On Saturday, an attacker and blackmailer “DD4BC” sent a note to the Bitalo Bitcoin exchange threatening distributed denial of service (DDoS). DD4BC demanded 1 Bitcoin (about £206, $326) as protection money and for “info on how I did it and what you need to do to prevent it”. Hello Your site is extremely vulnerable to ddos attacks. I want to offer you info how to properly setup your protection, so that you can’t be ddosed! My price is 1 Bitcoin only. Right now I will star small (very small) attack which will not crash your server, but you should notice it in logs. Just check it. I want to offer you info on how I did it and what you have to do to prevent it. If interested pay me 1 BTC to [Bitcoin address] Thank you. Bitalo CEO Martin Albert eschewed the offer for lessons on avoiding DDoS. Instead, the exchange slapped a bounty on DD4BC’s head, to the tune of 100x the ransom money. That price may seem steep, but this is serious business to Albert, who told Motherboard that his company wants to show that it’s serious. He noted that while its users’ funds were never at risk because of Bitalo’s multi-signature setup, extortionists like DD4BC nonetheless threaten the smaller startups that complete the global Bitcoin community. These kind of people can do much more harm to the community than any government by regulation or something like that, in my opinion. Fear and uncertainty take their toll as well: Bitcoin value plummeted after the fall of Mt. Gox. DD4BC’s DDoS attack on Bitalo lasted two days. Albert said that the company soon found out that the same attacker was behind threats to others: Immediately we figured out it was not an unknown guy; it was this guy who also threatened many other people. The list of DD4BC’s targets include exchange CEX.io and Bitcoin sportsbook Nitrogen Sports, Albert said. Now, the company is offering 100 BTC – about $32,859 or £20,599 at Tuesday’s exchange rates – through the Bitcoin Bounty Hunter site. This isn’t the first bounty for a Bitcoin burglar, but it’s the biggest by far. Other bounties include: ?37.6875 (approx. $12,331, £7,710) For help in catching whomever broke into the email accounts of Satoshi Nakamoto – the person or people who created the Bitcoin protocol and reference software – and Bitcoin angel investor, evangelist, the founder himself of the Bitcoin Bounty Hunter site, and a man known by some as the “Bitcoin Jesus”, Roger Ver. ?2.1249 (approx. $698, £434) For help in catching whomever’s behind the missing 600K BTC from Mt. Gox. Ver told Motherboard that he started the bounty site in September after somebody got into an old email account and started making threats: Somebody hacked an old email account of mine and then was claiming they were going to steal my identity. [They also demanded] that I pay them $20,000 worth of bitcoin or they were going to ruin my life and ruin my family’s life, and they made all sorts of nasty threats. At the time, Ver offered a 37 BTC reward in a Facebook post for “information leading [to] the arrest of the hacker.” The problem was that he didn’t know what to do with the information people sent him, he said, some of which appeared legitimate but some of which were clearly a joke. Thus was Bitcoin Bounty Hunter born: a site that allows anyone to offer information and claim a bounty anonymously. It relies on the site proofofexistence.com, which requires informants to send in details in a manner that proves that they know something without revealing what it is that they know. In order to claim any of the bounties, the culprit has to be arrested and convicted. Why not just go to the cops? Ver told Motherboard that when he’s been targeted by theft in the past, he had to track down the stolen parts himself before the police became interested. The police in California did absolutely nothing to help, they didn’t even lift a finger. Going to the police, traditionally, they don’t do much of anything to help at all. By providing a bounty I think you can provide an incentive to have anybody – including the police – to actually do the right thing and help victims of crimes. Albert said there haven’t been any real tips on the Bitalo attacker yet, but the company’s also analysing traffic to try to get at the blackmailer’s identity. Source: http://nakedsecurity.sophos.com/2014/11/05/100-bitcoin-bounty-slapped-onto-head-of-blackmailer-who-ddosed-bitalo/
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100 Bitcoin bounty slapped onto head of blackmailer who DDoS attack Bitalo site

Majority of DDoS traffic in 2014 originated from India, says a new research from Symantec. Of the top 50 countries that witnessed the highest volume of originating DDoS traffic, India accounted for 26 percent of all DDoS traffic, followed by the USA with 17 percent, the research said. The results prove India has a high number of bot infected machines and a low adoption rate of filtering of spoofed packets, but may not imply that people behind the attacks are located in India because DDoS attacks are often orchestrated remotely. However, the study indicates that India is emerging as a hotbed to launch these attacks, potentially because of the low cyber security awareness, lack of adequate security practices and infrastructure, said Tarun Kaura, director, Technology Sales at Symantec India. The year 2014 saw an increase in the compromise of Linux servers, including those from cloud providers. These high bandwidth servers are then used as part of a botnet to perform DDoS attacks. The so-called “Booter” services can be hired for as little as INR 300 ($5 USD) to perform DDoS attacks for a few minutes against any target. Longer attacks can be bought for larger prices. They also offer monthly subscription services, often used by gamers to take down competitors. As the most attacked sector globally, the gaming industry experiences nearly 46 percent of attacks, followed by the software and media sectors While it’s not happening on a broad scale now, it’s likely we’ll see an increase in DDoS attacks originating from mobile and IoT devices in the future, Symantec said. DDoS attacks make an online service unavailable by overwhelming it with traffic from multiple sources. A Domain Name Server (DNS) amplification attack is a popular form of DDoS, which floods a publically available target system with DNS response traffic. Symantec’s research indicates that DNS amplification attacks have increased by 183 percent from January to August 2014. Motivations behind DDoS Attacks include hacking and financial blackmail with the threat of taking the business offline personal grudge. It also acts as a diversion technique to distract IT security response teams while a targeted attack is conducted. Source: http://www.infotechlead.com/2014/10/24/india-accounts-26-top-ddos-traffic-symantec-26196