Mar 24 2008

Member of National People’s Congress calls for crackdown on Chinese hacker underground virus industry

Published by at 10:33 pm under Chinese Malware,Hacking for money


Representative Chen Wanzhi, of the National People’s Congress, has recommended getting control of the underground Internet industrial chain.

“Our country has already formed a clear division of labor in the underground Internet industrial chain.  Some medium and small size companies have even had to pay ‘protection money’ to ensure their e-commerce.”  Rep. Chen further called for getting control of the manufacture and sell of Internet viruses.

Chen warned that the “network security situation is grim” and that the appearance of viruses such as Panda Burning Incense, Gray Pigeon, and AV Terminator were just the tip of the iceberg for the country’s virsus industry. He said that the Gray Pigeon virus is like an invisible thief hiding in the user’s “home” watching their every move.

CNCERT statistics showed that the country (China) had 21 times the number of Trojans implanted in the first half of 2007 than it did in all of 2006. Rep.  Chen felt that personal benefit was the driving force behind the rise and that the threshold for becoming a hacker was getting lower.  There are classes everywhere teaching how to use Gray Pigeon; “a person who doesn’t know anything about computers, except how to type, can become a hacker in one day.”

The Hunan police had arrested one hacker who specialized in stealing network banking funds. The gang member had been in control of over 1,000 bank accounts and stole over 400,000 YUAN.  According to an investigation by an unnamed company, in 2006, the theft of Chinese internet users’ online banking credit cards, had led to the loss of over 100 million YUAN.

Rep Chen said that the virus industry had formed into a chain where some manufactured the Trojans, some spread the Trojans, others stole bank information and third parties disposed of the stolen goods and provided money laundering. Each circle in the manufacture and sell of viruses has their own method of making money and this has made it virtually impossible for web users to guard against the “Underground Internet Economy.”

This has been a gist of the article and there is much more that I would be 
willing to translate if there is interest.

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