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Chinese national charged with operating ‘world’s largest botnet’ linked to billions in cybercrimes

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Chinese national charged with operating ‘world’s largest botnet’ linked to billions in cybercrimes
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A Chinese national has been arrested for his role in operating a residential proxy service that was used to defraud billions of dollars from the U.S. government and fund his lavish lifestyle, which included buying luxury cars and property around the world, the Department of Justice announced Wednesday.

YunHe Wang, 35, was arrested on May 24 and charged with creating a massive network of hijacked computer devices, also known as a “botnet,” that was used to conduct cyber attacks, fraud, child exploitation, bomb threats, and export violations, the department alleged. Wang administered the botnet, called “911 S5,” through about 150 servers worldwide from 2014 to 2022, according to an indictment unsealed last week.

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About 76 of the servers were leased from online service providers based in the United States, the indictment said. The botnet infected over 19 million IP addresses in nearly 200 countries, including over 613,000 IP addresses located in the United States, according to prosecutors.

The Justice Department announcement comes after Wang and his two co-conspirators, Jingping Liu and Yanni Zheng, were sanctioned by the Department of Treasury for their alleged involvement with the malicious botnet. The department also imposed sanctions on three luxury companies Wang owned or controlled.

Authorities also searched Wang’s residences and seized assets valued at about $30 million as well as identifying other property valued at roughly an additional $30 million, prosecutors said.

“The conduct alleged here reads like it’s ripped from a screenplay,” Matthew Axelrod, assistant secretary for export control at the Department of Commerce, said in a statement Wednesday. “A scheme to sell access to millions of malware-infected computers worldwide, enabling criminals over the world to steal billions of dollars, transmit bomb threats, and exchange child exploitation materials — then using the scheme’s nearly $100 million in profits to buy luxury cars, watches, and real estate.”

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The Department of Justice partnered with the FBI and international law enforcement agencies in Singapore, Thailand, and Germany to dismantle the botnet and arrest Wang. The case is the latest in the federal government’s ongoing effort to thwart global cybercrime, which has become increasingly widespread.

These crimes can range from intellectual property theft to ransomware and can cost businesses billions of dollars in losses in addition to threatening critical sectors across the country, according to the Department of State. In recent years, federal authorities have expanded their international operations and country-to-country partnerships in order to better address cyber threats.

‘Urgency and severity of cyberattacks’: EPA urges water utilities to protect nation’s drinking water amid heightened cyberattacks

911 S5 Botnet ‘likely the world’s largest botnet ever’

FBI Director Christopher Wray said in a statement Wednesday that 911 S5 is “likely the world’s largest botnet ever.” According to the indictment, Wang allegedly spread his malware through Virtual Private Network programs and pay-per-install services, which allowed him to manage and control the roughly 150 servers.

Paying customers were then given access to proxied IP addresses that were linked to the hacked devices, the indictment said. Cybercriminals used those addresses to hide their locations and “anonymously commit a wide array of offenses,” the Department of Justice alleged.

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“These offenses including financial crimes, stalking, transmitting bomb threats and threats of harm, illegal exportation of goods, and receiving and sending child exploitation materials,” according to the department. “Since 2014, 911 S5 allegedly enabled cybercriminals to bypass financial fraud detection systems and steal billions of dollars from financial institutions, credit card issuers, and federal lending programs.”

Specifically, the botnet targeted COVID-19 pandemic relief programs and filed an estimated 560,529 fraudulent unemployment insurance claims, according to the indictment. Federal authorities confirmed that more than $5.9 billion was stolen as a result.

The indictment further alleged that Wang had amassed about $99 million — either in cryptocurrency or fiat currency — from his sales of the infected proxied IP addresses. He used the illicit proceeds to purchase luxury assets and property.

Wang bought property in the United States, St. Kitts and Nevis, China, Singapore, Thailand, and the United Arab Emirates, according to the indictment. He also had dozens of other assets, such as luxury cars, watches, international bank accounts, and cryptocurrency wallets.

Wang was charged with conspiracy to commit computer fraud, substantive computer fraud, conspiracy to commit wire fraud, and conspiracy to commit money laundering. He faces a maximum of 65 years in prison.

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Cybercrime, COVID fraud in the U.S.

Cybercrime is a “significant and growing threat” to the country’s national and economic security, according to the State Department. As people become more dependent on information and communication technologies, the department said more criminals continue to shift online.

Wang’s arrest also comes amid a push from federal officials for organizations to update and follow cybersecurity guidelines. Federal agencies have issued multiple advisories for cyberattacks committed by foreign groups in recent years.

In January, the FBI and Department of Justice announced that they had “disrupted a botnet of hundreds of U.S.-based small office/home office routers hijacked” by China-linked hackers. The group, known as “Volt Typhoon,” targeted critical infrastructure organizations in the United States, such as water systems and electric grids.

The surge in malicious cyber incidents coincides with the rise in online communication during the COVID-19 pandemic, according to a 2023 cyberthreat study. Citing FBI data, the study said cybercrime increased by 400% during the pandemic.

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“Cybercriminals find the uncertainty brought by changing daily habits opportune and the increased virtual existence is converted into available attack vectors,” the study noted.

In the four years since the onset of the pandemic, the Internal Revenue Service has investigated over 1,600 tax and money laundering cases related to COVID-19 fraud potentially worth about $8.9 billion, the agency said in March. Cases included fraudulently obtained loans, credits and payments meant for U.S. workers, families and small businesses under the Coronavirus Aid, Relief and Economic Security, or CARES, Act.

Contributing: Josh Meyer, USA TODAY

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It Could Take Weeks Before Displaced L.A. Residents Can Go Home

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It Could Take Weeks Before Displaced L.A. Residents Can Go Home

The tens of thousands of people displaced by the devastating wildfires in the Los Angeles area are increasingly anxious to know when they can return home — or to what remains of their properties.

Officials say crews are working to reopen closed areas, snuffing out hot spots and clearing hazardous debris, but no timeline has been announced for lifting the evacuation orders.

Experts have warned that it could take weeks before people can return to the hardest-hit neighborhoods because of the amount of work needed to ensure the safety of residents.

Firefighters are still trying to contain the Palisades and Eaton fires, the biggest ones in the Los Angeles region, a prerequisite to allowing people to return. Both remained largely out of control on Wednesday evening, though their growth had slowed.

Captain Erik Scott of the Los Angeles Fire Department said the timeline for people returning to their neighborhoods can vary. It depends on the extent of the damage, which needs to be mapped and carefully assessed in every impacted community, he added. There is also the threat of hazardous materials, such as asbestos and chemicals.

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“We want people to have realistic expectations,” Mr. Scott said.

It took weeks in the aftermath of some previous destructive blazes for people to return. In 2018, the Camp fire destroyed most of Paradise in Northern California and killed 85 people. The final evacuation orders in that town were lifted more than a month after the fire started.

Similarly, after a devastating fire in Lahaina on the island of Maui killed more than 100 people in 2023, it was nearly two months before the first of the thousands of displaced residents could return to their properties.

The suppression of the fire is only one step in the process, according to fire officials. There are yet more safety and infrastructure issues to tackle. Workers need to clear and replace downed power lines, stabilize partially collapsed buildings and remove toxic ash from the ground.

“That’s why the orders are still in place,” said David Acuna, a battalion chief with Cal Fire. “It’s not just about the fire. There are all these other elements to address.”

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The grim search for human remains has further complicated efforts to clear neighborhoods. Officials are using cadaver dogs to comb through the thousands of structures damaged or destroyed in the fires to locate remains.

“We have people literally looking for the remains of your neighbors,” Sheriff Robert Luna of Los Angeles County said at a news conference on Monday. “Please be patient with us.”

Even for those whose homes survive, the lifting of evacuation orders does not necessarily mean they can return to live in them right away, warned Michael Wara, a climate policy expert at Stanford University.

“There’s going to be smoke damage,” he said. “There’s going to be the fact that you don’t have utilities.”

In Pacific Palisades, the recovery process was underway in its incinerated downtown. The air buzzed with the sound of jackhammers, bulldozers and tree shredders. Workers cleared debris, pulled down charred utility poles and ground up the skeletal limbs of burned eucalyptus trees.

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Ali Sharifi managed to inspect his lower Palisades home on Tuesday. Aside from a burned backyard fence, it was intact. Yet the destruction around it, including charred schools, churches and grocery stores, gave him second thoughts about returning.

“Who wants to live in a ghost town?” Mr. Sharifi said.

Erica Fischer, an associate professor at Oregon State University who studied the aftermath of the Camp fire, said that a fast recovery is not always a good one, especially if it means rebuilding in ways that contributed to the disaster.

Of the ongoing evacuation orders in California, she said, “I know it’s not convenient, and it’s disruptive, but it keeps people out of harm’s way.”

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Joe Biden says ‘oligarchy’ emerging in US in final White House address

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Joe Biden says ‘oligarchy’ emerging in US in final White House address

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US President Joe Biden has warned that an “oligarchy is taking shape in America” that risks damaging democracy, as he blasted an emerging “tech industrial complex” for delivering a dangerous concentration of wealth and power in the country.

Biden’s comments during a farewell address to Americans from the Oval Office on Wednesday night amount to a veiled attack on Donald Trump’s closest allies in corporate America, including tech billionaire Elon Musk, just five days before he transfers power to the Republican.

Biden said he wanted to warn the country of the “dangerous concentration of power in the hands of a very few ultra-wealthy people” and the danger that their “abuse of power is left unchecked”.

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He cited late president Dwight Eisenhower’s warning in his 1961 farewell address of a military-industrial complex and said the interaction between government and technology risked being similarly pernicious.

“I’m equally concerned about the potential rise of a tech-industrial complex that could pose real dangers for our country as well. Americans are being buried under an avalanche of misinformation and disinformation, enabling the abuse of power. The free press is crumbling. Editors are disappearing. Social media is giving up on fact checking,” Biden said.

Biden’s words were a reference to the world’s richest man, Musk, the owner of social media platform X and the founder of electric-vehicle maker Tesla, who gave massive financial backing to Trump’s campaign and has become one of his closest allies during the transition to Trump’s new administration.

Some of Silicon Valley’s top executives, from Jeff Bezos of Amazon to Mark Zuckerberg of Meta, have also embraced Trump since his electoral victory and are expected to have prime spots at the inauguration ceremony in Washington on Monday.

Biden also used his remarks to cast a positive light on his one-term presidency, which ended with the big political failure of him dropping his re-election bid belatedly in late July, passing the torch of the campaign against Trump to vice-president Kamala Harris — an effort that ended in a bitter defeat.

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Biden’s approval ratings have hit new lows as he bows out from the presidency and a political career in Washington that has spanned more than five decades. Just 36.7 per cent of Americans approve of his performance on the job, and 55.8 per cent disapprove, according to the FiveThirtyEight polling average.

Biden said he hoped his accomplishments would be judged more favourably in the future.

“It will take time to feel the full impact of all we’ve done together, but the seeds are planted, and they’ll grow and they’ll bloom for decades to come,” he said.

Biden has not only faced seething criticism from Republicans, but also rebukes from Democrats who blame him for seeking re-election despite his advanced age. He is now 82.

Biden’s presidency was defined by a record-breaking jobs market and a robust recovery from the Covid-19 pandemic, as well as a series of legislative accomplishments on the economy. But the pain of high inflation became a massive political vulnerability for him.

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In foreign affairs, he took credit for western support for Ukraine after Russia’s full-scale invasion of the country in 2022, but his response to conflict in the Middle East, including staunch support for Israel’s war in Gaza, drew a strong backlash from progressive Democrats, undermining the unity of his political coalition.

It was not until Wednesday, with five days to go before he left office, that Biden — with help from Trump aides — was able to broker a ceasefire deal to free hostages held by Hamas. 

“This plan was developed and negotiated by my team and will be largely implemented by the incoming administration. That’s why I told my team to keep the incoming administration fully informed, because that’s how it should be, working together as Americans,” he said at the start of his address.

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Biden touts major wins in farewell address

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Biden touts major wins in farewell address
Biden touts major wins in farewell address – CBS Texas

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In his farewell address, President Biden warned an “oligarch” of “ultrarich” threatens America’s future.

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