2. Free Trade in the Cyber Underground Malware Outsourcing Marita Fowler Farrah Patterson CAP 6135 – Term Project Proposal

3. Overview Our research will cover the following topics: What is Malware Outsourcing Underground Outsourcing Culture Anatomy of the Malware Consumer Malware Business Model Examples Security Challenges

4. What is Malware Outsourcing It’s the distribution of malware software for profit Malware market has developed greatly over the last year Parts of the process are outsourced such as code writing, distribution and even the set up of support services for those who buy the software New malware threats rose from 74,482 in 2006 to 499,811 last year

5. Underground Outsourcing Culture Who is selling/renting? top-notch software engineers (sellers) criminals (buyers/sellers) Hacker hobbyists (buyers/sellers) Supply and Demand Comparison to original hacker culture

6. Anatomy of the Malware Consumer Motivation Monetary Espionage Steal private information Attention seeking

7. Malware Business Model How do you buy/sell? Online criminals regularly post their ads on YouTube, looking for buyers for their products. Forums How to sellers/buyers avoid detection? Pseudo profiles on marketplace forums, IRQ’s, email

8. Malware Business Model Selling designer code Prefabricated malware kits Botnet rentals Some even manage the infected systems for purchaser

9. Examples 0Day attack for Windows Vista selling for $50,000 in 2006 MPACK $50 to 1$50 (an application that helps download malicious programs onto others' computers by exploiting a number of flaws) DreamDownloader for $300. ( creates downloader Trojans ) Zeus Trojan $4000 ( form injection capabilities ) CIA disclosed information indicating that utility companies outside of the United States had been hacked via the Internet and ransom edicts issued by the attackers (2008).

10. Security Challenges Locating and prosecuting criminals Legal Complications Local Federal International

11. Conclusion There are many different types of consumers of malware The market is growing, business is booming There are a number of challenges in locating and prosecuting criminals