Monthly Archive for June, 2009

FFSearcher: A Stealthy Evolution in Click Fraud

Every so often, a new piece of malicious software comes along that introduces a subtle yet evolutionary technological leap, a quickly-mimicked shift that allows cyber crooks to be far more stealthy in plying their trade. According to research released last week, this happened most recently in the realm of click fraud, a rapidly growing problem that inflates online advertising costs for legitimate companies and ad networks. For years, hackers have used malicious software to perpetrate click fraud by hijacking the results displayed when users search for something online. The trouble is, these scams can be rather clumsy: Victims often figure out pretty quickly that something is wrong, usually because their searches are redirected to an unfamiliar search portal, as opposed to their regular default search provider. But a new Trojan horse program being distributed by tens of thousands of recently hacked Web sites hijacks search results so that Google.com users

Ex-DHS Cyber Chief Tapped as President of ICANN

Former Department of Homeland Security cyber chief Rod A. Beckstrom has been tapped to be the new president of the Internet Corporation for Assigned Names and Numbers (ICANN), the California based non-profit that oversees the Internet's address system. Most recently, Beckstrom was director of the National Cyber Security Center -- an organization created to coordinate security efforts across the intelligence community. Beckstrom resigned that post in March, citing a lack of funding and authority. Beckstrom joins ICANN as the Internet governance body faces some of the most complex and contentious proposed changes to the Internet's addressing system in the organization's entire 11-year history. For example: -- The United States is under considerable pressure to give up control over ICANN and turn it over to international supervision and management. ICANN currently operates under a Joint Project Agreement with the U.S. government, but that agreement is due to expire at the end

Critical Security Fix for Adobe Shockwave Player

Adobe Systems Inc. on Tuesday issued a software update to fix a critical security flaw in its Shockwave Player, a commonly installed Web browser plug-in. According to Adobe, a malicious or hacked site could use the security hole to install malicious software if the visitor merely browses the site with a vulnerable version of the media player software. The flaw exists in Shockwave Player (also known as Macromedia Shockwave Player) version 11.5.0.596 and earlier. To find out whether Shockwave is installed and which version may be on your PC, visit this site. In a posting to its security blog, Adobe said it is not aware of any exploits in the wild for this vulnerability. Adobe recommends Shockwave Player users on Windows uninstall Shockwave version 11.5.0.596 and earlier on their systems, restart and install Shockwave version 11.5.0.600, available here. Readers should be aware that by default this patch will also try

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Microsoft Debuts Free Antivirus Software Beta

Microsoft on Tuesday released a beta version of its new free anti-virus offering, Microsoft Security Essentials (a.k.a "Morro"). My review, in short: the program is a fast, easy to use and unobtrusive new addition to the stable of free anti-virus options available today. MSE is basically the next generation of Microsoft's Windows Live Onecare anti-virus and anti-spyware service, but without all of the extras, such as a firewall, data backup solution or PC performance tuning (Microsoft announced in Nov. 2008 that it would stop selling Onecare through its retail channels at the end of June 2009). The toughest part was getting the program installed. MSE can run on Windows XP, Vista or Windows 7 (both 32-bit and 64-bit versions), but it failed to install on an XP Pro system I tried to use as my initial test machine -- leaving me with nothing more than a failure message and cryptic

Accused Spam King Alan Ralsky Pleads Guilty

Alan Ralsky, a 64-year-old Michigan man that federal investigators say was among the world's top spam kingpins, pleaded guilty on Monday to running a multi-million dollar international stock fraud scam powered by junk e-mail. Ralsky (pictured at right, courtesy of Spamhaus) and his son-in-law and chief financial officer Scott K. Bradley, 38, also of Michigan, pleaded guilty to conspiracy to commit wire fraud, money laundering and to violate the CAN-SPAM Act. Under the terms of his plea agreement, Ralsky faces as much as 87 months in prison and a $1 million fine, while Bradley could get as much as 78 months in prison and a $1 million fine under the federal sentencing guidelines. The Ralsky plea caps a long effort by the government to nab one of the most prolific spammers. In September 2005, the FBI raided Ralsky's home, but it wasn't until early 2008 that the government indicted Ralsky

Web Fraud 2.0: Franchising Cyber Crime

For the most part, cyber gangs that create malicious software and spread spam operate as shadowy, exclusive organizations that toil in secrecy, usually in Eastern Europe. But with just a few clicks, anyone can jump into business with even the most notorious of these organizations by opening up the equivalent of a franchise operation. Some of the most active of these franchises help distribute malicious software through so-called pay-per-install programs, which pay tiny commissions to the franchise operators, or so-called affiliates, each time a supplied program is installed on an unsuspecting victim's PC. These installer programs will often hijack the victim's search results, or steal data from the infected computer. Typically, affiliates will secretly bundle the installers with popular pirated software titles that are made available for download on peer-to-peer file-trading sites. In other cases, the installers are stitched into legitimate, hacked Web sites and quietly foisted upon PCs when

Malicious Attacks Most Blamed in ‘09 Data Breaches

Rogue employees and hackers were the most commonly cited sources of data breaches reported during the first half of 2009, according to figures released this week by the Identity Theft Resource Center, a San Diego based nonprofit. The ID Theft Center found that of the roughly 250 data breaches publicly reported in the United States between Jan. 1 and Jun. 12, victims blamed the largest share of incidents on theft by employees (18.4 percent) and hacking (18 percent). Taken together, breaches attributed to these two types of malicious attacks have increased about 10 percent over the same period in 2008. Some 44 states and the District of Columbia now have laws requiring entities that experience a breach to publicly disclose that fact. Yet, few breached entities report having done anything to safeguard data in the event that it is lost or stolen. The ITRC found only a single breach in

iPhone 3.0 Includes 46 Security Updates

Apple on Wednesday released the much anticipated 3.0 update for the iPhone, bundling at least 46 security fixes into a new version of the iPhone operating system that includes essential functionality such as cut-and-paste and Spotlight search. Included in the 3.0 bundle are security patches for vulnerabilities in a broad range of iPhone components, including Safari and Mail. The mail flaw, for example, could allow a malicious app or attacker to place a phone call without user interaction. A host of other security holes fixed by this update could allow a remote attacker or Web site to run malicious code on the device or cause it to crash. The update is available only through iTunes. My colleague Rob Pegoraro has a more in-depth post about the new features built into this update, but he was having trouble grabbing the update yesterday. Apple says that the automatic update process may take

An Odyssey of Fraud

Andy Kordopatis is the proprietor of Odyssey Bar, a modest watering hole in Pocatello, Idaho, a few blocks away from Idaho State University. Most of his customers pay for their drinks with cash, but about three times a day he receives a phone call from someone he's never served -- in most cases someone who's never even been to Idaho -- asking why their credit or debit card has been charged a small amount by his establishment. Kordopatis says he can usually tell what's coming next when the caller immediately asks to speak with the manager or owner. "That's when I start telling them that I know why they're calling, and about the Russian hackers who are using my business," Kordopatis said. The Odyssey Bar is but one of dozens of small establishments throughout the United States seemingly picked at random by organized cyber criminals to serve as unwitting pawns