Key takeaways

  • Pirated software often contains embedded malware such as ransomware, spyware and keyloggers that can steal sensitive data such as passwords, credit card information and even cryptocurrency wallet details.
  • Hackers use malicious programs hidden in pirated software to steal your crypto funds through methods such as keyloggers, remote access trojans (RATs) and clipboard hijackers.
  • Using pirated software can lead to legal issues, as it violates intellectual property rights and may result in fines or other penalties.
  • Pirated software doesn’t receive security updates, leaving you vulnerable to attacks. Plus, there’s no customer support to help resolve issues.

Have you ever been tempted to download pirated software because it’s free or significantly cheaper? Well, you’re not alone. Who doesn’t like free or expensive stuff, especially when it’s video games?

But here’s the catch: While you might save money upfront, you’re inviting many problems onto your computer. The risks are way higher than you might think, from malware to legal troubles. 

In fact, pirated software is a goldmine for hackers who can steal your data, passwords and even your crypto wallets. 

Sounds scary, right?

Let’s dive deep into what pirated software is, how crypto is stolen via pirated software, common techniques used in the process, and how to stay protected.

What is pirated software?

Pirated software is any program that has been duplicated, shared or utilized without the developer’s consent. It’s similar to illegal movie downloads, but instead of movies, it involves creating copies of software like Windows, Photoshop or video games.

Many choose pirated versions of software over authentic ones because they are either free or significantly less expensive. But the problem is that pirated software has significant associated risks. Hackers frequently embed ransomware, spyware and other malware in unauthorized copies of the software. 

Therefore, even if some high-end software is available for free, your computer and your personal information could be at risk. You may end up losing your passwords, crypto wallets and even your identity to hackers. Moreover, there is also the possibility of getting into legal issues if you’re discovered using pirated software.

Did you know? Ransomware attacks cost organizations an average of $2.73 million in 2024, a significant increase from $1.73 million in 2023. Despite this, 97% of affected organizations were able to recover their encrypted data. 

How does crypto theft work via pirated software?

The infection chain begins on questionable websites offering pirated versions of popular software, such as games, office tools or media download programs. Users often find these sites through search engines.

Typically, clicking on a link redirects the user through multiple sites before downloading an encrypted ZIP file with a simple password like “1234” to evade antivirus detection. This ZIP usually contains an executable file, often named “setup.exe” or “cracksetup.exe.”

Once executed, scammers scan the user’s computer, collecting sensitive information such as passwords, credit card details and data from electronic wallets. The encryption key for the ZIP file is embedded in the binary, making access to its content easy. Stolen data may include system details, installed software, screenshots and private browser information, including passwords or crypto extension data.

Techniques hackers use for crypto theft via pirated software

Hackers use pirated software to sneak in malware on devices. They insert potentially dangerous software keyloggers, trojans, ransomware and remote access tools into the files. When you download pirated software, these hidden programs serve as tools to steal sensitive data and even funds.

Keyloggers

Keyloggers are malicious software that secretly record your keystrokes, allowing hackers to steal passwords and other sensitive information. Hackers use this information for identity theft, financial fraud and other serious consequences.

Two main types of keyloggers are:

  • User mode keyloggers: These work by monitoring your keyboard and mouse inputs using Windows APIs. They require the hacker to actively track your keystrokes.
  • Kernel mode keyloggers: These are more advanced and difficult to detect. They operate at a deeper system level, making them harder to find and remove.

Keyloggers can be downloaded unknowingly through malicious software or by visiting compromised websites. They pose a serious threat to your online security and can lead to significant financial losses.

Remote access trojans (RATs)

RATs are software programs that let hackers take control of machines from a remote location. Hackers deploy RATs to enter victims’ computers or smartphones without authorization and steal personal data, private keys and cryptocurrency wallets.

Once installed, RATs give attackers the ability to secretly carry out harmful commands, take screenshots, and track keystrokes. Cybercriminals frequently use RATs via malicious websites, phishing emails or fraudulent software downloads to:

  • Steal private information such as credit card numbers, login passwords and personal files
  • Monitor online behavior and contaminate other programs
  • Interfere with computer or computer network operations.

To be safe, you should avoid sharing critical information over unprotected networks, update security software frequently, and exercise caution while downloading files.

Cryptolocker is a trojan horse that infects your computer and encrypts your files, including those on your hard drives and connected devices. SubSeven, Back Orifice and Poison-Ivy applications are some examples of remote control trojans.

Did you know? Agent Tesla was the most prevalent remote access trojan in the first half of 2023, accounting for 37% of cases, followed by Emotet with 30% and REMCOS with 5.5%.

How a RAT attack works

Ransomware

Pirated software may include backdoor threats that allow hackers to completely take over your device and lock your device until payment is made. Hackers may also use your device to infect other devices in the network, making it hard to trace them. Paying the ransom doesn’t ensure file recovery and may encourage further attacks.

WannaCry and Petya are notorious ransomware attacks that encrypt files on hundreds of thousands of computers. Attackers demanded a ransom in Bitcoin (BTC) to restore the encrypted files.

Malicious browser extensions

Browser extensions are like extra tools for your web browser, but some can be malicious, designed to exploit users for harmful purposes. Cryptocurrency users should be aware of the risk of malicious browser extensions. These extensions can act as credential stealers, informing hackers about your sensitive information when you log in to your crypto exchange or wallet, putting your funds at risk.

Rilide is an example of a malicious browser extension that targets browsers like Google Chrome, Brave, Opera and Microsoft Edge. This malware monitors browser activity, captures screenshots, and steals cryptocurrency by injecting malicious scripts into web pages. To avoid detection, it disguises itself as a legitimate Google Drive extension.

Rilide can bypass two-factor authentication (2FA) by tricking victims into entering their temporary codes through fake dialogs, allowing automatic cryptocurrency withdrawals. 

Mining malware

Crypto mining malware, called cryptojacking, leverages the processing power of your computer to mine coins for the hacker. Though it doesn’t steal directly, it discreetly earns cryptocurrency for the hacker, slowing down your computer in the process.

Hackers hid cryptocurrency mining software in cracked versions of games like NBA 2K19, Grand Theft Auto V and Far Cry 5. Between 2018 and 2021, hackers had mined over $2 million in Monero (XMR) cryptocurrency. The malware disabled security tools and Windows updates to secretly mine cryptocurrency.

Did you know? Over 6.06 billion malware attacks were detected worldwide in 2023, with the Asia-Pacific region experiencing the most. Worms, viruses, ransomware, trojans and backdoors were the most common types of malware blocked.

How crypto malware works

Clipboard hijackers

These are programs that run silently in the background, waiting for you to copy a crypto wallet address. When you paste the address, they replace it with one under the hacker’s control. Unknowingly, you end up sending crypto to their wallet rather than to your own.

CryptoShuffler is a malicious program that intercepts clipboard data and replaces legitimate wallet addresses with fake ones, targeting cryptocurrency wallets.

Different types of malware may be bundled into pirated software and work together to wreak havoc. For “free” software, it’s a pretty high price to pay.

Did you know? 2022 was the biggest year for crypto theft, with $3.7 billion stolen from crypto platforms. The largest known crypto hack that year was the Ronin Network hack, which resulted in the theft of more than $625 million in cryptocurrency.

Are there additional risks with pirated software?

Using pirated software, theft is not the only risk you face. You could also expect unexpected add-ons, frequent crashes and a lack of updates and customer support:

  • Unexpected add-ons: Harmful add-ons that come with pirated software may include tracking cookies. You may also end up getting troubled by pop-up ads and undesired monitoring of your activity. 
  • Frequent crashes: Pirated software may crash frequently due to built-in bugs. Additionally, authentic software comes with Digital Rights Management (DRM) software, which causes pirated versions to crash as a security measure against illegal copies.
  • No updates: Unauthorized use of pirated software means no access to important updates, leaving the software vulnerable, outdated and full of bugs. Systems you use may miss critical security patches.
  • No customer support: Companies using pirated software can’t access customer support, leaving them to deal with issues alone. If they report the problem, they face legal consequences, including hefty fines.

Did you know? In 2021, a hacker exploited a vulnerability in the Poly Network to steal $610 million in cryptocurrencies. Surprisingly, after the company’s public appeal on X, the hacker returned most of the funds, citing ideological reasons rather than financial gain.

How does malware in pirated software avoid detection by antivirus software?

Malware uses different ways to avoid detection from antivirus software. These include disabling antivirus applications, payload encoding, interacting in memory, obfuscation and malware hiding itself:

  • Disabling antivirus applications: Malware often tries to disable antivirus programs on the infected device. On Windows, it specifically targets Windows Defender, the built-in anti-malware tool. The Crackonosh malware not only disables antivirus programs and Windows Defender but also tricks users by placing a fake icon in the system tray. It further disables automatic updates, preventing the reactivation of security software.
  • Payload encoding: Cybercriminals can manually encode the malware payload, which is decoded upon activation, allowing the malware to cause damage.
  • Memory interaction: Malware can interact with antivirus software directly in memory, reducing the time available for scanning and analysis.
  • Obfuscation: By using obfuscation techniques, malware can alter or encrypt parts of itself to avoid detection by antivirus programs, as it no longer matches known virus signatures.
  • Hiding: Malware can disguise itself in various forms, such as hidden or corrupted files, or as a startup service to evade detection.

How to protect yourself against crypto theft via pirated software

To protect yourself against cryptocurrency theft through pirated software isn’t as hard as you might believe. Here’s what you need to do:

  • Don’t download pirated software: An ideal way to deal with a problem is not to let it start in the first place. Be careful about not downloading the pirated software. The risks of using pirated software outweigh the benefits.
  • Install reliable anti-malware and security software: You need to make sure that the anti-malware and security software you’re employing is credible. Before hackers cause harm, the security software should be able to identify and eliminate risks. Update your system patches and software on a regular basis. Your first line of security is to have upgraded software because hackers frequently target out-of-date systems.
  • Use a cold wallet: Keep large crypto holdings offline in a cold wallet. As this software isn’t connected to the internet, it’s less susceptible to hacking.
  • Set up two-factor authentication (2FA): 2FA adds an extra layer of security by requiring more than just a password. Common 2FA methods include one-time PINs (OTPs) from apps or hardware tokens, SMS codes, fingerprint scans and facial recognition.
  • Be aware of the threat: Hackers are always on the lookout for new ways to deceive victims, so keeping yourself on top of the latest happenings is important to avoid falling into their trap.

Above all, remember that the “free” price tag of pirated software can come with massive consequences. Your personal data, crypto wallets and even your device could be at serious risk. Plus, there’s no support or updates to fix problems. 

Is saving a few bucks really worth the potential headaches? Stick to legitimate software, keep your data safe, and avoid all that unnecessary trouble.