Thieves Winning Online War, Maybe Even in Your Computer

Thieves Winning Online War, Maybe Even in Your Computer

By JOHN MARKOFF The New York Times December 6, 2008

SAN FRANCISCO - Internet security is broken, and nobody seems to know quite how to fix it.

Despite the efforts of the computer security industry and a half-decade struggle by Microsoft to protect its Windows operating system, malicious software is spreading faster than ever. The so-called malware surreptitiously takes over a PC and then uses that computer to spread more malware to other machines exponentially. Computer scientists and security researchers acknowledge they cannot get ahead of the onslaught.

As more business and social life has moved onto the Web, criminals thriving on an underground economy of credit card thefts, bank fraud and other scams rob computer users of an estimated $100 billion a year, according to a conservative estimate by the Organization for Security and Cooperation in Europe. A Russian company that sells fake antivirus software that actually takes over a computer pays its illicit distributors as much as $5 million a year.

With vast resources from stolen credit card and other financial information, the cyberattackers are handily winning a technology arms race.

"Right now the bad guys are improving more quickly than the good guys," said Patrick Lincoln, director of the computer science laboratory at SRI International, a science and technology research group.

A well-financed computer underground has built an advantage by working in countries that have global Internet connections but authorities with little appetite for prosecuting offenders who are bringing in significant amounts of foreign currency. That was driven home in late October when RSA FraudAction Research Lab, a security consulting group based in Bedford, Mass., discovered a cache of half a million credit card numbers and bank account log-ins that had been stolen by a network of so-called zombie computers remotely controlled by an online gang.

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