This software uses the computer’s power and resources to mine for cryptocurrencies or steal cryptocurrency wallets owned by unsuspecting victims.
What is Cryptojacking?Ĭryptojacking is malicious cryptomining that happens when cybercriminals hack into both business and personal computers, laptops, and mobile devices to install software. While cryptocurrency values are about one third of what they were a year ago, hackers can still make money by cryptojacking, stealing the computing resources of unsuspecting victims with much less risk of detection than other cybercrimes. This mining process is done by cryptominers, who use high-powered computing servers and specialized hardware to compute and use a hash function that allows the block to join the blockchain, earning their own cryptocurrency in return. Each time a cryptocurrency transaction happens, a cryptocurrency miner updates the blockchain and verifies that the information is authentic. Cryptomining is the process by which cryptocurrency transactions are added to the blockchain ledger, a time-stamped record of the activity. Simply put, cryptomining occurs when computer processing cycles are exchanged for money (cryptocurrency). The security of blockchains comes from there being only one record of the digital transaction, rather than being recorded in two different databases, like typical online transactions. After verification, the block is added to the chain and becomes a permanent record that can’t be modified, with the cryptocurrency being transferred to the receiver. When a user wants to send money to someone, the transaction is contained in a block, which is distributed over the network where it’s verified. These hashes are created by cryptominers using a hash function, which is a mathematical equation that converts data into a string of 64 characters. In a cryptocurrency blockchain, each of the blocks in the chain stores details and data about a transaction, including the receiver and sender, the number of coins involved in the transaction, and a cryptographic hash. The blockchain ledger is open for anyone to access. What is a Blockchain?Ī blockchain is a chain of information that timestamps digital transactions so they can’t be double-recorded or backdated. Cryptocurrencies have also resulted in the creation of supporting industries like cryptocurrency IRAs and crypto digital wallet businesses. But while Bitcoin is the most recognizable cryptocurrency, it’s not anonymous and payment activity can be traced as it moves back and forth.Ĭyberhackers involved in cryptojacking typically focus their efforts on cryptocurrencies such as Monero, Ethereum, and Zcash that have higher anonymity. The first cryptocurrency was Bitcoin, which is still one of the most valuable digital currencies. These cryptocurrencies are created by combining computer programs and computer processing power in what is known as blockchain technology. What is Cryptocurrency?Ĭryptocurrencies are encrypted digital currencies that can be used as online payment in exchange for goods and services. What is cryptocurrency? The concept can be confusing and complex, but to fully understand cryptojacking, it’s helpful to define the terminology behind cryptocurrency.
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Here’s what you need to know about cryptojacking, how it affects your online security and how to protect your business and personal computers to prevent them from being used for malicious intent. Easier and less detectable than ransomware attacks, cryptojacking allows cybercriminals to use compromised computing systems and networks to mine for cryptocurrencies. With the increase in the different types of cryptocurrencies and their rise in value, cybercriminals are quickly shifting their focus from ransomware to cryptojacking due to the lower risk and higher potential for financial gain. Since the creation of Bitcoin in 2009, many other cryptocurrencies have hit the market: as of December 2019, there were 2,995 different types of cryptocurrency.Īlong with the financial rewards of cryptocurrency also come new threats and risks. Bitcoin was the first cryptocurrency, allowing digital transactions to be accurately recorded.