[ISN] Arrest could crack open PC virus ring

From: InfoSec News (isn@private)
Date: Sun May 09 2004 - 23:45:24 PDT

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    http://www.thecouriermail.news.com.au/common/story_page/0,5936,9514174%255E8362,00.html
    
    Jennifer Dudley
    technology reporter
    10may04
    
    A RING of virus writers responsible for at least 30 viruses and
    billions of dollars damage could be exposed after German police
    arrested two men over the Sasser, Agobot and Phatbot viruses.
    
    Anti-virus experts said the arrest of an 18-year-old German high
    school student who allegedly confessed to creating Sasser could be
    "one of the most significant cybercrime arrests of all time" and was
    made possible by a $US250,000 bounty from Microsoft.
    
    The Sasser worm surfaced on April 30 and infected tens of millions of
    computers using Windows XP or 2000. It spread without any intervention
    from users.
    
    Victims included Westpac Bank, the Northern Territory Government,
    British Airways, Delta Airlines and the UK Maritime and Coastguard
    Agency.
    
    Police arrested a man over the virus in Rotenburg, North Germany, on
    Friday. His name has not been released although it is believed the FBI
    and CIA were searching for a suspect called Sven J.
    
    Lower Saxony police spokesman Frank Federau said the man had confessed
    to creating the worm virus and "Microsoft experts . . . confirmed our
    suspicions".
    
    Police seized several computers at the man's home and he was released
    pending charges. The man's computer reportedly contained the Sasser
    virus computer code.
    
    Microsoft senior vice president Brad Smith said a breakthrough came on
    Wednesday last week when a group of fewer than five Germans approached
    the company with information about the alleged virus writer.
    
    He said the group inquired about the company's $5 million anti-virus
    reward program, and Microsoft agreed to pay the group $US250,000
    "pending the successful conviction of this case".
    
    If the man is convicted, it would be the first successful prosecution
    under the Microsoft reward program, which was launched in November
    2003.
    
    Also on Friday, German police arrested a 21-year-old unemployed man in
    Loerrach who allegedly admitted creating the widespread Agobot and
    Phatbot viruses with other programmers.
    
    Sophos senior technology consultant Graham Cluley said the
    breakthroughs could lead to further arrests of Skynet virus-writing
    group members, who recently claimed to have written Sasser in a
    message embedded in the Netsky-AC virus.
    
    "If this is the case, this could be one of the most significant
    cybercrime arrests of all time," he said. "We would not be surprised
    if more arrests follow in due course."
    
    Mr Cluley said 29 "highly disruptive" variants of the Netsky virus
    were spreading and clues to their authors could be on computers seized
    during the arrests.
    
    Both men face charges of computer sabotage, which in Germany carries
    up to five years' prison, but Computer Associates Australia senior
    security consultant Daniel Zatz said it was not illegal to write a
    computer virus, only to distribute it. The men might claim they did
    not mean to release the viruses.
    
    
    
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