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Peter Yuryevich Levashov, Cybercrime, Alaska 2017

Feds Dismantle Kelihos Botnet: Global Cybercrime Operation Brought Down by Justice Department

The Justice Department today announced an extensive effort to disrupt and dismantle the Kelihos botnet – a global network of tens of thousands of infected computers under the control of a cybercriminal that was used to facilitate malicious activities including harvesting login credentials, distributing hundreds of millions of spam e-mails, and installing ransomware and other malicious software.

Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Bryan Schroder for the District of Alaska, Assistant Director Scott Smith for the FBI’s Cyber Division and FBI Special Agent in Charge Marlin Ritzman of the Anchorage Division made the announcement.

“The operation announced today targeted an ongoing international scheme that was distributing hundreds of millions of fraudulent e-mails per year, intercepting the credentials to online and financial accounts belonging to thousands of Americans, and spreading ransomware throughout our networks. The ability of botnets like Kelihos to be weaponized quickly for vast and varied types of harms is a dangerous and deep threat to all Americans, driving at the core of how we communicate, network, earn a living, and live our everyday lives,” said Acting Assistant Attorney General Blanco. “Our success in disrupting the Kelihos botnet was the result of strong cooperation between private industry experts and law enforcement, and the use of innovative legal and technical tactics. The Justice Department is committed to combatting cybercrime, no matter the size or sophistication of the scheme, and to punish those who are engaged in such crimes.”

“Cybercrime is a worldwide problem, but one that infects its victims directly through the computers and personal electronic devices that we use every day,” said Acting U.S. Attorney Bryan Schroder for the District of Alaska. “Protecting the American people from such a worldwide threat requires a broad-reaching response, and the dismantling of the Kelihos botnet was such an operation. We are lucky that we have talented FBI agents and federal prosecutors with the skillsets to help protect Americans from this pervasive cybercrime.”

Kelihos malware targeted computers running the Microsoft Windows operating system. Infected computers became part of a network of compromised computers known as a botnet and were controlled remotely through a decentralized command and control system. According to the civil complaint, Peter Yuryevich Levashov allegedly operated the Kelihos botnet since approximately 2010. The Kelihos malware harvested user credentials by searching infected computers for usernames and passwords and by intercepting network traffic. Levashov allegedly used the information gained from this credential harvesting operation to further his illegal spamming operation which he advertised on various online criminal forums.

The Kelihos botnet generated and distributed enormous volumes of unsolicited spam e-mails advertising counterfeit drugs, deceptively promoting stocks in order to fraudulently increase their price (so-called “pump-and-dump” stock fraud schemes), work-at-home scams, and other frauds. Kelihos was also responsible for directly installing additional malware onto victims’ computers, including ransomware and malware that intercepts users’ bank account passwords.

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