Police Dismantles Botnet Selling Hacked Routers As Residential Proxies

An anonymous reader quotes a report from BleepingComputer: Law enforcement authorities have dismantled a botnet that infected thousands of routers over the last 20 years to build two networks of residential proxies known as Anyproxy and 5socks. The U.S. Justice Department also indicted three Russian nationals (Alexey Viktorovich Chertkov, Kirill Vladimirovich Morozov, and Aleksandr Aleksandrovich Shishkin) and a Kazakhstani (Dmitriy Rubtsov) for their involvement in operating, maintaining, and profiting from these two illegal services.

During this joint action dubbed 'Operation Moonlander,' U.S. authorities worked with prosecutors and investigators from the Dutch National Police, the Netherlands Public Prosecution Service (Openbaar Ministerie), and the Royal Thai Police, as well as analysts with Lumen Technologies' Black Lotus Labs. Court documents show that the now-dismantled botnet infected older wireless internet routers worldwide with malware since at least 2004, allowing unauthorized access to compromised devices to be sold as proxy servers on Anyproxy.net and 5socks.net. The two domains were managed by a Virginia-based company and hosted on servers globally.

On Wednesday, the FBI also issued a flash advisory (PDF) and a public service announcement warning that this botnet was targeting patch end-of-life (EoL) routers with a variant of the TheMoon malware. The FBI warned that the attackers are installing proxies later used to evade detection during cybercrime-for-hire activities, cryptocurrency theft attacks, and other illegal operations. The list of devices commonly targeted by the botnet includes Linksys and Cisco router models, including:
- Linksys E1200, E2500, E1000, E4200, E1500, E300, E3200, E1550 - Linksys WRT320N, WRT310N, WRT610N - Cisco M10 and Cradlepoint E100 'The botnet controllers require cryptocurrency for payment. Users are allowed to connect directly with proxies using no authentication, which, as documented in previous cases, can lead to a broad spectrum of malicious actors gaining free access,' Black Lotus Labs said. 'Given the source range, only around 10% are detected as malicious in popular tools such as VirusTotal, meaning they consistently avoid network monitoring tools with a high degree of success. Proxies such as this are designed to help conceal a range of illicit pursuits including ad fraud, DDoS attacks, brute forcing, or exploiting victim's data.'

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