Hacking the Hackers

The Los Angeles Times reports on a new online security company called CrowdStrike founded by the former chief technology officer at McAfee Inc., George Kurtz.  Also joining CrowdStrike is the former head of the FBI's Cyber Crimes Division, Shawn Henry.

CrowdStrike is at the forefront of a novel business model for cybersecurity, one that identifies sophisticated foreign attackers trying to steal U.S. intellectual property and uses the attackers' own techniques and vulnerabilities to thwart them.  The firm is marketing itself as a private cyber intelligence agency, staking out networks to catch infiltrators, assembling dossiers on hackers and fooling intruders into stealing bogus data.

CrowdStrike, which employs Chinese linguists and former U.S. government agents, also has identified Chinese hackers using clues in their malware.   It then profiles them — complete with real names and photos — using information gathered from a variety of sources.

That has helped the company, for example, identify a Chinese hacker who targeted financial institutions and tends to seek merger and acquisition information.  Profiles enable a more targeted defense by helping CrowdStrike know when an attacker is likely to strike, how he communicates, what malware he uses and how he tries to take the stolen data.

Some experts believe CrowdStrike and other companies should be able to "hack back" by, for example, disabling servers that host cyber attacks, whether they are in the U.S. or abroad.  But this approach is not without critics, who worry how far companies might go down the road of cyber vigilantism.

The Justice Department has said hacking back may be illegal under the Computer Fraud and Abuse Act, a 1996 law that prohibits accessing a computer without authorization.  Many lawyers liken it to the principle that a person can't use "self-help" to legally break into his neighbor's house, even if he sees his stolen television in the neighbor's living room.

But what happens when the authorities themselves are unable, or unwilling, to cope with the threat that such hackers present?  

Critics worry that third party servers may be affected, or that attacks on Chinese or Russian-controlled computers could trigger an international incident.  What do you think?

Feds Seize 130+ Domain Names and Shut Down Websites on Cyber Monday

On the biggest online shopping day of the year with consumers estimated to have spent over $1.5 billion, federal officials shut down over 130 websites that were selling illegal counterfeit items on the Internet.

Project Cyber Monday 3 marks the third year in a row that U.S. Immigration and Customs Enforcement (ICE) has shut down numerous websites selling counterfeit goods.

“Everything from Ergobaby carriers to New Era hats, Nike sneakers, Tiffany jewelry, Oakley sunglasses and NFL jerseys, just to name a few. Even counterfeit Adobe software was for sale,” ICE Director John Morton said during a conference call.

ICE’s National Intellectual Property Rights Coordination Center  and Homeland Security Investigations partnered with EUROPOL, the European Union’s law enforcement agency, to take down 101 websites that were hosted on U.S. internet servers and 31 websites hosted in Europe.

ICE obtained court orders to shut the websites down after investigators purchased items from the websites and confirmed that the items were fake.

“Counterfeit Hermes purses, Christian Louboutin shoes and various Nike apparel, all of it fake, all of it substandard,” Morton said about the quality of the knock-off items.

“When IP rights are violated, jobs are lost, businesses are stolen and ultimately consumers are cheated. Remember, counterfeiters care about making money and only about making money. They don’t pay health care. They don’t pay pensions. They don’t pay taxes. They don’t care about the people that work for them and they don’t, frankly, care about the consumers who purchase the products,” Morton said.

MegaUpload Lawyers Seek Dismissal of Prosecution Case in Virginia

In our blog post on July 7, we declared that the "war to regulate the Internet had only just begun," despite Internet Independence Day celebrations.

On July 20, Kim Dot Com, the founder of MegaUpload who is under house arrest for illegal file sharing in New Zealand, repeated exactly that in a YouTube video.


His defense lawyers have recently filed motions in U.S. District Court in Alexandria, Virginia, seeking to have the indictments dismissed on the theory that the Defendants could not have been served without a domestic agent representative.  Justice Department officials scoffed at the defense's motion, and District Court Judge Liam O'Grady has taken the motion under advisement.


After search warrants issued in New Zealand were dismissed, commentators have begun to question whether the Justice Department's case against Dot Com and MegaUpload will stick.

UK Student Faces Extradition and 10 Years in US Prison for Aiding Piracy

By Hellerick (Own work) [Public domain], via Wikimedia Commons

The New York Times is reporting that the US Department of Justice is seeking to have Richard O’Dwyer, a 24-year-old college student from Great Britain, extradited on criminal charges of copyright infringement. The possible punishment: 10 years in a federal penitentiary.

In 2008, O’Dwyer first set up a website, TVShack.net, which allowed users to search for and link to other sites, including ones that the federal authorities argue showed pirated movies and television shows.  

The US government shut down TVShack.net in summer 2010.  But Mr. O’Dwyer was apparently unbowed.  TVShack.net had been growing in popularity, and it made about $230,000 from advertising over the course of two years, federal prosecutors claim.

“America? They have nothing to do with me,” Mr. O’Dwyer had declared, according to his mother.  He then subsequently reopened his site as TVShack.cc, which he reckoned was beyond the reach of the United States.  He was wrong.

A few months later came a knock on the door from the British police. A judge ruled that Mr. O’Dwyer would not be prosecuted in Britain.  Instead, the US Department of Justice would seek to extradite him.

Prosecutors also claim that O'Dwyer was well aware that the material was copyrighted.  They cite an announcement on TVShack that urged users to be patient with download times because they were “saving quite a lot of money (especially when putting several visits to the theater or seasons together).”

The British home secretary has approved the extradition order and reaffirmed recently that she would let the order stand. O’Dwyer has appealed and a hearing in British courts is expected this fall.