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Gideon J. Lenkey

Inside the Mature Service Industry of Botnets

Written by Gideon J. Lenkey
9/10/2008 3 comments
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"Botnet for hire." Google that phrase and you'll get plenty of hits. Most of them will be articles in online magazines or whitepapers from security firms or students. You may even find a post or two on forums from someone who claims to be looking to hire one or someone with one to rent.

What you won't easily find, however, is someone who really has a botnet for hire or how much it will cost. That's because there really is an international Internet underworld, and chances are, unless you're a criminal, researcher, or officer of the law, you're not part of it. Just like any big city, the Internet has bad parts of town that are best avoided by law abiding citizens.

And if you're looking to learn more about how bots and botnets work (and how you can protect yourself), browse this video tutorial Internet Evolution has just posted.

Are you protected against bots? Check out IE's botnet video tutorial

Although the prima facie evidence of botnet pricing is limited and sometimes contradictory, it all points to a growth business. The largest botnets are by now well known and old news. Storm and Kraken activity over the past several days can even be observed spreading and operating in this nifty little animation.

These enormous botnets are high-quality service providers for shady business. It is rumored that a Storm-style botnet can be purchased turnkey for approximately $100,000 and rented for as little as $100 per hour. At the lower end of the spectrum you'll find a kid renting out his small bot army for designer athletic wear! He got sentenced to five years... and the fancy sportswear turned out to be counterfeit. Stay in school, kids.

So who's buying what from these new C2C (Criminal-to-Criminal) business services? What exactly do you rent a botnet for? Spam distribution tops the shopping list -- most spam now comes from botnets. Legitimate business email pathways are heavily filtered from end to end. What's a spammer to do? A botnet can turn any computer into a mail server or even distribute the mailing across thousands of computers so that the mail appears to come from legitimate addresses. This can be pretty effective, and spammers are willing to pay for it.

Also for sale are dedicated denial-of-service (DDoS) attacks -- tiny compared to Storm or Kraken, either of which have enough firepower to take a small country off the Internet. DDoS attacks usually fall into two categories: extortion (pay me or I'll take your betting site off line during the World Cup); and damaging competitors (if I take your site down, more will come to mine).

Also for sale is pay-for-ad-clicking. That's right, if you pay the wrong media company to run a pay-per-click ad banner campaign for you they might rent time on a "Clickbot" style botnet that clicks your ad and inflates your fees.

Botnets are also a great way to install adware or spyware. I once witnessed the formation of a 20,000+ botnet that appeared to have been created for that single purpose. Once the adware was installed the botnet evaporated within hours.

Botnets have evolved into a mature service industry. Sometimes the benefactor of the services isn't even really aware that a botnet will be used to fulfill their requirements. Rather, they've hired a middle man, perhaps unknowingly. What's clear to me is that botnet technology is being actively developed and has matured in terms of both competition and funding. It continues to evolve into a robust platform for the black and gray cyber-crime marketplace, and, in my opinion, it's probably the single greatest information security threat to both corporate and home users.

— Gideon J. Lenkey, co-founder of Ra Security Systems

This blog is part of Internet Evolution’s Security Clan, which looks at the present and future threats to Internet security and the methods being used to defend and protect users and organizations. Register here to join the Security Clan, and you might become eligible to win one of our limited edition T-shirts.

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rom3
Rank: Cave Painter
Tuesday September 16, 2008 3:11:48 PM
no ratings
I agree with the Author that BotNets are a mature Service Industry but don' t think that he has capture the depth of what this industry has undertaken.  Those who actually created the 'botnet' for sale industry has been at this for a while and utilize interesting technology loop-holes to continue to control and operate these bots.  What I find interesting is that it is an industry similarly related to 'hedge-funds' where you have to know someone to get in, and is actually working like a free-market economy.  See Hacker economics (http://www.cio.com/article/print/135550) by Scott Berinato.  His information on Hacker ecoomics makes understanding of this mature service industry fairly simple and yet more involved than we think.  I also find it remarkable that those responsible who are living or have been brought up in societies where criminal activities is the only free market economies known, have captured the true spirit of capitalism and a free market society.  

Like all stock exchanges and hedge funds, those who purchase bots sometimes win and sometimes loose, the only winner is the bot-broker.  The hearder/farmers have to continuously fight for control of their systems, while the buyer pays for what they think they will get in return for their bot, and broker just gets paid no matter what.  In the end stocks waiver, hedge funds fail or become regulated, the same will happen for bot-nets, by the time we figured out how to fix the issue something new will pop up and have us looking once more away at the real issues we need to be looking at.
Terry Sweeney
IQ Crew
Thursday September 11, 2008 4:33:58 PM
no ratings

This article, coupled with a ThinkerNet piece this week from Ira Winkler, demonstrate just how in-the-now bots and botnets are.

Without getting all "Rise of the Machines" about it, this stuff is only going to become more commercialized (and not by nice people of high integrity) and exploited by the military. It's pretty shocking that anti-malware suites are so flaccid in response to the threat of bots.

Mike Acker
Rank: Cyborg
Wednesday September 10, 2008 2:26:19 PM
no ratings

un-authorized programming -- is what is used to turn a proper client computer into a robot -- called a 'bot' --for short

you cannot just look for malware: you don't know what you are looking for, and you won't be able to know because what you are looking for is constantly changing form

it's called 'polymorphic' code: code that keeps assuming a new form

the solution then is in inventorying your computer and throwing out all the programs that don't belong on it

this means a new approach to software distribution

all software must be properly authorized by means of digital signatures in order to get rid of this malware problem

and we need to learn to recognize proper digital signatures

who is authroized to sign a certificate on your computer?

how many certificates do you have on your computer and do you have any clue where they came from?

it's rather painful that we regard ourselves as knowlegable, computer professionals and we havn't dealt with this simple problem.

The ThinkerNet does not reflect the views of TechWeb. The ThinkerNet is an informal means of communication to members and visitors of the Internet Evolution site. Individual authors are chosen by Internet Evolution to blog. Neither Internet Evolution nor TechWeb assume responsibility for comments, claims, or opinions made by authors and ThinkerNet bloggers. They are no substitute for your own research and should not be relied upon for trading or any other purpose.
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