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Microsoft Botnet Bust: U.S. Marshals Raid Offices In Two States To Disrupt Massive Botnet

Posted: 03/26/2012 8:04 pm Updated: 03/26/2012 8:04 pm

Microsoft Botnet

Cyber investigators from Microsoft, joined by a team of United States marshals, raided offices in Pennsylvania and Illinois Friday to disrupt a global network of more than 13 million infected computers that they said helped cyber criminals steal $100 million in the past five years.

The coordinated seizure of computer servers at two hosting centers in Scranton, Pa., and Lombard, Ill., was "our most complex effort to disrupt botnets to date," Richard Boscovich, a senior attorney at Microsoft's Digital Crimes Unit, said in a blog post.

Botnets are global networks of infected computers that allow cyber criminals to steal consumer financial data. They grow in size as computer users accidentally click on a malicious link or file, and their PCs begin performing automated tasks that help cyber criminals commit identity theft.

Microsoft, whose aim is to secure its Windows operating system that still dominates the market, alleges that botnets infected with the so-called Zeus malware can record users' computer keystrokes to steal usernames and passwords linked to online bank accounts. In addition to stealing more than $100 million, the botnet operators have sold hundreds of versions of Zeus -- with various levels of sophistication -- for between $700 and $15,000, Microsoft said.

On March 19, Microsoft filed suit in federal court in Brooklyn against 39 unnamed defendants. The suit asked a judge for permission to raid the offices in Illinois and Pennsylvania, and shut down the command servers of the botnets. Financial Services Information Sharing and Analysis Center and the National Automated Clearing House Association were also on the complaint with Microsoft.

Boscovich said this was Microsoft's fourth raid, all of which have gathered "valuable evidence and intelligence" to help rescue computers from botnets and identify the cybercriminals behind them. Operators of the hosting centers that were raided told the New York Times they were unaware the equipment inside their facilities was being used for a botnet.

Boscovich called the raid "a strategic disruption of operations" meant to cause "long-term damage to the cyber criminal organization that relies on these botnets for illicit gain."

"We don't expect this action to have wiped out every Zeus botnet operating in the world," Boscovich said. "However, together, we have proactively disrupted some of the most harmful botnets, and we expect this effort will significantly impact the cybercriminal underground for quite some time."

Microsoft's raids are part of a growing effort in the public and private sector to disrupt botnets. On Thursday, the Federal Communications Commission announced commitments from most of the nation's Internet service providers to adhere to a voluntary "code of conduct" to fight networks of infected PCs. The companies pledged to detect whether customers' computers have become robots -- or "bots" -- and notify and help customers whose computers are infected.

The Zeus botnet spread largely through misleading spam messages that used a variety of methods to trick users into clicking malicious links. Some fake messages asked users to accept invitations from Facebook friends, accept tax refunds from the Internal Revenue Service, or download a Microsoft “Critical Security Update." Once users clicked on the fake links or files, their computers became infected.

Microsoft said consumers can take several measures to protect themselves, such as keeping their software up-to-date, running anti-virus and anti-malware protection programs, and avoiding clicking on unfamiliar links or email attachments.

Consumers whose computers become part of botnets may notice their machines being unusually slow or crashing frequently, according to the Microsoft Safety and Security Center.

If users realize their computers are infected, they often lack the technical resources to fix the problem. Cleaning an infected computer "can be exceedingly difficult, time-consuming and frustrating," according to Microsoft's complaint.

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Cyber investigators from Microsoft, joined by a team of United States marshals, raided offices in Pennsylvania and Illinois Friday to disrupt a global network of more than 13 million infected computer...
Cyber investigators from Microsoft, joined by a team of United States marshals, raided offices in Pennsylvania and Illinois Friday to disrupt a global network of more than 13 million infected computer...
 
 
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DRaymond
Network administrator, voiceovers
09:57 PM on 03/27/2012
Zeus is a family of Trojan programs that was built for profit by a professional hacker.  You could buy your own Zeus botnet starter kit for $15 thousand for the full kit with latest features.  All you really need is a way to fool people into installing it despite warnings.  And there are similar botnet toolkits for Mac OSX.

Right now almost all the action in malware 'research' is on the social engineering side:  Findong ways to trick people.

http://betweenthenumbers.net/2011/04/lizamoon-and-the-final-step-in-securing-your-computer/
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authorized-user
macho macho man
01:41 PM on 03/27/2012
Cyber investigators from Microsoft????
Yes you read that correctly, corporate cops.
We don't need no stinkin' badges!
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bespoken
My micro bio is filled with emptiness
11:13 AM on 03/27/2012
Operators of the hosting centers that were raided told the New York Times they were unaware the equipment inside their facilities was being used for a botnet."

If that's true, why would anyone ever use their services again? At the very least, routine maintenance and systems monitoring should be able to uncover problems. I have a long time friend who owns a data center with all kinds of internet servers and thousands of subscribers. Never has a problem because he has it locked down tight.

I think there should be liability for companies that don't do this and have their own systems and those of their clients compromised.
11:10 AM on 03/27/2012
I mostly like Microsoft. They can be troubling at times but for the most part I think they have done more good than harm. The only reason Mac doesnt have these problems is because they are so small. They only control what 10% of the market? So naturally Microsoft is going to get the brunt of all cyber crime. Apple simply has never had to deal with these issues. They are insulated from the real world by their proprietary nature, price point (who wants to spend 2k! on a new computer every few years) and microscopic reach.
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unitron
Reverse Chron Order never stays checked
10:50 AM on 03/27/2012
"Cleaning an infected computer "can be exceedingly difficult, time-consuming and frustrating..."

Especially on a computer running Windows.
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bespoken
My micro bio is filled with emptiness
11:05 AM on 03/27/2012
Actually, protecting the average personal computer is pretty easy. Cleaning it up isn't too difficult either. I use AVG. Works great and all I need do is run scans in the background regularly, and follow the directions to clean up if needed, which is rarely because I update every day and hardly ever get an infection.
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PenguinLinux
got root ?
01:31 PM on 03/27/2012
You hardly get an infection you know about. AVG won't catch everything (no AV software does, that's why they use heuristics). Also, not all infections are trojans, viruses, worms, etc, some are adware, spyware, rootkits, etc.
12:02 PM on 03/27/2012
it's not about cleaning it's about protecting I run a windows network at work out of the windows computers and 4 servers I've never gotten a virus in 10 years. the first major step is to get rid of the admin rights,
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HUFFPOST SUPER USER
nevernot
I like paying taxes, they buy me civilization.
12:29 PM on 03/27/2012
There are quite a few threats I've taken apart that utilize system accounts like NT AUTHORITY. I highly suggest you take a closer look at your assets with an AV you do not currently use. HIGHLY SUGGEST... My network is locked down like you wouldn't believe for HIPPA and PCI compliance and they still sneak through every now and then. Ten years is an unbelievable length of time to go threat free.
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HUFFPOST SUPER USER
Tom Hn
American liberty with unconventional wisdom
10:44 AM on 03/27/2012
Every one is attacking Microsoft, wonder how it became so hated.
10:39 AM on 03/27/2012
Which nationstate is behind botnet?

Could it be Iran??
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HUFFPOST SUPER USER
nevernot
I like paying taxes, they buy me civilization.
12:30 PM on 03/27/2012
There are numerous botnets out there, Zeus originated in Russian organized crime. Iran so far has not been a major or even minor vector of attacks on personal systems.
10:15 AM on 03/27/2012
Hmm.. I thought the very definition of a Botnet means that the computer user is unaware that their computer is being used to attack other sites/networks. Maybe im not understanding something but it's almost as if they are treating the owners of these servers as criminal as the hackers that setup the botnets. You better make sure you have a good anti-virus/spyware program. I'd hate to have my door kicked in over a virus
10:50 AM on 03/27/2012
Botnets send their info to central servers that are NOT a bot. That is what they raided.
01:57 PM on 03/27/2012
Ah.. thanks for clearing that up :)
10:56 AM on 03/27/2012
If you read the article more closely you would have seen they were not attacking the 13 million infected user computers but a few major server farms that were controlling the botnets. It is possible that the owners of these farms were ignorant of the damage their sites were doing, but the reality today is that the larger your Internet presence the greater your need for competence and internal controls to insure you are not aiding and abetting illegal activities. Besides putting some major botnets effectively out of business, one would hope the contents of any seized servers would provide clues and evidence that will eventually lead to the arrest and permanent incarceration of individuals ultimately responsible for the data thefts.
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bespoken
My micro bio is filled with emptiness
11:17 AM on 03/27/2012
You're absolutely right on all counts except to say that I suspect most of the perps are outside of the US and very difficult to pin down or get to.
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mrld20
10:15 AM on 03/27/2012
Private cops???!! I love it!!! :DDDD
HUFFPOST SUPER USER
mrld20
10:13 AM on 03/27/2012
THIS IS SO COOL!!! I think this is sooooooooo cool... Corporate cyber cops?! Its like something out of the Matrix!!! :DDD
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bespoken
My micro bio is filled with emptiness
11:18 AM on 03/27/2012
Are you on some weird drugs or something?
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mrld20
11:36 AM on 03/27/2012
You're being mean to be meeeee!!! :(((
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HUFFPOST SUPER USER
Patient Zero
That is not a picture of me.
09:58 AM on 03/27/2012
How do you telll if your computer is infected, and what specific steps do you take to clean it?

Why can't this website put out this information? Is it some sort of secret?
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MrGovtCheese
We don need no stink'n badges ...
10:47 AM on 03/27/2012
The best guarantee is a fresh install, but short of that you can make sure your computer is up to date with important Microsoft patches. Make sure your virus software is up to date (there are good free ones out there) and then run a boot scan. And you can also run software like Malwarebytes to detect malware on your PC. Once you're satisfied your PC is clean create a restore point.
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PenguinLinux
got root ?
01:33 PM on 03/27/2012
"The best guarantee is a fresh install" with Linux.
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bespoken
My micro bio is filled with emptiness
11:21 AM on 03/27/2012
Go here:

http://free.avg.com/ca-en/homepage

I recommend you buy the full version. It's cheap though the free version works great for most purposes. Install, run a scan and set it to update automatically. Then scan in the background regularly. I still do check for updates daily. It's a button click.

If it does find a problem, follow the directions to clean it up.
01:47 PM on 03/27/2012
Microsoft Security Essentials is both better and free. http://windows.microsoft.com/en-US/windows/products/security-essentials
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HUFFPOST SUPER USER
gx5000
Life's too short, be happy..
09:49 AM on 03/27/2012
You see, sell something and don't over protect it...
Now let your first few releases get pirate worldwide for market penetration and dominance...
Now some of you ex employees and fans will know how to subvert you software and start writing attack scripts or "viruses", which in turn will create more companies to fight them off....sit back and let the Bank accounts fill.
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HUFFPOST SUPER USER
Thanks4Watching
Daily dose of cynicism
09:03 AM on 03/27/2012
As happy as I am to see cyber crime broken up, this line sent chills up my spine:

"On March 19, Microsoft filed suit in federal court in Brooklyn against 39 unnamed defendants. The suit asked a judge for permission to raid the offices in Illinois and Pennsylvania, and shut down the command servers of the botnets. "

NO. No, no, no. Just, no. Corporations have no business playing cop. Cops should be playing cop.
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HUFFPOST SUPER USER
Samuel Bun
Guess which hand it's in.
09:20 AM on 03/27/2012
Cops play cop for corporations, remember the lost iphone. Welcome to 1984 the corporations run the show. We are being watched and there is nothing to do but be aware. If everyone would just comply and post all information on Facebook then they could save a lot of time and money and we wouldn't have to use the nasty word, spying.
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HUFFPOST SUPER USER
Thanks4Watching
Daily dose of cynicism
09:36 AM on 03/27/2012
It's disgusting that people call this socialism. It's the complete opposite of socialism. The government isn't controlling the markets, the markets are controlling the government.
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ProCynic
Those that govern intend to be our masters.
10:18 AM on 03/27/2012
Microsoft isn't playing cop. They investigated, provided information to law enforcement, and filed civil suit.
08:32 AM on 03/27/2012
The laughable part here is that the information botnets gathers can be located on US govt agency databases, and can be accessed by cybercriminals at will. (see Anonymous) Articles like these are intended to give you a false sense of security. Your information isn't safe, no matter what the US Marshalls and Microsoft tell you. If you use the internet, you are exposed.
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08:03 AM on 03/27/2012
If you feel you,ve been the victim of any kind of cyber crime report it at IC3.gov. This site is overseen by the F.B.I.
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GlassMask
Comedian/Curmudgeon
09:14 AM on 03/27/2012
ALL sites are overseen by the F.B.I., unfortunately...
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Geegs
Question everything!
10:30 AM on 03/27/2012
Thanks so much for the information. Very good info to have.