1. Copyright © 2005 Eset, spol. s r. o.legal@eset.sk Peter Kovac Malicious Software and Computer Crime Impact of some types of computer infiltrations

2. Software of different kind Copyright © 2005 Eset, spol. s r. o.legal@eset.sk Peter Kovac What is malicious software? Software which has adverse effect of any kind, also called malware Total yearly loss estimated at $13-15 billion (Computer Economics Inc., 2003) Summer 2003 Blaster and Sobig worms epidemics Air Canada’s reservation system goes down, CSX’s trains grind to a halt, 3,000 computers in city of Fort Worth, TX shut down (BusinessWeek cover story; Sept 8, 2003) 15% of large companies, 30% of small businesses affected What is effect of malicious software?

3. Countermeasures Copyright © 2005 Eset, spol. s r. o.legal@eset.sk Peter Kovac How protected the computers are ? 85-90% of consumers have an installed antivirus solution (Piper Jaffray, June 2005) 77% of consumers believe they are safe (AOL & National Cyber Security Alliance survey, November 2004) 55-67% report an active subscription (Gartner, May 2005) 10-30% have up to date signatures (Consumers and Internet Safety,” Mary Culnan, Oct. 2004, Bentley College, Harris Interactive, SYMC Corp.)

4. Victims Copyright © 2005 Eset, spol. s r. o.legal@eset.sk Peter Kovac Who is target of malware ? Any and all computer users

5. Classification Copyright © 2005 Eset, spol. s r. o.legal@eset.sk Peter Kovac Most common malware categories Viruses – self-replicating programs parasiting on other programs Worms – programs which copies itself over the networks Trojan horses – sometimes legitimate programs containing some functions hidden to unaware user Spyware – programs designed to collect information (web surfing habits, typped texts, passwords etc.)

6. Spiced Ham Copyright © 2005 Eset, spol. s r. o.legal@eset.sk Peter Kovac What is a spam? Food Spiced Ham produced since 1937 by Hormel Foods Inc, popularized by Monty Python’s sketch Webster’s Dictionary Spam is an un-requested e-mail, often a commercial one, sent to individuals, groups and / or into mailing lists. British Legislation (and rest of the EU) Every message sent to a customer with whom the sender has no consensual trade relationship.

7. Email & Infiltrations Copyright © 2005 Eset, spol. s r. o.legal@eset.sk Peter Kovac What have worms, trojans and spyware in common? Annoy an enormous number of computer users Way of spreading – e-mail spam Common techniques, like return-address fraud Illegal in many countries

8. Internet & Infiltrations Copyright © 2005 Eset, spol. s r. o.legal@eset.sk Peter Kovac Spam Situation (Marko and Trnka 2004)

9. Past Situation Copyright © 2005 Eset, spol. s r. o.legal@eset.sk Peter Kovac How spammers work - past

10. Commercial malware Copyright © 2005 Eset, spol. s r. o.legal@eset.sk Peter Kovac Zombie PC PC affected by malware – typically worm Worm installs a backdoor/Trojan and reports IP address to the attacker Zombie PC listens to remote commands and thus can be remotely controlled and abused via internet

11. Present Situation Copyright © 2005 Eset, spol. s r. o.legal@eset.sk Peter Kovac How spammers work - present

12. Internet & Infiltrations Copyright © 2005 Eset, spol. s r. o.legal@eset.sk Peter Kovac Types of infiltrations from unique IPs viruses 58% spam 34% both 8% Types of infiltrations from unique IP addresses (Marko and Trnka 2004)

13. Zombification of PCs Copyright © 2005 Eset, spol. s r. o.legal@eset.sk Peter Kovac Bagle worm variant on 20 th September 2005 2000 6000 10000 14000 18000

14. Commercial malware Copyright © 2005 Eset, spol. s r. o.legal@eset.sk Peter Kovac Randex worm Back in 2004 journalists from German C’t magazine were able to purchase IP addresses of around 10000 computers infected by Randex worm Gathered information handed over to German police and later resulted into arrest of suspected Randex author in Canada (teenager of 16 yrs) Possible use of zombie PC – spam, DDoS attacks, information gathering etc. Price tag ranges from couple of cents up to 1 USP per IP with massive volume discounts

15. Phishing Copyright © 2005 Eset, spol. s r. o.legal@eset.sk Peter Kovac What is phishing ? Counterfeit e-mail message, mass-mailed by various groups of criminal hackers (spam message) E-mail message utilizes the "social engineering" technique to make users fill in their personal data (credit card numbers, bank account information and various personal details) on a fraudulent web site The professionally crafted e-mail message claims to come from a bank, financial institution or an ISP and usually demands the confirmation of personal data After clicking the link, users are sent to a fraudulent site, which looks just like the institution's web site and are asked for various sensitive information

16. Phishing example Copyright © 2005 Eset, spol. s r. o.legal@eset.sk Peter Kovac

17. Internet & Infiltrations Copyright © 2005 Eset, spol. s r. o.legal@eset.sk Peter Kovac

18. Internet & Infiltrations Copyright © 2005 Eset, spol. s r. o.legal@eset.sk Peter Kovac

19. Phishing during last week Copyright © 2005 Eset, spol. s r. o.legal@eset.sk Peter Kovac

20. Phishing during last week Copyright © 2005 Eset, spol. s r. o.legal@eset.sk Peter Kovac

21. Malicious Software and Computer Crime Copyright © 2005 Eset, spol. s r. o.legal@eset.sk Peter Kovac Consequences Decrease in credibility of e-mail communication Malware generating Bounce and Auto-Reply Anti-viruses as spam generators Growth of crime committed from countries far away from victim

22. Malicious Software and Computer Crime Copyright © 2005 Eset, spol. s r. o.legal@eset.sk Peter Kovac Conclusion Commercial application for computer infiltrations has been found Need for a complex approach to computer security Need for a complex approach to law enforcement Need for a international cooperation

23. Malicious Software and Computer Crime Copyright © 2005 Eset, spol. s r. o.legal@eset.sk Peter Kovac Thanks for your attention.