FREEMAN-SPICER FINANCIAL SERVICES
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Vol. 28, No. 2 • February, 2010 / www.Freeman-Spicer.com
Hijacked By Ransomeware -Turning Hijacked Computers Into Cash . . . . . . . is still hard work for most computer criminals. They've got to trick the infected PC into sending spam, then trick a recipient into buying a useless product -- or they have to steal online banking passwords, log onto a victim’s account, bypass the bank’s money transfer fraud controls, and so on. It's much easier to just demand cash directly from infected users -- a crime that's the Internet's equivalent of kidnaping. "Give me all your money or your computer gets it-" is the basic proposition. The technique was dubbed "ransomware" many years ago by computer virus researchers, and is not new. What is new is the explosion of ransomware, thanks to the evolution of ever-more-believable tactics during recent months. In December, the FBI issued a warning about a broader category of malicious programs called "rogueware.” These programs appear on users' machines and claim to find viruses, then offer to clean them for $50. Rogueware looks so realistic -- complete with Windows-like dialog boxes and scary warnings -- that Web users were tricked into sending $150 million to criminals last year, the FBI says. The new ransomware is similar, but far more aggressive. Once a computer is infected with it, the program does more than recommend a software purchase –it simply won't let users continue to use their PC until they pay up. Luis Corrons Granel, a researcher at Panda Security, said use of ransomware by criminals is exploding -- 25 percent of all rogueware in the past quarter involved a family of intimidating products named "TotalAntivirus.” It demands that users pay $50 for two years, $79 for a lifetime license. “The increase (in ransomware) has been really significant,” Granel said. A single family of ransomware programs called “Total Security” made up one-quarter of all rogueware programs detected during the past three months, he said.
To an average user, most rogueware would be indistinguishable from other standard antivirus products. They look like fully functional software, showing Windows-like screens for firewall settings, file scanning, and every other tab you'd expect from standard antivirus products. “Total Security” even lets users choose their language -- English, Spanish, and German are offered. The switch to ransomware by the bad guys makes sense, says Peter Cassidy, spokesman for the Anti-Phishing Working Group -- because computer criminals are refining their programming methods, and getting more aggressive about taking people's money. "Instead of trying to fool people and getting one out of 1,000 to pay, what they're doing now is just locking up the PC and telling them they have to pay," he said. "It's a really violent approach, really nasty."
There might be one silver lining to the rise of ransomware, Cassidy said. "It's not in that gray area of selling people useless crap," he said. “It’s clearly criminal, and extortion does get the attention of law enforcement officials.” As is customary, computer criminals are fusing this new attack with successful, older methods, said John Harrison, a security researcher at Symantec Corp. In one recent example, criminals first engaged in search engine "poisoning," so their booby-trapped Web sites would rate high in Google searches about Haiti’s earthquake. Visitors who clicked were tricked into downloading the ransomware software; and then were confronted with extortion demands. "That's their distribution model," Harrison said. "They used to do it subtly, but now they are doing it much more brazenly."
In some versions, users will see a message that says, "Google recommends you install this," or "Microsoft recommends you turn this feature on- … then, they take over your computer and all of a sudden it looks like you have 900 viruses," he said. The latest flavor of ransomware, described on Jan. 8 by security firm F-Secure, doesn't disable all software, but it does something just as debilitating -- it encrypts all the files on a victim's computer, and forces them to pay for decryption. The program, which calls itself Data Doctor 2010, costs $89. In some cases, researchers say, paying the ransom does work, at least initially. Still, it's a terrible idea to pay. On a grand scale, you've just subsidized a criminal. But there are far more practical concerns -- why would you trust the author of ransomware with your credit card number? Perhaps you think you'd never do this, but remember, the FBI says rogueware writers have made $150 million, so someone is paying up. If an unexpected antivirus dialog box lands on your computer screen, close the window immediately by clicking on the 'x' in the upper-right hand corner. Don't use the "OK/Cancel" buttons in the window -- criminals often reprogram these. You may or may not be infected anyway -- it's possible you are already the victim of a "drive-by download" that doesn't require user interaction. So run an antivirus scan, if you can. If the rogue software has actually taken over your computer, physically disconnect it from the Internet to avoid having your personal information sent back to the criminal. Then go to a different computer to search for solutions. Type in the name of the rogue software and search for information on well-known antivirus Web sites. Many antivirus firms offer free cleaners you can download or place onto a USB memory stick, and run on your infected computer. But maintain healthy suspicion at all times. Ransomware authors have gone so far as to create fake software reviews about their products and place them around the Internet, even stealing logos from reputable technology publications, says Harrison.
"The idea is you search for information about the program and this turns up, and you figure it's ok so you install it," he said. "Some of this is soft sell, some is very hard sell." As always, it’s never a good idea to follow links in e-mails when heading to Web sites – it takes an extra moment, but always click into your browser’s address bar and manually type the address. (Red Tape Chronicles)
Random Thoughts . . . . I think part of a best friend’s job should be to immediately clear your computer history if you die. Also - Nothing sucks more than that moment during an argument when you realize you’re wrong. Was learning cursive really necessary? Bad decisions make good stories (Smith)
My Living Will . . . . . . Last night, my kids and I were sitting in the living room and I said to them, “I never want to live in a vegetative state, dependent on some machine and fluids from a bottle. If that ever happens, just pull the plug.” They got up, unplugged the computer, and threw out my wine. They’re such jerks! (Fournier)
Car Nut? . . . . . . . If you’re a car “nut” and have a love of old cars - here’s a web site for you. Go to: http://www.lov2xlr8.no/broch1.html - and see brochures of automobiles of the past. Can you find the brochure for your first car? (Kapson)
Do You Leave Your Computer Unattended? . . . . . . . . If you leave your laptop or desktop unattended and don’t wish people to see what you’re working on - or to mess with your computer, simply hit the WINKey (Windows Logo Key) + L key and it locks your computer. This preserves your session and brings up the log-in screen. To get back in - just log in with your password and you’re right where you were when you left. (Komando)
The Maid Asked For A Pay Increase . . . . . . . . The wife was very upset about this and decided to talk to her about the raise. She asked: “Now, why do you want a pay raise?” The Maid: “Well, there are three reasons why I want an increase. The first is that I iron better than you.” Wife: “Who said you iron better than me?” The Maid: “Your husband said so!” Wife: “Oh.” The Maid: “The second reason is that I am a better cook than you?” Wife: “Nonsense, who said you were a better cook than me?” The Maid: “Your husband did!” Wife: “Oh.” The Maid: “My third reason is that I am a better lover than you.” Wife: (really furious now) “Did my husband say that as well?” The Maid: “No Mam - the gardener did.” Wife, after a brief pause: “So how much do you want?” (Hall)
Kitchen Hints . . . . . . If your cast-iron pan gets rusty - Scour off the rust with a stiff nylon brush, hot water, and a little salt (a natural abrasive); if that doesn’t work, go with hot water and steel wool. After drying, lightly coat the pan inside and out, with vegetable oil and place atop foil upside down in the oven at 350°F for one hour to re-season. Allow to cool before using or storing. ALSO: Use paper plates between your nonstick cookware to keep them from scratching each other if you stack them. (Good Housekeeping)
A New TransUnion Study Shows Consumers Are Further Lowering . . . . . . . their priorities on mortgage payments – a sign that perhaps ever-higher rates of housing defaults may await the market. Consumers have traditionally put mortgages above credit cards, autos and unsecured lines of credit in their hierarchy of payments. But since 2008, TransUnion has noted a reverse trend that consumers are instead putting their credit-card payments ahead of staying current on mortgage obligations. “Although many industry analysts believed that a reversion to the conventional payment hierarchy would ensue once we had passed through the worst of the recession — that has not, in fact, been the case,” according to the TransUnion study. “To the contrary, this study found that the hierarchy reversal has become even more widespread.” In the first quarter of 2008, the percentage of those who were delinquent on the mortgage but current on credit cards was 4.3 percent. In the third-quarter of 2009 according to a TransUnion survey, that increased to 6.6 percent. For consumers on the reverse side — current on the mortgage, delinquent on credit cards — the numbers decreased from 4.1 percent to 3.6 percent. People in the lowest credit-score segment had the most pronounced differences. Those delinquent on mortgages and current on cards rose from 19.1 percent to 29 percent between 2007 and 2009; those late on card payments but on time with mortgages went from 18.1 percent down to 14.5 percent. "The implosion of the mortgage industry over the last 24 months, the resetting of adjustable-rate mortgages and the weak job market have all come together to redefine how consumers are managing their finances and meeting (or not meeting) their credit obligations," said Ezra Becker, director of consulting and strategy in TransUnion's financial services business unit. “The financial services industry must recognize and adjust to the payment hierarchy shift with judicious modifications to business models, new assessments of specific areas of risk, and by strategic revisions to acquisition and account management strategies." (US Banker)
Zits by Jerry Scott and Jim Borgman:
As of December - Who Owes The Most? . . . . . The American government may owe China $799 billion, but when it comes to foreign debt per capita, the U.S. is relatively prudent. Especially compared with, say Greece, where every man, woman, and child theoretically owes two and a half times as much as their American Counterparts:
Greeks: $27,746 - Belgians: $27,023 - Austrians: $26,502 - Irish: $24,247 - Norwegians: $21,402 - Italians: $21,089 - Dutch: $20,412 - French: $18,946 - Germans: $15,574 - Finns: $13,617 - Americans: $11,094 - Danes: $9,410 - Spaniards: $8,715 - Swedes: $7,058 - Brits: $6,526 - Hungarians: $5,802 - Japanese: $5,322 - Canadians: $5,213 - Israelis: $3,843 - Slovenes: $3,635. (Sources: International Monetary Fund, U.S. Census Bureau, World Bank)
What is Celibacy? . . . . . . . . Celibacy can be a choice in life, or a condition imposed by circumstances. While attending a Marriage Weekend, Walter and his wife, Ann, listened to the instructor declare, “It is essential that husbands and wives know the things that are important to each other...” He then addressed the men, “Can you name and describe your wife’s favorite flower?” Walter leaned over, touched Ann’s arm gently and whispered, “Gold Medal-All-Purpose, isn’t it?” And thus began Walter’s life of celibacy . . . . . . (Rasmussen)
The Mayonnaise Jar . . . . . . . When things in your life seem, almost too much to handle, when 24 hours in a day is not enough, remember the mayonnaise jar and 2 cups of coffee. A professor stood before his philosophy class and has some items in front of him. When the class began, wordlessly, he picked up a very large and empty mayonnaise jar and proceeded to fill it with golf balls. He asked the students, if the jar was full. They agreed that it was. The professor then picked up a box of pebbles and poured them into the jar. He shook the jar lightly. The pebbles rolled into the open areas between the golf balls. He then asked the students again if the jar was full. They agreed it was. The professor next picked up a box of sand and poured it into the jar. Of course, the sand filled up everything else. He asked once more if the jar was full. The students responded with a unanimous “yes”. The professor then produced two cups of coffee from under the table and poured the entire contents into the jar, effectively filling the empty space between the sand. The students laughed. “Now,” said the professor, as the laughter subsided, “I want you to recognize that this jar represents your life. The golf balls are the important things - family, children, health, friends and favorite passions - things that if everything else was lost and only they remained, your life would still be full. The pebbles are the other things that matter like your job, house, and car. The sand is everything else – the small stuff. “If you put the sand into the jar first,” he continued, there is not room for the pebbles or the golf balls. The same goes for life. If you spend all your time and energy on the small stuff, you will never have room for the things that are important to you. SO - Pay attention to the things that are critical to your happiness. Play with your children. Take time to get medical checkups. Take your partner out to dinner. There will always be time to clean the house and fix the disposal. “Take care of the golf balls first!” (Fournier)
Sincerely,
Edward C. Levy
President