Authorities in the US and Estonia have confirmed that they have cracked one of the largest internet fraud schemes the world has ever witnessed. It has been reported that the scheme infected more than four million computers with malware, redirecting users to websites that generated at least $14 million in fraudulent advertising fees.
The US Justice Department said that the arrests marked the end of a two-year international investigation, which authorities labelled Operation Ghost Click. Explaining how the scheme worked, the Department said that the malware altered the settings on infected computers in 100 countries, 500,000 of which were in the US. The defendants were, therefore, able to digitally hijack internet searches and re-route computers to particular online adverts.
In a statement confirming the arrests, Preet Bharara, the US Attorney for the Southern District of New York, said: "These defendants gave new meaning to the term, 'false advertising.' "
Each time users clicked on these ads, the defendants would receive a small fee. However, given the number of computers the scheme managed to penetrate, over time they were able to amass millions of dollars. . Authorities also explained that the malware prevented the installation of anti-virus software and operating system updates on infected computers. As a result, users were powerless to detect or prevent the malware. It also exposed them to attacks by other viruses.
In addition to the tangible theft from internet users, authorities in the US explained that the scheme also deprived legitimate website operators and advertisers of substantial income and advertising revenue. Of course, the economic cost to these companies and individuals cannot be calculated, but it is likely to be significant to many of those who were victims of the scheme.
According to an indictment, as part of the scam between 2008 and October 2011 the defendants operated a number of companies that masqueraded as genuine publisher networks in the advertising industry. Each defendant was charged with five counts of wire and computer intrusion crimes - all of the counts carry sentences of between five and 30 years in prison.
This comes shortly after Prime Minister David Cameron told a conference in London that cybercrime costs Great Britain £27 billion ($43 million) a year. Indeed, Mr Cameron explained to those in attendance that the country faced "daily attempts on an industrial scale to steal valuable information from individuals and companies".
Governments, the Prime Minister insisted, cannot leave cyberspace open to the criminals and the terrorists "that threaten our security and our prosperity". However, he also conceded that "at the same time we cannot just go down the heavy-handed route".