Blog posts tagged with 'Cyber Criminals'

The Unseen Identity Theft - Part 2

How cyber criminals use keyloggers

One of the most publicized keylogging incidents recently was the theft of over $1million from client accounts at the major Scandinavian bank Nordea. In August 2006 Nordea clients started to receive emails, allegedly from the bank, suggesting that they install an antispam product, which was supposedly attached to the message. When a user opened the file and downloaded it to his/ her computer, the machine would be infected with a well known Trojan called Haxdoor. This would be activated when the victim registered at Nordea's online service, and the Trojan would display an error notification with a request to re-enter the registration information. The keylogger incorporated in the Trojan would record data entered by the bank's clients, and later send this data to the cyber criminals' server. This was how cyber criminals were able to access client accounts, and transfer money from them. According to Haxdoor's author, the Trojan has also been used in attacks against Australian banks and many others.

In February 2006, the Brazilian police arrested 55 people involved in spreading malicious programs which were used to steal user information and passwords to banking systems. The keyloggers were activated when the users visited their banks' websites, and secretly tracked and subsequently sent all data entered on these pages to cyber criminals. The total amount of money stolen from 200 client accounts at six of the country's banks totaled $4.7million.

At approximately the same time, a similar criminal grouping made up of young (20 – 30 year old) Russians and Ukrainians was arrested. In late 2004, the group began sending banking clients in France and a number of other countries email messages that contained a malicious program – namely, a keylogger. Furthermore, these spy programs were placed on specially created websites; users were lured to these sites using classic social engineering methods. In the same way as in the cases described above, the program was activated when users visited their banks' websites, and the keylogger harvested all the information entered by the user and sent it to the cyber criminals. In the course of eleven months over one million dollars was stolen.

There are many more examples of cyber criminals using keyloggers – most financial cybercrime is committed using keyloggers, since these programs are the most comprehensive and reliable tool for tracking electronic information.

Increased use of keyloggers by cyber criminals

The fact that cyber criminals choose to use keyloggers time and again is confirmed by IT security companies.

Reports note that in recent years, the company VeriSign has seen a rapid growth in the number of malicious programs that have keylogging functionality.

One report issued showed that almost 50% of malicious programs detected by the company's analysts during the past year do not pose a direct threat to computers, but instead are used by cyber criminals to harvest personal user data.

According to research conducted by John Bambenek, approximately 10 million computers in the US alone are currently infected with a malicious program which has a keylogging function. Using these figures, together with the total number of American users of e-payment systems, possible losses are estimated to be $24.3 million.

Most modern malicious programs are hybrids which implement many different technologies. Due to this, any category of malicious program may include programs with keylogger functionality.

For the complete read and all it's helpful tips, click HERE!

Zachary T. Brown
Marketing Director
StormsEdge Technology

The Unseen Identity Theft - Part 1

In February 2005, Joe Lopez, a businessman from Florida, filed a law suit against Bank of America after unknown hackers stole $90,000 from his Bank of America account and finding it had been transferred to Latvia.

An investigation showed that Mr. Lopez's computer was infected with a malicious program, Backdoor: Core flood, which records every keystroke and sends this information to malicious users via the Internet. This is how the hackers got hold of Joe Lopez's user name and password, since Mr. Lopez often used the Internet to manage his Bank of America account.

However the court did not rule in favor of the plaintiff, saying that Mr. Lopez had neglected to take basic precautions when managing his bank account on the Internet: a signature for the malicious code that was found on his system had been added to nearly all antivirus product databases back in 2003.

Joe Lopez's losses were caused by a combination of overall carelessness and an ordinary keylogging program.

About Keyloggers

The term 'keylogger' describes the program's function. Most sources define a keylogger as a software program designed to secretly monitor and log all keystrokes. This definition is not altogether correct, since a keylogger doesn't have to be software – it can also be a device. Keylogging devices are much rarer than keylogging software, but it is important to keep their existence in mind when thinking about information security.

Why keyloggers are a threat

Unlike other types of malicious program, keyloggers present no threat to the system itself. Nevertheless, they can pose a serious threat to users, as they can be used to intercept passwords and other confidential information entered via the keyboard. As a result, cyber criminals can get PIN codes and account numbers for e-payment systems, passwords to online gaming accounts, email addresses, user names, email passwords etc.

Once a cyber criminal has got hold of confidential user data, s/he can easily transfer money from the user's account or access the user's online gaming account. Unfortunately access to confidential data can sometimes have consequences which are far more serious than an individual's loss of a few dollars. Keyloggers can be used as tools in both industrial and political espionage, accessing data which may include proprietary commercial information and classified government material which could compromise the security of commercial and state-owned organizations (for example, by stealing private encryption keys).

In recent years, we have seen a considerable increase in the number of different kinds of malicious programs which have keylogging functionality. No Internet user is immune to cyber criminals, no matter where in the world he/she is located and no matter what organization they work for.

For the complete read and all it's helpful tips, click HERE!

Zachary T. Brown
Marketing Director
StormsEdge Technology