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Big botnet group arrested, computer crime

Date: October 11, 2005
Source: TechWeb News
By: Gregg Keizer

Dutch police arrested three men for creating a botnet of more than 100,000 compromised PCs, authorities in the Netherlands said Friday. They allege the botnet was used in an attempt to extort a U.S. company, to steal PayPal and eBay accounts, and to install adware and spyware.

The pinch is among the biggest botnet scores ever for law enforcement, Dutch authorities said. "With 100,000 infected computers, the dismantled botnet is one of the largest ever seen," the Public Prosecution Service (Openbaar Ministerie, or OM) said in a statement. The network of hijacked PCs and servers consisted of machines worldwide.

The three men, ages 19, 22, and 27, allegedly used the Toxbot (aka Codbot) Trojan to infect the machines, on which they then installed adware and spyware. The massive botnet was also used to conduct a denial-of-service (DoS) attack against an unidentified U.S. company in an extortion attempt to squeeze payment for not bringing down the firm's Web site.

Police also said that the trio -- which was led by the 19-year-old -- used phishing tactics to hijack PayPal and eBay accounts, then "used to pay for goods ordered on the Internet."

Not stopping there, said prosecutors, the three also may have written viruses for others, who paid the hackers to come up with tools for stealing online bank account usernames and passwords.

Toxbot/Codbot harks to February 2005, and has been successfully tweaked numerous times, said Graham Cluley, a senior technology consultant for U.K.-based security firm Sophos, in an apparent attempt on the part of the three to stay one step ahead of anti-virus vendors.

"Each time the Trojan was stopped by anti-virus defenses, they made a new version," he said. "This was not just a one-off. The sheer number of variants shows this wasn't a crime they committed just once."

It would likely take many attacks, Cluley added, for the attackers to have collected 100,000 controlled PCs that made up the reported botnet.
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