Posts Tagged: Daniel Kaye


13
Dec 17

Mirai IoT Botnet Co-Authors Plead Guilty

The U.S. Justice Department on Tuesday unsealed the guilty pleas of two men first identified in January 2017 by KrebsOnSecurity as the likely co-authors of Mirai, a malware strain that remotely enslaves so-called “Internet of Things” devices such as security cameras, routers, and digital video recorders for use in large scale attacks designed to knock Web sites and entire networks offline (including multiple major attacks against this site).

Entering guilty pleas for their roles in developing and using Mirai are 21-year-old Paras Jha from Fanwood, N.J. and Josiah White, 20, from Washington, Pennsylvania.

Jha and White were co-founders of Protraf Solutions LLC, a company that specialized in mitigating large-scale DDoS attacks. Like firemen getting paid to put out the fires they started, Jha and White would target organizations with DDoS attacks and then either extort them for money to call off the attacks, or try to sell those companies services they claimed could uniquely help fend off the attacks.

CLICK FRAUD BOTNET

In addition, the Mirai co-creators pleaded guilty to charges of using their botnet to conduct click fraud — a form of online advertising fraud that will cost Internet advertisers more than $16 billion this year, according to estimates from ad verification company Adloox. 

The plea agreements state that Jha, White and another person who also pleaded guilty to click fraud conspiracy charges — a 21-year-old from Metairie, Louisiana named Dalton Norman — leased access to their botnet for the purposes of earning fraudulent advertising revenue through click fraud activity and renting out their botnet to other cybercriminals.

As part of this scheme, victim devices were used to transmit high volumes of requests to view web addresses associated with affiliate advertising content. Because the victim activity resembled legitimate views of these websites, the activity generated fraudulent profits through the sites hosting the advertising content, at the expense of online advertising companies.

Jha and his co-conspirators admitted receiving as part of the click fraud scheme approximately two hundred bitcoin, valued on January 29, 2017 at over $180,000.

Prosecutors say Norman personally earned over 30 bitcoin, valued on January 29, 2017 at approximately $27,000. The documents show that Norman helped Jha and White discover new, previously unknown vulnerabilities in IoT devices that could be used to beef up their Mirai botnet, which at its height grew to more than 300,000 hacked devices.

MASSIVE ATTACKS

The Mirai malware is responsible for coordinating some of the largest and most disruptive online attacks the Internet has ever witnessed. The biggest and first to gain widespread media attention began on Sept. 20, 2016, when KrebsOnSecurity came under a sustained distributed denial-of-service attack from more than 175,000 IoT devices (the size estimates come from this Usenix paper (PDF) on the Mirai botnet evolution).

That September 2016 digital siege maxed out at 620 Gbps, almost twice the size of the next-largest attack that Akamai — my DDoS mitigation provider at the time — had ever seen.

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28
Jul 17

Suspended Sentence for Mirai Botmaster Daniel Kaye

Last month, KrebsOnSecurity identified U.K. citizen Daniel Kaye as the likely real-life identity behind a hacker responsible for clumsily wielding a powerful botnet built on Mirai, a malware strain that enslaves poorly secured Internet of Things (IoT) devices for use in large-scale online attacks. Today, a German court issued a suspended sentence for Kaye, who now faces cybercrime charges in the United Kingdom.

Daniel Kaye's Facebook profile page.

Daniel Kaye’s Facebook profile page.

In February 2017, authorities in the United Kingdom arrested a 29-year-old U.K. man on suspicion of knocking more than 900,000 Germans offline in a Mirai attack in November 2016. Shortly after that 2016 attack, a hacker using the nickname “Bestbuy” told reporters he was responsible for the outage, apologizing for the incident.

Prosecutors in Europe had withheld Kaye’s name from the media throughout the trial. But a court in Germany today confirmed Kaye’s identity as it handed down a suspended sentence on charges stemming from several failed attacks from his Mirai botnet — which nevertheless caused extensive internet outages for ISPs in the U.K., Germany and Liberia last year.

On July 5, KrebsOnSecurity published Who is the GovRAT Author and Mirai Botmaster BestBuy. The story followed clues from reports produced by a half-dozen security firms that traced common clues between this BestBuy nickname and an alter-ego, “Spiderman.”

Both identities were connected to the sale of an espionage tool called GovRAT, which is documented to have been used in numerous cyber espionage campaigns against governments, financial institutions, defense contractors and more than 100 corporations.

That July 5 story traced a trail of digital clues left over 10 years back to Daniel Kaye, a 29-year-old man who had dual U.K. and Israeli citizenship and who was engaged to be married to a U.K. woman.

A “mind map” tracing some of the research mentioned in this post.

Last week, a 29-year-old identified by media only as “Daniel K” pleaded guilty in a German court for launching the attacks that knocked 900,000 Deutsche Telekom customers offline. Prosecutors said Daniel K sold access to his Mirai botnet as an attack-for-hire service.

The defendant reportedly told the court that the incident was the biggest mistake of his life, and that he took money in exchange for launching attacks in order to help start a new life with his fiancee. Continue reading →