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Deconstructing a Pump-and-Dump Spam Botnet

Posted by Zonk on Fri Nov 17, 2006 10:12 AM
from the gaah-scary-graphics dept.
Behind the Front writes "eWeek has teamed up with Joe Stewart, a senior security researcher at SecureWorks in Atlanta, to show the inner working of a massive botnet that is responsible for the recent surge of 'pump and dump' spam. It's a detailed picture of how these sleazy operations work and why they're so hard to shut down. Sobering numbers: 70,000 infected machines capable of pumping out a billion messages a day, virtually all of them for penis enlargement and stock scams. Excellent graphics, too, including one chart that shows that Windows XP Service Pack 2 is hosting nearly half the attacked machines."
+ -
story

Related Stories

[+] Is the Botnet Battle Already Lost? 374 comments
An anonymous reader writes "Researchers are finding it practically futile to keep up with evolving botnet attacks. 'We've known about [the threat from] botnets for a few years, but we're only now figuring out how they really work, and I'm afraid we might be two to three years behind in terms of response mechanisms,' said Marcus Sachs, a deputy director in the Computer Science Laboratory of SRI International, in Arlington, Va. There is a general feeling of hopelessness as botnet hunters discover that, after years of mitigating command and controls, the effort has largely gone to waste. 'We've managed to hold back the tide, but, for the most part, it's been useless,' said Gadi Evron, a security evangelist at Beyond Security, in Netanya, Israel, and a leader in the botnet-hunting community. 'When we disable a command-and-control server, the botnet is immediately re-created on another host. We're not hurting them anymore.' There is an interesting image gallery of a botnet in action as discovered by security researcher Sunbelt Software."
[+] 25 Percent of All Computers in a Botnet? 408 comments
Beckham's_Ponytail writes to mention an Ars Technica article, with some disturbing news out of the World Economic Forum in Davos, Switzerland. Vint Cerf, one of the 'fathers of the internet', has stated that the number of botnets online is larger than believed. So large, in fact, that he estimates that at this point one in four computers is infected with botnet software. We've discussed the rise of botnets numerous times here on Slashot, but the image of 150 million infected computers is more than a little bit sobering. With the extremely lucrative activities that can be done with botnets (such as password ripping, spamming, DDoSing), as well as reports of organized crime adopting 'cyber-terrorism' as a new line of income, is it likely that law enforcement will ever be able to curb this particular bane?
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  • Filter (Score:4, Insightful)

    by insecuritiez (606865) on Friday November 17 2006, @10:15AM (#16884074)
    If more ISPs did egress filtering of email this sort of thing would be harder to do.
    • then they would use the massive botnets of 0wned machines for something else, that probably also wouldn't be conducive to the health and general well-being of the internet...
    • Re:Filter (Score:5, Insightful)

      by jfengel (409917) on Friday November 17 2006, @10:19AM (#16884174) Homepage Journal
      I hear that. It just doesn't seem unreasonable to me to cut off a customer who is sending tens of thousands of email per day. Put the very few with a legitimate reason on a white list (after a phone call) and cut the rest off until they clean up their act.

      As Heinlein said, the answer to any question beginning with "Why don't they..." is "money". Presumably the ISPs figure you'll just take your business and your bot-infested computer elsewhere. But maybe if a few major ISPs got together and agreed to all do it, they'd cut off enough spam to make their customer bases happier, and attract back those customers who gave up in frustration.
        • Re: (Score:3, Interesting)

          You should, and you can. Just remember that this is all about false positivies and false negatives. Let's say I ran an ISP and I cut-off everyone who sent 10,000 messages or more a day. How many legitimate users would that cut-off? 1%? .01%? .001%? If someone has a legitimate need to send 10k emails then they can give their ISP a call, declare that they have legit reason, and get their service re-enabled. I hate such systems, but if it eliminated 70,000 pwned computers and forced 70 legitimate users t
          • Re: (Score:3, Interesting)

            That won't work, for one of two reasons that I can think of off the top of my head. Either you'll get malware that will only spam 9000 messages per day, or you'll get customers that are cut off regularly, get pissed, and change ISPs. If you're unlucky, you'll also get some lawsuits about it, justified or not.

            You're better off trying to force rate limit outgoing email, keep state on your clients, and trying to cut off outgoing SMTP for abusive hosts. However, you would then be monitoring traffic, and that
              • Re:Filter (Score:4, Insightful)

                by tha_mink (518151) on Friday November 17 2006, @12:29PM (#16886496)
                I think everyone is missing the point here. The problem really isn't spam. It's the fact that there are botnets out there that are 70,000 strong. Thank god they're only sending enlarge-your-penis emails. Instead of spending energy trying to stop the symptom, let's try and stop the disease. Forget the email, let's figure out a way to stop the infections in the first place. Then there's the issue of cutting off the funding. Why not try and stop the funders of spam. I think that BlueSecurity had it completely right. Piss off the people paying the spammers, and you stop the spam. Nobody's going to send spam for fun, and if they did, maybe we wouldn't mind reading them so much. 1. Stop the infections 2. Stop the funders of spam. 3. Profit! It's a simple as that. I hate how people miss the point on this spam stuff. The spam is only the symptom.
    • If I were running an ISP, I'd have common ports such as IM, file-transfer/ftp/torrent, ssh, 80/443, irc, and many others allowed and all other ports blocked or restricted to certain destinations by default.

      I'd have a web-page for my customers so they can click things such as:

      Outgoing Email:
      [x] web based [turn on port 80/443]
      [x] through remote-login [turn on remote-login ports]
      [x] through us [turn on mail ports, restrict to our servers]
      [ ] through another server: ______ (specify list of outgoing mail servers
    • Has anyone had any luck with these stock tips? None of them seem to be panning out for me. I wonder if I am not acting fast enough. I've really taken a beating on some of these.

      Fortunately, I should have significantly more money to invest shortly, as soon as I get a rather large sum from a new online friend and business associate and new friend, Mr. Emmanuel Obi from Africa, of all places.

      • Re: (Score:3, Insightful)

        No, just block port 25 to all servers other than the ISPs for dynamic IP addresses. If they do not want to use their ISPs mail server, they can purchase a static IP, or set up a proxy with a different port. If you are not capable of doing either of those things, then you should not have the privilege.
        • Re:Filter (Score:5, Insightful)

          by RichMan (8097) on Friday November 17 2006, @10:48AM (#16884730)
          > No, just block port 25 to all servers other than the ISPs for dynamic IP addresses.

          I thought I paid for IP access. Deliberate port blocking by my ISP is blocking services I pay for.

          IP access means IP access, it does mean port 80 web surfing only. Any steps toward that are plain wrong.

          I agree it is a wild world out there but it is a problem of weak clients. The service provider should be blind unless a client is affecting network performance beyond their paid for slice. Then the client should be totally blocked.
          • Re: (Score:3, Informative)

            Check your TOS with your ISP again. Many of them have prohibitions against running servers off of your dynamic IP address. Most of that is holdover from having a 'server' defined you as a business user, but it's still there. I know that RCN shut down Port 80 inbound following Code red because there was more virus traffic than actual requests - it's staggering how many people are running IIS without knowing it. At one point they also blocked all port 25 traffic not directed to the official network mail serve
          • Re:Filter (Score:4, Interesting)

            by ZorbaTHut (126196) on Friday November 17 2006, @12:35PM (#16886586) Homepage
            My ISP has a web-based configuration utility that allows me to set a server-side firewall to one of several default values. One of their options blocks several commonly-exploitable ports on Windows. I don't use those ports for anything, and I have my own firewall so those ports shouldn't reach my Windows boxes in any way whatsoever, but I set it to block them anyway. (This was the default setting, actually.)

            Something similar would work fine. Block port 25 to SMTP by default and have a web config utility to change it. If you really wanted, you could set it up to email the user if they tried accessing port 25 when it was blocked ("You might be trying to get past this firewall. Or, you might have a virus. Here's how you can find out, and here's how you can disable it if you need . . . ")
            • Re:Filter (Score:5, Funny)

              by jimicus (737525) on Friday November 17 2006, @01:26PM (#16887678) Homepage
              Something similar would work fine. Block port 25 to SMTP by default and have a web config utility to change it. If you really wanted, you could set it up to email the user if they tried accessing port 25 when it was blocked ("You might be trying to get past this firewall. Or, you might have a virus. Here's how you can find out, and here's how you can disable it if you need . . . ")

              I like that idea. Virus tries sending out 10,000 emails, user gets 10,000 emails saying "You might have a virus....".
        • Re:Filter (Score:4, Insightful)

          by Hognoxious (631665) on Friday November 17 2006, @10:57AM (#16884884) Homepage Journal
          If you are not capable of doing either of those things, then you should not have the privilege.
          What if I don't want to go jump through hoops, or pay double for the privelege? What if I want to acess my work mail server from home? Or a clients? Or I just want to access the email that I've been using for years via pop/smtp?

          Are you one of those imbeciles at Belgacom or something? Because they implemented the same cretinous strategy (without any advance warning, I may add) as you're suggesting.
        • Re: (Score:3, Insightful)

          No, just block port 25 to all servers other than the ISPs for dynamic IP addresses.

          Some ISP's do this. And this is reason I can't set up a SPF record for my domain. All my parents outgoing email would fail and their ISP (AT&T) doesn't publish any SPF records (and what if they change ISP's, something they have been talking about doing). Considering they are on dail-up, buying a static IP is out of the question. Getting AT&T to unblock them is impossible (I've tried).

        • Re: (Score:3, Insightful)

          Wrong solution. If a mail server admin does not want to receive spam from residential IPs, he has the means to block before it even reaches the server. Lists of such IPs abound.
  • by MrSplog (956424) on Friday November 17 2006, @10:20AM (#16884178)
    The charts would be a lot more interesting if they had them compared to market share. then you've got to consider that people are more likely to target the biggest market share. i mean, how many virus writers are targeting FDOS?
    • Re: (Score:3, Insightful)

      I understand what you mean. Check the hacked servers http://www.phishtank.com/ [phishtank.com] , almost all run Apache on Linux. Why? It has bigger marketshare on webservers.

      I think the OS X, Linux, FreeBSD "I am invulnerable because of OS I run, I don't need security updates or basic sense of security" will cause problems soon just like phishing.

  • by Overzeetop (214511) on Friday November 17 2006, @10:20AM (#16884186) Journal
    I'm sorry, but the terms "Penis Enlargement" and "Excellent Graphics" were situated a bit too close together in that summary for my liking.
  • by Hoi Polloi (522990) on Friday November 17 2006, @10:24AM (#16884276) Journal
    It is time to rebuild the email protocol. It needs to be redesigned to cope with modern systems and security needs. The pain of the transition would be worth it. It is just too easy to spoof header info now.
    • by LordEd (840443) on Friday November 17 2006, @10:47AM (#16884716)
      Your post advocates a

      (x) technical ( ) legislative ( ) market-based ( ) vigilante

      approach to fighting spam. Your idea will not work. Here is why it won't work. (One or more of the following may apply to your particular idea, and it may have other flaws which used to vary from state to state before a bad federal law was passed.)

      ( ) Spammers can easily use it to harvest email addresses
      ( ) Mailing lists and other legitimate email uses would be affected
      ( ) No one will be able to find the guy or collect the money
      ( ) It is defenseless against brute force attacks
      ( ) It will stop spam for two weeks and then we'll be stuck with it
      (x) Users of email will not put up with it
      ( ) Microsoft will not put up with it
      ( ) The police will not put up with it
      ( ) Requires too much cooperation from spammers
      ( ) Requires immediate total cooperation from everybody at once
      ( ) Many email users cannot afford to lose business or alienate potential employers
      ( ) Spammers don't care about invalid addresses in their lists
      ( ) Anyone could anonymously destroy anyone else's career or business

      Specifically, your plan fails to account for

      ( ) Laws expressly prohibiting it
      ( ) Lack of centrally controlling authority for email
      ( ) Open relays in foreign countries
      ( ) Ease of searching tiny alphanumeric address space of all email addresses
      ( ) Asshats
      ( ) Jurisdictional problems
      ( ) Unpopularity of weird new taxes
      ( ) Public reluctance to accept weird new forms of money
      (x) Huge existing software investment in SMTP
      ( ) Susceptibility of protocols other than SMTP to attack
      ( ) Willingness of users to install OS patches received by email
      ( ) Armies of worm riddled broadband-connected Windows boxes
      ( ) Eternal arms race involved in all filtering approaches
      ( ) Extreme profitability of spam
      ( ) Joe jobs and/or identity theft
      ( ) Technically illiterate politicians
      ( ) Extreme stupidity on the part of people who do business with spammers
      ( ) Dishonesty on the part of spammers themselves
      ( ) Bandwidth costs that are unaffected by client filtering
      ( ) Outlook

      and the following philosophical objections may also apply:

      (x) Ideas similar to yours are easy to come up with, yet none have ever
      been shown practical
      ( ) Any scheme based on opt-out is unacceptable
      ( ) SMTP headers should not be the subject of legislation
      ( ) Blacklists suck
      ( ) Whitelists suck
      ( ) We should be able to talk about Viagra without being censored
      ( ) Countermeasures should not involve wire fraud or credit card fraud
      ( ) Countermeasures should not involve sabotage of public networks
      ( ) Countermeasures must work if phased in gradually
      ( ) Sending email should be free
      ( ) Why should we have to trust you and your servers?
      ( ) Incompatiblity with open source or open source licenses
      ( ) Feel-good measures do nothing to solve the problem
      ( ) Temporary/one-time email addresses are cumbersome
      ( ) I don't want the government reading my email
      ( ) Killing them that way is not slow and painful enough

      Furthermore, this is what I think about you:

      (x) Sorry dude, but I don't think it would work.
      ( ) This is a stupid idea, and you're a stupid person for suggesting it.
      ( ) Nice try, assh0le! I'm going to find out where you live and burn your
      house down!
  • by Anonymous Coward on Friday November 17 2006, @10:24AM (#16884278)
    Perused the article to know how to find out if my computer is infected or not but couldn't find anything. This is such an important news for Windows users, at least tell something abou thow to verify if a particular windows machine is having this problem.
    • Re: (Score:3, Informative)

      Get a virus scanner, silly. I believe this trojan is detected by all of them.
  • And implemented greylisting [wikipedia.org] on it. Cut out almost %100 of the spam I have been receiving (Was up to 50 emails a day, now I think only one has gone through since I installed postgrey on my mail server in 1.5 months!). Unfortunately, this is easy to get around, so it should only be a matter of time till that is worked around and becomes useless in the spam fight. By that time, hopefully another anti-spam method comes up...
    • by Rob T Firefly (844560) on Friday November 17 2006, @10:43AM (#16884614) Homepage Journal
      This is the basic problem with any single antispam measure, or really any single computer security measure.

      1. Someone comes up with a defense mechanism that works well.
      2. It works so well that more people use it.
      3. It becomes popular enough for the bad guys to beat, so they do.
      4. The defense becomes useless, forcing someone to come up with a new defense.
      5. Goto 1.
      • Re: (Score:3, Interesting)

        Well, greylisting is suprisingly more effective than most anti-spam measures if you combine it with a decent rbl. The basic premise is that when a message comes in, the server looks at the sender, recipient, and sending host/server. If this is the first time that the greylisting server has encountered this triplet, it tells the sending server to wait X minutes (where X is most likely 5). There are 3 likely outcomes at this point. First outcome, this is a legitimate message from a legitimate server and the w
  • by Trelane (16124) on Friday November 17 2006, @10:27AM (#16884314) Journal
    From the graphs, it's obvious that Linux, BSD, and MacOS lumped together are only 0.05 percent of the desktop market!!
  • C'mon (Score:3, Insightful)

    by Tarlus (1000874) on Friday November 17 2006, @10:30AM (#16884364)
    Well of course Windows is going to be in the majority of affected machines... There is a dramatically higher number of people in the world using Windows than any other OS, so... wouldn't it make sense?

    As a proud user of Kubuntu, I can relate to /.'s tendency to point out everything that appears to be wrong with Windows... but come on, isn't it a little much to explicitly point it out in this case?
    • Re:C'mon (Score:4, Insightful)

      by Mark Hood (1630) on Friday November 17 2006, @10:44AM (#16884632) Homepage
      Actually, the dig was at Windows XP SP2 in particular - not just Windows generally.

      If these bots have control over 'the most secure Windows yet' [com.com], then that is worthy of note.

      Mark

      PS Yes, I know the link is from 2004 - but they've not released anything since, so it must still be true, right?
  • by Jawood (1024129) on Friday November 17 2006, @10:32AM (#16884408) Journal
    work. After all, the folks who are doing the "advertising" must be getting some sort of return.

    Which leads me to wonder about the folks who actually believe that those penis enlargement pills work.

    And as far as the "pump and dump" spam goes, are there folks who beleive those spams? Or are they of the mindset of the "greater sucker"? Meaning, if I buy this stock now, after this spam circulates, there will be others who buy this shit stock and push up the price allowing me to make money.

    Yeah, I know the guy who originates the "buy" recomendation is hoping for everyone to buy the stock, but what makes some of the recipients think they'll make out?

    • Re: (Score:3, Interesting)

      Yeah, I know the guy who originates the "buy" recomendation is hoping for everyone to buy the stock, but what makes some of the recipients think they'll make out?

      There are plenty of idiots out there with access to both internet and credit cards. Really.
      And a lot of them also think that if someone has your email, they must know you from somewhere.

      When I worked at a brokerage firm, people used to call me and ask for advice (which I couldn't give, not being licensed) on how much to invest in whatever stock t

  • by zappepcs (820751) on Friday November 17 2006, @10:36AM (#16884482) Journal
    But when, if ever, will anyone shut down the MS machine? Never is when. MS is far to invested into large corporations and government institutions to ever have anyone, never mind MS, say, all windows products must be updated or dumped. Its just not going to happen. If you owe the bank $1000 dollars, you are in trouble if you're late on the payments, if you owe the bank $10,000,000,000 dollars and you're late, the bank is in trouble.

    Right now, the later is more the case. If MS had to upgrade or recall all XP products, it would cause a large harm to the economy, not just MS's bottom line. Think of what would have to be spent on the upgrades or change outs?

    Too many people have invested in MS products to just shut it down, and just like England won't wake up one morning and start driving on the right side of the road, MS products will remain in service. (I'm not trying to imply that the left side is the incorrect one, just illustrating the size of the problem)

    Reports like this do seem to show MS in a very bad light, but how it gets fixed will be even more interesting. When government types want to show they are doing something about spam, will they do anything to make MS responsible, or make MS fix it? Probably not, so the real answer to spam, or answers, is to implement measures that do not rely on the end user, or the end user's OS to fix it.

    IMO, This means that ISP's are going to have to sandbox segments of their networks to throttle spam, and that cost will be passed on to consumers, or possibly will be borne by the ISP for bragging rights about having less spam than any other ISP, in much the same way that the Bell companies used to do advertising about what they are spending to improve services for consumers.

    This also leaves me with a suspicion about the marketing team for Vista? How better to fix XP SP2 than to upgrade to Vista?
  • getting. A few weeks back I read an article that stated that some crackers had managed to get into the accounts of some of TD Waterhouse's investment clients. Since most of these accounts were retirement accounts liquidating them and stealing all the assets would have been difficult, required a lot of paperwork, and ran a much higher risk of getting caught. So instead what the attackers did was liquidate all the assets of the victims and then used those assets to buy a bunch of pump and dump stocks(high demand low supply=much higher prices). Pumped the value of the stock up significantly then as the name suggests, dumped it.
    As much as I think they are scum for doing so, you have to admit that was pretty creative....
  • I recently helped an elderly neighbor secure her computer (I was paid for this service, and I make sure I do get paid every time I get called over for help) by installing some good firewall and anti-virus programs (as well as setting up Firefox and Thunderbird for their primary browsers. When I ran a virus scan on her computer (I installed AVG, as her McAfee subscription had expired), I found several viruses and malware programs on there, all of which I removed, which came with games she downloaded (stuff like mahjong and solitaire). I regret not writing down what viruses she had gotten infected with, so I could find out what she did.

    I did the same thing on my grandmother's computer as well (when she was alive), and odds are there are a lot of seniors who are online and engage in a lot of bad habits that we know are bad - including running IE with minimal protections, opening strange attachments, and so forth. This is not a new problem, and, frankly, a problem that only education (or getting 75% of seniors to switch to Mac OS or Linux) can fix.
  • Subject (Score:4, Insightful)

    by Legion303 (97901) on Friday November 17 2006, @11:54AM (#16885886) Homepage
    There's a lot of humor potential in going to a site laced with ads and a list of 30 sponsors to read about spam.
  • by Animats (122034) on Friday November 17 2006, @01:02PM (#16887194) Homepage

    Those guys shouldn't be that hard to find with enough law enforcement effort. Get a credit card from a cooperating bank. Put a trace on it. Buy some Viagra from a spam. Watch where the money goes, which is probably some bank in a high-crime country. Visit the bank and talk to them. Threaten to have their abilty to process credit cards cut off. Pry the actual payee out of them. Discover that it's another intermediary and start over.

    This is what we pay the FBI for. This is why the FBI has field offices outside the US. This is why the Financial Crimes Information Network [fincen.gov] exists.

    The FBI's Internet-related criminal enforcement [fbi.gov] unit has gotten soft. They sit up in Baltimore and send out child pornography, then go after the people they've entrapped. The process is even mostly automated [fbi.gov] now. That's an easy way to get their stats up, and fits the Bush administration's "regulate sex, not business" mindset, but doesn't solve crimes that have victims. Something to push on after Jan. 20, when the Democrats take Congress and can start asking hard questions of the executive branch.

      • Its like going after Boeing because someone put some tape over the port that allows outside air to get at the gauge that measures air pressure and estimates elevation on a 757.

        You can point your finger all you want at the maintenance worker who didn't read the warnings in GIANT PRINT - but Boeing was still sued and paid.

        Boeing was not being irresponsible. I do not think the same can be said of Microsoft because many of the security problems have been pointed out CONSTANTLY since before 1995.
      • Re: (Score:3, Insightful)

        "Thats crazy... that's like going after P2P admins for users sharing illegal content. It would never fly."

        It's not like that at all, but that's due to a distinction that's apparently too fine for some people.

        Take a look at your favorite torrent tracker. Unless it's legaltorrents or something of its ilk, you know they set it up to capitalize on the huge demand for pirated material (and to make ad money off same), you know most of the traffic is pirated material, and you know that the admin knows this.

    • Just to reiterate what these scum are doing:

      1. Buy some really cheap stock at a really cheap price.
      2. Hype it to victims.
      3. Sell it to victims at inflated prices. Pocket the profit.
      4. Victims are now stuck with a worthless stock that they can only sell at a large loss.

      They usually work for the pump and dumper. Everybody else gets screwed. That's why it's a scam.

      The companies are real, and you can look them up on NASDAQ [nasdaq.com] or Pink Sheets [slashdot.org]. I've looked a few of them up, and they all show an enormous spi

    • Re: (Score:3, Informative)

      Do these pump and dump scams even work? If so, by what kind of margins?
      A previous article posted on Slashdot indicateda a return between 4.9% to 6% (per scam) when it works. See http://it.slashdot.org/article.pl?sid=06/08/25/182 1256 [slashdot.org]
      • Re: (Score:3, Insightful)

        I hear you, but: put yourself in the shoes of "Joe Homeowner" for a moment, if you will. You know nothing about chemistry or combustion. You simply purchased your house because you needed a roof over your head. But the law requires you to install smoke detectors (and, in many jurisdictions now, also carbon monoxide detectors). In fact, the reason this is a law is precisely because the average homeowner knows nothing about chemistry or combustion; that's why people need emphatic (enforceable) reminders to
    • Re: (Score:3, Interesting)

      For an ISP of any size mail filtering is a significant problem. You don't just add something onto the mail server farm without taking a pretty severe performance hit. I do not believe there is anything free that can handle a substantial load.

      Another factor is that most of the very cautious folks I deal with have a real simple solution - no attachments, period. ISP's cannot implement something like that. They can block executable attachments, but that isn't really effective any longer. From what I under