Cybercrime Supersite 'DarkMarket' Was FBI Sting, Documents Confirm
Kevin Poulsen writes on Threat Level:
DarkMarket.ws, an online watering hole for thousands of identify thieves, hackers and credit card swindlers, has been secretly run by an FBI cybercrime agent for the last two years, until its voluntary shutdown earlier this month, according to documents unearthed by a German radio network.
Reports from the German national police obtained by the Südwestrundfunk, Southwest Germany public radio, blow the lid off the long running sting by revealing its role in nabbing a German credit card forger active on DarkMarket. The FBI agent is identified in the documents as J. Keith Mularski, a senior cybercrime agent based at the National Cyber Forensics Training Alliance in Pittsburgh, who ran the site under the hacker handle Master Splynter.
The NCFTA is a non-profit information sharing alliance funded by financial firms, internet companies and the federal government. It's also home to a seven-agent FBI headquarters unit called the Cyber Initiative and Resource Fusion Unit, which evidently ran the DarkMarket sting.
The FBI didn't return a phone call Monday.
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Pizza Delivery Man Cops to Life in DarkMarket
Dan Goodin writes on The Register:
A former London pizza delivery man faces a 10-year prison sentence after admitting he helped found the notorious DarkMarket forum for computer crime, several news sites reported.
Renukanth Subramaniam, a 33-year-old Sri Lanka-born man from North London, pleaded guilty at Blackfriars Crown Court in London to conspiracy to defraud and furnishing false information. Authorities say he joined DarkMarket on its first day of operation in late 2005 and helped build it into an online resource for payment card fraud, with a thriving exchange for buying and selling stolen data and its own secure payment system.
DarkMarket operated for three years and had about 2,500 members at its peak. To be accepted, candidates had to provide details of 100 compromised cards to reviewers, who would then verify their validity. Members were required to adhere to a strict code of conduct that forbid foul language and pornography and demanded a kind of honor among thieves.
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Notorious Crime Forum 'DarkMarket' Goes Dark
Kevin Poulsen writes on Threat Level:
A wave of bittersweet melancholy has descended on the thousands of phishers, hackers and credit card swindlers inhabiting the computer crime supersite DarkMarket.ws. On Tuesday the site's operator, known as Master Splyntr, announced that he was shuttering the forum, which has hummed along for nearly three years as a premier vehicle of criminal commerce.
"[R]ecent events have proven that even in our best efforts to expel and deactivate the accounts of suspected LE [law enforcement], reporters, and security agents, it is obvious that we haven't been entirely successful," Splyntr wrote in a message on the site.
Chief among those recent events is last week's arrest of Cha0, a Turkish hacker -- and alleged kidnapper -- who served as one of DarkMarket's administrators. Cha0 was known for selling high-quality ATM-skimming hardware that crooks could affix to cash machines to grab debit card swipes and PINs. Turkish police arrested Cha0 on Friday, identifying him as one Cagatay Evyapan.
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Experts See Forecast Worsen for Cyber Crime
Jeremy Kirk writes on PC World:
Law enforcement agencies can count a few recent victories against cybercriminals, but agents say the battle against them isn't getting any easier.
Highly organized cybercriminals are using increasingly sophisticated tools and methods that make them hard to trace, said Keith Mularski, supervisory special agent with the U.S. Federal Bureau of Investigation's Cyber Division.
"They have evolved over the years," Mularkski said. "It really is organized crime."
Mularski, who spoke at the RSA conference in London on Wednesday, has had great success in infiltrating organized cybercrime rings. He successfully infiltrated a ring known as DarkMarket, an online forum where criminals bought and sold personal data, such as credit card numbers. DarkMarket was shut down about a year ago and 59 people were arrested, with the help of authorities in the U.K., Germany, Turkey and other countries.
While the DarkMarket bust was a big win, there are still such forums operating today and they're hard to infiltrate. New members must be vetted for reliability and to ensure they're not agents like Mularski.
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To Catch a (Cyber) Thief: It's Not Easy
Charles Cooper writes on C|Net News:
The FBI agent whose undercover sting operation led to the dismantling of an international cybercrime ring believes that increasing transnational police cooperation is turning the tide against digital criminals.
J. Keith Mularski, a special agent who works in the Federal Bureau of Investigation's Cyber Division, says that when it comes to fighting cybercrime, the bad guys may still hold a technological upper hand but that the good guys are getting better.
"We're not far behind," says Mularski, who spent a couple of years infiltrating a crime network that offered a range of stolen data--including credit card numbers, bank numbers and personal log-in information--to buyers online. The Web site, DarkMarket.ws, got shut down last October after a German radio network broke the news about the sting operation.
"I wouldn't say that we're winning the battle," said Mularski. Still, he insisted that law enforcement agencies are catching up. "I expect to see great strides" in the near term, he said.
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FBI Says Dark Market Sting Netted 56 Arrests
Robert McMillan writes on PC World:
A two-year undercover FBI sting operation targeting online fraudsters has netted 56 arrests and prevented millions of dollars in economic losses, the FBI said Thursday.
The FBI said it had infiltrated online "carder" forums hosted on the DarkMarket.ws Web site, which was widely used by online scammers to buy and sell stolen credit card numbers, other financial information, and even the devices used to make fake banking cards. Before it was shut down earlier this month, the Web site had registered more than 2,500 members.
The FBI ran its sting in cooperation with the U.K.'s Serious Organized Crime Agency and authorities in Turkey and Germany. "The arrests this week in the U.K. are a good demonstration of the coordination taking place today between the FBI, the Serious Organized Crime Agency... and other law enforcement agencies around the globe," FBI Cyber Division Assistant Director Shawn Henry said Thursday in a statement.
In addition to the drawing the 56 arrests, the sting helped the FBI seize compromised accounts and prevent the loss of about US$70 million in fraud, the FBI said. It has also generated new leads that are being tracked down by international law enforcement.
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