Trailrunner7 writes "Earlier this week, Microsoft released an announcement about the disruption of the Kelihos botnet that was responsible for spam messages, theft of sensitive financial information, pump-and-dump stock scams, and distributed denial-of-service attacks. The botnet had a complex, multi-tiered architecture as well as a custom communication protocol and three-level encryption. Kaspersky Lab researchers did the heavy lifting, reversing the protocol and cracking the encryption and then sink-holing the botnet. The company worked closely with Microsoft's Digital Crimes Unit (DCU), sharing the relevant information and providing them with access to our live botnet tracking system."

Trailrunner7 writes with an excerpt from an article in Threatpost: "Continuing its legal assault on botnet operators and the hosting companies that the criminals use for their activities, Microsoft has announced new actions against a group of people it contends are responsible for the operation of the Kelihos botnet. The company has also helped to take down the botnet itself and says that Kelihos's operators were using it not only to send out spam and steal personal information but also for some more nefarious purposes."

wiredmikey writes "The SpyEye Trojan has a well-earned place of respect in the cyber-underground as an adaptable and effective piece of malware. Those same traits have also made it a bane for countless victims and the security community, and new research provides yet another reminder of why. According to security researchers, a hacker in his early 20s known by the alias 'Soldier' led a bank fraud operation that netted $3.2 million in six months. Powered by the SpyEye crimeware kit and aided by money mules and an accomplice believed to reside in Hollywood, Soldier commanded a botnet of more than 25,000 computers between April 19 and June 29 that compromised bank accounts and made off with the profits. Most of the victims were in the U.S., but there were a handful of victims in 90 other countries as well. Among the affected organizations were banks, educational facilities and government agencies."

mask.of.sanity writes "An Australian blogger who blew the lid on emerging domain-name fraud campaigns has received death threats from the scammers. His blog and domain parking company are still being hit with a large distributed denial of service attack that has the death threats embedded as HTML links within its logs. Australia's government CERT team and the U.S. Secret Service (blog servers were hosted on U.S. soil) are pursuing the botnet's command and control servers. Ten days later, the victim is still being attacked and is fighting a cat-and-mouse game as IP address ranges change."

An anonymous reader writes "New research shows that the TDSS/TDL-4 botnet, widely considered one of the largest and most sophisticated, can be rented via a Web storefront available to all comers. Researchers from Kaspersky found that the latest version of TDSS installs a file that sets the machine up as a proxy for anonymous browsing, and then phones home to awmproxy.net, which rents the proxies for rates from $3 per day to $300 a week. The curators of this service even created a Firefox add-on to help customers. 'Interestingly, AWMproxy says it accepts payment via PayPal, MasterCard, and Visa.'"

Trailrunner7 writes "There has been a huge spike in spam volume in the last few days, including a massive amount of malicious spam with infected attachments, and researchers say that levels of junk mail are now far higher than they were before the takedown of the notorious Spamit affiliate program last fall. The huge spike comes at a time when spam should, in fact, be dropping because of the takedown of the Rustock botnet, the Spamit network and other botnets. 'From the beginning of August, we have observed a huge surge of malicious spam which far exceeds anything we have seen over the past two years, including prior to the SpamIt takedown last October. The majority of the malicious spam comes from the Cutwail botnet, although Festi and Asprox are among the other contributors,' M86 researcher Rodel Mendrez said."

Orome1 writes "Microsoft decided to extend their efforts to establish the identity of those responsible for controlling the Rustock botnet by issuing a $250,000 reward for new information that results in the identification, arrest and criminal conviction of such individual(s). 'While the primary goal for our legal and technical operation has been to stop and disrupt the threat that Rustock has posed for everyone affected by it, we also believe the Rustock bot-herders should be held accountable for their actions.' Residents of any country are eligible for the reward pursuant to the laws of that country."

Orome1 writes "Spammers today favor compromised accounts for sending spam, gradually shifting distribution away from botnets, according to Commtouch. The changed tactic has emerged as spam levels dropped dramatically, following several high-profile botnet takedowns. Spammers are now using a combination of malware and phishing to compromise legitimate accounts and then using these accounts to send low-volume spam outbreaks."

CWmike writes "No botnet is invulnerable, a Microsoft lawyer involved with the Rustock take-down said Tuesday, countering claims that another botnet was 'practically indestructible.' Richard Boscovich, a senior attorney with Microsoft's Digital Crime Unit said, 'If someone says that a botnet is indestructible, they are not being very creative legally or technically. Nothing is impossible. That's a pretty high standard.' Instrumental in the effort that led to the seizure of Rustock's command-and-control servers in March, Boscovich said Microsoft's experience in take-downs of Waledac in early 2010 and of Coreflood and Rustock this year show that any botnet can be exterminated. 'To say that it can't be done underestimates the ability of the good guys,' Boscovich said. 'People seem to be saying that the bad guys are smarter, better. But the answer to that is 'no.''"

CWmike writes "Microsoft has clarified the advice it gave users whose Windows PCs are infected with a new, sophisticated rootkit dubbed Popereb that buries itself on the hard drive's boot sector, noting Wednesday that a complete OS reinstall is not necessary. 'If your system is infected with Trojan:Win32/Popureb.E, we advise fixing the MBR using the Windows Recovery Console to return the MBR to a clean state,' MMPC engineer Chun Feng wrote in an updated blog entry. Feng provided links to instructions on how to use the Recovery Console for Windows XP, Vista and Windows 7. Once the MBR has been scrubbed, users can run antivirus software to scan the PC for additional malware for removal, Feng added. Several security researchers agreed with Microsoft's revisions, but a noted botnet expert doubted that the advice guaranteed a clean PC. But an internationally-known botnet expert disagrees. Joe Stewart, director of malware research at Dell SecureWorks, said, 'Once you're infected, the best advice is to [reinstall] Windows and start over ... [MBR rootkits] download any number of other malware. How much of that are you going to catch? This puts the user in a tough position.' MBR rootkit malware is among the most advanced of all threats."

CWmike writes "A new and improved botnet that has infected more than four million PCs is 'practically indestructible,' security researchers say. TDL-4, the name for both the bot Trojan that infects machines and the ensuing collection of compromised computers, is 'the most sophisticated threat today,' said Kaspersky Labs researcher Sergey Golovanov in a detailed analysis on Monday. Others agree. 'I wouldn't say it's perfectly indestructible, but it is pretty much indestructible,' Joe Stewart, director of malware research at Dell SecureWorks and an internationally-known botnet expert, told Computerworld on Wednesday. 'It does a very good job of maintaining itself.' Because TDL-4 installs its rootkit on the MBR, it is invisible to both the operating system and more, importantly, security software designed to sniff out malicious code. But that's not TDL-4's secret weapon. What makes the botnet indestructible is the combination of its advanced encryption and the use of a public peer-to-peer (P2P) network for the instructions issued to the malware by command-and-control (C&C) servers. 'The way peer-to-peer is used for TDL-4 will make it extremely hard to take down this botnet,' said Roel Schouwenberg, senior malware researcher at Kaspersky. 'The TDL guys are doing their utmost not to become the next gang to lose their botnet.'"

Orome1 writes "Bitcoin has definitely caught the attention of criminals. Even though it has been calculated that the use of botnets for Bitcoin mining is still not quite as lucrative as renting them out for other purposes, targeting people who have them in their digital wallets is quite another matter. Symantec researchers have spotted in the wild a Trojan dedicated to this specific purpose. Named Infostealer.Coinbit, it searches for the Bitcoin wallet.dat file on the infected computer and sends it to the criminal(s)."

itwbennett writes "Although it is extremely unlikely that anyone associated with Rustock will step forward, Microsoft has taken out ads in two Russian newspapers to notify unnamed defendants in the legal suit. The move is a legal formality required as part of Microsoft's ongoing lawsuit in the U.S. against operators of Rustock. The advertisements will run for 30 days in the Delovoy Petersburg newspaper, located in St. Petersburg, and in The Moscow News, a daily newspaper, wrote Richard Boscovich, a senior attorney with Microsoft's Digital Crimes Unit."

Orome1 writes "Spammers are establishing their own fake URL-shortening services to perform URL redirection, according to Symantec. This new spamming activity has contributed to this month's increase in spam by 2.9 percentage points, a rise that was also expected following the Rustock botnet takedown in March. Under this scheme, shortened links created on these fake URL-shortening sites are not included directly in spam messages. Instead, the spam emails contain shortened URLs created on legitimate URL-shortening sites. These shortened URLs lead to a shortened-URL on the spammer's fake URL-shortening Web site, which in turn redirects to the spammer's own Web site."

It's fun sometimes to be smug because you are ("one is") using an operating system less susceptible to malware, or at least less targeted by malware creators, than is Microsoft Windows. Now, reader Orome1 writes with word of a Java-based, equal-opportunity botnet Trojan, excerpting from Help Net Security's report: "'IncognitoRAT is one example of a Java-based Trojan discovered in the wild that is being downloaded and installed by another component. This malware behaves like other Windows botnets but uses source code and libraries that can operate on other platforms,' explains McAfee's Carlos Castillo." So far, no mention of a Linux version, though.

CWmike writes "Federal authorities will remotely uninstall the Coreflood botnet Trojan from some infected Windows PCs over the next four weeks. Coreflood will be removed from infected computers only when the owners have been identified by the DOJ and they have submitted an authorization form to the FBI. The DOJ's plan to uninstall Coreflood is the latest step in a coordinated campaign to cripple the botnet, which controls more than 2 million compromised computers. The remote wipe move will require consent, and the action does come with warnings from the court that provided the injunction against the botnet, however. 'While the 'uninstall' command has been tested by the FBI and appears to work, it is nevertheless possible that the execution of the 'uninstall' command may produce unanticipated consequences, including damage to the infected computers,' the authorization form reads. FBI Special Agent Briana Neumiller said, 'The process does not affect any user files on an infected computer, nor does it ... access any data on the infected computer.' The DOJ and FBI did not say how many machines it has identified as candidates for its uninstall strategy, but told the judge that FBI field offices would be notifying affected people, companies and organizations."

itwbennett writes "In an unprecedented move, the Department of Justice (DOJ) and the FBI have been issued a temporary restraining order that will allow the FBI and the US Marshal for the District of Connecticut to set up servers at the Internet Systems Consortium or other ISPs that would stop infected computers from continuing to spread the Coreflood virus, according to court records. This week, the DOJ and FBI seized five servers that controlled Coreflood-infected computers, the DOJ said in a press release. The agencies also seized 29 domain names used by the Coreflood botnet to communicate with the servers."

wiredmikey writes "The Rustock Botnet was sending as many as 13.82 billion spam emails each day before being taken down early this month by an effort headed by Microsoft in cooperation with authorities and the legal system. According to Symantec's March 2011 MessageLabs Intelligence Report, the Rustock botnet had been responsible for an average of 28.5% of global spam sent from all botnets in March. Following the takedown, when the Rustock botnet was no longer cranking out spam by the billions, global spam volumes fell by one-third. For reference, toward the end of 2010, Rustock had been responsible for as much as 47.5% of all spam, sending approximately 44.1 billion e-mails per day, according to MessageLabs stats. Since then, Bagle, a botnet that wasn't even on MessageLabs' top ten spam-sending botnets at the end of 2010, has taken over from Rustock as the most active spam-sending botnet this year."

h4rm0ny writes "Microsoft, in cooperation with Federal agents, conducted what the Wall Street Journal described as 'sweeping legal attacks' as they entered facilities in Kansas City, Scranton, Pa, Denver, Dallas, Chicago, Seattle and Columbus, Ohio to seize alleged 'command and control' machines for the Rustock botnet — described as the largest source of spam in the world. The operation is intended to 'decapitate' the botnet, preventing the seized machines from sending orders to suborned PCs around the world."

An anonymous reader writes "Steve Santorelli gets computing experts and law enforcers to cooperate in a global fight against organized Internet crime. This article talks about the role of law enforcement in identifying and battling online threats as they change and evolve. Quoting: 'The common wisdom about hacking and cybercrime is, in Santorelli's view, severely out of date. He says cybercriminals aren’t lone wolves; they are financed and directed by international criminal syndicates. ... Organized crime also has vast resources derived from its traditional operations to finance the hiring of quality hackers around the world. There is even evidence that some syndicates are investing in research and development, looking to create proprietary, next-generation hacking tools, Santorelli says.'"