September 9, 2021 By David Bisson 2 min read

Cryptomining has become a lucrative industry, growing more and more mainstream. Now, attackers are trying to grab a bit of that cash with apps that claim to automate it. But when downloaded, the apps don’t do anything except take your money.

Lookout found that a total of 172 apps, including 25 on Google Play, promised users cloud-based cryptomining services for a fee. In truth, those apps never delivered those services.

Take a look at how these apps succeeded in stealing over $350,000 from nearly 100,000 victims.

Inside the BitScam and CloudScam Apps

Lookout did a deep dive into two types of apps, which they sorted into the BitScam and CloudScam families. All of these used a similar code base and design as one another despite advertising different cryptomining operations.

“They are simply shells to collect money for services that don’t exist,” Lookout reported.

Lookout’s researchers observed that whoever had created the BitScam apps had done so using a framework that didn’t require programming experience. Both apps asked users to use Google Play’s in-app billing system to purchase cryptomining subscriptions and services. BitScam also allowed users to pay using bitcoin and Ethereum.

Once installed, the apps loaded a dashboard that displayed a fake hash mining rate as well as the amount of coins that the users had supposedly earned. They also informed users that they could increase their hash mining rate by purchasing other services or subscription upgrades.

It was all a ruse, of course. The in-app updates did nothing to change the mining ‘rate’ either.

What’s more, the apps prevented users from withdrawing any of their mined ‘coins’. The programs displayed a message saying that the withdrawal was pending, but in the background, the apps reset the user’s coin balance to zero.

Other Fake Cryptomining Apps

While cryptocurrency is in the public eye more now than when it began, this kind of app has been around for years. Back in 2018, for instance, security researcher Lukas Stefanko discovered four apps that all impersonated cryptocurrency services. They leveraged that guise to steal users’ cryptocurrency wallet credentials and/or to trick them into sending money to the attackers.

Several years later, Intezer Labs came across an operation targeting users with fake cryptocurrency-related apps. Once installed, those apps dropped ElectroRAT, a Golang-based malware strain which targeted Windows-, macOS- and Linux-based systems.

How to Defend Against Cryptomining Scam Apps

Security teams can help their organizations to protect their employees against threats like BitScam and CloudScam using ongoing awareness training. They can use it to educate their employees about mobile security best practices, such as downloading apps from trusted developers only and installing apps from only an official app store. They can also draw on threat intelligence to keep their users up to date on some of the newest mobile threats.

More from News

Cyberattack on American Water: A warning to critical infrastructure

3 min read - American Water, the largest publicly traded United States water and wastewater utility, recently experienced a cybersecurity incident that forced the company to disconnect key systems, including its customer billing platform. As the company’s investigation continues, there are growing concerns about the vulnerabilities that persist in the water sector, which has increasingly become a target for cyberattacks. The breach is a stark reminder of the critical infrastructure risks that have long plagued the industry. While the water utility has confirmed that…

CISA and FBI release secure by design alert on cross-site scripting 

3 min read - CISA and the FBI are increasingly focusing on proactive cybersecurity and cyber resilience measures. Conjointly, the agencies recently released a new Secure by Design alert aimed at eliminating cross-site Scripting (XSS) vulnerabilities, which have long been exploited to compromise both data and user trust. Cross-site scripting vulnerabilities occur when a web application improperly handles user input, allowing attackers to inject malicious scripts into web pages that are then executed by unsuspecting users. These vulnerabilities are dangerous because they don't attack…

Has BlackCat returned as Cicada3301? Maybe.

4 min read - In 2022, BlackCat ransomware (also known as ALPHV) was among the top malware types tracked by IBM X-Force. The following year, the threat actor group added new tools and tactics to enhance BlackCat's impact. The effort paid off — literally. In March 2024, BlackCat successfully compromised Change Healthcare and received a ransom payment of $22 million in Bitcoin. But here's where things get weird: Immediately after taking payment, BlackCat closed its doors, citing "the feds" as the reason for the…

Topic updates

Get email updates and stay ahead of the latest threats to the security landscape, thought leadership and research.
Subscribe today