Friday, January 4, 2008

Monster.com hit with another malware attack

For the second time in four months, Monster.com’s website has been victimized by hackers. The latest attack, believed caused by an IFRAME injection vulnerability, forced the jobs website to take part of its web presence offline Monday. The outage impacted much of the Monster Company Boulevard, where job hunters search for positions by company. Businesses involved in the attack include Eddie Bauer, GMAC Mortgage, Best Buy, Toyota Financial Services, and Tri Counties Bank, said Roger Thompson, chief technology officer at Exploit Prevention Labs, one of the early detectors of the attack.

Monster was hit by an IFRAME that linked out to a site that was throwing exploits at users, Thompson told SCMagazineUS.com. The attack, which likely took advantage of a cross-site scripting vulnerability, likely was created using Neosploit, a hacking toolkit similar to Mpack.

“It’s not clear exactly what exploits these are yet, because they infect the user’s PC wrapped inside a new form of encryption that we haven’t been able to see inside yet,” Thompson said.

Windows users whose PCs are patched as of April 2007 are safe from the exploit, he said.

“[It] probably caught corporate users more than anyone,” he added. “Corporate users tend not to patch as readily, while consumers tend to turn on auto patching.”

It is unclear who perpetrated the attack, but the Russian Business Network – an internet service provider said to offer “bulletproof” web hosting, often allegedly to criminal groups – is a prime suspect.

Monster, in a statement, said it did not believe the malicious code attack affected many users.

“The malware was designed to make computers running it part of a spamming network,” the statement said. “The virus is detectable by most major anti-virus software, and this issue should not affect users running Windows with the most recent security updates from Microsoft. In addition, we believe only an extremely small percentage of those using the site this week were potentially exposed prior to those pages being cleaned.”

Monster also made news in August, when it said that hackers had penetrated its database and stolen personal information of job hunters. They then used that information to send targeted emails with fraudulent job postings, or attempted to deceive recipients into downloading malicious software.

Hacker created 250,000-strong botnet army

A hacker faces 60 years in prison and a $1.75m fine after pleading guilty to infecting hundreds of thousands of computers with malware in order to steal money from Paypal accounts. John Schiefer, 26, admitted that he and some associates developed malware that allowed them to create botnet armies of as many as 250,000 computers. Schiefer was able to collect information sent from the infected computers, including usernames and passwords for Paypal accounts. He and his associates were then able to make purchases using the Paypal accounts. They also shared the password information with others.

This is the first prosecution of a hacker for this type of activity, according to the US Attorney’s Office for the Central District of California. The Federal Bureau of Investigation pursued the case.

Schiefer says he also found Paypal usernames and passwords using malware that could access usernames filed in a secure storage area on the computers. The malware would send that information to Schiefer, who used it to access the accounts.

Schiefer also acknowledged fraudulently earning more than $19,000 from a Dutch internet advertising agency that hired him as a consultant. He was supposed to install the company’s programs on computers after receiving consent from computer owners. Instead, he and his associates installed it on 150,000 computers that were infected with his malware.

Schiefer is scheduled to appear in the US District Court in Los Angeles on November 28 and be arraigned on December 3.

US Security: NSA Hacks. DHS Spams!

Recent reports point out that the United States National Security Agency will get back at any hacker trying to mess up their systems. Also, it is a known fact that they hack their way into different communication networks to wiretap – they’re just monitoring any possible terrorist conversation. Now, these are just security measures, and though the second is violating privacy, they can’t be called something bad.

However, things are different when it comes to the Department of Homeland Security. The people in their IT department seem to be lacking some skill. As the Register informs, a botched up attempt for one subscriber to change the e-mail address that he was using to receive messages caused a storm in the DHS mailing list, yesterday.

What happened is that instead of sending the message just to the administrators, he clicked on the wrong button. Unfortunately, that button was labeled “reply to all”, and as you’ve probably figured out by now, all the people subscribed to that particular report got his request. A lot of messages continued afterwards, all being sent to the full list of subscribers via what was supposed to be a DHS report service.

Is it normal for people in charge of a country’s security to be this sloppy? A moderated mailing system would have made such a mess virtually impossible, but it seems that they never cared about this. Users that don’t care about security are something we’ve all gotten used to, but to see that even such a great organization doesn’t give a damn about their mailing system is somewhat disturbing.

This also led to the disclosure of the e-mail addresses of the members in the list, as the Register pointed out. I doubt that anyone with malicious intentions was amongst those people, but one could have exploited this in a malicious way. Some problems pop up, just because small matters are not taken into consideration!

Chilean presidency Web page hacked.......!

SANTIAGO, Chile (AP) A hacker broke into the Web page of Chile’s presidency and planted the flag of neighboring Peru, leaving the site inoperable for about 18 hours until it was restored Monday. The intruder left a message - “Long live Peru,” followed by an expletive - as well as the flag around midday Sunday. Officials took the site down a few minutes later, leaving a notice: “Because we want to give a better service, we are working for you.”

The site was restored Monday morning.

Carlos Portales, political director of the Chilean foreign ministry, said the incident is being investigated.

“It has happened with other Web pages, including some from the United States government, the Vatican,” Portales told reporters.

The Santiago daily El Mercurio on Monday reported that officials believe the hacker was a Peruvian.

While Chile and Peru have generally friendly relations, tension sporadically breaks out over the aftermath of two 19th century wars between the countries and a dispute over maritime boundaries has been developing.

The Web page carried information about activities of President Michelle Bachelet and about the upcoming Ibero American Summit for leaders from throughout Latin America, Spain and Portugal. Portales said the incident does not appear related to the summit.

Hacker uses public APIs to breach eBay

eBay has begun an audit of its IT systems after a hacker managed to access and disable user accounts. The company said last week that the hacker exploited public application programming interfaces (APIs) that enable merchants to build e-commerce sites on top of eBay. “This fraudster found very old administrative interfaces into the eBay system that had not been deactivated when we changed the security of our internal systems several years ago,” a member of the company’s trust and safety division said in a posting on an eBay blog.

Hackers crawling over the web

The web is getting bigger, but also more dangerous. In the early days, it was like the Wild West – there were dangers out there, but if companies kept their wits about them and knew the basics of self-defence, they could get by.
Not anymore. Security experts are already looking back on 2006 as the year that web threats matured and became increasingly sophisticated. It was a year in which organised cyber criminals increasingly turned their attention away from email towards web traffic as their target of choice.

Last year saw an aggressive rise in web attacks. According to ScanSafe’s Annual Global Threat Report, spyware increased by 254 per cent in 2006, eclipsing email threats for the first time. The boundaries between spyware, adware and viruses have become blurred and criminals are now targeting multiple internet platforms with more focused, financially-oriented attacks.

For many malware authors, their motives have shifted from a desire to show off their technical prowess or create anarchy, to a greed-driven search for money. In 2006, over 65 per cent of web virus payloads were intended to achieve some direct financial benefit.

Last year also saw web 2.0 increasingly under siege, with hackers targeting social networking sites, chat rooms, popular search engine results and instant messaging.

The sheer scale of these threats has taken many corporate IT departments by surprise, as they grapple with balancing security and liability concerns with the realisation that the web is a mission-critical business communications tool.

The clear message is that businesses can no longer rely solely on traditional IT security solutions on the desktop or corporate network. Anti-virus software, firewalls and intrusion protection systems are valuable shields, but they are not impervious to today’s socially engineered, pernicious web threats.

IT departments are already taking action. Many companies have had help in scanning and filtering email traffic for some years. Now they are looking for help with their web traffic.

According to a recent survey of companies that already buy in managed IT services, 2007 will see a focus on security. The study from the Computing Technology Industry Association found that 33 per cent planned to increase their spending on managed security services. The reasons they gave are the traditional ones – the lack of in-house skills, more cost-effective and it enables them to concentrate on their core competencies.

These findings are backed by another recent report from industry analyst group Frost & Sullivan. It sees the managed security services market in EMEA soaring from $81.7m in 2005 to $603.7m in 2012.

If this suggests that the next five years will be a challenging, but rewarding period for web security-as-a-service providers, it also means plenty of opportunities for channel partners.

IT departments are finding that managed web security services are scaleable, flexible, have a lower total cost of ownership compared to hardware and software solutions and free up valuable network bandwidth. In fact, most customers report a 30-40 per cent saving over on-premise solutions.

For the channel, web security-as-a-service offers quick entry into the lucrative managed services security market. Because it doesn’t require investment – in development, infrastructure or hardware – it also provides a painless way for resellers to add web security to their portfolio of solutions.

Managed services also offer recurring revenue for channel partners, which is especially appealing given the declining margins of premise-based solutions. Hardware and software web security solutions have attained a certain maturity in their lifecycle and saturation in the marketplace. As a result, the margins on hardware and software solutions have steadily declined. This is not the case with web security-as-a-service, a relatively new offering with wide appeal across industry verticals and among SME businesses as well as larger enterprise accounts.

The net result for channel partners is that managed security services help boost gross margins and offer an easier, more cost effective way for customers to conquer web-based threats.

VoIP gets hacked

Have you jumped on the VoIP bandwagon? Secure? Think again as US hacker is jailed for 2 years after breaching security at 15 separate telcos with ‘incredible ease’

‘Evil’ Techie genius Robert Moore has recently been jailed in the US after exposing tremendous flaws in tens of telcos IT infrastructures stating it was ‘incredibly easy’ because of basic IT security mistakes.

His global hacking spree was targeted at telcos and corporations aiming to allegedly steal voice over IP services and sell them through a company he was working for.

“It’s so easy. It’s so easy a caveman can do it,” he laughed.

“When you’ve got that many computers at your fingertips, you’d be surprised how many are insecure.”

It has been reported that he stole 10 million minutes of service and re-sold them at discounted rates, netting more than $1 million from the scheme although only receiving $20,000 personally for his efforts.

AT&T reported at the trial that Moore ran 6 million scans on its network alone, aliases have been used for the other companies that were successfully targeted in an attempt to sure up confidence in their services.

One small telco went out of business because of expenses the company incurred due to the amount of traffic Moore was responsible for diverting through their network.

Moore said what made the hacking job so easy was that 70% of all the companies he scanned were insecure, and 45% to 50% of VoIP providers were insecure.

The biggest insecurity? Default passwords.

“I’d say 85% of them were misconfigured routers. They had the default passwords on them,” said Moore. “You would not believe the number of routers that had [Removed] or [Removed] as passwords on them.

We found the default password for it, and basically we could get in almost every time. Then we’d have all sorts of information, basically the whole database, right at our fingertips.”

Time to do a free security check on all your clients servers?

Hackers use ‘construction kit’ to unleash Trojan variants

Multiple hacker groups are using a “construction kit” supplied by the author of a Trojan horse program discovered last October to develop and unleash more dangerous variants of the original malware. Already such variants have stolen sensitive information belonging to at least 10,000 individuals and sent the data to rogue servers in China, Russia and the United States, according to Don Jackson, a security researcher at SecureWorks Inc. of Atlanta. The stolen data includes Social Security numbers, online account information, bank account and credit card numbers, user names and passwords and other data that users would usually input during an SSL session.

The Prg Trojan, as it has been dubbed by SecureWorks, is a variant of another Trojan called wnspoem that was unearthed in October. Like its predecessor, the Prg Trojan and its variants, are designed to sniff sensitive data from Windows internal memory buffers before the data is encrypted and sent to SSL-protected Web sites. The Trojans are programmed to send the stolen data to multiple servers around the world where it is stored in encrypted fashion and sold to others looking for such information. An analysis of log files on the servers storing the stolen data shows that a lot of the information is coming from corporate PCs, Jackson said.

The variants include a new function that allows them to listen on TCP port 6081 and wait for a remote attacker to connect and issue commands for forwarding data or for rummaging through files on the compromised system, Jackson said. The newer variants are also more configurable and can be programmed to send stolen data to their final destination via a chain of proxy servers. The new Prg variants encrypt stolen data differently than the original version, making older analysis tools obsolete, Jackson said.

What makes the threat from the Prg Trojan especially potent is the availability of a construction tool kit that allows hackers to develop and release new versions of the code faster than antivirus vendors can devise solutions, Jackson said. The toolkit allows hackers to recompile and pack the malicious code in countless subtly different ways so as to evade detection by antivirus engines typically looking for specific signatures to identify and block threats, Jackson said.

The toolkit appears to have been developed by the Russian authors of the original wnspoem Trojan and comes complete with a three-page instruction manual in Russian instructing buyers how to use it. Originally, the kit appears to have been sold to other hacker groups for around $1,000. But more recently it appears to have been posted on an underground site, where others have been downloading and using it, Jackson said.

“The hackers are literally infecting thousands of users with one particular variant and once that version of the Trojan is blocked by antivirus, the hackers simply launch a new one in its place,” Jackson said. One of the groups using the construction kit has been naming their attacks after makes of cars, including Ford, Bugatti and Mercedes, according to a SecureWorks description of the Trojan. The group has been spreading versions of the Trojan by taking advantage of vulnerabilities in the ADODB database wrapper library and other components of Windows and Internet Explorer, according to SecureWorks. That group alone may have snared data from more than 8,000 victims. Data stolen by this group’s Trojan’s are sent to servers based in the U.S and China, according to SecureWorks.

Another group using the toolkit has been naming its attacks using the letter “H” and has sent its variants via spam e-mails to various individuals, SecureWorks said. One recent attack involved an e-mail with a subject line reading “HAPPY FATHER’S DAY.” Data stolen by this group’s Trojans is being sent back to servers in Russia. According to Jackson, many of those servers have separate staging areas on them with multiple versions of Prg Trojan programs that can be released as older versions get detected by antivirus software.

Safari for Windows gets more patches

The recently-launched Apple browser, Safari for Windows, has received its second lot of patches since its debut earlier this month. Apple has posted the latest version of the beta software, 3.0.2, on its website, containing security fixes as well as other tweaks. The browser was first released by chief executive Steve Jobs at the company’s Worldwide Developers Conference earlier this month. Within days, security vulnerabilities had been unearthed by researchers, prompting the Mac maker to issue its first patch batch. Just over a week later, and Apple has released a second security upgrade.

The quickly-forthcoming nature of Apple’s patches has divided opinion among industry watchers, with some praising the company’s quick response to flaws and others criticising the fact they have appeared at all.

According to James Turner, industry analyst at IBRS, the question of security updates is not likely to be one bothering businesses.

“The majority of Safari users are the people who will readily chop and change their browser. They are the technically advanced, the home users, the curious, and the Apple fanatics. So, the bugginess of Safari is more of an inconvenience to the early adopters, rather than a serious issue. Yes, it’s sloppy, but it’s not that important. The stakes will increase dramatically if the iPhone starts getting similar market share to the iPod,” he said.

The second security update fixes a flaw that could allow malware writers to spoof the contents of the browser’s address bar, potentially fooling users into divulging sensitive information such as online bank details and passwords. The issue does not affect Macs running the browser.

The latest version of the Safari beta for Windows includes improved stability and fixes for text display, non-English systems and start-up times. Its Mac equivalent also contains security plugs and boosted stability, as well as better WebKit support for Apple’s Mail, iChat and Dashboard software.

The security element of the Mac Safari patch plugs a hole that could allow cross-scripting attacks to be launched if a user visits a malicious website.

Al Gore Website Hacked!

Do you want to buy some medicines? Maybe a pill of Viagra at the lowest price on the market? Or maybe some Valium? All you need to do is to visit Al Gore’s “An Inconvenient Truth” film blog and you might find some unexpected goodies (not!). Robert McMillan of IDG News Service reported that the blog was hacked a few days ago, the attackers publishing tons of links to other websites selling Viagra, Xanax, Valium and some other drugs. Just like a spam method, the attackers tried to drive traffic to their website but what’s more important and dangerous in the same time – they may have managed to get a higher position in the search engine results. This would obviously bring more users searching for certain keywords, as it’s well known the fact that top search engines such as Google and Yahoo drive a huge traffic to webpages.

Since high-rated websites such as Al Gore’s film blog includes links to other pages, their PageRank is automatically increased due to search engine’s algorithms which analyze the number of backlinks for every single site.

Getting back to the hack, it seems that the entire exploit was conducted through a WordPress vulnerability, the blog publishing technology implemented on “An Inconvenient Truth”.

What’s interesting about this hack is that the weblinks to the Viagra websites were not visible to the visitors because they were implemented only to affect the search engine rankings. According to the same source, the hidden links could have been analyzed by the crawlers but the visitors couldn’t have accessed them unless they opened the page source.

But there’s also a good thing about this hack: there’s no virus, worm, Trojan horse or any other infection published on the website, although the hackers could have inserted a dangerous code pretty easy since they got access to the content.

Did You Try Hacking Your Ex-Company?

Many companies are afraid of ex-employees who got access to the internal security technologies, passwords or computers, a survey conducted by Citrix revealed. No less than 49 percent of the respondents considered that IT engineers or employees who worked in the security departments are a real threat for the Irish companies. In addition, 51 percent of them considered that hackers and malware represent a bigger threat than the angry employees while 52 percent voted for phishing attacks. 57 percent of the respondents said the DoS attacks are also a serious threat for the companies’ computers.

“Organisations must ensure that their corporate data is centrally managed and delivered to users just as needed. This is the most effective way to help prevent security threats such as those revealed in the survey. By implementing technology such as virtualization from the desktop to the data centre, organizations can isolate different environments with varying levels of access and security, and can securely manage and deliver applications to the end user,” said Chris Mayers, security architect for Citrix, according to The Register.

There’s not much to say about this report because the companies have every reason to fear that ex-employees who worked with the internal passwords and other technologies could infiltrate and access the private data. However, this is where the security products are recommended because any company that chooses to block or restrict somebody’s access can easily install such a tool and filter the persons accessing the computers.

In addition, it would be a great idea to change the passwords and other private credentials but I believe this would be a difficult job in a large company with numerous servers and passwords. Sure, hacking your ex-company’s computer is an illegal activity but imagine that such an expert who worked as an engineer for a famous brand knows every little aspect of the security system and could easily get into the computers without leaving traces of breaking the protection.

Al Gore Website Hacked!

Do you want to buy some medicines? Maybe a pill of Viagra at the lowest price on the market? Or maybe some Valium? All you need to do is to visit Al Gore’s “An Inconvenient Truth” film blog and you might find some unexpected goodies (not!). Robert McMillan of IDG News Service reported that the blog was hacked a few days ago, the attackers publishing tons of links to other websites selling Viagra, Xanax, Valium and some other drugs. Just like a spam method, the attackers tried to drive traffic to their website but what’s more important and dangerous in the same time – they may have managed to get a higher position in the search engine results. This would obviously bring more users searching for certain keywords, as it’s well known the fact that top search engines such as Google and Yahoo drive a huge traffic to webpages.

Since high-rated websites such as Al Gore’s film blog includes links to other pages, their PageRank is automatically increased due to search engine’s algorithms which analyze the number of backlinks for every single site.

Getting back to the hack, it seems that the entire exploit was conducted through a WordPress vulnerability, the blog publishing technology implemented on “An Inconvenient Truth”.

What’s interesting about this hack is that the weblinks to the Viagra websites were not visible to the visitors because they were implemented only to affect the search engine rankings. According to the same source, the hidden links could have been analyzed by the crawlers but the visitors couldn’t have accessed them unless they opened the page source.But there’s also a good thing about this hack: there’s no virus, worm, Trojan horse or any other infection published on the website, although the hackers could have inserted a dangerous code pretty easy since they got access to the content.

Did You Try Hacking Your Ex-Company?

Many companies are afraid of ex-employees who got access to the internal security technologies, passwords or computers, a survey conducted by Citrix revealed. No less than 49 percent of the respondents considered that IT engineers or employees who worked in the security departments are a real threat for the Irish companies. In addition, 51 percent of them considered that hackers and malware represent a bigger threat than the angry employees while 52 percent voted for phishing attacks. 57 percent of the respondents said the DoS attacks are also a serious threat for the companies’ computers.

“Organisations must ensure that their corporate data is centrally managed and delivered to users just as needed. This is the most effective way to help prevent security threats such as those revealed in the survey. By implementing technology such as virtualization from the desktop to the data centre, organizations can isolate different environments with varying levels of access and security, and can securely manage and deliver applications to the end user,” said Chris Mayers, security architect for Citrix, according to The Register.

There’s not much to say about this report because the companies have every reason to fear that ex-employees who worked with the internal passwords and other technologies could infiltrate and access the private data. However, this is where the security products are recommended because any company that chooses to block or restrict somebody’s access can easily install such a tool and filter the persons accessing the computers.

In addition, it would be a great idea to change the passwords and other private credentials but I believe this would be a difficult job in a large company with numerous servers and passwords. Sure, hacking your ex-company’s computer is an illegal activity but imagine that such an expert whoworked as an engineer for a famous brand knows every little aspect of the security system and could easily get into the computers without leaving traces of breaking the protection.

Report finds worms in decline

Computer worms, responsible for some of the worst virus outbreaks in recent years, are declining as hackers look to make money instead of inflicting damage, a new report claims. According to latest malware audit from security firm PandaLabs, worms are now heavily outnumbered by malicious codes such as adware or Trojans, which currently make up 49 percent of all detected infections.

During October 2007, worms made up only 8.31 percent of detected threats, down from 18.14 percent in November 2006. Adware and Trojans, on the other hand, accounted for 25.97 percent and 23.37 percent respectively of all threats detected last month.

“Crashing computer networks might seem like an achievement, but it proves less profitable to an individual than obtaining sensitive confidential information,” said Dominic Hoskins, a representative of Panda Security UK.

“Malware sophistication still remains key to overcoming anti-viruses and firewalls, but it is the new strategic approach to malware attacks that matters. This new approach is both financially motivated and involves building malware from scratch for a specific target.”

Trojans have become particularly popular because of their ability to generate more profit from the theft of information, which is then used for online fraud and spam.

Man, This Is Smart! A Windows Infection That Gives Remote Control to The Hacker!

We’ve seen similar infections in the past, but since this is pretty new, it might manage to bypass the antivirus protection and install on your computer. Security company Trend Micro discovered BKDR_DARKMOON.AH, a new backdoor affecting the Windows operating systems which attempts to open a port in order to allow the hacker to connect to your computer. Basically, it can open any port it wants and, since there are so many remote control technologies available out there, it can easily allow its creator to control your system.

The backdoor affects most Windows versions including Windows 98, ME, NT, 2000, XP, Server 2003. But what’s more important is that it has a high damage potential bundled with a medium distribution potential. Sure, it has a low overall risk rating, but it’s still dangerous for our computers since it provides remote access to the attackers.

“This backdoor may be dropped by other malware. It opens a random port to allow a remote user to connect to the affected system. Once a successful connection is established, the remote user executes commands on the affected system”, Trend Micro wrote in the advisory.

“Upon execution, this backdoor injects itself into the Internet Explorer process and sets up an obfuscated connection to [website], which currently resolves to [IP], to notify a remote user of the system it has compromised.”

Since the backdoor is pretty new, there are no infections reported. However, you’re still advised to keep your antivirus up-to-date with the latest virus definitions and avoid visiting malicious websites coming from unknown sources.

Most of the antivirus developers quickly update their solutions to provide support and disinfection for the reported threats so that you are protected as soon as possible. In case you don’t have an antivirus solution installed on your computer, you can get one straight from Softpedia by visiting our Antivirus category.

Wednesday, January 2, 2008

How to Detect a Hacker Attack

Most computer vulnerabilities can be exploited in a variety of ways. Hacker attacks may use a single specific exploit, several exploits at the same time, a misconfiguration in one of the system components or even a backdoor from an earlier attack.

Due to this, detecting hacker attacks is not an easy task, especially for an inexperienced user. This article gives a few basic guidelines to help you figure out either if your machine is under attack or if the security of your system has been compromised. Keep in mind just like with viruses, there is no 100% guarantee you will detect a hacker attack this way. However, there's a good chance that if your system has been hacked, it will display one or more of the following behaviours.

Windows machines:

  • Suspiciously high outgoing network traffic. If you are on a dial-up account or using ADSL and notice an unusually high volume of outgoing network (traffic especially when you computer is idle or not necessarily uploading data), then it is possible that your computer has been compromised. Your computer may be being used either to send spam or by a network worm which is replicating and sending copies of itself. For cable connections, this is less relevant - it is quite common to have the same amount of outgoing traffic as incoming traffic even if you are doing nothing more than browsing sites or downloading data from the Internet.
  • Increased disk activity or suspicious looking files in the root directories of any drives. After hacking into a system, many hackers run a massive scan for any interesting documents or files containing passwords or logins for bank or epayment accounts such as PayPal. Similarly, some worms search the disk for files containing email addresses to use for propagation. If you notice major disk activity even when the system is idle in conjunction with suspiciously named files in common folders, this may be an indication of a system hack or malware infection.
  • Large number of packets which come from a single address being stopped by a personal firewall. After locating a target (eg. a company's IP range or a pool of home cable users) hackers usually run automated probing tools which try to use various exploits to break into the system. If you run a personal firewall (a fundamental element in protecting against hacker attacks) and notice an unusually high number of stopped packets coming from the same address then this is a good indication that your machine is under attack. The good news is that if your personal firewall is reporting these attacks, you are probably safe. However, depending on how many services you expose to the Internet, the personal firewall may fail to protect you against an attack directed at a specific FTP service running on your system which has been made accessible to all. In this case, the solution is to block the offending IP temporarily until the connection attempts stop. Many personal firewalls and IDSs have such a feature built in.
  • Your resident antivirus suddenly starts reporting that backdoors or trojans have been detected, even if you have not done anything out of the ordinary. Although hacker attacks can be complex and innovative, many rely on known trojans or backdoors to gain full access to a compromised system. If the resident component of your antivirus is detecting and reporting such malware, this may be an indication that your system can be accessed from outside.

Unix machines:

  • Suspiciously named files in the /tmp folder. Many exploits in the Unix world rely on creating temporary files in the /tmp standard folder which are not always deleted after the system hack. The same is true for some worms known to infect Unix systems; they recompile themselves in the /tmp folder and use it as 'home'.
  • Modified system binaries such as 'login', 'telnet', 'ftp', 'finger' or more complex daemons, 'sshd', 'ftpd' and the like. After breaking into a system, a hacker usually attempts to secure access by planting a backdoor in one of the daemons with direct access from the Internet, or by modifying standard system utilities which are used to connect to other systems. The modified binaries are usually part of a rootkit and generally, are 'stealthed' against direct simple inspection. In all cases, it is a good idea to maintain a database of checksums for every system utility and periodically verify them with the system offline, in single user mode.
  • Modified /etc/passwd, /etc/shadow, or other system files in the /etc folder. Sometimes hacker attacks may add a new user in /etc/passwd which can be remotely logged in a later date. Look for any suspicious usernames in the password file and monitor all additions, especially on a multi-user system.
  • Suspicious services added to /etc/services. Opening a backdoor in a Unix system is sometimes a matter of adding two text lines. This is accomplished by modifying /etc/services as well as /etc/ined.conf. Closely monitor these two files for any additions which may indicate a backdoor bound to an unused or suspicious port.

Credit card fraudsters jailed in UK

The UK’s largest ever credit card fraud gang has been dismantled in London. The fraudsters, who could have netted an estimated £17m, received jail sentences from a judge who called their offences “very serious. A total of five people, all from Eastern Europe, were involved in the scam.

Gang leader Roman Zykin, an illegal immigrant from Russia, was jailed for five and a half years and recommended for deportation at the end of serving his sentence. Two Polish men were also jailed for three and four years respectively, while Estonian “link man” Hannes Pajasalu will serve two years. At a previous hearing Zykin’s wife, Malgorzata, received a six month sentence. The investigation into the gang’s activities lasted for 18 months and spanned several continents, as the FBI, Europol, Estonian police and other authorities and banking bodies, aided UK police in the task of bringing the five to justice. The search for the five culprits was hampered by the gang using sophisticated encryption techniques to hide their electronic traces. Interestingly, the investigation was triggered by a routine stop and search of Roman Zykin by an anti-terrorist patrol at Victoria Station in London, when dozens of mobile phone top-up cards were found in his possession.

The authorities believe the group, which was highly organized and skilled, had access to tens of thousands of stolen credit card numbers, which were held on their state-of-the-art computer systems. According to the police, these numbers were mainly sourced from the US, where hackers stole them in a major attack on a database. Prosecutors have so far tracked some £150,000 in criminal transactions but expect the losses to be much higher, as these fraudsters could afford a lavish life in Britain and abroad, staying in £900,000 mansions and going on five-star holidays abroad. However, for the next few years these cybercriminals will have to holiday in jail.

Estonia arrests first hacker over cyberattacks

A teenage resident of Tallinn has been arrested by Estonian police in connection with a wave of Denial of Service attacks that disrupted the functioning of the country's Internet servers. The attacks were linked to a diplomatic stand-off between Estonia and Russia over the relocation of a Soviet-era war memorial in the Baltic state's capital. Protests from the local Russian minority spilled over from the streets of Tallinn, where one person died and more than 150 were arrested, onto the Internet: official web portals were hacked and access to them blocked.

Following days of disturbances a tense calm has now descended over Tallinn, and Estonian police have now reported their first arrest in connection with the Internet attacks. According to a spokesperson for the prosecutor's office, a 19-year-old of Russian origin has been arrested in Tallinn. The teenager was allegedly involved in posting calls for DoS attacks on Estonian sites and providing IP addresses for official sites that he wanted targeted.

Despite the fact that many attacks may have have come from abroad, Estonia intends to use all means at its disposal to bring those responsible for blocking the country's key Internet portals to justice. This means that this first arrest may certainly not be the last in the Estonian investigation - the authorities are still trying to find the perpetrators, and according to official sources many leads can be traced to Russia. Ivo Kolk, from the Central Criminal Police, said that the main attack routes were traced by his department in cooperation with other state services and private security professionals.

Russian news sites suffer DoS attacks

The websites of Kommersant, a leading Russian newspaper and the Echo of Moscow radio station suffered massive Denial of Service attacks between 1st and 2nd of May, leading to significant disruption. The two sites were unavailable for most of the day on Wednesday in what some have already termed as revenge attacks for the political views of the editors in these news outlets.

According to reports in Russian media, the first signs of trouble on the Echo of Moscow site appeared late on May 1st, which is a public holiday in Russia. A second DoS attack was registered by network administrators on May 2nd. Shortly afterwards, the Kommersant site also went down, leading to speculations about possible links between the two incidents. Service on both sites was restored by administrators later in the day.

Pavel Chernikov, editor in chief of the Kommersant website, said the attack had not yet been traced, and that the perpetrators remained anonymous. However, in statements to the news site Lenta.ru, he mentioned his belief that the attacks might be linked to the publication of a police interview with the exiled oligarch Boris Berezovsky. The interview was carried out in London at the request of the Russian prosecution service investigating the death last year of Alexander Litvinenko from radiation poisoning.

Hackers target official Estonian portals in conflict over Soviet-era monument

Websites in Estonian cyberspace have been placed on high alert since the past weekend following recent street clashes in the capital Tallinn between government forces and demonstrators over a Soviet-era monument to an unknown soldier. Following two nights of disturbances in which one man was confirmed dead, more than 150 injured and some 800 arrested the confrontation spilled over into the cyberdomain, where many attacks on Estonian websites were registered since last Friday.

According to reports in Russian and Estonian media the situation was so bad that access to the official government portal of the Estonian Republic has been restricted for users from external IP numbers. Other sites including that of the President, Ministry of Internal Affairs and the Parliament were also partially blocked over the weekend.

On Saturday the Internet portal of the ruling Estonian Reform Party was also infiltrated by hackers, who published a supposed apology and promise to return the soldier's statue to its original place from Estonia's Prime Minister Andrus Ansip. Mr Ansip is widely seen in Russia to be the person responsible for the removal of the Soviet-era monument from its former site in the centre of the capital. The party's website was still down on Monday morning, and Estonian citizens were also warned to check any information they received from government Internet portals, as these could also be compromised by external attacks.

"Bumbling" hacker speaks out at Infosec

Gary McKinnon, the "bumbling nerd" who is due to be extradited to the US where he should face criminal charges over his illegal access to secret government computer networks, has appeared on a hacker's panel at the Infosec show in London. McKinnon lost his penultimate appeal at the UK's High Court at the beginning of April and could face some 70 years in a US jail as well as a significant fine over his hacking exploits of six years ago. His only open avenue left is with the Court of Appeal, which will decide whether to allow his extradition case to go before the House of Lords for a final hearing before the extradition finally goes through.

The Scot, who admitted breaking into military and NASA networks on many occasions between 2001 and 2002, spoke about the extradition process in what some American officials have called "the biggest military hack ever". At the Infosec show Mr McKinnon, who has always claimed that he was never out to cause any harm and had been merely looking for evidence of an official US government cover-up regarding UFOs, spoke of his belief that the US authorities have hiked the alleged damages caused by his hacking. According to McKinnon, the estimated $700,000 of damage is too large a sum, particularly as the cost of each machine he broke into has been set at $5,000, much higher than the actual market value of computers at the moment. There have been suggestions that this figure has been provided by the American side to meet standards which dictate that a jail sentence of a year or more has to be faced in order to ask for extradition.

Interestingly, attendees at the Infosec show have given their backing to Mr McKinnon via a survey, according to which nearly 75% of respondents think that evidence against him should be first heard at a British court and he should not be extradited. However, an earlier survey indicated that the IT security community was divided over the fate of the hacker, with 48% saying that he should be sent to jail, 42% suggesting community service and 10% believing a fine should be the punishment handed our

Changes to UK cybercrime legislation are in the air

The UK may be set for wholesale changes in the way cybercrime is dealth with as the House of Lords' Science and Technology select committee is looking at different ideas it thinks may improve the current situation. The final and comprehensive report based on evidence from many experts in the technology field is due for publication in the summer, but recent comments from Lord Broers, who heads the Personal Internet Security sub-committee for the House of Lords, indicate that new legislation may well be proposed.

Lord Broers made his comments at the 2007 InfoSec show in London, where he delivered a keynote address. Apart from mentioning the possibility of new anti-cybercrime legislation he also told the public that one of the proposals would be the establishment of a single cybercrime complaints centre that would be based online and would function much as the US Internet Crime Complaint Center. The UK website would probably be run by the police, as Lord Broers believes they should be the first port of call for victims of online crimes. However, he claimed that currently police efforts to curb cybercrime are underfunded, as the Metropolitan Police in London for instance only has one person working on phishing cases.

In his address Lord Broers also criticised the current set-up in which he feels too much responsibility for cybersecurity is laid on the end-user. Speaking to members of the technology industry he suggested that new laws could be introduced to redress that balance, while he also criticised some companies such as Microsoft for being too confusing when warning users of new security threats.

Hacker threatens Valve with releasing its customers financial data

According to the latest reports currently circulating online a hacker could have gained illegal access to the servers of Steam, the content distribution system of Valve Software, creator of such prominent game titles as Half-Life and Counter-Strike. The hacker, calling himself MaddoxX, posted a message on an anti-Valve Internet forum on April 8. In this message he presented supposed proof of the break-in, such as Valve’s private financial details.

Other information in his post related to the company’s Cyber Café program, which allows cybercafe owners to run Valve’s games. According to the hacker, he gained access to private financial information, such as credit card and transaction details. In a message to Valve he also threatens the company with releasing all of its customers financial details into the public domain, potentially putting millions of people at risk.

So far there has been no official comment from Valve, which has lead to speculations from some quarters about a possible cover-up. Allegations have also been made that any threads regarding this issue that were posted in the official Steam forum were being deleted almost instantly. However, it is thought that the silence may be related to the ongoing investigation of these claims, which, if true, could pose a serious problem for Valve and its customers.

Wi-Fi leeching leads to police arrests

People stealing their neighbours’ wireless Internet (what is known as “leeching”) could now face the threat of a criminal record in the UK following an apparent crackdown by police. It may seem a trivial offence, but it could still be seen as hacking, a Wi-Fi thief hijacks someone else’s connection by means of using poorly secured networks. And merely stealing some Internet could also lead to more serious crimes such as identity theft and cyberfraud.

In fact, recent research conducted by price comparison website Moneysupermarket.com indicates that lax wireless protection puts up to a quarter of the UK’s population at “serious risk” of identity theft and cyberfraud. People increasingly have Wi-Fi in their homes, but many do not enable basic security features, leaving their network vulnerable to even an unsophisticated attack. "It is bad enough if your neighbour can use your Internet connection for free, but this becomes far more sinister if someone uses your wireless connection for criminal activity," commented Jason Lloyd, who heads the broadband department at Moneysupermarket.

All this has lead to more attention from the police, who seem to be taking the problem increasingly seriously. As reported in The Guardian, two people have already been detained in the past month in Worcestershire in two unrelated incidents. Both subsequently received a caution “for dishonestly obtaining electronic communication services with intent to avoid payment.” Police Constable Tony Humphreys from West Mercia police warned users: "Wireless networks don't stop at the walls of your home - without the necessary protection, neighbours or people in the road may be able to connect to your network. This might slow down your service, or more importantly, your connection could be used for unlawful purposes."

People stealing their neighbours’ wireless Internet (what is known as “leeching”) could now face the threat of a criminal record in the UK following an apparent crackdown by police. It may seem a trivial offence, but it could still be seen as hacking, a Wi-Fi thief hijacks someone else’s connection by means of using poorly secured networks. And merely stealing some Internet could also lead to more serious crimes such as identity theft and cyberfraud.

In fact, recent research conducted by price comparison website Moneysupermarket.com indicates that lax wireless protection puts up to a quarter of the UK’s population at “serious risk” of identity theft and cyberfraud. People increasingly have Wi-Fi in their homes, but many do not enable basic security features, leaving their network vulnerable to even an unsophisticated attack. "It is bad enough if your neighbour can use your Internet connection for free, but this becomes far more sinister if someone uses your wireless connection for criminal activity," commented Jason Lloyd, who heads the broadband department at Moneysupermarket.

All this has lead to more attention from the police, who seem to be taking the problem increasingly seriously. As reported in The Guardian, two people have already been detained in the past month in Worcestershire in two unrelated incidents. Both subsequently received a caution “for dishonestly obtaining electronic communication services with intent to avoid payment.” Police Constable Tony Humphreys from West Mercia police warned users: "Wireless networks don't stop at the walls of your home - without the necessary protection, neighbours or people in the road may be able to connect to your network. This might slow down your service, or more importantly, your connection could be used for unlawful purposes."

Calls to tackle cybercrime in India

A seminar on the topic of cybercrime and cybersecurity in India has heard that current and proposed new laws that cover the issue are inadequate. Additionally, the overall situation regarding cybercrime in the country is getting worse. The Information Technology Act 2000, India’s single piece of anti-cybercrime legislation, is now well out of date. However, an amendment proposed by the government and presented to India’s parliament last December has received widespread criticism due to its many shortcomings.

The billion-strong nation is currently experiencing a technology boom, but apart from wealth this has also resulted in an increased number of computer crimes being reported to the police. The latest figures for 2005 show that a total of 481 cybercrime cases were registered, rising from 347 incidents in 2004. However, experts feel that only a tiny proportion of cybercrime is actually reported and such low official figures may lull people into a false sense of security.

India’s government has recently tabled amendments to the IT Act 2000 in order to address the problem. Some of the proposals have been widely reported in the world’s media. For instance, one measure to control cybercrime would be the introduction of stringent controls within the Internet café industry. According to the proposals, children under 12 would be banned from entering such establishments, while café owners would have to keep clients’ personal records, including home addresses, and in some cases even fingerprints, for three years. This has been introduced in response to the growing problem of hate email and cyber-harassment, but experts decry the fact that other more important areas such as hacking, phishing and other more prominent cybercrimes did not even get a mention.

Hacker caught in the act at UCSF

Astute technicians who witnessed a hacker breaking into the secure server holding private information on staff and students averted a significant security breach at the University of California in San Francisco last March. According to the San Francisco Chronicle the breach, which was widely reported in the news on April 5 following a pro-active mass notification of potential victims by the university, could have affected up to 46,000 people.

The incident occurred on March 27, when university technicians were remotely accessing a server located at the University of California Office of the President in Oakland. Randy Lopez, co-chief information officer on the UCSF campus, noticed the server was running slower than usual. “We got suspicious and took a closer look. There was a program running that we didn’t know anything about,” he was quoted in the Chronicle.

The data held on the server related to the university’s payroll and student financial aid. A total of 43,000 campus payroll and 3,000 student aid records were stored there, giving the hacker a potential wealth of vital information that could be used for ID theft. According to Mr Lopez, the data on this particular system was not encrypted, as firewalls and other existing protection was deemed enough. Although it is not known whether the elusive hacker actually managed to access and steal any private information, the university is now revisiting this particular policy and has advised anyone affected to place their credit files on fraud alert if in any doubt.

Online banking fraud on the up

Online banking fraud has seen a massive increase in the UK over the past year according to figures released this Wednesday by industry association APACS. A 44 percent has been reported by APACS, with total cyberfraud losses going up to £33.5m last year. The biggest cause for this growth has been the massive jump in the number of registered phishing attacks, up from 1,713 in 2005 to 14,156 in 2006. Financial losses from card ID theft also went up by 5 percent to £31.9m.

This growth in phishing incidents could be explained by an increase in sophistication of such attacks, seen over the past few years. Phishing emails used to be written in poor English, while fake banking sites were also of poor quality and evident to the naked eye. Now, though, cyberfraudsters create perfect copies of financial sites and send out convincing phishing spam to catch out their victims.

Despite the magnitude of these figures, APACS also reported some good news regarding cyberfraud and phishing: whilst it accounted for losses of £22.5m in the first half of last year, these fell by more than 50 percent to £11m in the second half. And overall levels of financial fraud also fell by 3 percent from £439.4m to £428.0m. The biggest improvements were noted in fraud using stolen or lost cards, which include retailer and cash machine transactions. UK domestic fraud has fallen by some 13 percent, driven by the introduction of Chip and PIN in 2006. This example, APACS believes, should now be used to improve the safety of card-not-present transactions such as online banking and shopping, and new technologies and prevention solutions are required to drive cyberfraud down.

Sweden to spy on cross-border Internet traffic

The Swedish government is planning to introduce new rules that would allow its National Defence Radio Establishment to spy on cross-border emails and telephone calls. The plans have been presented to parliament amid controversy over "Big Brother" style of monitoring.

Current rules dictate that the NDRE can only tap military communications, something that was required for counter-intelligence operations during the Cold War. However, it is now seeking to address modern concerns over the use of phone and Internet communications with particular focus on international terrorism. Sweden's defence chief Mikael Odenberg has been quoted by the country's English-language news outlet The Local as saying that "this is about collecting information for the country's foreign, security and defence policy and protecting Sweden from foreign threats." The new rules would allow the intelligence agency to apply pattern analysis and conduct specific searches rather than simply going after all of an individual's communications.

However, critics of the proposals have been pointing out that the introduction of these new rules could lead to taps being put into operation without the go-ahead of law courts. The government would have the last say on what is and is not allowed, and ultimately, critics believe, millions of Swedish citizens could be subject to indiscriminate covert monitoring and surveillance. Interestingly, this may have already taken place for several decades, as the NDRE was secretly wiretapping communications for some sixty years according to Mr Odenberg, who used that fact to argue for the introduction of the new rules to legislate the practice.

Database hacker jailed in US

A man from Massachusetts has been given a one-year prison sentence for his role in a series of hacking incidents that compromised personal data of more than 300,000 people. 20-year-old Justin A Perras received his jail term from a federal judge in West Palm Beach for his role in the hacking incident.

Perras was one of five men, the youngest of whom was 19 and the oldest 24, who managed to access a special law enforcement database known as Accurint on a computer based at Port Orange Police Department in Florida. The incident occurred in early 2005, when the hackers used their knowledge of computers and social engineering to gain entry to the database, which contains many people’s police records and other information. The main focus of attention for the group seemed to be celebrities – Perras and co. viewed address and SSN records of stars like Paris Hilton or Arnold Schwarzenegger.

Despite Perras’ claims that there was no malicious intent in his actions, which were fuelled by simple curiosity, the judge thought a prison sentence was the most suitable punishment, sending out a strong signal to other would-be hackers. Apart from the year in jail Perras will have three years on probation and will also have to give 100 hours of community service. His other co-defendents, who were sentenced in December, have already been ordered by the judge to pay up more than $100,000 in damages to LexisNexis, which owns the hacked database, and the Port Orange Police Department, whose computer was infected with a Trojan and broken into.

Revenge hacker charged in Belarus

A man has been charged with gaining illicit access to a former girlfriend’s dating website entry in Belarus and could now face between 3 and 10 years in prison according to reports in Belarusian media. The 27-year-old telecom engineer from Grodno, western Belarus, broke into the account following the break-up of their relationship, changed the password and accessed private information.

The incident took place in January this year, when the former girlfriend saw her dating site account frozen by administrators following a mass mailing of her private message exchanges to other users. The woman then lodged an official complaint to her district police station, which redirected the case to the regional police unit dealing with crimes in the hi-tech sphere.

The investigation did not take long, as the victim pointed out the probable culprit to the authorities, who carried out a search on the suspect’s work computer and found enough evidence to charge him with “computer sabotage”. If the court in Grodno finds the man guilty, he could face between 3 and 10 years in jail for his actions.

French election suffers from hacking scandal

The French presidential election has been hit by another hacking scandal. This came only a couple of weeks after the news that someone managed to gain access to confidential information held on a computer belonging to an employee of the far-right Front National. The candidacy of prominent right-wing politician Jean-Marie Le Pen may now suffer as a result. One man, the owner of the computer that was infiltrated, was briefly arrested but then released.

The incident took place last week at the party’s headquarters, where a hacker broke into one of the computers and managed to steal a list of elected officials across France who had agreed to back Le Pen’s candidature at the elections. The French electoral system demands that a candidate be endorsed by at least 500 of the existing 42,000 elected officials. The list of officials supporting Le Pen has now been made public, leading to suggestions that those who have given their voice to back the far-right politician may now remove their vote of confidence. At a press conference held last week Le Pen claimed that at least 20% of these votes had already gone as a result of the leak.

The far-right politician himself maintains that there has been a concerted campaign against him, aimed at removing him from running in the election. Last time round, in 2002, Le Pen stunned the French by claiming second place, highlighting serious divisions in French society.

Cyber cafe - or the scene of cybercrime?

In Japan, the majority of cases in which illegal access is gained to computers are committed from cybercafes. This type of cybercrime includes break-ins to systems using stolen login names and passwords as well as phishing.

According to data from Japan’s National Police Agency, 271 of the 483 incidents, or 56%, of such cases in 2005 were made using computers from Internet cafes. Most worryingly, cybercafes were bases for the vast majority of cases in which the culprit remained unknown. This highlights the anonymity that such places provide.

The Japan Complex Café Association, which unites many of the country’s cybercafes, has proposed a membership scheme to facilitate law enforcement, but more than half of these establishments in Japan are not members of the association, making this move hard to enforce across the whole industry. Interestingly, the Internet café in Japan is now seen as more than just a place to surf the net – more and more people in their 20s and 30s are literally choosing the cybercafe as their home. Roughly 1,400 of the nation’s 3000 Internet cafes offer a “bed and Internet” package, and many homeless people use them to stay overnight.

Dubai eGovernment websites hit by cyberterrorists

Dubai’s e-government web support team has successfully repulsed a series of attacks thought to have come from an extremist group based in Turkey, reports in the Gulf State have claimed. According to the Gulf News, the hackers managed to break into several sites, including one for the Dubai International Quran Awards. In order to carry out the break-in hackers used a vulnerability in one of the sites, which resulted in that site being down for three days.

The attack lasted for a couple of hours, after which the security team succeeded in blocking it. Some services were temporarily affected and some data held on the sites that were targeted was lost. However no confidential information was exposed in the incident, which was the second attack on Dubai’s e-government websites in a couple of weeks. According to Dubai eGovernment representatives, this was the first successful attack on their systems, even though it did not do much damage. "Dubai eGovernment adopts a high-security system to prevent hacking, but this doesn't mean that it is completely impregnable as there are always vulnerabilities with software and networks," said Salem Al Shair, director of e-services at the organisation.

It is believed that the hacking group responsible for the security breach is Turkish in origin and carried out the attack as an act of political protest. Messages in Turkish were left on the hacked sites with what are thought to be approving references to the murder last January of Armenian-Turkish journalist and writer Hrant Dink.

DoS attacks to be made illegal in Sweden

Denial of service attacks will become illegal in Sweden from 1st June this year. This move by the Swedish government follows several well-publicized incidents in 2006 when government and police websites were brought down by DoS attacks. These incidents highlighted a lack of up-to-date legislation that would be sufficient to support successful legal action in such cases.

Up until now Sweden had no laws that specifically addressed DoS attacks, but a new draft amendment to hacking laws proposed by the government this week would punish such offences by a maximum of 2 years in jail. The new law would make it an offence to carry out a denial of service attack regardless whether it was done manually or automatically, even though manual attacks are currently something of a rarity. However, it also would require prosecutors to demonstrate that the attack was actually intended to disable its victim machine or network.

It will remain to be seen if these new DoS-specific laws would greatly improve the current situation in Sweden regarding computer attacks, particularly with the inclusion of the requirement to demonstrate specific intent to disable a system. Last summer’s incidents with the government and police sites have gone unpunished because the authorities could not prove who the perpetrators were, even though there was speculation that these attacks were related to raids on prominent pirate exchange site The Pirate Bay. At the same time, making DoS attacks a specific crime should certainly prove to be a better deterrent than the current legal void that exists in Swedish legislation.

Japanese feel increasingly threatened by cybercrime

A new survey released by the Cabinet Office in Japan has revealed that an increasing number of people in the country now feel threatened by cybercrime. Among the biggest fears are cyberfraud and identity theft.

A total of 1,795 adults were polled and 40.1% of them revealed they were worried about Internet-based crime and felt vulnerable to it. This is a 21% rise from the results of a survey that was carried out in 2004. Overall, cyberspace was ranked third in the overall list of crime fears, following streets in general and also entertainment districts. Most respondents believe that the overall crime situation in Japan has worsened over the past years, and according to statistics given by Kyodo News a total of 39.3 % think that sentences handed out to criminals are too lenient.

In Japan, as in the rest of the world, cybercrime levels have been constantly rising over the past years, with year-on-year growth levels reaching 52% in 2006. The total number of cybercrimes registered in the country reached 3,161 in 2005, while the first six months of 2006 saw 1,802 cybercrime incidents logged by the National Police Agency. Opinions from Japan seem to back the results of a survey carried out in Britain last year. In that survey, produced for the UK government, cybercrime was listed as the second crime most feared by the British population, even higher than burglary or muggings.

Russian connection in Turkish cybercrime investigation

A large gang of phishers has been disbanded in Turkey following an investigation by the authorities in the Turkish city of Izmir. A total of 17 people have been arrested by the police in raids at several addresses, but according to local authorities the roots of this crime syndicate go much deeper and into Russia.

The Turkish investigation started a couple of months ago, following an influx of complaints from members of the public regarding irregularities with their online bank accounts. A 20-strong dedicated IT crimes group from the Izmir Organized Crime Bureau was assembled to work on the case and quickly uncovered a network of criminals involved in the scheme. The gang used stolen bank account details and passwords to siphon off funds, but left the IP addresses of the machines employed to log on to the banking system. These IP addresses were traced to a total of 17 gang members, who were all detained in simultaneous raids last Tuesday. The police found computer equipment, fake passports, credit cards and unregistered weapons at what is believed to have been the headquarters of the gang.

According to sources from the Izmir Organized Crime Bureau, this has been one of the largest cybercrime investigations ever carried out in Turkey. The number of victims is as yet unknown, but over the past several weeks the gang managed to withdraw between $330,000 and $500,000 from around a thousand accounts. The gang received details of these accounts from three cybercriminals in Russia, who in turn claimed a 10 % commission from the stolen funds. Turkish police now wants the three Russian phishers in connection with their investigation, and the authorities in Izmir have already engaged the cooperation of Interpol in their efforts to pursue them.

“Mainstreaming” needed for Britain’s anti-cybercrime effort

The ability of existing cybercrime policing units to fight e-crime in Britain has been put into doubt by a recent report from DCI Charlie McMurdie of the London Metropolitan Police. Cybercrime has been termed in the report as “the most rapidly expanding form of criminality” that is now evident not only in the emergence of new types of crime. New communication technology is also increasingly used in “traditional” crimes. This, combined with the issue of underreporting, creates an atmosphere in which existing cybercrime fighting structures are inadequate in both scope and resources.

One recommendation from DCI McMurdie is to spread IT forensics and anti-cybercrime methods into every investigation, both specialist and general, so that all law enforcement officers are familiar with new techniques and trends. There is also evidence of the need for one single structure that could play its part as the first port of call for complaints regarding cases of cybercrime. However, the National High-Tech Crime Unit has now been absorbed by the Serious Organised Crime Agency, dubbed the “British FBI”. The level of priority given by SOCA to cybercrime has been recently criticised by Microsoft in a presentation to the House of Lords Science and Technology Committee enquiry. The situation is currently so strained that recently it has emerged that the police have begun working with cybervigilante groups in an effort to gain more information and intelligence.

The Metropolitan Police is currently undergoing a review process that will serve to highlight issues that need changing in relation to cybercrime. As part of this review several units within the police force that deal with computer crime have been scrutinised, including the Computer Crime Unit, Paedophile Unit, Counter Terrorist Command Intelligence Bureau, Clubs and Vice, Computer Services Laboratory, Professional Standards and Covert Policing Command. With so many different units a key issue becomes the sharing of intelligence and best practices. Until a national cybercrime strategy is agreed upon, though, problems in reporting and investigation will continue plaguing Britain’s anti-cybercrime effort.

Cybercriminals sentenced in Holland

A court in the southern Dutch city of Breda has finally reached its verdict in a cybercrime case. A gang was originally accused of creating several pieces of malware in order to establish a 1.5-million-strong botnet. The prosecution demanded for each of the two men to receive a maximum three-year prison sentence, but the judge in the case decided to sentence the leader of the group to two years and the accomplice to 18 months. In both cases a part of the sentence has been set as probationary (8 months for the leader and 6 months for the accomplice), meaning that the two men will not have to spend any more time in jail, as they have already served the required time awaiting the trial.

The biggest case of such nature to be heard in the Netherlands was started in 2005, when both perpetrators were detained at their homes in police raids. They were accused of writing a worm known as “Toxbot” and running a large botnet, as well as having connections with the Russian Internet mafia. Both men were involved in stealing money from Internet users and also engaged in cyberblackmail activity using their network to threaten businesses with DoS attacks.

In addition to their prison sentence the 20-year-old leader of the group, who was just a teenager at the time of the cyberattacks, will have to pay a fine of 9,000 Euros. He will also have to pay-up almost 17,000 Euros of his illegally obtained profits. His 28-year-old accomplice has been fined a total of 4,000 Euros and will also have to return 2,500 Euros. The Dutch prosecution has been on record as to say they are “not unhappy with the ruling in this case”.

Phishing more common than viruses and trojans

New data released by MessageLabs shows that January 2007 was the month in which phishing attacks finally overtook virus attack in terms of overall numbers. Levels of spam have also continued to grow and in January 2007 stood at 84.5% according to MessageLabs figures. The number of emails containing some sort of phishing attack has now reached 1.07%, while Trojans and viruses infected some 0.83% of all email traffic.

MessageLabs believes that the emergence of phishing as the Number 1 threat in the Internet comes down to virus attacks becoming more targeted, rather than the generalized outbreaks of old. Additionally, phishing has become an increasingly lucrative crime and one that keeps in step with new security measures. For instance, the rollout of new two-factor authentication systems has lead to the emergence of so-called “man-in-the-middle” attacks. This is where a cybercriminal sets himself up as a relay between the client machine and the online bank, virtually hijacking an ongoing online banking session by using original security data input from the victim.

Research by the APWG also highlights the growing scope of phishing attacks. The latest available figures are for November 2006 and show a continuation of striking growth in the number of new phishing sites that started in October 2006. Whereas previously the number of phishing sites at most reached 20,000, in October and November this figure jumped to over 37,000. A report from IBM ISS on security threats in 2006 also shows that while a lot of phishing emails originate outside the US, the majority of phishing sites are hosted there. The biggest phishing spam sender is South Korea with 16.33% of the total, while Spain was the source of 14.71% of phishing mail. In terms of hosting the US tops the list with 55.78% of sites, and the vast majority (71.37%) of phishing targets are also based in the United States.

Botnets named as the latest danger to Internet

Spam continues to take over online communications as new data suggests that it accounted for 94% of all email traffic last December. Research by Postini shows a 147% overall growth in spam levels in 2006, due to increasingly sophisticated schemes and bot networks.

The current trend is for attackers to combine techniques and build massive botnets that increase their spamming capacity. It is estimated that attackers now use a million computers to coordinate malicious spamming campaigns, while Google’s Vint Cerf has recently suggested that almost 40 million Internet-connected computers worldwide could be infected by Trojans.

The growth of botnets has now reached dangerous levels, as the system uses newly acquired bandwidth to spread even further by means of Trojans and viruses that commandeer new computers. Security company Prolexic has released data which suggests that China is the world’s most affected country and Asia now has half of the world’s infected machines. According to Postini these new massive and more sophisticated criminal networks have already shown their capability by raising the number of virus attacks twenty-fold in two short bursts at the end of 2006 and in January 2007. However, as criminals deploy new and better-protected botnets, levels of spam and virus mailings could be setting new records soon.

US warning to financial institutions over possible cyberattacks

The US government has sounded a warning to financial institutions about possible al-Qaeda-linked cyberattacks on the US stock market and online banking services. December has been marked as the danger month after the terrorist organisation has called for attacks aimed at disrupting online services and breaking into secure financial sites.

Warnings of potential cyber-terrorist attacks have been sounded previously, both in the US and in other countries, such as Australia. This time around the threat linked to the continued detention of suspects by US authorities at the Guantanamo Bay facility. The US Computer Emergency Readiness Team issued a “situational awareness report” to the financial industry. According to the warning attacks could begin on the first day of December and run for the whole of the month.

So far there has been little reaction to the warning, particularly as the Department of Homeland Security, the federal agency tasked with distributing it, said that there was no concrete information or intelligence to back the threats. The only source of information is thought to be a website from a group linked to al-Qaeda that calls for cyberattacks in December, presumably focusing on the run up to the festive period.

Hi-tech cash machine hacker jailed in the UK

A gang of carders has been dismantled in Britain with its leader, Maxwell Parsons, receiving a jail sentence of 32 month from a UK court. The man specialised in using portable MP3 players to tap into the ATMs’ communications, copying data that was transmitted from the cash machine to the bank network via ordinary telephone lines. This particular modus operandi is believed to have been unique in Britain, although much more common in South-East Asia. Since Mr Parsons’ arrest, the security flaw that allowed him to steal private data has been fixed.

Maxwell Parsons, 41, is thought to have gained hacking skills from a friend who was enrolled at Cambridge University. He was based in the north of England and searched for cash machines in the Greater Manchester area to carry out the first step of his scam. The ATMs had to be freestanding so that the phone line going from the machine to the telephone socket could be disconnected. An MP3 player would then be plugged into the cable between the ATM and socket and left to collect data. The usual target for Parsons were ATMs in bars, bowling alleys and other entertainment venues that had such machines installed for use of their clients. A customer using the cash machine would have no idea that all the card details used in a transaction would then be recorded as a sequence of tones on the player. Mr Parsons could then collect it and use special software to decode collected data for use in carding operations.

Total damage from this hi-tech fraud operation is though to be £200,000, although the police could only track £14,000 of that back to Mr Parsons. The man himself was apprehended totally by chance, when a car he was travelling in was pulled over for performing an illegal U-turn in London. During a search he was found to be carrying a counterfeit bankcard, which gave the police the opportunity to search his house in Manchester. Technical equipment and 26 other cards were then recovered, including 18 that were encoded with data stolen via his MP3 operation. Maxwell Parsons was subsequently charged and eventually pleaded guilty to offences of intercepting a telecommunication transmission and deception.

Major hacking crew taken down in South America

Chilean police have reported on a significant success in their fight against cybercrime this week. Chile’s special cybercrime unit said it dismantled a major hacking conglomerate, with four arrests made on Monday. The crew, named by sources in the country as the “Byond Hackers Team”, is known to be one of the most prolific in the world, with more than 8,000 website hacks to its name. The arrests were carried out following a long investigation that started in March this year. Two men were apprehended at their homes, while the other two underage members of the group voluntarily came to the police accompanied by their parents.

The Chilean hacking group became known across the world in 2005, when it engaged in a virtual shoot-out with their counterparts in Peru. The cyber-conflict between two groups of “patriotic” hackers led to government websites of both countries being broken into. Sources in Chile claim they wielded a constant war not only with their colleagues from Peru, but also neighbouring Argentina. It is believed a 23-year-old engineering student and a 37-year-old programmer led the gang and were well known by their nicks: “Nettoxic” and “SSH-2”. Apart from the conflict with Peru they were famous for hacking the NASA website, as well as government sites in their own country, the US, Israel and many other South American states.

The 8-month investigation mostly centred on the leader of the group, who was identified by his place of study. Gerardo Raventos, who led the investigative team in Chile, revealed that the operation was a truly international effort: assistance was received from Interpol, the US, Israel, Turkey and several South American countries. Leonardo Hernandez, 23, known as “Nettoxic”, who was the first to be arrested, revealed to Chilean media that he only carried out his attacks for fun and did not engage in cyberfraud or steal any money through his online activities. In spite of this, he could face up to five years in jail for hacking into websites and illegally accessing private information. The two adults in the group have already been charged with cyber-sabotage and remanded in custody for a period of 90 days, while their two teenage accomplices were temporarily freed. According to some sources, the group used hacking as a form of political protest, placing anti-war and social justice messages on hacked websites.

New anti-cybercrime force to be launched in Britain

The Metropolitan Police will launch a new unit that will fight e-crime in Britain, it has been announced. This follows several high-profile cybercrime incidents in Britain, including the recovery of private data of several thousand UK nationals from a US-based computer, which prompted a scramble by the Met to notify those affected. The new cybercrime coordination unit will provide a platform for cooperation between law enforcement, government and industry forces. It will initially begin life as a Met venture, but may become a national force if proven successful.

Britain’s previous anti-cybercrime force was the National Hi-Tech Crime Unit, but this group was amalgamated with other specialised police units to form SOCA, the Serious Organised Crime Agency. It was launched this spring by the then Home Secretary Charles Clarke to become an agency similar to the US Federal Bureau of Investigation. However, this move meant that the NHTCU became involved in dealing with top-level organised crime, while levels of cybercrime committed against the person, such as cyberfraud and ID theft continues growing.

The new e-crime unit will fill the void left by the departure of the NHTCU for pastures new and provide a response in an area of growing concern for the public. A recent government report on crime in society highlighted the fact that cybercrime has become one of the most feared types of crime in Britain, second only to credit card fraud. However, experts have already voiced their concerns about levels of funding available to the new group, with some suggesting that cybercrime has already slipped down the government’s agenda behind anti-terrorism, organised crime and community safety issues.

Huge Patch Tuesday for Microsoft in October

After September’s update that only contained four patches, Microsoft has returned to the routine of “Big Patch Tuesdays”, with it’s October security instalment containing ten security advisories of which six are rated critical. In the ten patches provided Microsoft fixes a record twenty-six vulnerabilities, of which nineteen are critical in nature and could be exploited remotely. IT manager might be happy to know that initially Microsoft was planning to release a total of eleven patches, but one of them did not pass quality control testing and was held back. However, the job of installing more than two-dozen fixes is going to be challenging for any IT professional running a large network.

The six critical bulletins fix flaws in Windows and the Office package, and some of the vulnerabilities addressed have already been exploited in the wild or have had proof-of-concept code released. Of the six patches four deal with problems in Microsoft Office, including vulnerabilities in Excel and Word that have been publicly known for at least a month. The other two patches fixed flaws in Microsoft PowerPoint and general problems in the Microsoft Office suite.

Two further critical bulletins were related to problems in Microsoft Windows. One of these problems in Windows Shell was already being publicly exploited, as confirmed not only by the security community but also by Microsoft itself. The other vulnerability in XML core services has not been publicly disclosed, but has the scope to become a very important problem if not patched as soon as possible.

The rest of the vulnerabilities, seven in total across four bulletins, received ratings between Important and Low. The two that are rated Important were found in the Server Services component of Windows and could lead to denial of service attacks. Of the two “Moderate” bulletins one fixed a flaw in .Net Framework 2.0 that could lead to spoofing and information disclosure, while another addressed an issue in Windows Object Packager that could lead to remote code execution, but only after “significant user interaction”, which prompted the low security rating. The other three vulnerabilities were all rated as “Low” in terms of severity and were found in TCP/IP and were bundled into a single bulletin.

Straight after release on October 10 these updates were not available via the automatic distribution channels Microsoft usually provides due to “some network issues”. However, the problem was later corrected, and users could access the patches via Microsoft Update and Automatic Updates service. Given the “critical nature” of most of the bulletins and the fact that several of the vulnerabilities fixed have already been exploited users are recommended to update immediately either via the automatic update route or manually from Microsoft TechNet.

Three hackers jailed in Russia

A court in the Saratov region of Russia has sentenced three cybercriminals to eight years in jail each for a spree of extortion attacks in 2003. The three hackers managed to steal up to $4 million from UK companies by means of blackmail. All three men pleaded guilty and faced up to fifteen years jail time for extortion and the use of malicious computer programs.

The criminal group consisted of a number of individuals from several Russian cities, including Saratov, St. Petersburg, Astrakhan and Pyatigorsk. In 2003 they decided to carry out attacks on websites of online bookmakers in the UK and demand a ransom. One prominent attack took place on the website of Canbet, a British-Australian betting venture. The gang carried out a distributed denial of service attack on Canbet’s website during an important sporting event, demanding a payment of $10,000. When Canbet refused to pay up, their site was blocked and the company lost up to $200,000 in business for each day the server was down.

After that Canbet decided to pay the ransom into a Latvian bank, but the attacks did not stop, so the company contacted the British National High-Tech Crime Unit. British officers then turned to their Russian colleagues, who carried out their own investigation and arrested two suspects in 2004, with two supposed masterminds of the gang still on the run. In 2005 a third man was arrested and the three men held faced charges in court. It is thought they managed to extort as much as $4 million from their victims, having carried out 54 attacks in 30 countries over six months. Now the three men, including 20-year old Ivan Maksakov from Saratov, who created the spyware module used in the attacks, will have to spend eight years in jail each following a joint effort by British and Russian agencies as well as Interpol.

T-Mobile hacker sentenced

A hacker involved in the infiltration of the T-Mobile USA network two years ago has been sentenced to a year of home detention and also fined $10,000. Nicholas Lee Jacobsen was involved in the infamous T-Mobile Sidekick hack in 2004, when as many as 400 of these wireless devices were accessed by attackers. Among the owners affected by the security breach were Hollywood celebrities and a US Special Agent. Attackers managed to steal private data including Social Security numbers and could also access the contents of the T-Mobile wireless devices, such as private correspondence.

Jacobsen was originally detained in October 2004 as part of a wider investigation, and was initially indicted in early 2005. In February 2005 he entered into a plea agreement with the government and pleaded guilty to one charge of intentionally accessing a protected computer and causing damage. However, his case raised a lot of questions, particularly as it involved Special Agent Peter Caviccia, whose private information was also accessed by Jacobsen. There were also issues regarding the education and expertise level of the accused hacker. More than a year after the original trial was held, US District Judge George King finally sentenced Jacobsen to a year of home detention and restitution to T-Mobile to the sum of $10,000.

Jacobsen, who now lives in Oregon, claimed he lacked “comprehension and maturity” when he carried out his attacks. The judge called his actions “dangerous”, but took into account the youth of Jacobsen at the time as a mitigating factor. Jacobsen could have faced a maximum of five years in prison and a $250,000 fine for breaking into a computer and causing damage.

Teenage cyber criminal handed curfew order by UK court

A teenager from Bedworth, Warwickshire, UK, has been handed a two-month curfew after admitting he sent millions of emails to a firm, causing its server to collapse. David Lennon, who worked for the Domestic & General Group, a UK-based insurer, on a part-time basis until 2003, carried out his denial of service attack in early 2004, in apparent revenge for his sacking. The DoS attack lasted almost a week, with five million email messages being sent during that period.

The firm that was targeted suffered tens of thousands of pounds in damages as a result of Lennon’s malicious actions. Police investigating the attack traced the emails back to Lennon’s home computer, which led to his appearance in court, the first successful prosecution of this type of offence under the Computer Misuse Act 1990. Representatives of the Metropolitan Police Computer Crime Unit, which worked on the case, were understandably happy to see the attacker convicted and fitted with an offender’s electronic tag. Detective Chief Inspector Charlie McMurdie, head of the unit, said: “This demonstrates the commitment of the MPS Computer Crime Unit to work with industry to prosecute individuals who use technology to cause harm.”

Cases of malicious use of technology are notoriously difficult to prosecute, and this one was not different in that respect. Lennon originally appeared in court in November last year, but at that time the judge deemed he had no case to answer. The Crown prosecution Service decided to go ahead with an appeal, which led to this first successful conviction in a UK court. The authorities now certainly hope this conviction will send out a strong warning to other budding cyber criminals in Britain.