Krishna Dagli writes to mention findings by the company Trend Micro on the extent of bot infection in U.S. Government computers. The article by Information Week indicates that, while the 'original' findings were much harsher, the security vendor has since backed down from some of its claims. Still, the extent to which information-stealing software has penetrated our national infrastructure is enough to take note. From the article: "While it may be tempting to discount the warnings of security vendors as self serving--bot fever means more business for Trend Micro--there's unanimity about the growing risk of cybercrime. In its list of the top 10 computer security developments to watch for in 2007, released last week, the SANS Institute warns that targeted attacks will become more prevalent, particularly against government agencies. 'Targeted cyber attacks by nation states against U.S. government systems over the past three years have been enormously successful, demonstrating the failure of federal cyber security activities,' SANS director of research Alan Paller says in an e-mail. 'Other antagonistic nations and terrorist groups, aware of the vulnerabilities, will radically expand the number of attacks.'"

An anonymous reader writes, "There's a new Instant Messaging worm in the wild that is taking the idea of Botnet clickfraud up a level. It trades in automated drones (prone to malfunction and detection) for real live people who (of course) have the option of not actually clicking anything, thus theoretically making their clicks harder to identify as 'fraudulent.' This IM attack doesn't even need a victim to physically run anything to become infected — simply visiting a certain site in Internet Explorer will cause the files to download and start sending infection messages. At this point, their homepage is changed to a site using Mesothelioma (a rare form of cancer) to ring up high-paying results on the perpetrators' Google ads. As the researcher who discovered the infection notes, 'It's way, way harder to trace some random boob who has a ton of (partially) unconnected people shunting IM links all over the place. Try staying anonymous as a Botnet owner who just had the entire details of his server splattered across the net by Shadowserver. What will be interesting to see is if some of the smaller Botnet guys ditch their technical woes and jump on the much-easier-to-maintain IM bandwagon to get their clickfraud kicks.'"

Several reader write about a new AIM threat dubbed the "AIM Pipeline Worm" that uses a sophisticated network of "chained" executables to attack the end user. Security Focus has a brief note. One anonymous reader writes: "Using this method, there is no starting point for the attack — a malicious link via IM can send you to any given file, at which point the path of infection you take depends entirely on the file you start off with. The hackers can then decide which order to install malicious software, depending on their needs at the time. At a bare minimum, you will become a Botnet Zombie — if you're really lucky, you might be Trojaned, have a Rootkit installed on your PC, and be used for spam, file storage, and DOS attacks. Unlike similar attacks that have been attempted in the past, the removal of a file from the chain will not stop the attack — you will simply end up with something else installed instead, in the form of a randomly named executable dumped in your system32 folder. You'll still spam an infection link to all your contacts."

consumerist writes "Researchers at the German Honeynet Project have discovered that a malicious hacker earned about $430 in a single day installing spyware on computers in the latest Windows worm attack. Within 24 hours, the IRC-controlled botnet hijacked more than 7,700 machines via the Windows Server Service vulnerability (MS06-040) and hosed the infected computers with the spyware from DollarRevenue. The botnet operator made between a penny and 30 cents for every piece of spyware installed. Add that to the spam rental and DDoS extortion money and we have a booming business."

Vobbo writes "Weeks after NANOG subscribers argued whether or not mitigating botnet command and control systems was a worthwhile endeavor, the LA Times reports that the old fashioned method of arresting and prosecuting criminals still works. Prosecutors successfully prosecuted a 21 year old who had conspired to create botnets that attacked the Department of Defense, a California school district, and a Seattle hospital before being arrested. He plead guilty and was sentenced to 3 years of 'supervised release.'"

wild3rbeast writes "Joe Stewart, a senior security researcher with LURHQ's Threat Intelligence Group has figured out a way to silently spy on a botnet's command-and-control infrastructure, and finds that for-profit crackers are clearly winning the cat-and-mouse game against entrenched anti-virus providers. From the article: 'The lesson here is once you get infected, you are completely under the control of the botmaster. He can put whatever he wants on your machine, and there's no way to be 100 percent sure that the machine is clean. The only way to be [completely] sure the system is malware-free is to completely wipe the hard drive and reinstall the operating system.'"

Laljeetji writes "eweek reports that the first wave of malicious attacks against the MS06-040 vulnerability is underway, using malware that hijacks unpatched Windows machines for use in IRC-controlled botnets. The attacks, which started late Aug. 12, use a variant of a backdoor Trojan that installs itself on a system, modifies security settings, connects to a remote IRC (Internet Relay Chat) server and starts listening for commands from a remote hacker. On the MSRC blog, Microsoft is calling it a very small, targeted attack that does not (yet?) have an auto-spreading mechanism. LURHQ has a detailed analysis of the backdoor."

An anonymous reader writes "For the first time in more than two years, the United States has failed to make inroads into its spam-relaying problem. The U.S. remains stuck at the top of the chart and is the source of 23.2 percent of the world's spam. Its closest rivals are China and South Korea, although both of these nations have managed to reduce their statistics since Q1 2006. The vast majority of this spam is relayed by 'zombies,' also known as botnet computers."

v3xt0r writes "It seems that 'the Open Source Development Model' is to be blamed for the recent increase in botnet development. 'We're not taking aim at the open-source movement; we're talking about the full-disclosure model and how that effectively serves malware development,' the spokesman for McAfee says. Why not just blame the IRC Protocol? Or simply admit that Proprietary vendors cannot keep pace with the Open Source Model?"

An anonymous reader writes "The Washington Post is running a pretty decent story about 'Shadowserver,' one of a growing number of volunteer groups dedicated to infiltrating and disabling botnets. The story covers not only how these guys do their work but the pitfalls of bothunting as well. From the article: 'Even after the Shadowserver crew has convinced an ISP to shut down a botmaster's command-and-control channel, most of the bots will remain infected. Like lost sheep without a shepherd, the drones will continually try to reconnect to the hacker's control server, unaware that it no longer exists. In some cases, Albright said, a botmaster who has been cut off from his command-and-control center will simply wait a few days or weeks, then re-register the domain and reclaim stranded bots.'"

An anonymous reader writes "Washingtonpost.com's Security Fix blog has an interesting post profiling the activities of a kid named Witlog who controls a botnet of roughly 30,000 hacked Windows PCs. Even after the authorities manage to shut down the network Witlog uses to control his bots, he pops up somewhere else. From the article: 'Witlog may in fact be the product of a new generation of script kiddiez; the chief distinguishing feature of this generation being that instead of using Web site flaws to deface as many Web sites as possible, these guys are breaking into thousands of home and work PCs and taking them for a virtual joyride, often times all the way to the bank.'"

Orange Eater writes "eWeek has a story about a group of high-profile security researchers intensifying the search for the command-and-control infrastructure used to power botnets for malicious use. The idea is to open up a new reporting mechanism for ISPs and IT administrators to report botnet activity." From the article: "Operating under the theory that if you kill the head, the body will follow, a group of high-profile security researchers is ramping up efforts to find and disable the command-and-control infrastructure that powers millions of zombie drone machines, or bots, hijacked by malicious hackers."

An anonymous reader writes "The Washington Post is running a fascinating feature profiling a couple of botnet operators who make thousands of dollars each month installing adware on machines they infect. This is by far the most detailed examination of this issue I've seen so far -- and includes an interview with the CEO of 180Solutions, as well as interviews with some of the botmasters' victims. From the story: 'Most days, I just sit at home and chat online while I make money,' 0x80 says. 'I get one check like every 15 days in the mail for a few hundred bucks, and a buncha others I get from banks in Canada every 30 days.' He says his work earns him an average of $6,800 per month, although he's made as much as $10,000. Not bad money for a high school dropout.'"

aricusmaximus writes "A California student is now facing felony conspiracy charges after unleashing a botnet attack that shut down the network of a Seattle hospital intensive care unit. This indictment comes a few weeks after another California man pled guilty to similar charges. Both attacks were attempts to make money off of adware affiliate programs. So who's really at fault here? The students? The hospital for not securing their computers and network? Or the adware companies for providing the incentive?"

spge writes "Now that Jeanson James Ancheta has plead guilty to spamming, computer misuse and fraud, it might be worth scanning through the original indictment document, which includes a step-by-step account of how someone goes about setting up an adware business, manages botnets and (thankfully) gets caught." From the BBC article: "'Mr Ancheta was responsible for a particularly insidious string of crimes,' said a spokesman for the US attorney's office in Los Angeles, Thom Mrozek. 'He hijacked somewhere in the area of half a million computer systems. This not only affected computers like the one in your home, but it allowed him and others to orchestrate large-scale attacks.'" We discussed Ancheta's arrest back in October of last year.

An anonymous reader writes "A UK government official has claimed that botnet infections should be celebrated, as they prove that Britain is a prosperous place with high broadband take-up. Is this an interesting new spin on hacking attacks, or sheer madness?" From the article: "The suggestion that botnet infections have their positive side sparked some surprise within the audience. One attendee pointed out that he 'wouldn't want the value of being number one in infections to be extended to bird flu'."

Captain Chad wonders: "With the recent news of a 1.5-million node botnet, as well as the AIM rootkit worm, I'm getting a bit concerned about whether my PC may be a zombie. I'm seeing a lot of internet activity, even when nothing is running, and I've checked the process explorer for obvious tasks to no avail. I apply patches as soon as they're released, and my antivirus/spyware programs report nothing. How do I determine if my PC is a zombie, and if it is, how would I de-infect it?"

DJ_Vegas writes "One clever MySpace user looking to expand his buddy list recently figured out how to force others to become his friend, and ended up creating the first self-propagating cross-site scripting (XSS) worm. In less than 24 hours, 'Samy' had amassed over 1 million friends on the popular online community. According to BetaNews, the worm's code utilized XMLHTTPRequest - a JavaScript object used in AJAX Web applications and was spreading at a rate of 1,000 users every few seconds before MySpace shut down its site. Thankfully, the script was written for fun and didn't try to take advantage of unpatched security holes in IE to create a massive MySpace botnet."

DigitumDei writes "Dutch police has nabbed 3 men (aged 19,22, & 27) who alledgedly used the toxbot trojan to create a botnet of over 100000 machines. The trio conducted a DDOS attack against an unnamed US company in an extortion attempt, as well as using phishing tactics to hijack PayPal and eBay accounts. From the article: 'Police seized computers, cash, a sports car, and bank accounts at the three men's residences, and additional arrests are expected. The three were to be taken before a magistrate in Breda, a city approximately 25 miles south of Rotterdam, on Friday. The botnet was dismantled, prosecutors said, with help from the Dutch National High Tech Crime Center; GOVCERT.NL, the Netherlands' Computer Emergency Response Team; and several Internet service providers, including the Amsterdam-based XS4ALL.'"

Uky writes "Convinced that the recent upswing in virus and Trojan attacks is directly linked to the creation of botnets for nefarious purposes, a group of high-profile security researchers is fighting back, vigilante-style. The objective of the group, which operates on closed, invite-only mailing lists, is to pinpoint and ultimately disable the C&C (command-and-control) infrastructure that sends instructions to millions of zombie drone machines hijacked by malicious hackers." From the article: "Using data from IP flows passing through routers and reverse-engineering tools to peek under the hood of new Trojans, Thompson said the researchers are able to figure out how the botnet owner sends instructions to the compromised machines."