U.S. Dept of Justice Urges Public to Take Precautions

U.S. Department of Justice

Federal Bureau of Investigation

‘BOT ROAST II’ NETS 8 INDIVIDUALS

SECOND PHASE OF ONGOING CYBER INVESTIGATION REVEALS MORE THAN $20 MILLION IN ECONOMIC LOSS AND MORE THAN ONE MILLION VICTIMIZED COMPUTERS. PUBLIC URGED TO TAKE PRECAUTION.

Washington, D.C.– The FBI today announced the results of the second phase of its continuing
investigation into a growing and serious problem involving criminal use of
botnets. Since Operation ‘Bot Roast’ was announced last June, eight individuals
have been indicted, pled guilty, or been sentenced for crimes related to botnet
activity. Additionally, 13 search warrants were served in the U.S.and by overseas law enforcement partners in connection with this operation.
This ongoing investigative effort has thus far uncovered more than $20 million
in economic loss and more than one million victim computers.

FBI Director Robert S. Mueller, III said, “Today, botnets are the weapon of
choice of cyber criminals. They seek to conceal their criminal activities by
using third party computers as vehicles for their crimes. In Bot Roast II, we
see the diverse and complex nature of crimes that are being committed through
the use of botnets. Despite this enormous challenge, we will continue to be
aggressive in finding those responsible for attempting to exploit unknowing
Internet users.”

A botnet is a collection of compromised computers under the remote command
and control of a criminal “botherder.” A botherder can gain control of these
computers by unleashing malicious software such as viruses, worms, or trojan
horses. By executing a simple task such as opening an attachment, clicking on
an advertisement, or providing personal information to a phishing site (a
fraudulent site that mimics a legitimate site), an individual computer user has
unintentionally allowed unauthorized access. Bot operators will then typically
use these compromised computers as vehicles to facilitate other actions such as
commit identity theft, launch denial of service attacks, and install keystroke
loggers.

FBI offices participating in Bot Roast II included Cincinnati,Detroit, Jacksonville,Los Angeles, Philadelphia,Sacramento, and WashingtonD.C. As happens most often with complex
cyber investigations, there was valuable intelligence sharing amongst law
enforcement agencies that led to the success of Bot Roast II. Through the
exchange of information, the U.S. Secret Service and the New Zealand Police
also initiated botnet investigations that enhanced the FBI's investigation. In
one example, authorities in New Zealand,
working in collaboration with the FBI Philadelphia Office, conducted a search
this week at the residence of an individual who goes by the cyber ID of AKILL.
AKILL is believed to be the ringleader of an elite international botnet coding
group that is responsible for infecting more than one million computers.

The individuals identified as part of Bot Roast II are as follows:

1.      1.)
Ryan Brett Goldstein, 21, of Ambler, PA was indicted on 11/01/07 by a Federal
Grand Jury in the Eastern District of Pennsylvania for botnet related activity
which caused a Distributed Denial of Service (DDoS) attack at a major
Philadelphia area university. In the midst of this investigation the FBI was
able to neutralize a vast portion of the criminal botnet by disrupting the
botnet's ability to communicate with other botnets. In doing so, it reduced the
risk for infected computers to facilitate further criminal activity. This
investigation continues as more individuals are being sought.

2.      2.)
Adam Sweaney, 27, of Tacoma, WApled guilty on September 24, 2007in U.S. District Court, District of Columbia,
to a one count felony violation for conspiracy fraud and related activity in
connection with computers. He conspired with others to send tens of thousands
of email messages during a 1-year period. In addition, Sweaney surreptitiously
gained control of hundreds of thousands of bot controlled computers. Sweaney
would then lease the capabilities of the compromised computers to others who
launched spam and DDoS attacks.

3.      3.)
Robert Matthew Bently of Panama City, FL, was indicted on 11/27/07 by a Federal Grand Jury in the Northern
District of Florida for his involvement in botnet related activity involving
coding and adware schemes. This investigation is being conducted by the U.S.
Secret Service.

4.      4.)
Alexander Dmitriyevich Paskalov, 38, multiple U.S.addresses, was sentenced on 10/12/2007in U.S. District Court, Northern District of Florida and received 42 months in
prison for his participation in a significant and complex phishing scheme that
targeted a major financial institution in the Midwestand resulted in multi-million dollar losses.

5.      5.)
Azizbek Takhirovich Mamadjanov, 21, residing in FL, was sentenced in June 2007
in U.S. District Court, Northern District of Florida, to 24 months in prison
for his part in the same Midwest bank phishing scheme as Paskalov.

Paskalov established a bogus company and then
opened accounts in the names of the bogus company. The phishing scheme in which
Paskalov and Mamadjanov participated targeted other businesses and
electronically transferred substantial sums of money into their bogus business
accounts. Immigrations Customs Enforcement, Florida Department of Law
Enforcement, and the Panama City Beach Police Department were active partners
in this investigation.

6.      6.)
John Schiefer, 26, of Los Angeles, CAagreed to plead guilty on 11/8/2007in U.S. District Court in the Central District of California, to a four felony
count criminal information. A well-known member of the botnet underground,
Scheifer used malicious software to intercept Internet communications, steal
usernames and passwords, and defraud legitimate businesses. Schiefer
transferred compromised communications and usernames and passwords and also
used them to fraudulently purchase goods for himself. This case was the first
time in the U.S.that someone has been charged under the federal wiretap statute for conduct
related to botnets.

7.      7.)
Gregory King, 21, of Fairfield, CAwas indicted on 9/27/2007by a Federal Grand Jury in the Central District of California on four counts of
transmission of code to cause damage to a protected computer. King allegedly
conducted DDoS attacks against various companies including a web based company
designed to combat phishing and malware.

8.      8.)
Jason Michael Downey, 24, of Dry Ridge, KYwas sentenced on 10/23/2007in U.S. District Court, Eastern District of Michigan, to 12 months in prison
followed by probation, restitution, and community service for operating a large
botnet that conducted numerous DDoS attacks that resulted in substantial
damages. Downey operated Internet
Relay Chat (IRC) network Rizon. Downeystated that most of the attacks he committed were on other IRC networks or on
the people that operated them. Downey's
targets of DDoS often resided on shared servers which contained other
customer's data. As a result of DDoS to his target, innocent customers residing
on the same physical server also fell victim to his attacks. One victim
confirmed financial damages of $19,500 as a result of the DDoS attacks.

FBI Assistant Director James E. Finch, Cyber Division, said, “The public is
reminded once again that they can play a part in thwarting botnet activity.
Practicing strong computer security habits such as updating anti-virus
software, installing a firewall, using strong passwords, and employing good
e-mail and web security practices are as basic as putting locks on your doors
and windows. Without employing these safeguards, botnets, along with criminal
and possibly terrorist activities, will continue to flourish.”

It should be noted that the FBI does not contact the public online with
requests for personal information. Computer uses are urged to be wary of fraud
schemes that request this type of information, especially via unsolicited
emails. To report fraudulent activity or financial activity or financial scams
contact either the local police or FBI Field Office as well as file an online
complaint with the FBI's Internet Crime Complaint Center (IC3) at www.ic3.gov

For more information on botnets and tips for cybercrime prevention, the
public is encouraged to visit the following online resources:

• www.fbi.gov


• www.onguardonline.gov


• www.lookstoogoodtobetrue.com


• www.uscert.gov


• www.ic3.gov