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April 16, 2006

Internet Noir

In case you haven't heard, the internet is no longer a safe place. A few weeks ago someone posted a story like this one about Chinese sweatshops mining internet gold. Last year, there was also this story about virtual muggings.

Living in the city, we're probably too jaded to react to this story warning of the spread of the internet mafia...

Based on all the evidence gathered over the last two years, Dunham is convinced that groups of well-organized mobsters have taken control of a global billion-dollar crime network powered by skillful hackers and money mules targeting known software security weaknesses.

But, some of these quotes conjure old tymie images of smoke filled back rooms with illegal hooch, parlor games and cock fights:


Trojan Auction

"I saw one case where an undetectable Trojan was offered for sale and the buyers were debating whether it was worth the price. They were doing competitive testing to ensure it actually worked as advertised," said Jim Melnick, a member of Dunham's team.


Turf Wars

He has also seen fierce online confrontation in the battle to control the resources of infected computers. In November 2005, Mashevsky discovered an attempt to hijack a botnet. "[The] network of infected computers changed hands three times in one day. Criminals have realized that it is much simpler to obtain already-infected resources than to maintain their own botnets, or to spend money on buying parts of botnets which are already in use," he said.


Shakedowns

Dunham, who frequently briefs upper levels of federal cyber-security authorities on emerging threats, said there have been cases in Russia where mafia-style physical torture has been used to recruit hackers.

"If you become a known hacker and you start to cut into their profits, they'll come to your house, take you away and beat you to a pulp until you back off or join them. There have been documented cases of this," Dunham said.

Posted by t.ozawa at April 16, 2006 06:48 PM

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