[ISN] Phatbot arrest throws open trade in zombie PCs

From: InfoSec News (isn@private)
Date: Thu May 13 2004 - 02:49:38 PDT

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    http://www.theregister.co.uk/2004/05/12/phatbot_zombie_trade/
    
    By John Leyden
    Published 12th May 2004 
    
    The arrest of the suspected author of the Phatbot Trojan could lead to
    valuable clues about the illicit trade in zombie PCs. The arrest of
    the alleged Phatbot perp was overshadowed by the unmasking of the
    admitted Sasser author, Sven Jaschan. But the Phatbot case may shed
    the mostlight into the dark recesses of the computer underground.
    
    Phatbot is much less common than NetSky but is linked much more
    closely with the trade in compromised PCs to send spam or for other
    nefarious purposes. Viruses such as My-Doom and Bagle (and Trojans
    such as Phatbot) surrender the control of infected PCs to hackers.  
    This expanding network of infected, zombie PCs can be used either for
    spam distribution or as platforms for DDoS attacks, such as those that
    many online bookies have suffered in recent months. By using
    compromised machines - instead of open mail relays or unscrupulous
    hosts - spammers can bypass IP address blacklists.
    
    Phatbot was been used to spam, steal information or perform DDoS
    attacks, according to Mikko Hyppönen, director of anti-virus research
    at F-Secure. "You could do anything you wanted with it," he said.  
    Phatbot is a variant of Agobot, a big family of IRC bots. Hyppönen
    said people were selling tailor-made versions of the bot for various
    illegal purposes.
    
    NetSky also contains a backdoor component but this was designed only
    to upgrade malicious code: it is not a conscious attempt by its
    designer to turn compromised PC into spam zombies, Hyppönen says. Alex
    Shipp of MessageLabs said hackers ware still able to seize machines
    compromised by NetSky but he agreed with Hyppönen that worms such as
    Bagle and MyDoom, and Trojans like Phatbot, are far more commonly used
    in zombie spam networks.
    
    As reported last month, networks of compromised hosts (BotNets) are
    commonly traded between virus writers, spammers and middlemen over IRC
    networks.
    
    The price of these BotNets (DoSNets) was roughly $500 for 10,000 hosts
    last Summer when the MyDoom and Blaster (the RPC exploit worm) first
    appeared on the scene. "I have no doubt it's doubled since then as
    hosts are cleaned and secured," Andrew Kirch, a security admin at the
    Abusive Hosts Blocking List told El Reg. By his reckoning,
    non-exclusive access to compromised PCs sells for about 10 cent a
    throw.
    
    An unnamed 21 year-old man from the southern German state of
    Baden-Wuerttemberg was arrested last Friday on suspicion of creating
    the Agobot and Phatbot Trojans. He is yet to be formally charged.
    
    
    
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