Spam

A single botnet has grown so dramatically in the last two months that it now accounts for half of all the spam, according to new research from Marshal’s TRACE team. The Srizbi botnet has steadily increased its network since the beginning of 2008 and is now the world’s largest spam botnet.

“Srizbi is estimated to comprise at least 300,000 compromised computers and sends more than 60 billion spam messages per day. Recently, the botnet has been used to promote a range of products including watches, pens and male enlargement pills. Srizbi also actively distributes copies of its own malware in malicious spam campaigns using social engineering ploys to trick recipients into infecting their computers.

The Federal Trade Commission and Department of Justice have halted the illegal conduct of an adult Web site that sent spam with false or misleading header information, that failed to include an opt-out mechanism, and that failed to include a valid postal address, all in violation of federal law. A final court order will bar violations of the CAN-SPAM Act in the future, require the defendants to establish an effective monitoring program for their affiliates, and impose a $75,000 civil penalty.

The SEC suspended trading in the securities of three companies that haven’t adequately disclosed information to investors and have been the subject of spam e-mail campaigns and promotional videos on the Internet site YouTube. The videos often repeat information in the companies’ press releases and are posted to coincide with traditional spam e-mail campaigns.

The Commission issued an Order finding that each of the companies subject to today's trading suspension — NeoTactix Corporation (NTCX), Graystone Park Enterprises, Inc. (GPKE), and Younger America, Inc. (YNGR) — has inadequately disclosed its assets, business operations, and current financial condition.

DANIEL MASCIA, 24, of West Haven, pleaded guilty March 17, before United States Magistrate Judge Donna F. Martinez in Hartford to one count of conspiracy to commit fraud in connection with access devices and one count of fraud in connection with electronic mail. The charges relate to a “phishing” and “spamming” scheme that targeted AOL subscribers.

According to documents filed with the Court and statements made in court, MASCIA and his co-defendants conspired to “harvest” email addresses of AOL subscribers from the Internet. The defendants then spammed thousands of AOL subscribers with counterfeit emails purporting, for example, to convey an electronic greeting card. If an AOL subscriber attempted to view the greeting card, the subscriber’s computer would be infected with a software trojan preventing the subscriber from accessing AOL without entering information including the subscriber’s name, address, Social Security account number, credit card number, bank account number, and personal identification number. The defendants used the information to produce counterfeit debit cards, which they used at ATM machines, online, and at retail outlets to obtain money, goods, and services.

An X-rated Web operation that paid affiliates who used illegal e-mail to drive customers to its Web sites will pay a $413,000 civil penalty under a settlement reached with the FTC and the Department of Justice. The settlement also bars the illegal marketing practices in the future and requires the operator to monitor its affiliates to ensure that they are complying with the law.

In 2005, the FTC cracked down on seven companies that illegally exposed unwitting consumers, including children, to graphic sexual content, in violation of federal laws. Five of those cases were previously settled. The settlement announced today with Cyberheat, Inc., ends the litigation in that case, and brings the total combined civil penalty amount in these cases to over $1.6 million.

The Virginia Supreme Court has upheld the nation’s first felony SPAM conviction. “SPAM” refers to unsolicited bulk email sent by fraudulent means.

In November of 2004, Jeremy Jaynes was convicted by a jury in Loudoun County Circuit Court on three counts of violating Virginia’s groundbreaking Anti-Spam Act, which was passed into law in 2003. This marked the first ever felony conviction in a SPAM case, and the case received international attention. After convicting the defendant, the same jury sentenced him to serve nine years in jail. The defendant appealed his conviction. In September of 2006 the Virginia Court of Appeals affirmed the constitutionality of Virginia’s Anti-SPAM Statute and upheld the conviction. The Virginia Supreme Court today upheld this decision.

Secure email and Internet gateway security provider Marshal has released the findings of its second Marshal TRACE (Threat Research and Content Engineering) Biannual Report for 2007.

The report found that total spam volume increased by over 50 per cent in the latter half of 2007. Health spam, promoting pharmaceuticals such as weight loss pills, was the dominant spam category in 2007, comprising nearly 70 per cent of all spam in the year. While interestingly, Stock spam declined in the second half of 2007 to 1 per cent of all spam, compared to 50 per cent in February 2007.

At the request of the Federal Trade Commission, a federal judge has ordered Sili Neutraceuticals, LLC and Brian McDaid to pay more than $2.5 million for making false advertising claims and sending illegal e-mail messages in violation of the FTC Act and the CAN-SPAM Act (Controlling the Assault of Non-Solicited Pornography and Marketing Act).

On January 23, U.S. District Court Judge David H. Coar ordered the company and McDaid, individually and doing business as Kaycon, Ltd., to stop misrepresenting any products or services, including hoodia - or human growth hormone-related (HGH) products, and stop sending illegal spam. The court also entered a judgment against the defendants in the amount of $2,569,851.77. In August 2007, the FTC charged the defendants with CAN-SPAM violations and making false and unsubstantiated claims about hoodia weight-loss products and HGH anti-aging products, and a district court judge ordered a freeze of their assets and a halt to the e-mails and product claims.

An online advertiser that drove traffic to its Web sites using spam e-mails with misleading subject lines has agreed to settle Federal Trade Commission charges that it failed to disclose that consumers have to spend money to receive the so-called "free" items it touts. The settlement, filed by the Department of Justice on behalf of the FTC, requires the defendants to disclose the costs and obligations to qualify for the advertised products or services, and bars them from sending e-mail that violates the CAN-SPAM Act. The settlement also requires that the company pay $200,000 in civil penalties.

Cyberoam, a division of Elitecore Technologies and the leading innovator of identity-based Unified Threat Management (UTM) solutions, announced the Q4 email threat trends of 2007 revealed a steep rise in attacks using social networking techniques targeting user psychology and behavior patterns. Spammers launched attacks by predicting user behavior patterns, such as looking for easy cash and discounted gifts during the holiday season, and preying on consumer trust to generate interest in cheap pharmaceutical products and stocks. Existing security solutions were unable to block the new spam formats and techniques, resulting in an alarming rise in spam levels reaching 96% by the end of 2007.