From The Washington Post‘s “Bringing Botnets Out of the Shadows“:
Nicholas Albright’s first foray into some of the darkest alleys of the Internet came in November 2004, shortly after his father committed suicide. About a month following his father’s death, Albright discovered that online criminals had broken into his dad’s personal computer and programmed it to serve as part of a worldwide, distributed network for storing pirated software and movies. …
From that day forward, Albright poured all of his free time and pent-up anger over his father’s death into assembling “Shadowserver,” a group of individuals dedicated to battling large, remote-controlled herds of hacked personal PCs, also known as “botnets.” …
Each “bot” is a computer on which the controlling hacker has installed specialized software that allows him to commandeer many of its functions. Hackers use bots to further their online schemes or as collection points for users’ personal and financial information.
“I take my [handheld computer] everywhere so I can keep tabs on the botnets when I’m not at home,” Albright said …
On a Sunday afternoon in late February, Albright was lurking in an online channel that a bot herder uses to control a network of more than 1,400 hacked computers running Microsoft Windows software. The hacker controlling this botnet was seeding infected machines with “keyloggers,” …
Albright had already intercepted and dissected a copy of the computer worm that the attacker uses to seize control of computers — an operation that yielded the user name and password the hacker uses to run the control channel. By pretending to be just another freshly hacked bot reporting for duty, Albright passively monitors what the hackers are doing with their botnets and collects information that an Internet service provider would need to get the channel shut down.
Albright spied one infected PC reporting data about the online activities of its oblivious owner — from the detailed information flowing across the wire, it was clear that one of the infected computers belongs to a physician in Michigan.
“The botnet is running a keylogger, and I see patient data,” Albright said. …
“Anything you submit to law enforcement may help later if an investigation occurs,” he said. “Chances are, though, it will just be filed away in a database.”
Botnets are the workhorses of most online criminal enterprises today, allowing hackers to ply their trade anonymously — sending spam, sowing infected PCs with adware from companies that pay for each installation, or hosting fraudulent e-commerce and banking Web sites. …
… in the 13-month period ending in January, more than 13 million PCs around the world were infected with malicious code that turned them into bots.
… Shadowserver locates bot networks by deploying a series of “honeynets” — sensors that mimic computers with known security flaws — in an effort to lure attackers, allowing the group to capture samples of new bot programs. …
Shadowserver submits any new or undetected specimens to the major anti-virus companies. Andrews said he is constantly surprised by the sheer number of bot programs that do not get flagged as malicious by any of the programs. …
In Andrews’s experience, by far the most common reason criminals create botnets these days — other than perhaps to sell or rent them to other criminals — is to install online ad-serving software that earns the attacker a few pennies per install. …
Even after the Shadowserver crew has convinced an ISP to shut down a botmaster’s command-and-control channel, most of the bots will remain infected. Like lost sheep without a shepherd, the drones will continually try to reconnect to the hacker’s control server, unaware that it no longer exists. …
“Bot hunting can really take over your personal life, because to do this right you really have to stay on top of it — it can’t just be something you do on the weekends,” he said. “I guess it takes a special type of person to be able to sustain botnet hunting. … I don’t know anyone who pays people to do this kind of work.” …
Albright said that while federal law enforcement has recently made concerted efforts to reach out to groups like Shadowserver in hopes of building a more effective partnership, they don’t have the bodies, the technology, or the legal leeway to act directly on the information the groups provide. …
“Sadly, without more law enforcement support this will remain a chase-your-tail type game, because we won’t ever really shut these networks down until the bot master goes to jail, and his drones are cleaned.”