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Computer scams spring from digital back alleys

Somewhere, right now, deep in the bowels of an anonymous server in a dark room in, say, Iran, a "carder forum" is brewing up the next scheme aimed at stealing your money.

Carder forums and chat rooms are highly exclusive online bazaars where criminals who embrace the dark side of technology meet to exchange the information and criminal services that create what's been called a shadow, "microeconomy."

Security experts call these forums "the Wal-Mart of the underground" where anything you need to commit electronic crimes is for sale or barter.

In these digital back alleys, you can hire "bot masters" to unleash legions of contaminated computers on a vast array of tasks. One of those bots may be lurking inside your computer right now. Waiting for the secret, back-channel command to awaken and carry out some nefarious task.

Databases filled with hundreds or thousands of stolen identities, hacked bank accounts and compromised credit card numbers are offered for sale. You can also find "cashers" looking to buy information they can convert into cash and merchandise. Others offer to recruit unsuspecting "mules" to serve as the final link that turns a digital scam into physical currency.

Ironically the forums feature extreme security measures and are run by bosses who thoroughly vet and police participants. Forum leaders even try to assimilate rival forums by force in digital gangland-style takeovers.

Creation of online scams is no longer the work of loners cranking out code in darkened rooms. Today's torrent of spam, phishing scams and other online schemes are the product of a thriving criminal economy where people have developed specialties and collaboration and collusion is the rule rather the exception.

These are real, ruthless criminals, cloaked in the anonymity of the Internet and motivated by billions of dollars of profit. David DeWalt, CEO of security giant McAfee says online scams of all types now cost businesses and individuals $105 billion a year, surpassing the value of the worldwide illegal drug trade.

Given the relatively low costs for electronic messages, email, pseudo Web sites and the like, online scams can quickly deliver 1000 percent return on investment. A November 2006 Trend Micro white paper on phishing details arrested criminals who turned $60 software into $100,000 in profits. Another was generating $430 every day, automatically, at the time of arrest.

The "bad guys" ruthlessly exploit any opportunity to fleece unsuspecting computer users. Nothing is sacred. Shortly after Hurricane Katrina made confetti of much of the gulf coast, killing scores of people and leaving third-world suffering in her wake, the phish were swarming with fake "donate to help Katrina Victims" email.

Digital gangsters are even fine with cashing in on terrorism. One superforum leader recently bragged that its main server is located in Iran, perhaps the country that's least likely to cooperate with U.S.law-enforcement authorities.

In 2004, law enforcement briefly disrupted these forums by infiltrating and arresting participants. The forums reacted like an attacked virus - mutating and reforming in more secure, more dispersed forms. Today law enforcement agents liken chasing online criminals to chasing terrorists in Afghanistan; you know they are out there, but finding all their caves and hiding places is virtually impossible.

Experts agree the best weapon in the battle against the digital underground remains consumer awareness and caution. John Thompson, CEO of security giant Symantec (maker of the Norton suite of protection products) told USA Today that Internet users must develop a "sixth sense about security" just as they have about being sure to lock their houses and cars and sense when situations in the real world are inherently dangerous.

As diabolical as the online criminals are, their schemes often come down to the ability to deceive someone into providing personal data. Following some basic online guidelines for thwarting Internet crime can dramatically reduce your chances of being victimized and take some buzz out of the buzzing forums.

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