Crypto Malware Explained: What You Need to Know

When you’re looking to understand the various cyberthreats faced by your business, one term you’re likely to come across is crypto malware. While this previously referred to a specific type of malware, it has become an umbrella term covering two distinct threats: ransomware that encrypts files for ransom, and malicious software that hijacks systems to mine cryptocurrency.

While both types seek to infect systems for financial motives, the nature of the risk they pose to businesses is very different. Understanding all types of malware is critical for organizations aiming to protect their data, maintain system performance and avoid costly breaches.

As cybercriminals continue to evolve their tactics, being able to identify and defend against all forms of crypto malware is now an essential part of any strong cybersecurity strategy.

Malware continues to be one of the most persistent and dangerous threats facing businesses today. According to Microsoft, its customers experienced 600 million attacks every day in 2024, ranging from ransomware to phishing to identity attacks. Within this landscape, crypto malware has emerged as a major concern, posing a dual threat to businesses’ data security and operational resilience.

Crypto malware can be used to describe two main types of attacks. The first is crypto ransomware. This is where attackers infiltrate a system, encrypt critical files or entire drives, and then demand a ransom payment in exchange for the decryption key. These attacks can cause immediate business disruption, financial losses and reputational damage.

The second type is cryptomining malware. Instead of locking users out of their systems, this malware hijacks devices’ processing power to secretly mine cryptocurrency for the attacker’s benefit. Over time, this leads to system slowdowns, increased energy consumption and potential hardware failures.

Crypto ransomware is one of the most disruptive and financially damaging types of cyberattack businesses can face. Once it infiltrates a system, it encrypts valuable data – such as critical operational files or sensitive customer records – making them completely inaccessible without a unique decryption key, which attackers only offer in exchange for a ransom payment.

The infection process typically starts with a phishing email, malicious attachment, or drive-by download that exploits vulnerabilities in unpatched software. Once inside a network, crypto ransomware aims to spread laterally across systems, searching for and encrypting files across multiple devices to maximize impact. Some advanced strains may also disable backups or target high-value servers to increase the likelihood of ransom payment.

The consequences for businesses can be severe. Beyond the immediate operational shutdown, encrypted data can lead to significant financial losses, missed service obligations, regulatory fines and lasting reputational damage. Even if a ransom is paid, there is no guarantee that data will be fully restored. Indeed, the Ponemon Institute claims that only 13 percent of businesses that pay actually get all their data back.

Early detection is critical when dealing with crypto ransomware. While many attacks only become obvious once a ransom demand appears, there are warning signs that businesses can monitor to spot an intrusion before encryption takes place. Common signs to look out for include:

• Unusual network activity
• Spikes in CPU usage
• Unexplained file renaming
• Sudden changes to system permissions>

These can all indicate that ransomware is moving through a network. Endpoint detection and response (EDR) tools, along with robust system monitoring, are essential for identifying these threats at an early stage.

Secure, regularly tested backups are one of the most effective defenses against ransomware. This allows businesses to restore operations without paying a ransom. Additionally, ransomware decryptor tools can sometimes recover encrypted data. However, relying solely on decryption is risky, as many newer ransomware variants do not have such tools available and use encryption techniques that are not easily reversible.

Deciding whether to pay a ransom is a complex choice. Paying can sometimes lead to faster restoration of data, especially if backups are unavailable. However, there are no guarantees that criminals will provide working decryption keys and payment may encourage future attacks or expose the business to legal and regulatory risks.

Cybersecurity experts and law enforcement agencies generally advise against paying, instead emphasizing preparation, backup resilience and strong incident response planning as the best strategies for minimizing the damage of a crypto ransomware attack.

Unlike ransomware, cryptomining malware is designed to remain hidden for as long as possible, silently draining system resources. However, there are several clear warning signs that can help businesses detect infections early, such as:

• Unexplained system slowdowns or poor device performance
• Overheating hardware even during low-usage periods
• Spikes in CPU or GPU usage when idle
• Shortened battery life on laptops and mobile devices
• Unexpected network traffic to unknown servers

Monitoring system behavior and resource usage is key to identifying and isolating cryptomining malware before it causes serious operational impact.

Defending against crypto malware requires proactive action across every part of a business’ IT environment. Key steps include:

• Maintaining regular, secure backups that are isolated from the main network
• Applying patches and updates promptly to close known vulnerabilities
• Educating employees on how to recognize phishing emails and suspicious behavior
• Deploying strong endpoint detection and response (EDR) tools to monitor systems continuously
• Monitoring for early warning signs of abnormal system or network activity
• Deploying an anti data exfiltration (ADX) solution to prevent data from leaving a device or network
• Keeping incident response plans updated

No single measure can offer complete protection. Businesses need a comprehensive, layered security strategy that combines prevention, detection and rapid response to stay resilient against the evolving threats posed by crypto ransomware and cryptomining malware.