Posted by Virus Bulletin on Oct 5, 2006
Extortion gang sentenced for gambling site attacks.
A team of three found guilty of computer crimes and extortion have been sentenced to eight years imprisonment by a Russian court. The men were convicted of blackmailing several UK and Irish online gambling firms, demanding cash and threatening to take down sites with DoS attacks if their victims refused to pay up.
In 2003 and 2004, the team set up botnets, controlled from Russia via the US, and used them to hit their targets, mostly online bookmakers and other gambling sites, with demonstration attacks. They then contacted the sites' owners, informing them that a far greater attack would result if substantial payments were not made to bank accounts based in Latvia.
At least nine sites were hit by the blackmailers in the UK alone, some of which paid up, and at least one was subjected to a DoS attack despite paying. Firms knocked offline during major sporting events are said to have lost up to $200,000 per day in projected profits, and the gang is thought to have raked in at least $4 million from numerous victims in 30 different countries.
'These tough sentences reflect the tough tactics used by the criminals,' said John Hawes, Technical Consultant at Virus Bulletin. 'The whole scam echoes classic protection rackets, and bookies, with their high and fast cash turnover, are easy victims for these digital mobsters. In recent months home users have been increasingly targeted by extortion malware - hopefully these sentences will put the criminals off.'
Russian cybercrime laws carry a maximum seven-year sentence, but penalties for extortion can reach 15 years. The sentences included stipulations for a 'strict regime', and also fines of 100,000 rubles ($3,700) per man. All three protested their innocence, claiming malware found on their computers was exchanged out of 'idle curiosity'. At least two gang members are thought to remain at large.
More commentary on the case can be found at Russian security firm Kaspersky's blog.
Posted on 05 October 2006 by Virus Bulletin
