February 2, 2010

Hacking for Fun and Profit in China’s Underworld
By DAVID BARBOZA
NY Times

http://www.nytimes.com/2010/02/02/business/global/02hacker.html?hp=&pagewanted=print


CHANGSHA, China — With a few quick keystrokes, a computer hacker who 
goes by the code name Majia calls up a screen displaying his latest victims.

“Here’s a list of the people who’ve been infected with my Trojan horse,” 
he says, working from a dingy apartment on the outskirts of this city in 
central China. “They don’t even know what’s happened.”

As he explains it, an online “trapdoor” he created just over a week ago 
has already lured 2,000 people from China and overseas — people who 
clicked on something they should not have, inadvertently spreading a 
virus that allows him to take control of their computers and steal bank 
account passwords.

Majia, a soft-spoken college graduate in his early 20s, is a cyberthief.

He operates secretly and illegally, as part of a community of hackers 
who exploit flaws in computer software to break into Web sites, steal 
valuable data and sell it for a profit.

Internet security experts say China has legions of hackers just like 
Majia, and that they are behind an escalating number of global attacks 
to steal credit card numbers, commit corporate espionage and even wage 
online warfare on other nations, which in some cases have been traced 
back to China.

Three weeks ago, Google blamed hackers that it connected to China for a 
series of sophisticated attacks that led to the theft of the company’s 
valuable source code. Google also said hackers had infiltrated the 
private Gmail accounts of human rights activists, suggesting the effort 
might have been more than just mischief.

In addition to independent criminals like Majia, computer security 
specialists say there are so-called patriotic hackers who focus their 
attacks on political targets. Then there are the intelligence-oriented 
hackers inside the People’s Liberation Army, as well as more shadowy 
groups that are believed to work with the state government.

Indeed, in China — as in parts of Eastern Europe and Russia — computer 
hacking has become something of a national sport, and a lucrative one. 
There are hacker conferences, hacker training academies and magazines 
with names like Hacker X Files and Hacker Defense, which offer tips on 
how to break into computers or build a Trojan horse, step by step.

For less than $6, one can even purchase the “Hacker’s Penetration 
Manual.” (Books on hacking are also sold, to a lesser extent, in the 
United States and elsewhere.)

And with 380 million Web users in China and a sizzling online gaming 
market, analysts say it is no wonder Chinese youths are so skilled at 
hacking. Many Chinese hackers interviewed over the last few weeks 
describe a loosely defined community of computer devotees working 
independently, but also selling services to corporations and even the 
military. Because it is difficult to trace hackers, exactly who is 
behind any specific attack and how and where they operate remains to a 
large extent a mystery, technology experts say.

And that is just the way Majia, the young Chinese hacker, wants it. On 
condition that he not be identified by his real name, Majia agreed two 
weeks ago to allow a reporter to visit his modest home in a poor town 
outside Changsha, and watch him work.

Slim and smartly dressed in black, Majia seemed eager to tell his story; 
like many hackers, he wants recognition for his hacking skills even as 
he prizes anonymity to avoid detection. The New York Times found him 
through another well-known hacker who belongs to a hacker group and 
vouched that Majia was skilled at what he did.

While Majia’s claims, of course, cannot be verified, he is happy to 
demonstrate his hacking skills. He met a journalist at a cafe one night 
just over a week ago, and then invited him to his home, where he showed 
how he hacked into the Web site of a Chinese company. Once the Web site 
popped up on his screen, he created additional pages and typed the word 
“hacked” onto one of them.

Majia says he fell in love with hacking in college, after friends showed 
him how to break into computer systems during his freshman year.

After earning a degree in engineering, he took a job with a government 
agency, largely to please his parents. But every night after work, he 
turns to his passion: hacking.

He is consumed by the challenges it presents. He reads hacker magazines, 
swaps information with a small circle of hackers and writes malicious 
code. He uses Trojan horses to sneak into people’s computers and infect 
them, so he can take control.

“Most hackers are lazy,” he says, seated in front of a computer in his 
spare bedroom, which overlooks a dilapidated apartment complex. “Only a 
few of us can actually write code. That’s the hard part.”

Computer hacking is illegal in China. Last year, Beijing revised and 
stiffened a law that makes hacking a crime, with punishments of up to 
seven years in prison. Majia seems to disregard the law, largely because 
it is not strictly enforced. But he does take care to cover his tracks.

Partly, he admits, the lure is money. Many hackers make a lot of money, 
he says, and he seems to be plotting his own path. Exactly how much he 
has earned, he won’t say. But he does admit to selling malicious code to 
others; and boasts of being able to tap into people’s bank accounts by 
remotely operating their computers.

Financial incentives motivate many young Chinese hackers like Majia, 
experts say. Scott J. Henderson, author of “The Dark Visitor: Inside the 
World of Chinese Hackers,” said he had spent years tracking Chinese 
hackers, sometimes with financial help from the United States 
government. One Chinese hacker who broke into a United States government 
site later lectured on hacking at a leading university, Mr. Henderson 
said, and worked for China’s security ministry. But recently, many have 
been seeking to profit from stealing data from big corporations, he 
said, or teaching others how to hijack computers.

“They make a lot of money selling viruses and Trojan horses to infect 
other people’s computers,” Mr. Henderson said in a telephone interview. 
“They also break into online gaming accounts, and sell the virtual 
characters. It’s big money.”

Majia lives with his parents, and his bedroom has little more than a 
desktop computer, a high-speed Internet connection and a large closet. 
The walls are bare.

Most of his socializing occurs online, where he works from about 6:30 
p.m. to 12:30 a.m., starting every evening by perusing computer Web 
sites like cnBeta.com.

Asked why he doesn’t work for a major Chinese technology company, he 
sneers at the suggestion, saying that it would restrain his freedom.

He even claims to know details of the Google attack. “That Trojan horse 
on Google was created by a foreign hacker,” he says, indicating that the 
virus was then altered in China. “A few weeks before Google was 
hijacked, there was a similar virus. If you opened a particular page on 
Google, you were infected.”

Oddly, Majia said his parents did not know that he was hacking at night. 
But at one point, he explained the intricacies of computer hacking and 
stealing data while his mother stood nearby, listening silently, while 
offering a guest oranges and candy.

Majia and his fellow hackers keep secret their knowledge of certain 
so-called zero-day vulnerabilities — software flaws — for future use, he 
says.

“Microsoft and Adobe have a lot of zero days,” he said, while scanning 
Web sites at home. “But we don’t publish them. We want to save them so 
that some day we can use them.”

When asked whether hackers work for the government, or the military, he 
says “yes.”

Does he? No comment, he says.

-- 
================================
George Antunes, Political Science Dept
University of Houston; Houston, TX 77204
Voice: 713-743-3923  Fax: 713-743-3927
Mail: antunes at uh dot edu

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