Trailrunner7 writes "After Microsoft's actions to take down the Waledac botnet last month, there was some question about whether the operation was much more than a grab for headlines that would have little effect on actual spam levels or malware infections. But more than three weeks after the takedown, researchers say that Waledac has essentially ceased communications and its spam operations have dropped to near zero. One researcher said that Waledac now seems to be abandoned. 'It looks crippled, if not dead,' said Jose Nazario, a senior security researcher at Arbor Networks."

Trailrunner7 writes "Robert Hansen, a security researcher and CEO of SecTheory, has been gleaning intelligence from professional attackers in recent months, having a series of off-the-record conversations with spammers and malicious hackers in an effort to gain insight into their tactics, mindset and motivation. 'He's not the type to hack randomly, he's only interested in targeted attacks with big payouts. Well, the more I thought about it the more I thought that this is a very solvable problem for bad guys. There are already other types of bad guys who do things like spam, steal credentials and DDoS. For that to work they need a botnet with thousands or millions of machines. The chances of a million machine botnet having compromised at least one machine within a target of interest is relatively high.' Hansen's solution to the hacker's problem provides a glimpse into a business model we might see in the not-too-distant future. It's an evolutionary version of the botnet-for-hire or malware-as-a-service model that's taken off in recent years. In Hansen's model, an attacker looking to infiltrate a specific network would not spend weeks throwing resources against machines in that network, looking for a weak spot and potentially raising the suspicion of the company's security team. Instead, he would contact a botmaster and give him a laundry list of the machines or IP addresses he's interested in compromising. If the botmaster already has his hooks into the network, the customer could then buy access directly into the network rather than spending his own time and resources trying to get in."

Earthquake Retrofit writes "The Register has a rather funny story about the Zeus botnet: 'The latest version of the Zeus do-it-yourself crimeware kit goes to great lengths to thwart would-be pirates by introducing a hardware-based product activation scheme similar to what's found in Microsoft Windows. ... They've also pushed out multiple flavors of the package that vary in price depending on the capabilities it offers. Just as Windows users can choose between the lower-priced Windows 7 Starter or the more costly Windows 7 Business, bot masters have multiple options for Zeus.'"

itwbennett writes "The takedown of the Mariposa botnet and so-called advanced persistent threat attacks, such as the one that compromised Google systems in early December, were hot topics at the RSA conference last week. What both Mariposa and the Google attacks illustrate, and what went largely unsaid at RSA, was that the security industry has failed to protect paying customers from some of today's most pernicious threats, writes Robert McMillan. Traditional security products are simply not much help, said Alex Stamos, a partner with Isec Partners, one of the companies investigating the APT attacks. 'All of the victims we've worked with had perfectly installed antivirus,' he said. 'They all had intrusion detection systems and several had Web proxies scan content.'"

harryjohnston writes "The Register points out that the takedown of a significant number of Zeus command-and-control servers, which we discussed earlier, was a short-lived victory, as about one-third of the affected servers were back on the net in less than 48 hours." Adds itwbennet: "Just hours after network connectivity to Troyak was severed the ISP peered with a new upstream Internet service provider named Ya. The next step will be to 'de-peer' Troyak from its new service provider, either an ISP named Nassist or its upstream provider, Hurricane Electric, said a researcher familiar with the matter. 'We have taken some of their territory, they are trying to out flank us,' the researcher said via IM. 'We are going to win this one — we have 'em boxed in.'"

itwbennett writes "Ninety of the 249 Zeus command-and-control servers were knocked offline overnight when two ISPs, named Troyak and Group 3, were taken offline. Whoever was behind the takedown 'just decided to knock out a large area of cyber-crime, and this was probably one of the easiest ways to do it,' said Kevin Stevens, a researcher with SecureWorks. As with the McColo takedown of just over a year ago, Troyak's upstream providers seem to have knocked it off the Internet, Cisco said in a statement. 'The ISP was "De-peered,"' Cisco said. 'Troyak's upstream network providers effectively pulled the plug on Troyak's router, refusing to transmit its traffic.'"

Trailrunner7 writes "Security researchers have found that Vodafone, one of the world's larger wireless providers, is distributing some HTC phones with malware pre-installed on them. The phone, HTC's Magic, runs the Google Android mobile operating system, and is one of the more popular handsets right now. A researcher at Panda Software received one of the handsets recently, and upon attaching it to her PC, found that the phone was pre-loaded with the Mariposa bot client. Mariposa has been in the news of late thanks to some arrests connected to the operation of the botnet."

krebsonsecurity writes "Three Spanish men were arrested last month for allegedly building an international network of more than 12 million hacked PCs that were used for everything from identity theft to spamming. But according to Spanish authorities and security experts who helped unravel the crime ring, the accused may very well never see the inside of a jail cell even if they are ultimately found guilty, due to insufficient cyber-crime legislation in Spain. 'It is almost impossible to be sent to prison for these kinds of crimes in Spain, where prison is mainly for serious crime cases,' said Captain Cesar Lorenzana, deputy head technology crime division of the Spanish Civil Guard. ... Spain is one of nearly three dozen countries that is a signatory to the Council of Europe's cybercrime treaty, but Spanish legislators have not yet ratified the treaty by passing anti-cybercrime laws that would bring its judicial system in line with the treaty's goals."

northernboy and many other readers sent news of the beheading of the Mariposa botnet with three arrests in Spain. "Defense Intelligence of Ottawa working with ISPs and Spanish authorities have taken down yet another > 12M PC botnet, called Mariposa. The three top-level operators are in custody, but remain anonymous under Spanish law (how quaint: apparently in Spain, the accused have some right to privacy). AP is claiming that the botnet included systems in roughly half of the Fortune 1000 companies, scattered over 190 countries. Interesting details: none of the three principals has a prior criminal record. Although apparently hardworking, they are not uber-hackers, but rather had connections to the Spanish mafia, which apparently helped to equip them. At the time of arrest, they were not showing signs of their significant new income level. From the article: 'Chris Davis, CEO of Ottawa-based Defence Intelligence, said he noticed the infections when they appeared on networks of some of his firm's clients, including pharmaceutical companies and banks. It wasn't until several months later that he realized the infections were part of something much bigger. After seeing that some of the servers used to control computers in the botnet were located in Spain, Davis and researchers from the Georgia Tech Information Security Center joined with software firm Panda Security, which is headquartered in Bilbao, Spain. The investigators caught a few lucky breaks. For one, the suspects used Internet services that wound up cooperating with investigators. That isn't always the case.'"

Barence writes "Microsoft has quietly won court approval to deactivate 277 domain names that are being used to control a vast network of infected PCs. The notorious Waledac botnet is being used by Eastern European spammers to send 1.5 billion spam messages every day, and infect hundreds of thousands of machines with malware. In a suit filed in the US District Court of Eastern Virginia, Microsoft accused 27 unnamed defendants of violating federal computer crime laws. It further requested that domain registrar Verisign temporarily deactivate the domains, shutting down the control servers being used to send commands to the machines. The request was secretly approved by District Judge Leonie Brinkema, allowing the action to be taken covertly, preventing Waledac's operators from switching domains."

redsoxh8r notes a blog post describing in some detail the operation of "man in the browser" Trojans used to empty victims' bank accounts. "Banker trojans have become a serious problem, especially in South America and the US. Trojans like Zeus, URLZone and others are the tip of the iceberg. These toolkits are now standard-issue weapons for criminals and state-sponsored hackers. Like Zeus, URLZone was created using a toolkit (available in underground markets). What this means is that the buyer of this toolkit can then create customized malware or botnets with different command-and-controls and configurations (such as which banks to attack), but having all the flexibility and power of the original toolkit. Having such a toolkit in the hands of multiple criminal groups paints a scary picture. It's simply not enough to eliminate a particular botnet and criminal group to solve this problem."

angry tapir writes "Discovered by Czech researchers, the Chuck Norris botnet has been spreading by taking advantage of poorly configured routers and DSL modems. The malware got the Chuck Norris moniker from a programmer's Italian comment in its source code: 'in nome di Chuck Norris,' which means 'in the name of Chuck Norris.' Chuck Norris is unusual in that it infects DSL modems and routers rather than PCs. It installs itself on routers and modems by guessing default administrative passwords and taking advantage of the fact that many devices are configured to allow remote access."

Trailrunner7 writes "Last year saw a monstrous increase in the volume of malicious spam, according to a new report (PDF). In the second half of 2009, the number of spam messages sent per day skyrocketed from 600 million to three billion, according to new research. For some time now, spam has been accounting for 90 or more percent of all email messages. But the volume of spam had been relatively steady in the last couple of years. Now, the emergence of several large-scale botnets, including Zeus and Koobface, has led to an enormous spike in the volume of spam."

L3sPau1 writes "A rootkit infection may be the cause of a Windows Blue Screen of Death issue experienced by Windows XP users who applied the latest round of Microsoft patches. It appears that the affected Windows PCs had the rootkit infection prior to deploying the Microsoft patches. Researcher Patrick W. Barnes, investigating the issue, has isolated the infection to the Windows atapi.sys file, a driver used by Windows to connect hard drives and other components. Barnes identified the infection as the Tdss-rootkit, which surfaced last November and has been spreading quickly, creating zombie machines for botnet activity."

daria42 writes "The loose-knit collective of individuals known as 'Anonymous' has broken its silence about the distributed denial of service attacks on the Australian government. An individual (who insisted he or she is not a spokesperson for the group) said the attacks were more effective at stopping the government's Internet filtering project than signing a petition, and that the attacks could go on for months." The site where some members of Anonymous are said to hang out, 4chan, got a visibility boost yesterday when its founder moot spoke at the TED conference.

alphadogg writes "An upstart Trojan horse program has decided to take on its much-larger rival by stealing data and then removing the malicious program from infected computers. Security researchers say that the relatively unknown Spy Eye toolkit added this functionality just a few days ago in a bid to displace its larger rival, known as Zeus. The feature, called "Kill Zeus," apparently removes the Zeus software from the victim's PC, giving Spy Eye exclusive access to usernames and passwords. Zeus and Spy Eye are both Trojan-making toolkits, designed to give criminals an easy way to set up their own "botnet" networks of password-stealing programs. These programs emerged as a major problem in 2009, with the FBI estimating last October that they have caused $100 million in losses."

angry tapir writes "More than 300 Web sites are being pestered by infected computers that are part of the Pushdo botnet. The FBI, Twitter, and PayPal are among the sites being hit, although it doesn't appear the attacks are designed to knock the sites offline. Pushdo appears to have been recently updated to cause computers infected with it to make SSL connections to various Web sites — the bots start to create an SSL connection, disconnect, and then repeat." SecureWorks's Joe Stewart theorizes that this behavior is designed to obscure Pushdo's command and control in a flurry of bogus SSL traffic.

A team of computer scientists from the International Computer Science Institute in Berkeley, CA are claiming to have found an "effectively perfect" method for blocking spam. The new system deciphers the templates a botnet is using to create spam and then teaches filters what to look for. "The system ... works by exploiting a trick that spammers use to defeat email filters. As spam is churned out, subtle changes are typically incorporated into the messages to confound spam filters. Each message is generated from a template that specifies the message content and how it should be varied. The team reasoned that analyzing such messages could reveal the template that created them. And since the spam template describes the entire range of the emails a bot will send, possessing it might provide a watertight method of blocking spam from that bot."

Oxford_Comma_Lover writes "IDG News Service is reporting that several human rights organizations focusing on China have been hit by DDoS attacks this weekend, including Chinese Human Rights Defenders and Civil Rights and Livelihood Watch. The latter works on issues of mental persecution (dissidents being thrown into mental hospitals where they were forced onto medication or beaten with electric batons) and eminent-domain type problems (seizure of farmland or urban land without compensation when the government is working on a project)."

jibjibjib writes "Some of Australia's largest ISPs are preparing an industry code of conduct to identify and respond to users with botnet-infected computers. The Internet Industry Association, made up of over 200 ISPs and technology companies, is preparing the code in response to an ultimatum from the federal government. ISPs will try to contact the user, slow down their connection, and ultimately terminate the connection if the user refuses to fix the problem. It is hoped that this will reduce the growth of botnets in Australia, which had the world's third-highest rate of new 'zombies' (behind the US and China)."