[ISN] Online threats outpacing law crackdowns

From: InfoSec News (isn@private)
Date: Fri Jun 16 2006 - 01:29:53 PDT


http://news.com.com/Online+threats+outpacing+law+crackdowns/2100-7349_3-6084317.html

By Joris Evers 
Staff Writer, CNET News.com
June 15, 2006

SCOTTSDALE, Ariz.--Authorities are cracking down on phishing and
botnets, but the threats are advancing instead of diminishing, two law
enforcement officials said.

Cybercrooks are organizing better and moving to more sophisticated
tactics to get their hands on confidential data and turn PCs of
unwitting users into bots, representatives from the U.S. Department of
Justice and the U.S. Air Force Office of Special Investigations said
in separate presentations here at the Computer Security Institute's
NetSec event this week.

Law enforcement has had increased successes in catching, prosecuting
and convicting phishers and bot herders over the past couple of years.  
However, catching the bad guys is getting tougher as the criminals
become more professional, the representatives said.

"We're seeing increasingly sophisticated groups online that are more
indicative of crime groups," Jonathan Rusch, special counsel for fraud
prevention at the Justice Department, said in a presentation. The
criminals who have been caught range from teenagers to retirees, he
said.

Rusch spoke about phishing, a prevalent type of online attack that
combines e-mail spam and fraudulent Web sites made to look like
trusted sites, which are aimed at tricking a user into giving up
sensitive information such as a credit card or Social Security number.  
Almost 17,500 phishing Web sites were reported to the Anti-Phishing
Working Group in April.

A top phishing concern is the increased use of malicious software,
Rusch said. Increasingly, phishers use Trojan horses that pack
backdoors, screen grabbers or keystroke loggers to capture log-in
names, passwords and other information, he said. In April, there were
180 unique examples of such malicious code, he said.

Backdoor software gives attackers remote access to an infected PC,
which could let them piggyback onto a user's Internet connection and
conduct online transactions from the victim's PC while masquerading as
the person, Rusch said.

Screen grabbers and keystroke loggers can be programmed to capture
very specific information and are even designed to wait until a user
logs on to a certain banking Web site and send that information to the
attacker.

Malicious software is where phishers intersect with bot herders, those
who run networks of compromised machines, called a bot net. Computers
typically become compromised and turned into a bot, also popularly
called a zombie, after visiting a malicious Web site or opening an
infected e-mail message or attachment. The bot software often nestles
itself on a PC unbeknownst to the user by exploiting an unpatched
security flaw on the system.

Law enforcement has been catching up to bot herders, and there have
been some high-profile convictions. But here, too, the battle is
getting harder, Wendi Whitmore, a special agent with the Air Force
Office of Special Investigations, said in a presentation on botnets.

"Botnets are one of the greatest facilitators of cybercrime these
days. Really the cybercrime arena is wrapped around botnets," she
said.

With ubiquitous broadband connections and exploits for security flaws
in software out before patches, the Internet environment is ideal for
bots or zombies to proliferate, she said. That assertion is backed by
a recent analysis by Microsoft. The software maker found that bots
were the most common Windows threat, with more than 60 percent of
compromised computers running bot code.

A zombie PC can be used by miscreants to store illegal content, such
as child pornography, or in a botnet to relay spam and launch
cyberattacks. Additionally, hackers often steal the victim's data and
install spyware and adware on PCs, to earn a kickback from the spyware
or adware maker.


Practice makes perfect

Meanwhile, bot masters are getting smarter about hiding. Today, most
botnets are controlled using Internet Relay Chat, or IRC, servers and
channels. Soon that could become instant messaging, peer-to-peer
technology or protocols used by Internet phone services such as Skype
or Vonage, Whitmore said.

"That is something that we're worried about because those protocols
are proprietary," she said. "They don't publish routing protocols; it
would be very difficult to catch that kind of crime."

Also, Whitmore expects cybercrooks to maintain smaller botnets with
the hope of staying under the radar. People being caught today operate
networks of as many as 1 million PCs. "There is a greater chance that
you're going to get caught, if you do that much activity and command
and control that many computers," she said.

Cybercriminals are often after data they can turn into cash, such as
credit card numbers or even trade secrets. "If you have a smaller
botnet and you combine that with targeted, really sophisticated social
engineering tactics, you're going to be potentially a lot more
successful," Whitmore said.

The military has seen a rise in such attacks over the last couple of
years, Whitmore said. The attackers know what organizations work
together, which generals would be involved and what issues they would
talk about, she said. It's "incredibly disturbing, because those are
the kinds of things that should be kept somewhat secret," she said.

Law enforcement alone cannot solve the phishing and botnet problems,
Rusch and Whitmore said. The technology industry and consumers have
key parts to play, they said.

"Part of the problem is the way we design the online environment for
users," Rusch said. It should be easier for people to see whether a
site can be trusted or not, he said. Some of that is happening today
with increased security coming in new Web browsers, for example.

A stronger effort to take down phishing Web sites is also welcome, he
said. The average phishing Web site was up for five days in April, and
that's too long, Rusch said.

In fighting bots, Whitmore sees benefits in Internet service providers
delivering security software to their users. "The long-term benefit of
ISPs becoming more involved would be an overall reduction of malicious
code on the Internet, and most of us believe that's a good thing," she
said.



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