorithm behind the coins, they attack where they are stored. Cryptocurrency banks and exchanges are ripe targets for attacks. If you factor in the price of a bitcoin (at the time of I started writing it was $8,160 and after editing its $16,000) — the second Mt. Gox attack emptied bitcoin wallets to the tune of over $11 billion USD. Wow! At the time, the bitcoin haul was nearly 744,000 coins worth $436 million USD and caused the value of bitcoin to fall to a three-month low.

Cryptocurrency: Is it the Future?

Like most dual-sided arguments, those inside a social ecosystem are bullishly optimistic. Those outside remain pessimistic. I’m in between. I see the opportunity to capitalize on the attention, but recognize the many limitations behind cryptocurrencies that cap their viability into the future.

I’ve never owned a bitcoin coin but have entered into a few key platforms for the short-term. As mentioned, the value is purely subjective, much like an arbitrary piece of art, which can be a good investment as long as there is a large pool of people with the financial ability to support and bloat its value.

What is the difference in value between this rare Honus Wagner T206 card ($3.12 million USD) and the common Dusty Baker’s 1987 Topps card ($0.70 USD)? The answer lies in the availability of the item and the demand from the consumer.

Bitcoin, Ethereum and Monero all have value because a community of people feels it does. The more people who enter this pool, the greater the potential value. Some are investors and others are victims buying a ransom. But what truly drives the cost of bitcoin is attention — just like a piece of sports memorabilia. When you mirror Google’s search trend data to the historical price of BTC, you see a direct correlation.

What does this tell me? Once the attention fades, people will lose interest. At that point, the price will come down, similar to a Derek Jeter autographed baseball. Additionally, as ransomware becomes less effective, fewer people will buy bitcoin for the sake of digital freedom. And that freedom is the primary thing cryptocurrency can buy.

In the past year, every time the price of bitcoin dropped the Chicken Littles of the world wanted to be the first to cry out, “The sky is falling!” I do believe there will come a time when bitcoins will have the value the 1986 Topps Traded Pete Ladd sitting in the back of your closet (less than $1), but its value won’t crumble in a day.
With the remaining 1,000-odd altcoin cryptocurrencies (that currently hold value) out there with a collective market cap of over $400 billion (at the time of writing), it would take a lot for crypto-investors to create the needed fire sale that would cause the market’s topple. Instead, I see it like the Ice Age; built in stages and then a slow recession.

The altcoins wouldn’t exist today if bitcoin wasn’t popular and a goldmine for the early investors. The creators of these algorithms are like the leaders of pyramid scams. They created the rules and the ecosystem to make money and only exist if their supporters exist, much like an Amway Double-Dutch Triple-Black Platinum Diamond Founder’s Crown Elite Wizard. These will be the first to die. The beginning of their end is when bitcoin hits a plateau lasting more than two months.

In the Ice Age analogy, bitcoin is much like a large glacier that icicles attach to. As the sun shines, they will melt, leaving only the strongest cryptocurrencies to linger. I see bitcoin and Ethereum lasting for years, but only at a small price point. The coins in active circulation will be mostly in the possession of cyber criminals (if they aren’t already) and will be sold to the victims of cybercrimes to pay ransoms until the practice to buy cryptocurrency is outlawed country by country.

And, with that, the official death of ransomware.

Death in a Cathedral

Thirty years from now when we look back at cryptocurrency, we will reminisce about the second coming of the roaring ‘20s. Without the presence of Babe Ruth and the Charleston, we’ll have great unregulated wealth that comes to a crash.

In my conservative outsider-ish advice, I recommend minor, short-term cryptocurrency investments that you are not afraid to lose. Watch the price of bitcoin. When you see a plateau lasting a month, sell. (However, I’m not a financial advisor and I have no fiduciary duties to you. Please do your own research.)

Remember the old adage: movements are built in caves and die in cathedrals. Bitcoin is in the cathedral phase of its life. And if you understand the politics and history of cathedrals, you would be wary of entry. If not, read The Gothic Enterprise: A Guide to Understanding the Medieval Cathedral. Pay attention to fallout surrounding the bankrupt Bishop Milo de Nanteuil.

The Marriage Between Malware & Cryptocurrency

Another adage I was raised with, “make hay when the sun shines,” is what hackers are doing today. As the flames of bitcoin flare, more moths will be drawn to its light. The illicit creation, extortion and theft of digital coins will drive the price to an all-time high.

Because of the outrageous volume of ransomware infections of 2016, and the infamous attacks in 2017, malware defense is at an all-time high too, but it is not enough. Network and end-point security needs to be a serious topic of discussion.

At SonicWall, we’ve made great strides to get ahead of the cryptocurrency attacks; far before a hunk of digital code was valued at dollar volumes higher than what your grandfather paid for his first home.

Before the public release of Zcash, we released the SonicWall Capture Advanced Threat Protection service, which is a cloud-based network sandbox that works in line with SonicWall next-gen firewalls to run and test suspicious code in an isolated environment to prevent newly developed ransomware attacks (and other forms of malware too).

To bolster endpoint protection, we created an alliance with SentinelOne to provide an enhanced endpoint security client framework to provide next-generation anti-virus capabilities to our current endpoint offerings.

To learn more on how SonicWall can prevent malicious attacks, please read our solution brief, Five Best Practices for Advanced Threat Protection. If you’d like to discuss this blog, the marriage between malware and cryptocurrency, and to send your potentially future-worthless digital collectibles, reach out to me on Twitter.

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How SonicWall Signature “Families” Block Emerging Ransomware Variants

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When you look at the most damaging network security invasions over the last year, you see a recurring pattern: leaked government cyber tools being repurposed by cybercriminals. The compromised NSA toolset leaked by Shadow Brokers was devastating in many respects. These were highly targeted tools that many nation states wish they had the operational capacity to deploy.

But the tools developed by the NSA fell into criminal hands, who used them not for state-backed cyber espionage, but for capital gain. They repurposed these tools into WannaCry, Petya and, most recently, BadRabbit, as a means to install ransomware, encrypt information and keep it hostage until a targeted victim pays to release it, typically via Bitcoin.

Alas, sometimes victims pay and the data is still not released.  Sometimes, other actors see an organization has been held hostage and sends their own ransom demands, even though they are not affiliated with the original ransomware creators. The victim organization pays for this misdirection but still cannot unlock their files. They are out of the money and damages are incurred. “There is no honor among thieves,” as they say.

WannaCry, Petya and BadRabbit form a “family” of ransomware variants developed from the same leaked NSA tools. It is when there are these multiple attacks using the same family of exploits that SonicWall can give you breathing room and help you sleep at night.

To explain, first let me discuss how signatures work in our next-generation firewalls (NGFWs). Individual signatures exactly match bit patterns from IP-based frame payloads to detect a specific variant of malware. Our award-winning Capture ATP technology, a multi-engine network sandbox,  not only stops unknown and zero-day threats from entering networks, but also helps create new signatures for detecting emerging malware.

Few vendors look at both incoming and outgoing packets for malware, as it can be a large performance hit to do both. Most vendors are only concerned with traffic going from the internet to the trusted zones and only inspect this pattern. Yet SonicWall inspects every single packet in each direction.

Why? Well, if you own a network and somehow a device is compromised, the only way you will find out is by seeing what it sends out. Is it talking to a command-and-control server (C&C)? Is it sending malware out, as infected machines do? Without scanning every packet, you do not have visibility of your internal network. While it is important to block incoming malware, it’s also important to determine what machines may have been infected and are trying to send data outside your organization.

This brings us back to our “family” of signatures. Have you ever wondered why SonicWall uses a different naming convention than other well-known malware strands?  It’s because we find them first, and give them their own names. Other vendors do this too, but we are vastly different. I am proud to say that SonicWall is extremely competent in creating a family of signatures to cover many individual signatures with one pass. SonicWall uses a fast memory-tree lookup as packets pass through the NGFW with our family of signatures, so only one lookup is needed. This is an extremely fast method of traffic processing.

Sometimes in sales, we have to quote statistics in answer to questions, such as “How many signatures do you store on the firewall?” And we dutifully respond, “Over 32,000 locally, with more in the cloud.” But this only tells part of the story. With our family of signatures, one family will catch 100 or more variation of one signature.

Going back to WannaCry, SonicWall created a family that caught WannaCry right after it was announced to the public. Since the NSA leak variants caused Petya and BadRabbit derivatives, the family signature in your SonicWall firewall blocked all these new attack vectors.

Even though these new variants were targeted delivery to networks, SonicWall blocked all these different bit patterns as part of our WannaCry signature family.  The signature updates were performed in the background – as you enjoyed the holidays with your friends and family.

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Did WannaCry Perpetrators Ever Get Their Ransom?

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Cyber criminals prefer to receive ransom in the cyber currency Bitcoin because it is anonymous. The truth is “sort of.” Let’s take a closer look at how Bitcoins work, and how the WannaCry perpetrators, possibly the Lazarus Group, want to be paid.

Bitcoins are different from fiat currencies because, with Bitcoins, no actual coins or bills exist, not even digital ones. With a fiat currency like the dollar, money is represented by actual coins and bills that can be physically stored. Depending on how you pay, your transaction is not recorded or, more often, either recorded anonymously or via an account number, such as a credit card number.

In any case, the number of coins and bills, either in actual money that you have on your hand, or what is recorded on your bank account, are decreased. With Bitcoins, you only have the transaction. Transactions are always public, and can be viewed by anyone. That is right: public, anyone. Anybody can see that money was paid from your account to that of WannaCry. Though, what is different from fiat currencies is that the actual ownership of an account is not necessarily know to anyone. It can be completely anonymous. This is a bit similar to a Swiss number account.

Let’s summarize this, the ownership of an account in Bitcoin may or may not be known to anyone, or generally public. The transaction, however, is always public. Bitcoin tracks transactions in so called Blocks that are linked in a Blockchain. In order to find out how much money somebody has, a “wallet” application would have to browse through the entire Blockchain and select out any transaction that involves the owner’s account number(s).

Different from fiat currencies, though, with Bitcoin, account numbers are free and one can have an endless amount of them. If somebody wants to be completely anonymous, they would use a new account number for every single transaction. Wallet or Account software would make it easy to keep track of them.

WannaCry made use of only three hard-coded account numbers:

Why didn’t WannaCry use a new account number for every instance of WannaCrypt0r to be installed? The answer might be: because in order to get the money from a Bitcoin account, one has to first generate the account number/private key pair, AND be in possession of the private key. Without the private key, they could not get their money: if the private key is being generated within WannaCrypt0r it would need to be communicated reliably where the hostage takers would have real-time access to it. That would give the perpetrators away. If the keys are generated somewhere in the cloud, the communication of private keys may be disguised in some layers of Darknet labyrinth, but it would be easy to shut them down by taking the key servers offline which would be easy to sniff. Also using hundreds or thousands of account numbers would not make it necessarily significantly more difficult for security experts to track payments.

The bigger question how can the perpetrators associate payment with a specific instance of WannaCry. With a uniquely generated account number that might be easy. But there does not appear any way to link the two, other than manually via the Contact Us button in WannaCrypt0r. In fact, the function of the Check Payment appears dubious at best. Supposedly, it is supposed to fetch the private key, but there is no public record of anybody ever having received it. The question is whether it actually works.

How would the perpetrators get the money after people paid ransom? Good question. Since transactions are public, we would know the account numbers to which the money is being transferred. In order to exchange the BTC into a fiat currency, the perpetrators would need to go to an exchange that are more and more government regulated. While a small-scale thug might slip through, the likelihood that a group of Lazarus’ size would stay anonymous is small. The WannaCry perpetrators also could exchange their account numbers for different ones in so called Mixer services as well in Account or Wallet services. Again, a small time thief might stay anonymous, but not when the NSA and every other state actor is after you.

In short, it is very possible that the WannaCry perpetrators never get their money. However, at the same time it is very possible that you never get the key either to recover your files. Even worse, your organization will be on the public record for having paid the extortionists, something which is not good publicity.

For so many reasons it is not a good idea to ever pay ransom, but specifically in the case of WannaCry is practically pointless.

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