Thieves Winning Online War, Maybe in Your PC
Source Dave Anderson
Date 08/12/06/21:35
Thieves Winning Online War, Maybe in Your PC

SAN FRANCISCO Internet security is broken, and nobody seems to know
quite how to fix it.

Despite the efforts of the computer security industry and a
half-decade struggle by Microsoft to protect its Windows operating
system, malicious software is spreading faster than ever. The
so-called malware surreptitiously takes over a PC and then uses that
computer to spread more malware to other machines exponentially.
Computer scientists and security researchers acknowledge they cannot
get ahead of the onslaught.

As more business and social life has moved onto the Web, criminals
thriving on an underground economy of credit card thefts, bank fraud
and other scams rob computer users of an estimated $100 billion a
year, according to a conservative estimate by the Organization for
Security and Cooperation in Europe. A Russian company that sells fake
antivirus software that actually takes over a computer pays its
illicit distributors as much as $5 million a year.

With vast resources from stolen credit card and other financial
information, the cyberattackers are handily winning a technology arms

"Right now the bad guys are improving more quickly than the good
guys," said Patrick Lincoln, director of the computer science
laboratory at SRI International, a science and technology research

A well-financed computer underground has built an advantage by working
in countries that have global Internet connections but authorities
with little appetite for prosecuting offenders who are bringing in
significant amounts of foreign currency. That was driven home in late
October when RSA FraudAction Research Lab, a security consulting group
based in Bedford, Mass., discovered a cache of half a million credit
card numbers and bank account log-ins that had been stolen by a
network of so-called zombie computers remotely controlled by an online

In October, researchers at the Georgia Tech Information Security
Center reported that the percentage of online computers worldwide
infected by botnets networks of programs connected via the Internet
that send spam or disrupt Internet-based services is likely to
increase to 15 percent by the end of this year, from 10 percent in
2007. That suggests a staggering number of infected computers, as many
as 10 million, being used to distribute spam and malware over the
Internet each day, according to research compiled by PandaLabs.

Security researchers concede that their efforts are largely an
exercise in a game of whack-a-mole because botnets that distribute
malware like worms, the programs that can move from computer to
computer, are still relatively invisible to commercial antivirus
software. A research report last month by Stuart Staniford, chief
scientist of FireEye, a Silicon Valley computer security firm,
indicated that in tests of 36 commercial antivirus products, fewer
than half of the newest malicious software programs were identified.

There have been some recent successes, but they are short-lived. On
Nov. 11, the volume of spam, which transports the malware, dropped by
half around the globe after an Internet service provider disconnected
the McColo Corporation, an American firm with Russian ties, from the
Internet. But the respite is not expected to last long as
cybercriminals regain control of their spam-generating computers.

"Modern worms are stealthier and they are professionally written,"
said Bruce Schneier, chief security technology officer for British
Telecom. "The criminals have gone upmarket, and they're organized and
international because there is real money to be made."

The gangs keep improving their malware, and now programs can be
written to hunt for a specific type of information stored on a
personal computer. For example, some malware uses the operating system
to look for recent documents created by a user, on the assumption they
will be more valuable. Some routinely watch for and then steal log-in
and password information, specifically consumer financial information.

The sophistication of the programs has in the last two years begun to
give them almost lifelike capabilities. For example, malware programs
now infect computers and then routinely use their own antivirus
capabilities to not only disable antivirus software but also remove
competing malware programs. Recently, Microsoft antimalware
researchers disassembled an infecting program and were stunned to
discover that it was programmed to turn on the Windows Update feature
after it took over the user's computer. The infection was ensuring
that it was protected from other criminal attackers.

And there is more of it. Microsoft has monitored a 43 percent jump in
malware removed from Windows computers just in the last half year.

The biggest problem may be that people cannot tell if their computers
are infected because the malware often masks its presence from
antivirus software. For now, Apple's Macintosh computers are more or
less exempt from the attacks, but researchers expect Apple machines to
become a larger target as their market share grows.

The severity of the situation was driven home not long ago for Ed
Amaroso, AT&T's chief security official. "I was at home with my
mother's computer recently and I showed her it was attacking China,"
he said. " 'Can you just make it run a little faster?' she asked, and
I told her 'Ma, we have to reimage your hard disk.' "

Beyond the billions of dollars lost in theft of money and data is
another, deeper impact. Many Internet executives fear that basic trust
in what has become the foundation of 21st century commerce is rapidly
eroding. "There's an increasing trend to depend on the Internet for a
wide range of applications, many of them having to deal with financial
institutions," said Vinton G. Cerf, one of the original designers of
the Internet, who is now Google's "chief Internet evangelist."

"The more we depend on these types of systems, the more vulnerable we
become," he said.

The United States government has begun to recognize the extent of the
problem. In January, President Bush signed National Security
Presidential Directive 54, establishing a national cybersecurity
initiative. The plan, which may cost more than $30 billion over seven
years, is directed at securing the federal government's own computers
as well as the systems that run the nation's critical infrastructure,
like oil and gas networks and electric power and water systems.

That will do little, however, to help protect businesses and consumers
who use the hundreds of millions of Internet-connected personal
computers and cellphones, the criminals' newest target.

Despite new technologies that are holding some attackers at bay,
several computer security experts said they were worried that the
economic downturn will make computer security the first casualty of
corporate spending cuts. Security gets hit because it is hard to
measure its effectiveness, said Eugene Spafford, a computer scientist
at Purdue University.

He is pessimistic. "In many respects, we are probably worse off than
we were 20 years ago," he said, "because all of the money has been
devoted to patching the current problem rather than investing in the
redesign of our infrastructure."

The cyber-criminals appear to be at least as technically advanced as
the most sophisticated software companies. And they are faster and
more flexible. As software companies have tightened the security of
the basic operating systems like Windows and Macintosh, attackers have
moved on to Web browsers and Internet-connected programs like Adobe
Flash and Apple QuickTime.

This has led to an era of so-called "drive-by infections," where users
are induced to click on Web links that are contained in e-mail
messages. Cyber-criminals have raised the ability to fool unsuspecting
computer users into clicking on intriguing messages to a high art.

Researchers note that the global cycle of distributing security
patches inevitably plays to the advantage of the attacker, who can
continually hunt for and exploit new backdoors and weaknesses in
systems. This year, computer security firms have begun shifting from
traditional anti-virus program designs, which are regularly updated on
subscribers' personal computers, to Web-based services, which can be
updated even faster.

Security researchers at SRI International are now collecting over
10,000 unique samples of malware daily from around the global. "To me
it feels like job security," said Phillip Porras, an SRI program
director and the computer security expert who led the design of the
company's Bothunter program, available free at

"This is always an arm race, as long as it gets into your machine
faster than the update to detect it, the bad guys win," said Mr.

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