Category Archives: Cyber Crime

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The Pirate Bay Proves Not So Private

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Remember The Pirate Bay? We’ve done a couple blog posts on the topic in the past — about the online piracy site’s legal battles over copyright law and about the fact that Sweden’s Pirate Party actually won entry into the European Parliament.

Well The Pirate Bay has made headlines once more — this time spotlight is on the site’s security flaws. It was reported that an Argentinian hacker named Ch Russo hacked The Pirate Bay site, exposing the information of four million users. Russo claims he performed the hack not with malice in mind, but instead with a desire to raise awareness of the site’s SQL vulnerabilities. The hacker touts the following on his blog:

As any other website, as any other system or mechanism, www.thepiratebay.org has robust parts and soft spots. We believe that the people behind this community always acted with the local laws on their side, and so have we.

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The community caused problems to huge companies and corporations which turned into threats between this companies and them. What we have done, we did not do it with anger, or for commercial value. As always, we saw the change, the moment and decided to take it.

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The protocol or procedure done to achieve this wasn’t anything out of the ordinary.

This is ironic seeing as one of the goals of Sweden’s’ Pirate Party was “to ensure that citizens’ rights to privacy are respected.”

The founders of The Pirate Bay were sentenced in April to one year in jail and a fine of 30 million kronor ($3.6 million USD) after being found guilty in a Swedish court of breaking copyright law. The four men were sued by numerous music companies, including Vivendi’s Universal Music Group and EMI. Russo himself highlighted the idea that these music companies would most likely be very interested in the names, email and internet address of the site’s users. He followed up by stating that that is not his team’s intention — instead, they aim to bring awareness to a lack of information protection on The Pirate Bay and several other sites.

Though Russo claims he and his team are hacking to teach a lesson, the sites’ owners and users are not too happy with the chosen method.

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It seems to me they would rather learn the hard way.

$150 Million for National Cybersecurity R&D

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The House Homeland Security Committee passed a bill to appropriate more than $150 million for cybersecurity research and development. The bill, H.R. 4842, states that $75 million will be given out over the next two years to fund R&D projects “aimed at improving the nation’s ability to prevent, protect, detect, respond to and recover from cyber attacks, focusing on large-scale, high-impact attacks.”

The bill requires the Department of Homeland Security’s Science and Technology Directorate to develop a plan regarding management processes and research activities for its key stakeholders: the Transportation Security Agency, Customs and Border Protection, Coast Guard and other DHS agencies as well as the nation’s first responders.

Among the cybersecurity R&D work, the bill would fund:

  • More secure versions of fundamental internet protocols and architectures, including domain name systems and routing protocols
  • Technologies to detect attacks or intrusions
  • Mitigation and recovery methodologies, including techniques to contain attacks and develop resilient networks and systems that degrade gracefully
  • Infrastructure and tools to support cybersecurity R&D efforts, including modeling, testbeds and data sets for assessment of new cybersecurity technologies
  • Technologies to reduce vulnerabilities in process control systems
  • Test, evaluate and facilitate the transfer of technologies associated with the engineering of less vulnerable software and securing the software development lifecycle

The bill also sets aside $500,000 to study things such as required reporting, regulation, certification, accounting practices and cybersecurity risk insurance.

“A third research project in the bill would have DHS working with national security and intelligence agencies to determine if the government-owned communications and information systems essential to the nation’s electronic grid have been compromised.”

The research would also explore the extent of any cybersecurity breach, the identity of the hacker(s), the ways in which said hacker infiltrated the inflicted system and the ramifications of such a breach.

In related news, Lt. Gen. Keith Alexander was nominated to head the Defense Department’s Cyber Command that was established last June to assume responsibility for the defense of the military’s portion of cyberspace. Alexander also heads the National Security Agency, which collects and analyzes foreign communications and foreign signals intelligence. Yesterday, Alexander was questioned by Senate Armed Services Committee about the possibility of cyber war. He expressed his doubts about a cyber war ever occurring, claiming that it would more likely be part of a larger military campaign.

“If confirmed, my main focus will be on building the capacity, the capability and the critical partnerships required to secure our military’s operational networks,” he says. “This command is not about efforts to militarize cyberspace. Rather it’s about safeguarding the integrity of our military’s critical information systems. Working with U.S. Strategic Command, department leadership and with help from this committee, my goal, if confirmed, would be to significantly improve the way we defend ourselves in this domain.”

The committee did not say when it would vote on Alexander’s nomination, but the article claims members supported him.

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Heartland Systems Hacker Sentenced to 20 Years

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Albert Gonzalez was sentenced Thursday in U.S. District Court to 20 years in prison for his role in what is known as the largest data breach incident in history. Gonzalez and his crew hacked the computers of retailers such as TJ Maxx, Office Max, DSW and Dave and Buster’s (who used Heartland Systems card processing systems), stealing more than 90 million debit and credit card numbers.

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The sentence for the largest computer-crime case ever prosecuted is the lengthiest ever imposed in the United States for hacking or identity-theft. Gonzalez was also fined ,000.

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Restitution, which will likely be in the tens of millions, was not decided Thursday.

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Before the sentence was pronounced, Gonzalez told the court he deeply regrets his crimes, and is remorseful for having taken advantage of the personal relationships he’d forged. “Particularly one I had with a central government agency … that gave me a second chance in life,” said the hacker, who had worked as a paid informant for the Secret Service. “I blame nobody but myself.”

Albert Gonzalez will spend the next several years behind bars for his role as the mastermind behind the largest computer-crime case ever prosecuted.

Albert Gonzalez will spend the next several years behind bars for his role as the mastermind behind the largest computer-crime case ever prosecuted.

Global Hacking Scheme Broken Up

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Spanish officials are calling it the world’s biggest network of virus-infected computers. That’s right — 13 million computers were hacked and infected with a program that allowed for the theft of personal and financial data of unwitting citizens worldwide, in what investigators have termed the “Mariposa botnet.”

The culprits? Three Spaniards, ages 31, 30 and 25 who were arrested last week in Spain’s northern Vizcaya province. During a search of their homes and computers, police found personal information from more than 800,000 users.

The suspects “copied personal and financial data of individuals, companies and official institutions in more than 190 countries,” the Civil Guards’ statement said. In addition to gaining illegal access to personal and financial information, the virus would have permitted those controlling the system to mount a large cyberattack from the infected computers, a U.S. official said.

Apparently, the hacking was first detected in May by Defence Intelligence, a Canadian firm that develops software to monitor incoming and outgoing transmissions of every computer on a corporate network.

The botnet [or, a network of computers infected with a virus that can be controlled remotely without owners’ knowledge] included infected machines inside the offices of more than 40 major banks and a vast majority of the top companies on the Fortune 1000 index. Since its creation, Defence Intelligence has identified and helped to protect its customers against dozens of botnets and malicious software programs — with Mariposa botnet being the jewel in its crown.

Authorities are searching for a fourth suspect in this massive cybercrime. “Juan Salon of the Spanish Civil Guard’s cybercrime unit told reporters Wednesday investigators have learned the suspect’s Internet handle and that this person might be Venezuelan.”