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Malware Mastermind Gets 87 Months in Prison

By Grimy Times Staff

A notorious cybercriminal has been sentenced to 87 months in prison for his role in a massive fraud scheme that infected over 4 million computers in 100 countries with malware.

Vladimir Tsastin, an Estonian national, pled guilty to one count of conspiracy to commit wire fraud and one count of conspiracy to commit computer intrusion in July 2015. U.S. District Judge Lewis A. Kaplan handed down the sentence earlier today.

According to the indictment, Tsastin and his co-conspirators controlled and operated various companies that masqueraded as legitimate publisher networks in the Internet advertising industry. These networks entered into agreements with ad brokers under which they were paid based on the number of times Internet users clicked on links for certain websites or advertisements.

The defendants fraudulently increased the traffic to the websites and advertisements that would earn them money and made it appear to advertisers that the Internet traffic came from legitimate “clicks” and ad displays on the defendants’ Publisher Networks when, in actuality, it had not.

The scheme involved the use of dozens of “rogue” Domain Name System (“DNS”) servers and malware designed to alter the DNS server settings on infected computers. Victims’ computers became infected with the Malware when they visited certain websites or downloaded certain software to view videos online.

The Malware altered the DNS server settings on victims’ computers to route the infected computers to rogue DNS servers controlled and operated by the defendants and their co-conspirators. The re-routing took two forms, “click hijacking” and “advertising replacement fraud” (together, “click fraud”).

As a result of the scheme, the defendants received millions of dollars in fees from advertisers who paid the defendants to bring customers to their websites or ads, but were unaware that the defendants did so by digitally hijacking victims’ computers. The malware also prevented the installation of anti-virus software and operating system updates on millions of infected computers, leaving those computers and their users unable to detect or stop the malware, and exposing them to attacks by other malware.

U.S. Attorney Preet Bharara said, “Vladimir Tsastin was sentenced today to 87 months in prison for his role in a massive fraud scheme, which victimized more than four million Internet users in 100 countries. By falsely collecting advertising fees for every ‘click’ their victims made, Tsastin and his co-conspirators collected over $14 million. Together with our law enforcement partners all over the globe, this Office will continue to investigate and prosecute sophisticated cyber frauds.”

The case serves as a reminder of the dangers of cybercrime and the importance of taking steps to protect oneself from online threats.

Tsastin and his co-conspirators collected over $14 million in advertising fees from their scheme, which lasted from 2007 to 2011.

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