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'We've got your
data. We want money.'


It's called extortion, and it's becoming bigger

Apr 25, 2006

Read this as a threat: Wire us $2,000, or your data gets whacked.

Forget about a brown bag stuffed with cash and left under a mailbox at the corner of Main and Foushee.

In this scam, it's done entirely over the internet. From a venue of shared information, the web is turned by blackmailers into a vehicle for extortion. Scamsters break into a user's computer, encrypt data, then demand money by e-payment in order to unlock the data.

Such schemes have been around for years but investigators warn that they have shot up in the last year, and they're likely to surge in the coming months. That's because in the first quarter of 2006 the cyber criminals operating these scams developed increasingly sophisticated software, according to a report from Kaspersky Lab, a Russian anti-virus software company.

As a result of these developments, Kaspersky researchers warn, "Holding user data hostage is one of the most dangerous and rapidly evolving types of cyber crime.”

“It is not mainstream yet,” says David Emm, senior technology consultant at Kaspersky. “But this is a new twist on the theme and watch out, because it may become a bigger part of the picture.”

Blackmail scams that encrypted data until a sum of money was paid first appeared in 1989. However, at that point e-payment systems weren’t readily available, so blackmail involved physically collecting the money. That made it no more attractive than traditional blackmail schemes, where the schemers face a huge risk when they swing by to pick up the loot.

That risk larger evaporates with e-payment systems. Collecting involves no physical appearances, just clearly written instructions on where to send the money, and the transactions are difficult to track. 

The current scams work like this. The virus, of which there are three main ones at the moment, enters the victim’s machine through the usual routes, such as email attachments, worms or phishing.

The virus then encrypts the victim’s files, locking them up. The virus leaves a readme text file, which when opened explains that the data has been locked up and will stay that way until the blackmailer receives money wired over the internet through an e-payment system.

The amount demanded typically ranges between $50 to $2,000.

The user is given very thorough instructions on how to go about setting up an e-payment account. In one instance, this even included a handy tip suggesting the victim makes the account name something easy to remember (as they will be asked for it again later) and reasonably short, according to the Kaspersky report.

In setting the extortion sum, scamsters keep the figure low enough that a sufficient number will choose to pay up. What’s more, says Emm, these low-figure operations can cover their tracks more easily.

Perhaps surprisingly, these crooks so far have generally unlocked the data upon receipt of payment.

Kaspersky advises victims of such schemes to not hand over the money demanded, though it may seem the easier course, but to instead contact their anti-virus software provider. They will likely be able to unlock the data.

In the last year Emm estimates hundreds of people have fallen victim to such scams. Says he: "It is a significant number.”

To date most incidents have been in Russia and Eastern Europe, but Emm believes that this is likely to change. “I don’t see any reason why we wouldn’t see it soon in the U.S. and Western Europe.”

Meanwhile, elsewhere on the internet during the week ended April 16, Microsoft, Yahoo, Time Warner, Google and eBay remained the top five parent companies for yet another week, according to Nielsen//NetRatings.

GUS Plc regained the top advertiser spot, knocking Vonage back down to No. 2. Netflix, United Online and Classes USA made up the rest of the top five, with Verizon dropping out of the top five from No. 5 to No. 6.

The top five advertising sites during the week were Yahoo, MSN, MySpace, AOL.com and NYTimes.com, knocking Juno.com out of the top five from No. 5 to No. 6.

Usage during the week was down, with average computer sessions per person even at 16 but average domains visited per person down from 38 to 36. Average PC time per person was also off, dropping 3.11 percent from 16 hours and 25 minutes to 15 hours and 54 minutes.

 

Top 25 parent companies
Week Ended April 16

#

Parent

Unique Audience (000)

Reach %

Time spent per person (hh:mm:ss)

1

Microsoft

79,337

61.1

0:38:59

2

Yahoo!

71,665

55.2

1:04:32

3

Time Warner

67,234

51.8

1:39:43

4

Google

62,095

47.8

0:18:55

5

eBay

31,287

24.1

0:47:58

6

News Corp. Online

29,729

22.9

0:45:45

7

InterActiveCorp

25,212

19.4

0:12:54

8

Amazon

19,303

14.9

0:11:27

9

Landmark Communications

17,667

13.6

0:17:00

10

Walt Disney Internet Group

16,522

12.7

0:16:18

11

Apple Computer

16,177

12.5

0:31:11

12

RealNetworks

16,086

12.4

0:25:24

13

New York Times Company

15,242

11.7

0:08:32

14

United Online

11,791

9.1

0:31:42

15

Verizon Communications

11,557

8.9

0:13:23

16

Bank of America

11,388

8.8

0:27:06

17

AT&T Inc.

11,323

8.7

0:15:28

18

CNET Networks

10,358

8.0

0:06:40

19

Viacom

10,144

7.8

0:25:43

20

E.W. Scripps Company

9,828

7.6

0:06:43

21

Gannett

9,758

7.5

0:09:40

22

Wikipedia

9,680

7.5

0:07:57

23

Comcast Corp.

9,262

7.1

0:20:51

24

CBS Corporation

8,141

6.3

0:15:17

25

U.S. Dept. of the Treasury (USDT)

7,682

5.9

0:12:31

Source: Nielsen//NetRatings

 

Top 25 brands
Week Ended April 16

 

Parent

Unique Audience (000)

Reach %

Time spent per person (hh:mm:ss)

1

Yahoo!

71,066

54.7

1:04:50

2

Microsoft

60,977

46.9

0:15:58

3

MSN

60,815

46.8

0:34:46

4

Google

60,505

46.6

0:18:23

5

AOL

47,970

36.9

2:06:23

6

eBay

27,656

21.3

0:49:30

7

MySpace

21,300

16.4

0:56:26

8

Weather Channel

16,868

13.0

0:17:29

9

Ask Search Network

16,193

12.5

0:12:16

10

Apple

16,177

12.5

0:31:11

11

Real

15,738

12.1

0:24:44

12

Amazon

15,184

11.7

0:11:11

13

MapQuest

15,004

11.6

0:06:52

14

CNN

10,854

8.4

0:23:56

15

About.com

10,628

8.2

0:02:49

16

Wikipedia

9,587

7.4

0:07:57

17

Bank of America

9,121

7.0

0:30:52

18

Comcast

8,008

6.2

0:22:42

19

PayPal

7,630

5.9

0:11:19

20

Blogger

7,536

5.8

0:08:03

21

IMDb - Internet Movie Database

6,793

5.2

0:07:27

22

Lycos Network

6,785

5.2

0:03:51

23

Gorilla Nation Media

6,683

5.1

0:09:50

24

Chase

6,527

5.0

0:16:35

25

U.S. Internal Revenue Service (IRS)

6,511

5.0

0:12:15

Source: Nielsen//NetRatings

 

Top 25 advertisers 
(excludes house ads)
Week Ended April 16

#

Company

Impressions (000)

1

GUS Plc

4,049,676

2

Vonage Holdings Corp

4,006,371

3

Netflix, Inc.

1,928,088

4

United Online, Inc.

1,225,649

5

Classes USA, Inc.

1,138,192

6

Verizon Communications, Inc.

1,103,907

7

HSBC Holdings plc

1,091,603

8

Apollo Group, Inc.

1,083,266

9

Ameriquest Mortgage Company

1,024,559

10

NexTag, Inc.

855,584

11

E*TRADE FINANCIAL Corp.

839,327

12

Providian Financial Corporation

732,861

13

Low Rate Source

612,027

14

Ask Jeeves, Inc.

584,673

15

LowerMyBills.com, Inc.

554,896

16

Flycell

543,571

17

American InterContinental University

530,151

18

Intuit, Inc.

499,649

19

H&R Block, Inc.

488,717

20

Dell Computer Corporation

435,285

21

Bank of America Corporation

426,477

22

Colonize.com

410,810

23

Fidelity Investments

410,284

24

Monster Worldwide, Inc.

391,970

25

BellSouth Corporation

365,175

Source: Nielsen//NetRatings AdRelevance

 

Top 25 advertising sites
(excludes house ads)
Week Ended April 16

 

Company

Impressions (000)

1

Yahoo!

20,501,092

2

MSN

6,239,921

3

MySpace

6,229,617

4

AOL.com

619,921

5

New York Times

484,857

6

Juno

484,219

7

NetZero

411,717

8

eBay

341,833

9

The Weather Channel

329,242

10

iWon

270,709

11

MSNBC

249,875

12

Classmates

249,083

13

Excite

230,483

14

CNN

227,780

15

IMDb

211,180

16

Realtor.com

190,875

17

EarthLink

176,818

18

About.com

171,030

19

FOXNEWS.COM

160,688

20

ESPN.com

159,658

21

Drudge Report

156,547

22

The Weather Underground

156,197

23

Netscape

152,908

24

Monster.com

110,601

25

MarketWatch

110,564

Source: Nielsen//NetRatings AdRelevance

 

Average use
Week Ended April 16

 

 

Current Week

Last Week

% Change

 

Sessions/Visits per Person

16

16

0

 

Domains Visited per Person

36

38

-5.26

 

PC Time per Person

15:54:00

16:24:37

-3.11

 

Active Digital Media Universe

129,922,655

130,678,375

-0.58

 

Current Digital Media Universe Estimate

207,734,373

207,725,185

0

Source: Nielsen//Net Ratings AdRelevance

 



Heidi Dawley is a staff writer for Media Life.




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