Zombie machines fueling new cybercrime wave

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The rapid growth of broadband connections for home computers may be inadvertently fueling what could be the start of a new crime wave -- cyberextortion.
As more homes connect to faster delivery systems, their computers are becoming vulnerable to hackers and virus writers who can turn them into "zombie" machines, ready to carry out any malevolent command.

Favorite targets for extortionists -- many thought to be in Eastern Europe -- have been casinos and retailers. But one recent high-profile victim was the Port of Houston.

And just last week, the online payment service WorldPay admitted to suffering a major distributed denial-of-service (DDoS) attack that lasted three days. WorldPay, which is owned by The Royal Bank of Scotland Group, has been fully restored. An investigation into the WorldPay incident is ongoing.

"At the end of the day, this is an old-fashioned protection racket, just using high-tech," said a spokeswoman for Britain's Hi-Tech Crime Unit.

British cybercrime cops today pleaded with companies to report attacks against their Internet businesses following a recent string of extortion incidents.

Police have seen an increase in the number of DDoS attacks targeting online businesses, and in some cases the attacks are followed by demands for money. An effective attack, which can cripple a corporate network with a barrage of bogus data requests, can knock a Web site off-line for extended periods.

Online casinos appear to be a favorite target, since they do brisk business and many are located in the Caribbean, where law enforcement is poorly equipped to tackle such investigations.

In 2001, cyberforensics expert Neil Barrett told Reuters that his company, Information Risk Management, was working with Internet casinos to shore up their defenses against a spate of DDoS attacks. At the time, he said DoS barrages were followed by demands to pay up or face further attacks. He said the attacks appear to have come from organized crime groups in Eastern Europe and Russia.

Because of a lack of information from victimized companies, police said they are unsure whether recent incidents are isolated events or the start of a new crime wave.

Whatever the motive, DDoS attacks are on the rise, coinciding with the proliferation of broadband deployment in homes. Security experts believe the increasing number of unsecured home PCs may be a major culprit.

New Internet- and e-mail-borne computer infections are hitting home computers, turning them into zombie machines that can be controlled by outsiders without the owners' knowledge, security experts say. Such infected machines can be told to send e-mail spam or even be used to initiate or participate in a DoS attack against another computer.

"Home broadband computers are going to be the launching point for a majority of these," said Richard Starnes, director of incident response at U.K.-based telecommunications company Cable & Wireless PLC and an adviser to Scotland Yard's Computer Crime Unit.
 
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