"Largest" Organized E-Crime Operation Unearthed

If you thought you are the only one working on your personal computer while you are hooked to the Internet, think again. The recent uncovering of possibly the biggest organized e-crime operation has revealed that the Internet is strewn with websites containing malicious programs that attack unsuspecting users' PCs, snooping and stealing information.

Even more alarming is the fact that websites that have been compromised to unknowingly harbor such programs are some of the most commonly-visited websites, attracting a huge number of unsuspecting visitors every day.

Early in October, Aladdin Knowledge Systems Inc., an Israel-based information security company, revealed that several criminal gangs had hacked into 200,000 servers and more than 80,000 legitimate websites to steal the administrative log-in credentials (a combination of username, password and the server address). This would allow the gangs to modifying those websites with malicious codes. And each time users visit those websites, this code would penetrate their computers to steal personal information and relay it back to the thieves or criminals over the Internet.

The websites that have been compromised are spread across virtually every segment, including governments and Fortune 500 companies, universities, news and other information websites, several unnamed weapons manufacturers, and obviously e-commerce sites. For instance, according to Ian Amit, Director, security research of Aladdin who made this stunning discovery, websites like USPS (the US postal service- but USPS denies that breach), BBC (British Broadcasting Corporation), University of Bradford and a travel agency, easytravelgroup.co.uk were compromised, although many such sites have subsequently been "cleaned."

Amit who stumbled upon this unbelievable discovery while researching on notorious hacking software (Neosploit) says, "We are uncovering what is likely one of the largest single organized e-crime operation, which is managed just like a business."

He says that the whole operation, part of a huge plot, is conducted from just one server, which is functioning based on the SaaS (software-as-a-service) model. Using various hacking tools, the server looks for websites and servers with loopholes to implant its malicious codes and steal or gather information like corporate financial data, credit card details, bank account details, passwords and the likes.

Access to that server is restricted to just a few IP addressed (barring Amit who managed to infiltrate it) which led him to believe that just a few gangs -- "possible three", he says -- are involved in that operation.

Amit was reluctant to reveal details like the effected websites and servers, as well as the details of the criminal gangs, and e-crime websites and servers he has chanced upon. "Governments and law enforcement officials around the world, as well as the FBI, are investigating the criminal servers and the effected websites. Revealing sensitive details could jeopardize those efforts," he says.

One of the most interesting things about this discovery, he adds, is how e-crime has developed. "The e-crime economy has evolved to an economy that is similar to standard economy," he says. "Although it is hard to measure the size and impact of such a business (it is rarely accounted for in normal economical measurements such as GDP, etc.) it drives a lot of revenue. The business force driving e-crime has generated enough momentum for it to spur a whole economy around it; from software suppliers, through distribution models involving legitimate sites, to the geographical control over the attacks."

Indeed, from its origins as niche criminal operations just three years back, peddling dubious medications and knock-off luxury goods through spam emails, e-crime has evolved to a highly profitable and sophisticated business these days. There are now numerous unscrupulous software vendors who provide packages and services to cyber crime operations for a growing number of criminal groups.

Moreover, while e-crime was once restricted to just some parts of the world, it now spans countries and continents and is agile