For example, you could encode harvested data (eg: keystrokes) as a DNS query for h28sdhnz890j1hadsl.sj12h89shbapqp8n15kl258.example.com. The TXT record you get back would be the server's response signed with the C&C server's private key. This is so that you can use multiple domains and rotate them in case one gets seized and the signed response prevents spoofing.
Such a system would be quite passive and likely to fly under the radar on most systems.