Financial Firms Increasingly Victimized by ‘Cryptojacking’ Attacks

Financial firms — including banks and trading houses — are becoming increasingly victimized in attacks where hackers aim to use their computer systems to mine cryptocurrencies.

These so-called “cryptojacking” attacks on financial companies more than tripled in the first half of 2022 compared to the same time a year earlier, according to a SonicWall report published Tuesday (July 26). The overall number of cryptojacking hacks was up 30% in the first half of the year to 66.7 million, per a Bloomberg report.

Cryptojackers use malware to gain access to computer networks and then use that access to mine cryptocurrency — which requires a costly investment in state-of-the-art equipment and vast amounts of electricity — often without the victim knowing they’re being hacked, the report said.

The financial industry was victimized by cryptojacking five times more than retail in the first six months of 2022, with retail being the second-most targeted vertical market, according to the SonicWall report. Governments are cracking down on ransomware attacks, which is also contributing to the increase in cryptojacking hacks.

“Unlike ransomware, which announces its presence and relies heavily on communication with victims, cryptojacking can succeed without the victim ever being aware of it,” the report said. “And for some cybercriminals feeling the heat, the lower risk is worth sacrificing a potentially higher payday.”

Cryptojacking attacks dropped by more than 50% in the second quarter of 2022 from the previous three months to 21.6 million, a typical dip that shows fewer attacks in the middle six months of the year before a spike in the last three months annually, according to the report.

The Federal Trade Commission reported $5.8 billion lost to fraud last year — an increase of more than 70% since 2020 — with 2.8 million consumers submitting fraud reports. Businesses primarily rely on “post-submit data,” including passwords, personal identification numbers (PINs) and biometrics, to counter these security threats.

Read more: Experts Say Single-Layer Fraud Systems Open Invitation for Fraudsters

Many of these methods have proven ineffective at stopping fraud, however, as at least 65% of consumers recycle passwords among several different accounts, for example.

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