[00:08.700 --> 00:13.500] Okay, this is going to be silly. We're about 10 people here, so... [00:13.500 --> 00:16.160] Come to me, my children. [00:19.240 --> 00:20.520] Or not. [00:25.320 --> 00:26.640] Yeah, it's cool. [00:30.500 --> 00:31.860] Three, five. [00:32.940 --> 00:35.720] One, two. Minus one. [00:38.080 --> 00:39.940] Okay, I'm not funny, okay? [00:42.140 --> 00:42.580] Um... [00:55.920 --> 00:56.800] Okay. [00:58.860 --> 01:02.360] I'll start by introducing myself, which is always a good thing. [01:02.360 --> 01:06.040] I guess. But before that, I need to ask, was anybody here [01:06.040 --> 01:08.640] at my previous lecture a couple of days ago? [01:10.000 --> 01:13.980] No. Cool, I can use the same jokes again. No, seriously. [01:13.980 --> 01:16.820] I don't have that many jokes. And they're usually bad. [01:20.780 --> 01:22.780] What you're going to hear about right now, [01:22.780 --> 01:25.980] I'm not really sure what lecture you came to, because... [01:25.980 --> 01:30.220] If you know what lecture you came to, because I was just inserted [01:30.220 --> 01:34.560] into the schedule. There are some scheduling problems. [01:36.080 --> 01:39.280] I'm going to lecture about the survivability of the internet. [01:40.380 --> 01:41.540] Woohoo, fun. [01:41.900 --> 01:44.360] And I'm going to make some bad jokes. [01:44.360 --> 01:47.420] And I'm going to speak about some serious issues. [01:48.240 --> 01:52.500] And since there are not that many people here, I'll allow myself to say [01:52.620 --> 01:53.720] a lot of shit and fuck. [01:55.100 --> 01:59.700] Now, my name. [02:01.860 --> 02:06.800] My name is Gadi Evron, and some of you may know me from the internet as an asshole. [02:07.980 --> 02:10.540] Others might know me as a nice guy, but not that many. [02:10.580 --> 02:14.520] I mean, there are not that many people here, okay? And that's basically it. [02:15.320 --> 02:18.140] What is DA? DA is a mailing list. [02:18.360 --> 02:22.180] What is MWP? MWP is also a mailing list. [02:24.760 --> 02:27.420] Now, we'll start with the boring stuff. [02:28.780 --> 02:31.040] Is there actually a threat [02:31.600 --> 02:34.940] to the survivability, big word, of the internet today? [02:35.720 --> 02:37.560] Now, I don't really expect you to answer me, [02:37.560 --> 02:42.440] 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12... [02:42.440 --> 02:46.000] There are not that many people, but seriously, [02:46.000 --> 02:49.760] does anybody here think there is a problem today with the internet? [02:52.280 --> 02:56.260] Cisco gate, okay, cool. Yes, I'll answer it. [02:56.260 --> 02:59.280] Yes, there is a problem. Is it called botnets? [03:00.720 --> 03:03.960] No. Well, kind of, but no. [03:03.960 --> 03:07.800] We'll get to that. Now, I'm jumping [03:07.800 --> 03:12.140] right in, skipping a few slides, [03:12.140 --> 03:16.360] and what I basically want to talk about, which I'm not going to, is botnets. [03:17.500 --> 03:20.440] But, essentially, when you look at the problems [03:20.440 --> 03:23.660] of the internet, and you see spyware, you see spam, you see viruses, [03:23.660 --> 03:27.000] you see all that shit going around. [03:27.780 --> 03:31.840] Why? I mean, seriously, people used to blame everything on hackers, [03:31.840 --> 03:36.420] or the bad guys, and that doesn't make any sense [03:36.420 --> 03:38.440] to me, really. [03:41.620 --> 03:43.220] Boring stuff is, [03:43.220 --> 03:46.980] for example, like in any social structure, that's my belief, [03:46.980 --> 03:50.920] there are many different kinds of people, duh, and it's not just [03:50.920 --> 03:54.140] the bad hacker, the bored employee going back home and [03:54.840 --> 03:59.400] doing whatever malicious stuff he wants to do, or she wants to do. [04:00.020 --> 04:03.880] There are the kiddies, there's the military, [04:03.880 --> 04:06.640] there are the criminals, everybody. [04:06.640 --> 04:10.600] Different people. But still, to sustain such a huge amount [04:10.600 --> 04:14.840] of bad stuff on the internet, somebody has to get something out of it. [04:14.960 --> 04:18.440] I mean, seriously, so much stuff just going out of boredom? [04:18.680 --> 04:21.760] I don't think so, and I'll try and prove that. [04:22.400 --> 04:27.120] Even though it's not really the point of the presentation. So where is the ROI? [04:27.120 --> 04:30.680] Where is the management talk? Return of investment. [04:31.000 --> 04:34.840] On investment, sorry. Like I said, [04:34.840 --> 04:38.940] social structure. Let's start with the kiddies. Are there any kiddies here? [04:39.700 --> 04:41.400] Ah, cool. Hey, kiddy. [04:42.540 --> 04:47.460] Kiddy front. Some of you may have read it a couple months ago [04:47.460 --> 04:51.000] on Suns maybe, or heard it from a guy called Dan Hubbard. [04:51.260 --> 04:54.860] Iframe dollars.biz. Now, generally, whenever [04:54.860 --> 04:59.500] I see a .biz domain, I start crying, or scratching, or whatever. [04:59.560 --> 05:03.180] Seriously, biz domains are bad. Nearly as bad as CX or WS [05:03.180 --> 05:07.100] or whatever else. Seriously, I just see .biz domain and I start crying. [05:08.240 --> 05:09.380] Iframe dollars.biz [05:10.840 --> 05:15.300] was a business, plain and simple. Some guy said, hey, let's make money [05:15.300 --> 05:19.720] off the internet. And you're coming up here, you do know that. [05:20.760 --> 05:24.320] Yeah. Dan fucking Kaminsky, people. [05:24.540 --> 05:25.980] Dan fucking Kaminsky. [05:27.920 --> 05:31.360] Now, oh shit, these are people that actually heard my lecture [05:31.360 --> 05:34.100] before. I can't use the same jokes again. [05:37.180 --> 05:39.300] Now, iframe dollars.biz basically [05:39.300 --> 05:42.940] said, okay, come into my website, take this code [05:43.620 --> 05:48.060] iframe, I think it was, and put it on your website. [05:49.000 --> 05:51.360] Now, for every first click, every user that goes into [05:51.360 --> 05:55.180] your website and installs our spyware, or whatever it was, [05:55.180 --> 05:59.740] you'll get money. You won't get a lot of money, you'll get 0.06 [05:59.740 --> 06:02.660] dollars. Now, they claimed [06:04.060 --> 06:07.700] you're eating. Bitch. Okay. [06:07.700 --> 06:13.840] They claimed, if I have one more bad pizza, [06:13.840 --> 06:15.180] I swear I'll puke. [06:17.280 --> 06:21.820] They basically said, look, take this code, put it on your webpage, [06:21.820 --> 06:25.930] whenever somebody comes inside, into your webpage, you'll get 0.06 [06:26.660 --> 06:29.820] dollars, which is cool. Now, [06:29.820 --> 06:32.880] they claimed to pay, the week before we saw them, [06:32.880 --> 06:37.860] $11,000 for that. Now, that [06:37.860 --> 06:41.300] amounts to about 220,000 clicks. [06:41.680 --> 06:44.960] Again, they claimed. Now, we actually found [06:45.820 --> 06:49.940] their statistics page, and yes, apparently they did pay [06:51.060 --> 06:53.460] 220,000 people did get [06:53.460 --> 06:57.800] firstly installed software on their computers, and they [06:57.800 --> 07:01.580] did pay $11,000 to people. Now, [07:01.580 --> 07:05.820] 11k is a lot of sum, but it's not that much money. [07:07.640 --> 07:09.840] Now, there is another guy, I would like [07:09.840 --> 07:14.260] to give you as an example, and I don't know how to pronounce his name, or nickname, [07:14.260 --> 07:17.700] or whatever we chose to call him. It could be Flowby, it could be Flowby, [07:17.700 --> 07:22.120] depending on where you're from. Now, this guy is a botnet controller. [07:22.420 --> 07:25.640] Just so we are clear, I'll explain in a couple of lines [07:25.640 --> 07:29.860] what I believe a botnet is, and if you think I'm wrong, tough. [07:31.540 --> 07:32.920] Trojan horses. [07:33.420 --> 07:37.720] We all know what Trojan horses are, I'll repeat anyway, and again, you can argue [07:37.720 --> 07:41.740] with me all you like, I don't care. Shut up, [07:41.740 --> 07:42.400] Dan. [07:45.160 --> 07:48.280] You can't speak if you're not drunk, that's it. [07:58.280 --> 08:00.020] Is that beer? [08:00.720 --> 08:05.620] No, it's not that. [08:06.480 --> 08:11.300] Okay, Flowby was a botnet controller, and again, Trojan horses, [08:11.300 --> 08:14.960] let's say it's some sort of software or hardware or whatever, [08:14.960 --> 08:19.500] some sort of thingy, that if a user knew what it would do, [08:19.500 --> 08:23.560] it would not be so pleased about it, let's put it that way, [08:23.560 --> 08:26.920] and it's usually a remotely controlled device or whatever [08:26.920 --> 08:30.460] installed on your machine. That was the worst [08:31.280 --> 08:34.760] explanation of what a Trojan horse ever gave, or heard, [08:34.760 --> 08:38.320] for that matter. Now, you can do whatever you like [08:38.320 --> 08:43.300] on a machine where a Trojan horse has been installed. You control that machine. [08:43.480 --> 08:47.540] Now, imagine if you had 10 such machines, where you installed Trojan horses. [08:47.920 --> 08:50.460] Imagine you had 100, and they were [08:50.460 --> 08:54.480] on broadband, of course. Imagine you had 200, [08:54.480 --> 08:58.540] 1,000, 10,000, 100,000, a million machines, [08:58.540 --> 09:00.360] all completely at your control. [09:01.880 --> 09:06.000] Well, you would have to control them somehow, and that's basically a botnet, [09:06.400 --> 09:10.260] because these drones, bots, whatever, [09:10.260 --> 09:14.360] will be reporting to a center point, which is the [09:14.360 --> 09:18.260] command and control server. Now, this guy owns [09:18.260 --> 09:22.320] many botnets, and on one of the [09:22.320 --> 09:25.700] botnets, we can't really prove that, we've seen it happening with many different cases, [09:25.700 --> 09:27.940] and it's just very easy for me to give you an example. [09:30.280 --> 09:33.780] On one of his botnets, which was 35k large, [09:33.780 --> 09:37.700] 35,000 bots large, [09:38.560 --> 09:41.840] he decided, hey, DDoS is not good enough for me. I don't want [09:41.840 --> 09:46.140] to spam, I don't want DDoS, there is a lot of downtime for my bots, [09:46.140 --> 09:49.220] and I want to use that downtime. So, basically, what he [09:49.700 --> 09:53.620] supposedly did is install a lot of spyware on every single machine. [09:53.620 --> 09:57.560] Now, a legal calculation of a page we believe he took the spyware from [09:57.560 --> 10:01.000] would mean that he gained about 8k a day [10:01.500 --> 10:06.020] from his small botnets. So, that's a kiddie front. 8k, 11k, [10:06.020 --> 10:09.700] whatever. Now, the big picture. [10:10.560 --> 10:13.500] We don't really know what the big picture is. [10:13.700 --> 10:17.020] Seriously. We do not see what's happening. [10:17.700 --> 10:21.460] And this is DEF CON, I don't need to explain it to you, because half the lectures here were about [10:21.460 --> 10:26.080] conspiracy theories and how the government is spying on us and all that. [10:27.000 --> 10:29.420] But we can see some of that. [10:29.840 --> 10:32.940] It's in plain sight, it's public. [10:33.740 --> 10:36.940] And between a lot of beers, you might actually notice it. [10:37.820 --> 10:40.540] I was just looking at you, I didn't mean anything by that. [10:40.640 --> 10:45.380] There's plain sight spying by government? Yes. Now, when you see [10:45.380 --> 10:49.220] phishing, which is in plain sight, he's a little bit drunk, [10:49.220 --> 10:52.640] or I'm just not very well understood, which is possible. [10:53.200 --> 10:54.180] Or likely. [10:56.100 --> 11:01.140] You're not implying governments are running legitimate botnets by putting spyware [11:01.140 --> 11:04.900] on people's machines? You're on to me. I work for the government, you know. [11:05.880 --> 11:09.040] Okay. Now, phishing, seriously, phishing gives us [11:09.260 --> 11:13.020] a very, very good picture of what's going on. Phishing is public, [11:13.020 --> 11:17.660] you get it in your inbox, you can go to the sites, you see what's going on, which is great. [11:17.660 --> 11:21.700] And we can actually see the amounts of money that goes into it, and I'll show you [11:21.700 --> 11:25.540] in a minute. And then there are a few minor [11:25.540 --> 11:29.920] details, such as, for example, the Trojan Horse industrial espionage case, [11:29.920 --> 11:33.760] where there were some private investigation companies and some [11:34.560 --> 11:38.380] very rich companies that wanted to spy on their competition. [11:39.420 --> 11:41.680] So basically, as far as I understand, [11:41.680 --> 11:45.800] they paid 17k UK pounds, or 13k [11:45.800 --> 11:50.520] UK pounds a month, per computer. Which is a lot of money. [11:50.580 --> 11:53.880] So there are things going on behind the scenes. Some of them we can actually [11:53.880 --> 11:57.760] prove because we hear about one or two every year. But let's actually look [11:57.760 --> 12:01.840] at what we can see day-to-day. The APWG, [12:01.840 --> 12:05.480] the Anti-Phishing Working Group, says they saw over [12:06.460 --> 12:10.540] 13k unique phishing emails in March 2005 alone. [12:10.540 --> 12:13.640] And thousands of phishing sites. Woohoo! [12:13.640 --> 12:17.640] Now, people usually say, and I'm going to be kind of... [12:18.400 --> 12:21.620] Okay, we all know this. These guys, they sent [12:21.620 --> 12:25.480] so many millions of spam messages out. And then just [12:25.480 --> 12:28.440] one person clicks on it and fills the details in. [12:29.400 --> 12:33.680] Well, one person clicking and filling in the details is a clear cut [12:33.680 --> 12:37.280] return on investment because email doesn't cost money. [12:37.580 --> 12:41.400] We all know that, but it's very important to reiterate [12:41.400 --> 12:45.300] that issue. Now, let's give some statistics. [12:45.440 --> 12:48.680] In Germany, for example, every phishing attempt [12:49.340 --> 12:53.540] 2,000 people fill in their details. Now, that [12:53.540 --> 12:56.960] number keeps rising. It's not just one stupid guy. [12:57.180 --> 13:01.420] There's a lot of stupid people out there. Now, of them, [13:01.420 --> 13:05.040] about six do not get their money back. And that's because the banks are very good [13:05.040 --> 13:09.420] at moving money around. Money is stolen, no problem. [13:09.420 --> 13:14.080] But six do not get their money back. Or rather, the banks have to cover it. [13:14.680 --> 13:17.160] Now, on average, that amounts to about [13:17.800 --> 13:21.400] 6K euro lost per person. [13:22.040 --> 13:25.680] 36K euro for every attack. Now, per year, [13:25.680 --> 13:30.100] that's 1.2 million euros. And that's just for one group. [13:30.100 --> 13:33.540] Each group's attacks are used to attack once every eight days. Now, they do [13:33.540 --> 13:37.320] it a lot more often. Quite a few groups out there. [13:37.320 --> 13:41.040] Can anybody see the ROI yet? The return on investment? [13:41.840 --> 13:45.240] There is a lot of money going into this. Now, the Russian mob, [13:45.240 --> 13:49.460] and I have to say this again, I always say it in my lectures, I have nothing against [13:49.460 --> 13:53.480] Russians. Seriously. I had a girlfriend who was [13:53.480 --> 13:57.720] Russian. But really, nothing against Russians. [13:58.360 --> 14:01.520] But most of this stuff, there are a lot of small operators [14:01.520 --> 14:05.140] out there in Eastern Europe, in Brazil, all around the world. [14:05.140 --> 14:10.220] But most of this stuff comes from the Russian mob. Clearly, from the Russian mob. [14:10.300 --> 14:13.860] I'll say it again. Hold on. [14:14.920 --> 14:17.160] Hold on. I'll answer [14:17.160 --> 14:20.660] every question, and if not, hey, I'm on tape. [14:22.100 --> 14:25.180] The Russian mob sees the return on investment. [14:25.860 --> 14:28.880] Okay? Cool. [14:29.140 --> 14:33.280] And they actually invest in the technological and operational [14:33.280 --> 14:37.340] capabilities over time. There are people sitting here who actually [14:37.340 --> 14:41.400] watch the binaries and the samples, and can tell you how they evolve over [14:41.400 --> 14:45.260] time. Now, many of these kitties just, like I said, [14:45.260 --> 14:48.540] it's social structure. It's not all the Russian mob. [14:49.120 --> 14:51.880] Many of these kitties just trade it like candies. [14:52.300 --> 14:57.340] And most of these trojan horses, or bots, or whatever, [14:57.340 --> 15:01.460] are just the same code, ripped from one another over and over [15:01.460 --> 15:05.460] and over again. But still, it's important [15:05.460 --> 15:09.960] to note that, and I'll give you an example. Here in the States, [15:10.500 --> 15:13.240] this just came out a few months ago, [15:13.240 --> 15:17.900] here in the States, there was a phishing attempt. It's a phishing attack, actually. [15:20.440 --> 15:21.560] And somebody's account [15:21.560 --> 15:26.300] got emptied in a branch of the bank on the West Coast. [15:27.780 --> 15:29.960] Now, a week later, [15:30.060 --> 15:33.640] a FedEx box came in, carrying a fake check, [15:33.640 --> 15:37.140] which is what actually got people to look into it, [15:37.140 --> 15:40.080] to refill their account so they can empty it again. [15:41.240 --> 15:45.780] Shut up! So basically, you'll get to lecture in a minute, [15:45.780 --> 15:49.340] so don't disturb. You're not allowed. [15:49.340 --> 15:50.340] You're not drunk. [15:57.050 --> 15:58.910] I'm very happy that you came. [16:03.380 --> 16:05.660] Now, I really am happy [16:05.660 --> 16:09.980] that you came. Basically, [16:09.980 --> 16:12.980] what that means, people, this is not cyberspace anymore. [16:13.600 --> 16:18.020] This is meatspace. This is happening right here, right now, [16:18.020 --> 16:20.660] with real people, and real money. [16:21.760 --> 16:23.980] That's critical to what I'm going to talk about. [16:25.080 --> 16:29.960] Now, in the UK, for the last example, the losses are also significant. [16:31.420 --> 16:34.320] 1.4... 1 to 4, I'm sorry, million pounds a month [16:34.320 --> 16:37.420] in losses, just at the beginning of this year. [16:37.660 --> 16:40.220] And it jumped by 1 million every month. [16:41.060 --> 16:45.540] December, January, February, March, it got to 4 million pounds lost. [16:45.540 --> 16:48.640] Now, don't take my word on these numbers. You won't find them anywhere. [16:48.760 --> 16:52.820] As far as you're concerned, I'm lying, because I'm not going to prove it to you. [16:52.820 --> 16:56.700] And anything I'm not going to prove, just believe I'm lying. But these numbers are true. [16:57.160 --> 17:01.260] Now, this is by... I'm lying. No, this is by phishing alone. [17:02.920 --> 17:05.040] There is a lot of money in this. I'm saying it again. [17:05.040 --> 17:07.500] I'm repeating myself, and there is a reason for that. [17:08.580 --> 17:11.260] In the US, the story is a bit different. [17:11.920 --> 17:17.080] One bank, they say they used to see about 200 victims per scam. [17:17.240 --> 17:19.280] Today they say they see about 5. [17:20.040 --> 17:24.600] But come on, people. Banks, at least in the United States, [17:24.600 --> 17:26.720] in the UK, they can't, as far as I know. [17:26.860 --> 17:31.040] They have a legitimate reason to actually try and underplay the problem. [17:32.140 --> 17:35.200] I mean, do you have any idea? I don't have any idea, by the way. [17:35.200 --> 17:39.800] Do you have any idea how much of all their business goes online? [17:41.500 --> 17:44.240] How much of any business today goes online? [17:45.120 --> 17:47.540] Depending on the bank, it could be 50-60%. [17:52.050 --> 17:52.850] Everything. [17:52.850 --> 17:53.910] Everything. [17:56.670 --> 18:00.390] Again, I don't have hard numbers, and it changes drastically from bank to bank. [18:00.390 --> 18:01.950] I don't want to talk about it. [18:05.030 --> 18:15.340] What? I really want to answer that. I honestly don't have time. [18:15.940 --> 18:19.800] I know I'm kind of weeny for saying that, but I honestly don't have time. [18:19.920 --> 18:20.660] Sorry. [18:21.820 --> 18:26.880] Other banks are actually reporting losses of around $10-20 million. [18:26.880 --> 18:31.000] Again, don't take my word for it. The Germany numbers, I can sign on. [18:31.880 --> 18:33.800] And they're not anywhere you can find. [18:34.460 --> 18:38.500] Now, the problem is not botnets. Again, I didn't really want to make this a botnet lecture, [18:38.500 --> 18:41.780] although I can't speak about botnets for hours on end. [18:42.560 --> 18:45.940] Botnets is a very serious symptom. [18:47.220 --> 18:49.440] A very, very serious symptom. It's a problem. [18:49.440 --> 18:53.340] Actually, I keep using the same jokes. You were in my last lecture, you bitch. [18:53.340 --> 18:56.280] Why were you in my last lecture? I can't reuse jokes. [18:57.800 --> 18:59.640] You were hoping it would be funnier. [19:03.200 --> 19:04.980] I know where you live. [19:06.500 --> 19:10.380] Okay, I don't. I can find out. [19:13.320 --> 19:14.200] Dan? [19:18.440 --> 19:20.620] The Mossad! The Mossad! [19:22.720 --> 19:24.840] I was just at Cisco the other day, [19:24.840 --> 19:28.120] and they gave, like, name tags that stick on your shirt. [19:28.560 --> 19:32.920] Now, I don't know who told them and what the fuck they thought they were doing, [19:32.920 --> 19:36.200] but I don't work in Israeli government security. [19:36.220 --> 19:41.040] But I said, Israeli government security. I immediately photocopied it. [19:42.080 --> 19:45.220] Asked for another one. Put it in my pocket. [19:45.220 --> 19:48.680] That's so great. I'm for the Mossad. Watch out. [19:48.680 --> 19:50.200] I'll send people after you. [19:50.720 --> 19:56.360] Okay, I don't have time. The problem is not botnets. [19:56.360 --> 20:01.580] Botnets are a very serious symptom. What I'm trying to say is botnets are a serious problem. [20:01.580 --> 20:04.800] I can tell you that from our limited view, [20:04.800 --> 20:07.860] and we see quite a bit, but again, we don't see everything. [20:09.180 --> 20:12.240] We have 4,000... [20:14.040 --> 20:16.520] 4K botnets out there. [20:16.520 --> 20:18.100] Since the beginning of this year. [20:18.280 --> 20:21.360] And that's just a little bit. [20:21.820 --> 20:24.860] I mean, people keep looking at the bot itself. [20:27.380 --> 20:31.240] And they keep asking me, how many bots are out there? [20:32.260 --> 20:34.180] And you know what? I don't give a shit. [20:34.180 --> 20:36.440] Seriously, I don't care how many bots are out there. [20:36.580 --> 20:41.960] Some people might have to care, but I don't, and I'll explain why in a few minutes. [20:43.140 --> 20:47.080] Now, okay, I'll explain why now, actually. [20:47.240 --> 20:48.660] And waste some time. [20:52.880 --> 20:56.220] Why... you people who live in the United States, or most of you do, [20:56.560 --> 21:00.680] you know about this thingy of asking, [21:00.680 --> 21:04.940] why be able to destroy the world a thousand times over when once is more than enough? [21:05.360 --> 21:08.100] Right? Well, botnets on the internet are [21:08.100 --> 21:12.360] strategic warfare. They are nuclear weapons. [21:12.360 --> 21:16.380] And the amounts and numbers out there [21:16.380 --> 21:20.360] are unbelievable. And I can tell you that we've actually seen [21:22.520 --> 21:23.840] a 350k botnet. [21:24.760 --> 21:27.940] And it wasn't the only one. It's just the best example I have. [21:28.280 --> 21:32.400] A few months ago. Now, when you have [21:33.220 --> 21:36.200] that big of a botnet at your control, [21:36.200 --> 21:38.380] you can do pretty much anything on the internet. [21:40.100 --> 21:42.940] Now, I'll continue with that in a minute, [21:42.940 --> 21:46.380] but really, looking at the botnet as a problem, a botnet itself, [21:46.920 --> 21:50.940] the network, install some bots separately, [21:50.940 --> 21:54.520] is what I'm talking about. Now, the philosophy of the problem, [21:54.520 --> 21:58.020] why I'm looking at botnets as a symptom... okay, I can't say problem, seriously. [21:58.020 --> 22:01.560] This is a joke I must reuse. I'm sorry. It's not really a joke. [22:01.760 --> 22:05.380] I was sitting with a guy from Adobe, or my boss was, I don't really remember. [22:05.380 --> 22:09.760] I reuse jokes all the time. And the guy would refuse for two hours [22:09.760 --> 22:13.660] to say the word problem. He would say challenges. [22:13.880 --> 22:17.240] For two whole hours, I just heard, or he heard, [22:17.240 --> 22:21.640] challenges, challenges. And now they changed it. You're supposed to say [22:21.640 --> 22:25.660] opportunity, opportunity. Anyway, so there are several challenges. [22:26.360 --> 22:27.780] Let me get to the point. [22:29.280 --> 22:33.620] If I'm saying botnets are strategic warfare on the internet, [22:33.620 --> 22:35.940] I mean, everybody knows what DDoS is. [22:38.960 --> 22:41.000] Why say they're just a symptom? [22:41.880 --> 22:45.220] Let's start a bit about our philosophy of the problem. [22:45.660 --> 22:48.620] The internet. Photon monoculture. [22:49.620 --> 22:53.060] We all, I mean, whether we like it or not, most of us use Windows. [22:53.060 --> 22:57.100] And I'm not talking about the home computer. At work, most of us use Windows. [22:57.200 --> 23:01.520] Everywhere, it's Windows. And that makes us extremely susceptible [23:01.520 --> 23:02.900] to attacks. [23:04.780 --> 23:09.820] And I don't have time to talk about that anymore, but just think about it. I'll waste some time later. [23:12.000 --> 23:13.080] Now, [23:13.080 --> 23:16.920] one bug, or one patch, can bring us down. [23:17.640 --> 23:21.820] Repeating past mistakes. When we left the [23:21.820 --> 23:25.520] world of the mainframes, [23:26.120 --> 23:30.060] OS development somehow sinked down to a new level. [23:30.060 --> 23:33.440] And just now we are starting to reach the level of where we were [23:34.060 --> 23:37.380] with the mainframe in OS development. [23:37.800 --> 23:42.820] And I can actually see it as a pattern of things actually repeating themselves non-stop. [23:43.840 --> 23:46.060] The PC wasn't the end of it. [23:46.060 --> 23:49.700] For example, cell phones. Everything is in default. [23:50.140 --> 23:54.140] You can't disable anything. Everything is in automatic. Java, browsers, [23:54.140 --> 23:57.980] whatever. Unbelievable. We keep repeating the same mistakes [23:57.980 --> 24:02.320] over and over again. And that brings me to Killing Fires. [24:03.620 --> 24:05.900] And before I reach Killing Fires, I would like to discuss [24:05.900 --> 24:10.280] the problems of the internet. We'll get to KC and who she is [24:10.280 --> 24:13.960] in a minute, but everybody keeps saying at the end of the year [24:13.960 --> 24:17.960] companies like Symantec, they do a great job, but they come out and say something like [24:18.440 --> 24:22.200] look, these are the problems that we are going to face in the year of 2005. [24:23.200 --> 24:26.080] Okay, great. How do you know that? [24:26.080 --> 24:29.700] Well, we have looked at our past agendas and logs and histories [24:29.700 --> 24:33.020] and we can tell you what we believe the issues are going to be. [24:33.700 --> 24:36.280] Okay, so basically F of that is what happened last year. [24:37.220 --> 24:40.460] Almost another F is what you believe is going to happen, therefore you're [24:41.440 --> 24:46.020] self-prophesying or whatever you call it, that it will happen and some of it will happen. [24:46.020 --> 24:49.680] And some of this stuff will actually surprise you, because you can't know [24:49.680 --> 24:52.500] what everything that's going to surprise you is going to be. [24:52.500 --> 24:56.500] And I'm saying something different. The problems are out there [24:56.500 --> 25:01.060] and we know about them for many years now. Many years. [25:01.520 --> 25:05.080] Let's take for example spam. Are you interested in my talk at all? [25:05.080 --> 25:08.540] I am. You are? I believe you. [25:08.540 --> 25:11.560] Okay, David fucking Kaminski everybody. [25:13.380 --> 25:16.200] Not drunk for the first time on video. [25:19.320 --> 25:19.820] Now... [25:23.080 --> 25:23.960] Yeah. [25:24.780 --> 25:27.200] I'm trying to remember what the fuck I was talking about. [25:27.300 --> 25:30.400] Predictions. Thank you, bitch. [25:33.100 --> 25:34.600] I love this guy. [25:35.940 --> 25:39.660] But he gave me such hell when I asked him to come and help me in my lecture. [25:41.040 --> 25:43.160] Yeah, but I don't need you now. [25:44.320 --> 25:46.580] Yeah, I'm going to talk now. [25:52.270 --> 25:54.490] Yeah, I'll tell you about the superbugs in a minute. [25:56.130 --> 25:57.830] I'm still wasting time. [26:00.570 --> 26:02.490] What was I talking about? No, seriously. [26:03.110 --> 26:07.950] Predictions. So basically, the problems have been around for many, many years now. [26:07.950 --> 26:11.310] Let's take spam as an example. Yes, tell them we love them. [26:12.390 --> 26:15.210] I want that phone later on. It's mine now. [26:16.290 --> 26:19.470] The problems of the internet have been around for many years now. Let's take spam. [26:19.470 --> 26:23.610] I'm going to completely ruin the history of spam. In the last lecture I met, there was a guy [26:23.610 --> 26:26.910] from SpamHouse here and he wanted to kill me, but it's cool. [26:28.330 --> 26:31.490] First, we didn't really care about spam. Seriously. [26:32.350 --> 26:35.630] It's just some emails you get eventually, here and there, [26:35.630 --> 26:39.130] once a day, and you found a good solution for it too. [26:39.230 --> 26:43.770] JHD. Just hit delete. And it worked. And then it got a little bit more annoying [26:43.770 --> 26:47.750] as somebody started working on it, but nobody really cared. Nobody wanted to put the money [26:47.750 --> 26:51.250] into it to get rid of the business, or at least try to. [26:51.570 --> 26:55.850] And then it got to be a problem. Then everybody started caring about it. [26:57.750 --> 26:59.830] And then I started finding solutions. [27:00.590 --> 27:03.800] And like any human society, anywhere, [27:04.330 --> 27:07.710] they said, I have to be elected into office. I mean, this is not really it, [27:07.710 --> 27:11.070] but seriously, long-term solutions are not part of the business here. [27:11.230 --> 27:15.950] It's part of our culture. We have to kill this fire called spam right now. [27:17.430 --> 27:19.830] So we will invest some money, [27:19.830 --> 27:22.930] and come up with a solution that will kill the fire right now. [27:23.110 --> 27:26.790] That solution was, for example, Bayesian filters, [27:26.790 --> 27:31.630] or F-ass Bayesian filters. And if we see, for example, [27:31.630 --> 27:35.890] Viagra in one instead of an I, [27:35.890 --> 27:39.850] all these evasion techniques that bad guys came up with, that's cool. [27:40.130 --> 27:43.330] I mean, seriously, use some F-ass Bayesian filters [27:43.330 --> 27:46.310] that bad guys learned and started using one instead of I. [27:46.910 --> 27:51.290] Then I started using mail relays. Again, it could have been the other way, [27:51.290 --> 27:55.730] but I don't really care right now. And we started using blacklists, like maps. [27:57.070 --> 27:58.890] And then I started using zombies, [27:58.890 --> 28:03.170] and they can email from all over the world. Anytime we actually kill the fire [28:03.170 --> 28:07.390] right now, get rid of this problem right now, what we actually accomplished [28:07.390 --> 28:11.050] was, hey, we are teaching the bad guys. [28:11.050 --> 28:15.130] We are educating them. We are throwing them into [28:15.130 --> 28:18.930] an evolutionary route that we are not choosing. We are making things worse. [28:19.310 --> 28:22.890] And I can tell you it's the same with botnets. It's the same everywhere, and that's what [28:22.890 --> 28:27.130] brings me to the superbugs theory. Now, superbugs is not a new [28:27.130 --> 28:30.390] theory. I mean, doctors really liked antibiotics. [28:31.350 --> 28:35.670] You had a flu? The flu, they gave you antibiotics. You had a cold? [28:36.050 --> 28:39.150] They gave you antibiotics. And what they actually [28:39.150 --> 28:40.570] did was create some sort of [28:46.870 --> 28:47.270] stronger [28:47.270 --> 28:50.630] bugs that could resist antibiotics. [28:51.110 --> 28:55.150] And they kept doing it. And that brings me back [28:55.150 --> 28:59.010] to monoculture. Everything is windows. And we keep just [28:59.010 --> 29:03.370] ignoring the problems that are out there for years, and I can give you a list of problems [29:03.370 --> 29:07.010] and I'll get to that in a second. And I've been out there and it's getting worse. [29:07.010 --> 29:10.990] And eventually they get so bad that we have to kill them right now. And every time we do something like that, [29:10.990 --> 29:15.170] no matter if it's terrorism, no matter if it's botnets, no matter if it's spam, [29:15.170 --> 29:18.990] we just kill the problem right now. I'm repeating myself, I know, but it's important [29:18.990 --> 29:22.270] to me. And make it worse. Educate the bad guy. [29:23.650 --> 29:27.430] So the superbugs theory is where I wanted to get to. [29:27.770 --> 29:30.010] And that's why botnets are not really the problem now. [29:30.910 --> 29:34.890] Who is the enemy? I keep speaking of [29:34.890 --> 29:39.810] there are bad guys out there. FUD, I'm not giving any facts. [29:40.030 --> 29:43.350] Well, it used to be a rival or an opponent [29:43.350 --> 29:46.970] really, not really an enemy. Because, I'll give you an example [29:46.970 --> 29:51.030] from the dynamic DNS providers. Dynamic DNS providers [29:51.030 --> 29:55.150] are really, really good for the bad guys. They can run [29:55.150 --> 29:59.090] botnets using DNS really easily. They tell all the bad [29:59.090 --> 30:02.910] bots, connect that address. Then when somebody [30:02.910 --> 30:07.150] kills the server, because that's how you deal with the botnet, you kill the command and control server [30:07.150 --> 30:10.970] which is bad, because then the bad guy just moves up to another server [30:10.970 --> 30:15.110] and starts investigating and educating themselves and getting to be better at it. [30:15.110 --> 30:18.390] Again, superbugs. But basically, when [30:19.050 --> 30:22.990] dynamic DNS providers are perfect for them. They go online, they open a new [30:22.990 --> 30:25.410] account, they get some free DNS [30:27.030 --> 30:30.190] free domains, free whatever, and [30:30.190 --> 30:34.270] just point the botnet over there. That's [30:34.270 --> 30:37.270] basically how it works. The dynamic DNS providers [30:39.090 --> 30:42.230] really suffer. Because imagine [30:42.230 --> 30:45.590] 100,000 bots, and bots are not very nice [30:45.590 --> 30:49.670] internet users [30:50.590 --> 30:54.230] losers. They just keep asking the same question. How do I [30:54.230 --> 30:56.950] connect over there? Where is that A record? [30:57.850 --> 31:01.270] And they really weigh down on the dynamic DNS providers. [31:01.530 --> 31:04.950] The dynamic DNS provider says, okay, this is the botnet, it's in breach of my [31:04.950 --> 31:08.890] acceptable use policy. I will map this botnet [31:08.890 --> 31:12.490] address to 1918 addresses, localhost, whatever. [31:12.970 --> 31:17.370] And that's acceptable to the bad guy, because it says, hey, I abused the service, but I need it again. [31:17.390 --> 31:20.930] They found me out, I'll just use it again, [31:20.930 --> 31:24.830] re-register. Now what if the dynamic DNS provider says, I'm sick of it. [31:24.830 --> 31:29.650] I mean, so far they've been contesting for the same resources, they live in the same realm, [31:29.650 --> 31:33.370] but don't really come to combat, open combat. [31:33.430 --> 31:37.490] But what if the dynamic DNS provider says, I'll sinkhole the botnet. [31:37.630 --> 31:40.910] I'll kill the botnet, I'll take the botnet away from the bad guy. [31:41.070 --> 31:44.510] The bad guy gets pissed. And then it's open warfare. [31:44.910 --> 31:48.810] You will DDoS the dynamic DNS provider to hell, and that makes it an enemy. [31:49.490 --> 31:52.830] And why I wanted to stick to this point for a minute, which is not really [31:52.830 --> 31:56.390] related to the lecture, is because this is an enemy to the infrastructure. [31:56.390 --> 32:00.450] And when I try to think about who the hell owns the internet, [32:00.450 --> 32:04.470] and I'm not talking about owning the internet as in who runs the internet, [32:04.470 --> 32:09.510] but who are the stakeholders? Seriously, who cares if the infrastructure survives? [32:10.210 --> 32:13.770] And I try a lot, and I can't really find the people yet, [32:13.770 --> 32:16.510] but the infrastructure [32:16.510 --> 32:20.970] is at a serious risk. I don't care if somebody is a black hat, if somebody is a white hat, [32:20.970 --> 32:24.990] if somebody is a grey hat. Whatever you do at home, whatever you [32:24.990 --> 32:28.930] have fun with, that's cool. But when you go out and [32:28.930 --> 32:33.010] take money from Granny Jane, or when you go out [32:33.010 --> 32:37.330] and try to DDoS the internet to hell, you're not a nice netizen, [32:37.330 --> 32:41.370] and over more, you're pretty much, you're not a black hat, you're an idiot. [32:42.570 --> 32:44.430] And your idiocy is pretty much [32:44.900 --> 32:48.970] what's going to cause the internet to go to hell. And that's FUD. [32:48.970 --> 32:53.090] That's fear, uncertainty, and doubt. And I didn't want to say that [32:53.090 --> 32:54.710] until I could give you some facts. [32:57.030 --> 32:59.190] What do we do about it today? [33:06.330 --> 33:09.530] It could be tens of thousands of dollars a week, it could be millions, [33:09.530 --> 33:10.770] it depends on who you are. [33:18.980 --> 33:22.900] The question was, why are you relying on DynDNS for something that is critical to your [33:22.900 --> 33:26.900] infrastructure when you make millions? You don't rely only on DynDNS, [33:26.900 --> 33:30.060] but I don't have time to cover it right now, but just think about [33:30.840 --> 33:35.600] why do botnets use IRC? Seriously, why use IRC? [33:35.680 --> 33:37.160] It's perfect for them. [33:38.060 --> 33:41.420] I mean, I don't have time to cover it because this is not a botnet lecture right now, [33:41.420 --> 33:45.540] but something does not have to be extremely complicated to be good. [33:47.810 --> 33:50.710] Although, damn, fucking Kaminsky is not drunk to answer that. [33:52.130 --> 33:54.010] Ignore everything I just said, please. [33:54.010 --> 33:58.030] There needs to be legitimate services that are using [33:58.030 --> 34:02.090] that particular host that it would be a problem if you just killed [34:02.090 --> 34:05.790] it entirely. If you go ahead and you put a colo somewhere and it's the [34:05.790 --> 34:10.030] CNC and it's the DNS and so on, pull the plug on it and you've just [34:10.030 --> 34:14.150] killed illegitimate services. The idea is to mix the illegitimate [34:14.150 --> 34:18.070] botnet with the legitimate dynamic DNS and that's why they do it. [34:18.330 --> 34:21.910] Amen to that. Next issue. And thank you to Dan Kaminsky. [34:21.910 --> 34:24.610] He's not drunk. I'm sorry, Dan fucking Kaminsky. [34:25.330 --> 34:32.760] He calls me God, he fucking Ron. Come on. Hold on, we'll get to that. [34:34.500 --> 34:36.300] Now, what [34:36.300 --> 34:38.100] do we actually do about it today? [34:39.700 --> 34:45.240] First of all, there are vendors. Anti-virus vendors, anti-spam vendors, [34:45.240 --> 34:47.980] let's even say ISPs. Vendors. [34:47.980 --> 34:51.680] A lot of vendors who try to give you solutions. Then there are more vendors [34:51.680 --> 34:55.780] who try to sell you stuff. Some of them do good shit. Seriously, [34:55.780 --> 34:59.700] there are companies such as Message Labs, Maps, Spam House. Companies [34:59.700 --> 35:03.200] that really do good for the internet. They're still vendors. [35:03.780 --> 35:07.880] And they look at their small way of making money and if they can do good with it, [35:07.880 --> 35:11.780] that's cool. Then we have research funds. Research in general [35:11.780 --> 35:15.820] such as the NSF, Army, Navy, DARPA, whatever. [35:16.700 --> 35:20.100] Then there is symptom-based response. For example, [35:20.100 --> 35:23.580] hand-spam. The FTC recently came up with [35:24.100 --> 35:28.500] something that they claim will report to every ISP. [35:28.980 --> 35:32.240] It will report to ISP the bots. Again, the bots are not the problem [35:32.240 --> 35:36.140] as far as I'm concerned. And any infected machine will have 10 more [35:36.140 --> 35:40.500] bots on it, at least. The botnets are the problem. [35:40.500 --> 35:44.140] But say they will report the bots. So what they [35:44.140 --> 35:47.720] do is look at emails, spam emails, and find the zombies [35:47.720 --> 35:51.360] that send them. Now, out of all the numbers [35:51.360 --> 35:55.320] of all the drones and bots out there, how many of them send spam? [35:56.360 --> 35:59.140] A lot, but not quite that many from the whole [35:59.700 --> 36:03.180] of the entire botnet population. [36:03.760 --> 36:07.760] Now here I have to discuss the botnet population. How many bots are actually out there? [36:08.160 --> 36:11.960] Because that's what people keep asking me. So I'll make this quick. [36:11.960 --> 36:15.800] I don't really give a shit. As I said, if you can destroy the world a thousand [36:15.800 --> 36:20.280] times over, why the hell would you care if you can do it just once? [36:21.080 --> 36:23.920] And that's what botnets are. But if I have to answer [36:23.920 --> 36:27.480] the question, I'll discuss research that has been happening [36:27.480 --> 36:30.240] unrelated for quite some time now. [36:31.540 --> 36:35.480] How often, or how soon, when you start scanning the internet [36:35.480 --> 36:38.900] when you put the machine on the internet, will it get scanned? [36:39.440 --> 36:43.920] A few years ago, to put the machine on the internet, it got scanned 36 hours [36:43.920 --> 36:47.960] after that. A couple of years ago, I checked, and depending [36:47.960 --> 36:51.780] on the ISP I checked on, I got scanned once every two seconds [36:51.780 --> 36:55.840] to once every 20 minutes. Kevin Mitnick, I believe, [36:55.840 --> 37:00.560] made some check and got around the same conclusions. On the site in SANS, [37:00.560 --> 37:03.460] internet survivability time is about 20 minutes or something like that. It keeps [37:03.460 --> 37:07.860] coming up and down. So basically, say it's not every two seconds [37:07.860 --> 37:11.820] like in my house. Say you actually get scanned for [37:11.820 --> 37:15.760] the easy vulnerabilities automatically by viruses, worms, [37:15.760 --> 37:20.040] whatever you want to call them right now, hacking tools, every 20 minutes [37:20.040 --> 37:23.740] once. Now, on broadband [37:25.800 --> 37:28.700] providers, out of all their clients, [37:28.700 --> 37:31.720] how many would be easily exploitable? [37:33.000 --> 37:35.940] Now, when you get to the potential population of that, [37:36.540 --> 37:39.820] and how many bots you can get installed on one machine, [37:41.000 --> 37:43.820] because basically I count the bots as how many [37:43.820 --> 37:47.860] samples are installed or working on each machine per IP address [37:47.860 --> 37:51.040] per machine, you get a huge number. [37:52.740 --> 37:55.740] Now, if you wanted to count it [37:55.740 --> 38:00.300] in another way, say you sync all the botnets, and that's not my research, that's somebody else's. [38:00.400 --> 38:03.900] Say you found botnets and you followed them, and you checked and saw [38:03.900 --> 38:07.800] that several botnets have the same IP addresses coming back [38:07.800 --> 38:11.520] again, there are time of day issues, DHCP issues, [38:11.520 --> 38:15.640] sometimes you see a Linux machine and then it's a Windows machine, but [38:15.640 --> 38:19.600] you actually see IP addresses returning. [38:19.880 --> 38:23.780] If you take that cut between the different groups, [38:23.780 --> 38:27.900] you may try and get to the point where you see the entire omega. [38:27.900 --> 38:30.700] This is David Duggan's research at Georgia Tech. [38:32.500 --> 38:35.880] He says, by the limited research [38:35.880 --> 38:38.560] he has done, he has seen about 20 million bots. [38:40.020 --> 38:43.880] That's nothing. If I had to give a number or just [38:43.880 --> 38:47.920] say 40 million, but that's nothing, people. Seriously. [38:48.080 --> 38:51.660] And why would I care about the number? [38:53.680 --> 38:55.960] Now, sorry, I had to give [38:56.220 --> 39:00.000] a terrible response to this if I didn't explain myself [39:00.000 --> 39:02.000] correctly, because it's critical. [39:02.560 --> 39:05.900] Now, another issue, and symptom-based response [39:05.900 --> 39:09.540] for the FTC came up with this issue and said, we'll report bots to the [39:09.540 --> 39:13.280] ISPs, not botnets bots, and they're reporting spam bots. [39:13.280 --> 39:17.320] They're reporting a symptom of the symptom, which is the zombies that send out spam. [39:18.200 --> 39:21.880] Great. A for effort, that's about it. I'm glad they're [39:21.880 --> 39:25.880] doing it, but it's nothing. Shoot the customer. [39:26.300 --> 39:29.100] I really like that. I want to shoot the customer, seriously. [39:29.100 --> 39:33.020] Blocking port 25 is one of the best things out there that can be done [39:33.020 --> 39:36.060] to stop spam. I hope Larry [39:37.040 --> 39:41.020] from Spamels will be here again to explain that, but basically [39:42.020 --> 39:45.260] lots of end-to-end, blocking port 25, [39:45.260 --> 39:49.160] blocking all these ports, no matter why now, if it's a good or bad [39:49.160 --> 39:51.280] idea, you're shooting the customer. [39:52.700 --> 39:56.960] That's how ISPs are dealing with it. I'm not saying it's bad, I'm not saying it's good. I actually like it. [39:56.960 --> 40:01.100] But it's shooting the customer. That's how we deal with it currently. [40:02.200 --> 40:04.760] Now to business. Why DA? And as we said, [40:04.760 --> 40:08.860] DA is a mailing list. Well, it gives community [40:08.860 --> 40:13.040] and industry involvement, basically. I'll discuss what it is exactly as I go. [40:13.860 --> 40:18.100] You see the anti-virus industry, academia, [40:18.100 --> 40:21.540] dynamic DNS providers, law enforcement, ISPs. [40:22.100 --> 40:25.040] There are other groups out there that work on the problem, [40:25.040 --> 40:29.220] and I'll discuss them in a minute, but none of them have the scope. [40:29.600 --> 40:33.600] I'll continue in a second. Long-term study and research. [40:33.760 --> 40:36.680] Killing viruses is bad. Guacamole [40:36.680 --> 40:41.200] was bad. Today when you actually kill a button, it not just jumps [40:41.200 --> 40:45.100] to the next IP address, the next compromised host, [40:45.100 --> 40:48.920] they actually learn from it, they become better at what they do. It's bad for us. [40:48.960 --> 40:53.220] Long-term research and study is critical. R&D, ways and [40:53.220 --> 40:56.740] means. Finding new solutions. Following technological [40:56.740 --> 41:01.300] operational evolution by the other side. Doing all [41:01.300 --> 41:05.180] that and still maintaining the vetting. And vetting does not mean secret [41:05.180 --> 41:09.000] entry club where nobody can enter. Hey, I'm lecturing in DEF CON for [41:09.000 --> 41:13.280] very few people, but still, lecture in DEF CON. The point is getting as many [41:13.280 --> 41:16.960] people involved as possible who care about the infrastructure and actually [41:16.960 --> 41:21.100] having the internet around. Now, this is not [41:21.100 --> 41:25.700] easy, but it's critical. Now, what does that mean? [41:26.040 --> 41:29.760] What can we do that a closed group of ISPs can't? [41:29.900 --> 41:33.180] Or a closed group of antivirus gods can't? Antiviruses care about [41:33.180 --> 41:37.440] signatures, libraries, which is great, that's their business plan, [41:37.440 --> 41:41.240] model, whatever. ISPs care to get their networks back online [41:41.240 --> 41:45.420] without problems, maintaining their networks. So they kill botnets. [41:45.700 --> 41:48.740] What do we do? First of all, we can do traceback. [41:49.240 --> 41:52.640] Tracking down the botnet, authors, controllers, whatever. [41:53.000 --> 41:55.680] Creating an intelligence database on who they are. [41:56.880 --> 42:01.080] Actionable intelligence, law enforcement cooperation. Get the intelligence, [42:01.080 --> 42:05.180] give it to law enforcement. Law enforcement does not care. What do I mean by that? [42:05.180 --> 42:09.080] I don't give a shit. And not because they're bad people. [42:09.940 --> 42:12.740] Actually, it's the opposite. Law enforcement cares. [42:13.220 --> 42:16.920] They can't do squat. We see a [42:16.920 --> 42:20.700] very large increase in their caring in the recent year, [42:20.700 --> 42:25.100] especially. They want to do good, but they care a lot more [42:25.100 --> 42:28.700] about the murderers out there, as they should. [42:28.800 --> 42:32.780] They do not have the resources to invest in this. [42:33.380 --> 42:36.920] Plain and simple. And it's not [42:36.920 --> 42:40.660] really their fault, it's policy. Policy from upstairs [42:40.660 --> 42:44.500] that dictates this. And I can tell you we have somebody [42:44.500 --> 42:49.400] who actually knows from his hard work who the bagel author is. [42:49.960 --> 42:52.900] And he gave them information, he gave them pictures of the guy. [42:54.080 --> 42:56.960] And they didn't do squat. Shit. [42:56.960 --> 42:57.720] Nothing. [43:00.480 --> 43:04.540] Again, I love the guys in law enforcement, and they're trying, but they can't because [43:04.540 --> 43:08.300] their hands are tied. So we can't count on them. [43:08.700 --> 43:12.620] Sorry, but that's the way it is. Now, reverse engineering, [43:12.620 --> 43:15.800] working actually on the samples rather than just the networks, [43:15.800 --> 43:20.640] IDSs, flows, whatever, shows us where they are technologically, what they can do. [43:21.320 --> 43:24.920] We can find the botnets better, we can see what they're doing, it's cool. [43:26.000 --> 43:28.540] Financial trace back. If you work with law enforcement [43:28.540 --> 43:32.740] or the financial industry, you see phishing, you can actually trace back [43:32.740 --> 43:36.680] from all ways. Not just on the network, not just [43:36.680 --> 43:40.080] on the sample level, financial trace back. See where the money is going. [43:40.080 --> 43:44.420] Which is basically the only thing the Fed knew how to do with phishing until very recently. [43:45.560 --> 43:47.720] Cooperation. That's the critical part, and that's [43:47.720 --> 43:51.940] where I was going with this lecture, basically. Working together [43:51.940 --> 43:55.520] to see the big picture, because everybody is an expert. [43:57.480 --> 44:00.060] But nobody, except if you work together, can see the [44:00.060 --> 44:04.020] macro level image. I mean, seriously, we'll talk about Casey in a minute, [44:04.020 --> 44:07.920] but she says, for example, the research community is looking for ideas [44:07.920 --> 44:12.820] on what to research. The industry needs solutions, and nobody is talking to one another. [44:14.340 --> 44:15.960] Now, DA and DA [44:15.960 --> 44:19.660] related projects, again, DA is a mailing list, because [44:19.660 --> 44:23.880] we had to start somewhere, and that's where we started. Carsnet, that's David Dagan [44:23.880 --> 44:27.860] from GA Tech, he does amazing work to study botnets, and he [44:27.860 --> 44:32.000] can't find funding. The bad guys have millions, [44:32.000 --> 44:36.120] and he can't find funding. But, [44:36.120 --> 44:40.420] that's a database, basically, for us to follow everything, [44:40.420 --> 44:44.160] gather information, pretty cool. Snort for [44:44.160 --> 44:48.280] ISPs, rather dead project right now, but we're working on it. [44:48.680 --> 44:51.980] Getting signatures out to detect botnets easier. [44:52.340 --> 44:56.820] Botnets, not bots. Passive DNS replication is critical, [44:56.820 --> 44:59.920] I do not have time to talk about it, I'm sorry, but it's critical. [45:00.040 --> 45:04.160] If you want, Google it. AS-based reporting, getting [45:04.160 --> 45:08.060] the reports out to ISPs. Monthly shaming, [45:08.060 --> 45:12.060] some ISPs do not give a shit. We need to shame them, [45:12.060 --> 45:16.400] and we are actually managing to change the map of the internet every month. [45:17.000 --> 45:19.960] Basically, it's, okay, we managed to get that ISP [45:19.960 --> 45:24.480] to work with us, which means, okay, the botnet controls are going to run to another ISP now. [45:24.700 --> 45:27.700] But we change the map, every month. [45:27.840 --> 45:32.260] Some ISPs don't give a shit, we're not sure how to handle that yet. [45:32.260 --> 45:35.580] There's some parts of the world we can't reach, but we're working on it. [45:35.580 --> 45:40.060] And I'll get to that in a second. Then there's Granix. You'll hear about that in the future, [45:40.060 --> 45:41.660] I'm not going to talk about it. [45:43.940 --> 45:47.000] Drone armies, at least I think so, I have no idea. [45:48.060 --> 45:52.280] I call it Dumbledore's army, I'm not sure if there are any Harry Potter fans here. [45:52.900 --> 45:55.520] No? You guys suck. [45:56.100 --> 46:00.060] Now, MWP is another mailing list. We had a lot of off-topic [46:00.060 --> 46:04.020] posts. There's nearly no noise, only signal on the mailing list [46:04.020 --> 46:07.540] until I decide, okay, this is too much signal and I just send some shit in. [46:07.960 --> 46:12.700] But it's a community, it's not completely operational. There are other lists that are operational. [46:15.280 --> 46:16.840] Spammed malware sites. [46:17.440 --> 46:20.260] You spam it via email, it's malware, [46:20.260 --> 46:24.120] we'll take it down. Captures, okay, there are many [46:24.120 --> 46:28.000] other companies that see these files online, we'll find them and we'll take them down. [46:28.000 --> 46:31.780] Now, I'm not supposed to say kill the site, but that's what we do. [46:31.780 --> 46:35.920] We do it legally, which means in lawyer talk I would have preferred to say something like [46:35.920 --> 46:39.900] we find the data, collect it, give it to the [46:39.900 --> 46:42.500] respectable authority to review and [46:44.300 --> 46:45.340] investigate and [46:47.700 --> 46:51.860] validate or whatever themselves, and then proceed according [46:51.860 --> 46:56.040] to their acceptable legal policy or whatever. Basically we kill the sites. [46:56.040 --> 47:00.080] Now, worm propagation sites take it down. For example, if there is [47:00.220 --> 47:04.040] a worm and you download samples, updates, whatever from some site, [47:04.040 --> 47:08.000] we'll take it down, we'll stop the worm from spreading. Phishing sites take [47:08.000 --> 47:11.820] it down. We don't do that anymore right now, I'll explain why later, but [47:11.820 --> 47:15.860] we still follow it very, very closely. Global law enforcement [47:15.860 --> 47:20.000] coordination and tracking of phishing groups. Law enforcement can work together very [47:20.000 --> 47:24.540] good, they have their own ways to communicate, [47:24.540 --> 47:27.600] but they suck on the small things. Seriously. [47:28.180 --> 47:32.300] And we have managed by giving them the actionable [47:32.300 --> 47:36.660] intelligence that they don't have, we managed to get several law enforcement [47:36.660 --> 47:40.460] agencies around the world working on taking these guys down, because they [47:40.460 --> 47:44.520] make money. And the only way that we can stop them from moving their botnet [47:44.520 --> 47:48.360] or their phishing or whatever to just another server is by changing their economics [47:48.360 --> 47:52.460] and make it not worth their while. That's basically it. [47:52.460 --> 47:56.360] And phishing on the net. We want to gather all these [47:56.360 --> 48:00.560] phishers, companies such as MessageLabs, Panels, all these guys, send us [48:00.560 --> 48:04.460] the phishers, we'll report them to ISPs, we'll get the shelf life [48:04.460 --> 48:08.440] of a phishing server down to two [48:08.440 --> 48:14.690] hours instead of six days. Ask Dan later. [48:14.690 --> 48:18.650] Sorry, I got five minutes. I'm serious, I'm sorry. [48:19.870 --> 48:22.370] Other projects. There are other lists [48:22.370 --> 48:26.970] out there, other projects, for example, NSP Sec for ISPs to work, you can Google it. [48:27.210 --> 48:30.530] The Aninet project, they don't want to work with law enforcement, [48:30.530 --> 48:34.490] they're pure researchers. APWG, Anti-Phishing Working Groups [48:34.490 --> 48:38.410] in the United States and Apex in the UK. UNISOC, Digital Finish Net, [48:38.410 --> 48:42.370] which is the FBI, which is just now starting to get some things done, they basically [48:42.370 --> 48:46.350] suck so far, I have high hopes. Microsoft. [48:46.450 --> 48:49.730] People, Microsoft is doing a lot. [48:50.450 --> 48:53.930] I believe their motives are more like, we want [48:53.930 --> 48:57.670] to prove to everyone we do good security, and we want to fucking take over [48:57.670 --> 49:01.590] the industry. That's what I believe their motives are, they're hiring [49:01.830 --> 49:05.730] a lot of people, but whatever their motives are, [49:06.550 --> 49:10.210] they're not really hiding as far as I see it. They do a lot of good. [49:10.850 --> 49:12.610] They actually do something. [49:13.790 --> 49:17.190] Now as far as I see it, the stakeholders so far [49:17.190 --> 49:21.690] I've been able to find... I'll get to Casey first, I'm sorry. [49:23.910 --> 49:25.250] Internet Governance. You might have [49:25.250 --> 49:28.650] heard Paul Vix's lecture. It's a lot of [49:29.190 --> 49:33.310] shit and crap and whatever, and the point [49:33.310 --> 49:37.190] is, we can go lower than that, it's trust. For example, [49:37.190 --> 49:41.150] nothing prevents me from going to dine right now with a 5 kilo hammer, or kick him in the nuts, [49:41.150 --> 49:45.090] or kill him, basically. In real life... [49:45.090 --> 49:49.530] Okay, Dan, my glock is at home. [49:49.870 --> 49:52.430] No, seriously, you guys are watching me. [49:52.850 --> 49:57.310] There are laws, there is fear. I don't know what's stopping me from doing that right now, [49:57.310 --> 50:01.070] but that's meatspace. On the internet, nothing stops me [50:01.070 --> 50:04.990] from doing that. For example, when people threaten sites [50:04.990 --> 50:09.010] for takedown. Pay me 10k right now, I'll take you down. [50:09.370 --> 50:12.990] In real life, especially in the States as far as I understand it, [50:12.990 --> 50:17.230] from movies in Hollywood, protection money is really good. [50:17.570 --> 50:18.850] Works really good. [50:20.830 --> 50:25.070] Somebody might come to you and say, look, you pay me right now, or I'll burn [50:25.070 --> 50:29.350] down your store, set it on fire. And you might pay him. [50:29.690 --> 50:33.310] Or he'll set your store on fire. Now once you've paid, [50:33.310 --> 50:36.910] it is likely that the guy won't set your store on fire. [50:37.270 --> 50:41.030] Further, if anybody else comes to you and says, hey, pay me or I'll set [50:41.030 --> 50:44.930] your store on fire, this guy will protect you. On the internet, they say, [50:44.930 --> 50:49.190] okay, pay me 10k right now, I'll set your store on fire. [50:51.710 --> 50:53.390] How do you know he won't? [50:53.410 --> 50:56.610] First off, it's the internet. [50:57.570 --> 51:00.750] Second, he can't stop anybody else from doing it anyway. [51:01.690 --> 51:05.030] And the point is, if I meet somebody online, [51:05.030 --> 51:09.470] say from Korea or Japan, he doesn't know me, I don't know him, why would he trust me? [51:09.470 --> 51:12.290] Why would she trust me? No reason. [51:13.470 --> 51:17.790] They may be the bad guy that's trying to trick me down. Would I share information with them? [51:18.170 --> 51:21.950] The bad guys are sharing information, making money, everything. [51:22.290 --> 51:24.170] We do not share information. [51:25.230 --> 51:28.650] We do not get things done. Now, if we don't get a way to cooperate [51:29.530 --> 51:33.490] and get things done, somebody else will find a way to do it for us. [51:33.950 --> 51:38.330] According to Casey again, I'm misrepresenting your ideas, that's to be clear. [51:38.330 --> 51:41.210] But as far as I understand their ideas, [51:41.210 --> 51:46.770] every network in the world ever built, whether it's communication network, transportation network, [51:46.770 --> 51:50.090] whatever, somebody came and made some order. [51:50.090 --> 51:54.150] That somebody was usually or always the government. Do we want the government, [51:54.150 --> 51:58.990] your government, my government, to come in and try and make the internet fall in place? [51:59.570 --> 52:02.490] They're already trying, especially in Canada and Australia, as far as I can see. [52:02.490 --> 52:05.430] Here in the States, everywhere. I doubt they'll succeed. [52:05.430 --> 52:09.130] What I see, basically, I'm not worried as Casey is. [52:09.250 --> 52:13.030] I believe it will either be Microsoft or the Russian mob. [52:13.430 --> 52:16.610] Now, you can quote me, God, he said the Russian mob and Microsoft, whoo! [52:16.610 --> 52:21.290] But seriously, these are the stakeholders right now. [52:21.290 --> 52:22.490] They make money. [52:25.150 --> 52:29.470] Microsoft and the Russian mob. Which one do I prefer? [52:29.470 --> 52:32.130] Exactly! Thank you for asking that question. [52:32.130 --> 52:35.210] Now, I love Microsoft. Seriously, they're doing a good job out there. [52:36.230 --> 52:40.790] I don't know why they care. They may have their own ideas, but they're doing a good job. [52:41.110 --> 52:42.370] They're the only ones. [52:44.250 --> 52:48.090] Now, cooperation, trust, just getting things done. [52:49.990 --> 52:50.790] Basically. [52:51.830 --> 52:53.730] We need to solve these problems. [52:55.310 --> 52:59.130] And usually, like I said last time, I would have expected a full hole when I said, [52:59.130 --> 53:00.810] get involved, people! [53:01.390 --> 53:04.270] We have many projects, maybe you have some ideas, too. [53:04.830 --> 53:08.510] But seriously, you're just like 20 people or something like that, but still, get involved. [53:08.510 --> 53:12.930] If you believe this is important, I do. We need help. [53:13.230 --> 53:17.350] Yes, I'm coming to DEF CON, and I'm saying we need help. [53:18.750 --> 53:21.510] In about two minutes, so I'll let Dan come up here with me, [53:21.510 --> 53:23.890] because it was very nice to come here anyway. [53:23.890 --> 53:24.870] Dan! [53:26.030 --> 53:27.070] Go! [53:34.700 --> 53:36.580] Farming. What about farming? [53:38.940 --> 53:41.100] Okay, the ITF sucks. [53:41.100 --> 53:44.360] They're good guys, the ITF, but they suck. [53:44.360 --> 53:48.220] Seriously, how long have they been dragging their feet on DNSSEC right now? [53:48.760 --> 53:52.840] 15 years? 11 years? You answer that. [53:53.780 --> 53:57.640] DNSSEC is an interesting scene. [53:57.640 --> 54:02.400] Farming basically gets into the idea of attacking the infrastructure. [54:02.740 --> 54:05.080] Really, though, we're already talking about [54:05.080 --> 54:08.940] botnets of the size of a quarter million to eventually [54:08.940 --> 54:12.620] multi-million infected hosts. [54:13.060 --> 54:16.660] The endpoints are getting owned, en masse. [54:17.080 --> 54:20.760] There's a thing called the Byzantine problem. You're a Byzantine general, [54:20.760 --> 54:24.980] and how do you control your troops when a fairly large portion [54:24.980 --> 54:28.440] of them want to turn on you? And there's ways of organizing [54:28.440 --> 54:32.960] the networks so that you can go and kill the generals that turn against you and such. [54:33.160 --> 54:36.600] There's a critical mass of hosts that if they're [54:36.600 --> 54:38.940] on your network and they're bad, you die. [54:39.380 --> 54:45.540] I don't know, is it 250,000? Is it a couple million? Is it 50% of your customer base? [54:45.540 --> 54:48.560] Eventually, online banking is really going to have to start [54:49.320 --> 54:52.420] accepting the possibility that too many of its customers [54:52.420 --> 54:56.480] are actually not its customers, but are coming from corrupted hosts. [54:56.480 --> 55:00.620] Already, if you go to Kinko's, you will see. They say, please do not use online [55:00.620 --> 55:04.460] banking. Or at least they say, please do not use anything with personally sensitive [55:04.460 --> 55:08.320] information. This is a result of a case in New York where a Chinese immigrant [55:08.320 --> 55:12.580] actually put botnet, or Trojan code, on all of the [55:12.580 --> 55:16.760] publicly available hosts. So, there's a couple things that I wanted to say [55:16.760 --> 55:21.220] because it's going to be on film and I'm going to be able to say, hey, I totally predicted that. [55:22.640 --> 55:24.800] Last year, like I said, the botnet [55:24.800 --> 55:28.640] control data, right now, DNS directs you to command and control servers. [55:28.800 --> 55:32.400] Eventually, they're just going to put commands in the command and control servers. [55:32.500 --> 55:36.100] At the scale of when you have all these machines, they can [55:36.920 --> 55:40.760] stop saying, okay, I want you to take everyone on this bank [55:40.760 --> 55:44.520] and send money, send all the money. They're going to start doing really intelligent [55:44.520 --> 55:49.140] things. When you have multi-million nodes broken into, you can say, [55:49.140 --> 55:52.600] huh, let's find everyone who's sending money to everyone [55:52.600 --> 55:56.540] else. Let's build a graph and let's find out who are the people who are receiving money from [55:56.540 --> 56:00.740] anyone. In other words, all the stuff the bank does to find [56:00.740 --> 56:04.820] fraud, the fraud people can use to find targets. [56:05.560 --> 56:08.800] So, I want to have your baby. I want to have your baby. [56:09.360 --> 56:12.260] So, no, I mean, the canonical [56:12.260 --> 56:16.220] attack becomes, okay, I find one guy who receives money from [56:16.220 --> 56:20.440] 10,000 different people. I put a tax on every transaction [56:20.440 --> 56:24.240] of, say, 1%, 10%. I hide the [56:24.240 --> 56:28.540] fact that the tax was applied because I control the interface [56:28.540 --> 56:32.260] on everyone. The money moves over to the guy. The bank thinks [56:32.260 --> 56:36.500] it's normal because the bank's always seeing money move. And the guy never actually [56:36.500 --> 56:40.320] gets any extra money because he gets his account drained of the extra [56:40.320 --> 56:44.280] money. These are the kind of threats that really happen [56:44.280 --> 56:48.160] when every single, you know, when large numbers of endpoints are broken [56:48.160 --> 56:51.600] into. And it stops being about a couple thousand here or there. [56:52.680 --> 56:56.360] This kind of stuff is going to happen. And, you know, I don't know if you [56:56.360 --> 56:59.980] guys know this. The financial network is kind of converging on sending money [57:01.060 --> 57:04.240] instantaneously when all of the security stuff is really saying, [57:04.240 --> 57:08.280] hey, slow down. We need to check. We need to go back. So, it's a [57:08.280 --> 57:12.060] real question. What is going to happen to the speeding up of the [57:12.060 --> 57:16.260] financial system? And it's a real, real question. Are we going [57:16.260 --> 57:19.940] to be able to do online banking with personal computers in a year and a half? [57:19.980 --> 57:24.160] This botnet stuff that Gadi is doing, every day he does what he does [57:24.160 --> 57:27.440] is another day we can use online banking. Okay, that's enough. [57:28.260 --> 57:32.240] Online banking is one issue, basically. We need to work together. We need [57:32.240 --> 57:36.120] to find solutions. We need to get things done. Because we [57:36.120 --> 57:40.060] use the internet, no matter who we are. I mean, this sounds like, I want to cure [57:40.060 --> 57:44.820] world anger and cancer and all that, but seriously, come on! [57:45.380 --> 57:48.120] And with that, I'll take another question and finish because... [57:53.400 --> 57:55.780] Yes, I am with the Mossad and I'm going to send quads [57:55.780 --> 57:59.780] after you. I do send the quads [57:59.780 --> 58:03.580] after them. If you watch the MI6 site, by the way, I just heard it last week, [58:03.580 --> 58:08.060] you will actually see that they say, mess with us and we'll mess with you. [58:08.060 --> 58:14.200] MI6 people, they're cool. It's not just a newsletter, [58:14.200 --> 58:17.640] it's a whole effort of trying to get things done. [58:17.800 --> 58:20.200] So, contact me. You have my email address. [58:20.840 --> 58:26.180] gadi.sert.gov.il or ge.linuxbox.org. Contact me. [58:26.180 --> 58:30.020] Talk to me. We need help. That's it. [58:30.020 --> 58:33.240] Thank you. And... fucking Dan Kaminsky!