Ransomware wreaks havoc by locking users out of their data until a fee is paid. Dive into the story of a computer science student who teams up with Russian hackers, exploiting outdated software through the Angler exploit kit. Discover the dark underbelly of cybercrime, where malware spreads and money is laundered, highlighting the dire consequences of misdirected skills. The podcast uncovers the rise of scam emails and the ethical dilemmas faced by those with technical prowess choosing the wrong path.
Ransomware attacks have had a widespread impact on businesses, government departments, hospitals, and individuals globally, with one teenager, Zane Kaiser, using social engineering and partnering with Russian hackers to deploy a successful ransomware operation.
The Angler exploit kit, a sophisticated Russian-made tool, was rented out to numerous hackers, generating millions of dollars annually and evading antivirus detection by constantly changing domains and encrypting traffic.
Deep dives
Ransomware: Announcing Its Presence in Boldness
Ransomware, unlike other types of malware, locks down a computer, rendering it unusable, and demands a fee for its release. It has affected businesses, government departments, hospitals, and individuals worldwide. One teenager, Zane Kaiser, used social engineering to deploy a ransomware attack on individual users. He partnered with the Russian creators of the Angler exploit kit, which targeted vulnerable systems through malicious websites. Zane weaponized Angler with Reveton ransomware, posing as law enforcement and scamming victims into paying a fee to unlock their computers. To launder the money, Zane collaborated with Raymond, who cashed the ransom payments and transferred the funds through Liberty Reserve. The operation profited millions, but Liberty Reserve was shut down, impairing their money laundering activities. In 2017, Zane was arrested, and in 2019, he pleaded guilty to multiple charges related to ransomware and fraudulent activities, receiving a six-year sentence.
Angler Exploit Kit: Exploiting Vulnerabilities
The Angler exploit kit, believed to be Russian-made, scanned computers for out-of-date software and exploited vulnerabilities to gain access. It employed techniques like 'use after free' vulnerabilities to run commands on infected machines. Angler was highly sophisticated in evading detection, constantly changing domains and encrypting traffic to avoid antivirus detection. This exploit kit was rented out to hundreds of hackers and estimated to generate $60 million each year. One of its users, Zane Kaiser, targeted vulnerable individuals with Angler and weaponized it with Reveton ransomware, which demanded payment to unlock frozen computers. Despite law enforcement efforts and the downfall of Liberty Reserve, ransomware attacks continued to thrive.
Partnership with Russian Hackers: Buying Ads on Porn Websites
Zane Kaiser formed a partnership with Russian hackers who developed Angler and Reveton ransomware. To infect as many computers as possible, Zane purchased online ads leading to his malicious website on popular porn sites. Victims who clicked on these ads were infected by ransomware, which displayed a fake police logo and accused them of accessing illegal material. Zane's calculated approach exploited victims' fear, shame, and embarrassment, driving them to pay a $200 ransom to regain control of their computers. To launder the ransom payments, Zane collaborated with Raymond, who used MoneyPak prepaid cards and Liberty Reserve to transfer the funds. This successful scam generated significant profits, enabling a lavish lifestyle for Zane.
Unraveling the Operation: Police Investigations and Arrests
Police and cybersecurity agencies, such as the National Crime Agency and European Cybercrime Centre, cooperated to investigate and dismantle ransomware operations. The Spanish police made significant arrests connected to the Reveton ransomware gang, but these arrests did not directly affect Zane's operations. However, the downfall of Liberty Reserve impacted his money laundering activities. Zane's scheme involved purchasing web traffic, bidding for advertising slots, and orchestrating distributed denial-of-service (DDoS) attacks on advertising companies that questioned him. He manipulated and threatened firms to prioritize his ads. Eventually, suspicious ad agencies reported Zane to the police. Zane was arrested and found guilty of multiple charges, earning himself a six-year sentence.
Ransomware is ugly. It infects your machine and locks all the the data and to unlock you have to pay a fee. In this episode we dive into some of the people behind it.
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