Bitcoin Price Drop Sparks Surge in Cryptojacking Attacks

Author: Eric Johansson, dlnews; Compiler: Shan Ouba, Golden Finance

Summary

• Cryptojacking attacks will surge in 2023, while ransomware volumes will be at their lowest level since 2020, new research shows.
• The problem may have been exacerbated by falling bitcoin prices and small businesses downloading illegal content.
• SonicWall researchers say the attacks could be hiding something worse.

A spike in cryptojacking attacks when bitcoin prices fall could be a sign of worse to come, according to SonicWall researchers. These attacks turn victims' computers into unwitting crypto mining rigs. Bitcoin reached a high of $68,000 per coin in November 2021, then fell to a low of just over $16,000 per coin in 2022, and is currently hovering around $30,000.

This price slide could lead to more attacks in 2022 and a ninefold surge in the number of attacks in Europe in 2023. The reason for this is that the price of bitcoin, the world's largest cryptocurrency, has plummeted, making it difficult for miners to make a profit while maintaining operating costs.

Bobby Cornwell, vice president of product security at SonicWall, told DL News that legitimate miners "have sold their rigs on eBay and gotten out of the business because they were too expensive to maintain," while digital criminals are simply launching more cryptojacking attacks. Once a cryptocurrency has been mined, the currency itself is indistinguishable from legally mined bitcoin, which is why it is "virtually impossible" to determine how much cryptocurrency has been created through a cryptojacking attack. The entry of financial giants like BlackRock and Fidelity into the cryptocurrency space has created more bullish sentiment in the market.

However, cryptojacking attacks are unlikely to disappear as they allow criminals to gain new revenue streams by launching a new wave of other attack vectors while staying away from ransomware heists and law enforcement surveillance.

**What's Behind the Increase in Cryptojacking Attacks? **

The number of attacks in Europe in which cybercriminals install malware that turns victims' computers into unwitting cryptocurrency mining tools has increased significantly in recent years. According to SonicWall, such attacks have increased by nearly 790% in Europe this year, and by nearly 350% in North America. Overall, cryptojacking attacks worldwide surged nearly fivefold to more than 300 million attacks, a record for the full-year totals of the previous three years.

The number of cryptojacking attacks has grown every year since 2020, and the surge in early 2023 appears to be continuing. Bobby Cornwell, vice president of product security at SonicWall, pointed to drivers of the trend including law enforcement crackdowns on ransomware gangs, a plunge in the price of bitcoin and small and medium-sized businesses downloading illegal software.

Cryptojacking attacks are mostly relatively harmless and may slow down a device, but not cripple it as severely as other attacks. Therefore, these attacks may not be considered a significant threat to cybersecurity companies. However, this attitude could allow criminals to exploit code strings of cryptojacking malware to infiltrate infected networks and contaminate partner organizations.

The tightening of the market may also have led some small companies to inadvertently install malware in an attempt to save $800 on new software purchases by downloading illegal copies online, Cornwell said.

Law enforcement has been struggling to crack down on cybercrime this year. For example, the FBI announced in January that it had taken down the Hive ransomware operation, and in May seized nine cryptocurrency exchanges that were used to launder ransomware payments. These crackdowns have prompted cybercriminals to turn to cheaper and less risky attack methods, including cryptojacking, allowing them to limit the risk of detection while maximizing profit potential.

Ransomware is not gone

In the first half of 2023, SonicWall recorded approximately 140 million ransomware attacks, a 41% decrease compared to last year. Still, the company noted an increase in the number of attacks in April, May, and June, which could mean a potential ransomware rebound.

The warning echoes a recent report by research firm Chainalysis, which showed that online extortionists are on track to steal nearly $900 million in cryptocurrency by 2023. This shows that while ransomware attacks have declined in certain periods, cybercriminals are still looking for new opportunities to turn a profit. This situation reminds the cybersecurity industry of the need to remain vigilant and continuously take steps to prevent and combat malicious attacks such as ransomware. With the popularity of cryptocurrencies and their use in criminal activities, online security will continue to face challenges and require continuous improvement and innovation to maintain the security and stability of the network.