Taking on an Online Extortionist

An anonymous reader writes "When an online exortionist comes a knocking, threatining a DDoS, do you pay or fight? For many, paying may seem like a sensible option when compared to going out of buisness. CSO Magazine has a riveting article about how an online gambling site and a DDoS specialist teamed up to take on such an extortionist. When everybody else was rolling over and paying, this company risked its very existence to fight back. From the article: '"The attack went to 1.5Gb, with bursts up to 3Gb. It wasn't targeted at one thing. It was going to routers, DNS servers, mail servers, websites. It was like a battlefield, where there's an explosion over here, then over there, then it's quiet, then another explosion somewhere else," says Lyon. "They threw everything they had at us. I was just in shock."'"

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Complete Mirror

[sabat]

Online Extortion

How a Bookmaker
and a Whiz Kid
Took On an Extortionist --
and Won

Facing an online extortion threat, Mickey Richardson bet his Web-based business on a networking whiz from Sacramento who first beat back the bad guys, then helped the cops nab them. If you collect revenue online, you'd better read this.

By Scott Berinato

Saturday, Nov. 22, 2003, 7:57 a.m.
Origins of an Onslaught

The e-mail began, "Your site is under attack," and it gave Mickey Richardson two choices: "You can send us $40K by Western Union [and] your site will be protected not just this weekend but for the next 12 months," or, "If you choose not to pay...you will be under attack each weekend for the next 20 weeks, or until you close your doors."

Richardson ran to the IT department, where Lebumfacil was watching the biggest DoS attack he'd ever seen. He remembers feeling sick to his stomach.

Richardson runs BetCris.com, an online wagering site, one of hundreds of sites ensconced in Costa Rica that take bets from Americans (and others around the world) without concern for U.S. bookmaking laws. Richardson received the e-mail just as he and his competitors were preparing for the year's busiest wagering season. With pro and college football, pro and college basketball and other sports in full swing, and with Thanksgiving and Christmas about to create plenty of free time, BetCris and the others stood to rake in millions over the holidays. Richardson was even planning an advertising blitz for the season to drive new traffic to his site.
Ripe Targets for Online Extortion

Who, What, When, Where, Why & How

Read More

If BetCris went down, he knew his customers would find another online bookie, "which will cost you tens of thousands of dollars in lost wagers and customers," the extortionists reminded him.

Despite all that, the e-mail didn't have the fearsome effect on Richardson that the extortionists hoped it would. He just asked his network administrator, Glenn Lebumfacil, if they should be concerned. "I said--God, in hindsight, what an idiot--I said, 'We should be safe. I think our network is nice and tight,'" recalls Lebumfacil.

As a precaution, Richardson alerted his ISP, but essentially, he says, "We kind of fluffed it off." The veteran bookmaker didn't panic because, in fact, he had dealt with online extortionists before. Two years earlier, hackers crashed BetCris.com with a denial-of-service (DoS) attack, and then demanded by e-mail a $500 protection fee in eGold (an online form of trading bullion). Richardson paid without a second thought. Compared to downtime, $500 was trivial.

That first attack got his attention, though. Richardson consulted another industry veteran who confessed to having a similar problem, and who told Richardson to call a consultant named Barrett Lyon in Sacramento, Calif. Lyon didn't come to BetCris's offices--he had no interest in baby-sitting infrastructure in Costa Rica--but he did recommend some off-the-shelf products that had recently been developed specifically to fight DoS attacks. Lyon thought (actually he hoped) that he'd never hear from them again. Richardson and Lebumfacil were confident they had protected themselves.

When the attack finally came on that Saturday in November, sometime after that first e-mail but before 11:30 a.m., BetCris crashed hard. The off-the-shelf products Lyon had recommended survived less than 10 minutes. BetCris's ISP crashed, and then the ISP for BetCris's ISP crashed. Richardson ran to the IT department, where Lebumfacil was watching the biggest DoS attack he'd ever seen. He remembers feeling sick to his stomach.

At 1:03 p.m., another e-mail arrived. "I guess you have decided to fight instead of making a deal. We thought you were smart.... You have 1 hour to make a deal today or it will cost you $50K to make a deal on Sunday." Then they knocked BetCris.com offline again.
The Extortion Problem

We know this about online extortion: It hap