[ISN] Crime gangs extort money with hacking threat

From: InfoSec News (isn@private)
Date: Wed Nov 12 2003 - 04:16:46 PST

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    http://news.ft.com/servlet/ContentServer?pagename=FT.com/StoryFT/FullStory&c=StoryFT&cid=1066565805264&p=1012571727088
    
    By Chris Nuttall in London 
    Published: November 11 2003  
    
    Evidence of a new type of international extortion racket emerged on
    Tuesday with revelations that blackmailers have been exploiting
    computer hacking techniques to threaten the ability of companies to
    conduct business online.
     
    Gangs based in Eastern Europe have been found to have been launching
    waves of attacks on corporate networks, costing the companies millions
    of dollars in lost business and exposing them to blackmail.
    
    The most recent cases of affected companies have surfaced in Britain
    where the National Hi-Tech Crime Unit (NHTCU) is investigating how one
    betting site was brought down and then received a threat that it would
    be attacked again unless tens of thousands of pounds were paid. It is
    co-operating with international law enforcement agencies, with the
    perpetrators thought to be based in Eastern Europe.
    
    Ian Morris, founder of Equip Technology, a systems security
    integrator, said: "We've dealt with six cases now and it's got to be
    multiples of that, and not just in the UK, it's obviously a worldwide
    problem.
    
    "They seem to be targeting high-volume low-value transactional sites."
    
    The attacks involve gangs commandeering as many as hundreds of
    computers through hacking methods to use without their owners'
    knowledge. A command is then issued to each one simultaneously to make
    a series of bogus requests to the servers of the victim. The weight of
    traffic brings the servers to a halt and legitimate requests to carry
    out transactions cannot be completed.
    
    One UK company was reported to be losing £1m ($1.66m) a day in lost
    business as its service remained down.
    
    More than a dozen offshore gambling sites serving the US market were
    hit by the so-called Distributed Denial of Service attacks and
    extortion demands in September and the tactic is now spreading. Sites
    have been asked to pay up to $50,000 to ensure they are free from
    attacks for a year. Police are urging any victims not to give in to
    blackmail and report the crime.
    
    Detective Superintendent Mick Deats, head of operations at the NHTCU,
    said: "This is a protection racket. The message to these companies is
    'You pay and we leave you alone'.
    
    "If the demand comes in for $40,000-50,000, compared to the losses
    they're suffering, there's an attraction for the companies to pay and
    hope it goes away. But there's nothing to say it will go away."
    
    One security firm has responded to appeals for help from six companies
    as their systems have been brought down by DDoS attacks.  Four of
    these were online gambling sites, one was a leading retailer with a
    web presence and the other an online payments provider.
    
    WorldPay, the online payments service owned by the Royal Bank of
    Scotland that serves 27,000 online retailers globally, admitted to
    suffering a major DDoS attack last week.
    
    It said no customer data were compromised in the attack and sources
    close to the company said there was no evidence of any blackmail
    threat.
    
    
    
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