The malicious software infected four million computers worldwide

7 Charged in Web Scam Using Ads

- By SOMINI SENGUPTA and JENNA WORTHAM - The New York Times - November 9, 2011

It was a subtle swap: a cheesy advertisement for a vacation timeshare site atop the home page of ESPN.com, in a spot that might have been claimed by a well-known brand like Dr Pepper.

Those who saw swapped ads, federal prosecutors say, might never have known that their computer had been drawn into a complex Internet advertising scam that they say generated $14 million for its creators.

Over the last four years, a group of men in Eastern Europe quietly hijacked millions of computers worldwide and diverted unsuspecting users to online advertisements from which they could profit, federal law enforcement officials said on Wednesday.

Six men, all in their 20s and early 30s, are under arrest in Estonia for what the United States attorney’s office in New York called “a massive and sophisticated Internet fraud scheme.” A Russian suspect in the case remains at large.

The malicious software infected four million computers worldwide, including 500,000 in the United States, the prosecutors said. The software was so subtle that most people using an infected computer were probably unaware of it.

It was a two-pronged scheme, prosecutors said. One component involved redirecting clicks on search results to sites that were controlled by the defendants. A search for “I.R.S.,” for instance, would lead a user to the Web site of the tax preparer H&R Block. The sites to which users were directed would pay the swindlers a referral fee, prosecutors said. The more traffic they could redirect, the more fees they collected.

The other way the group made money, according to the indictment, was to swap legitimate online advertisements on certain Web sites with others that would generate payments for the defendants. Prosecutors said that Web sites for ESPN and The Wall Street Journal were affected — but only when viewed on the infected computers.

“On a mass scale, this gave new meaning to the term false advertising,” Preet Bharara, the United States attorney for the Southern District of New York, said at a press conference in Manhattan.

The security firm Trend Micro, which was among several private companies that helped federal officials with the investigation, called it the “biggest cybercriminal takedown in history.” The group running the scheme had 100 command-and-control servers worldwide, the company said, one of which was in a data center run in New York.

The scheme came to light after 100 computers at the National Aeronautics and Space Administration were found to have been infected. The malicious software spread through infected Web sites.

The most serious aspect of the scheme was that it attacked part of the scaffolding of the Internet: the domain name system, or D.N.S., which links the numerical addresses of Web sites with more user-friendly addresses like irs.gov.

“When people start attacking infrastructure, it creates the potential for a rogue version of the Internet,” said David Dagon, a computer security expert at the Georgia Tech College of Computing who helped federal authorities in the investigation.

Unlike more traditional malware that ferrets out valuable personal information, the group’s program was not designed to steal data, so it was not easily detected, private security consultants said. It manipulated the infrastructure of the Web to do what it does every day in great volumes: display advertising.

All six of the Estonian defendants were in the custody of Estonian police. Four of them also face charges in that country. One of them, Vladimir Tsastsin, 31, has been previously convicted of money laundering in Estonia, according to the Federal Bureau of Investigation. He is identified with a company called Rove Digital, which investigators say ran the operation’s infrastructure.

According to the indictment, the malware also staved off antivirus software updates, which meant that an infected computer could not detect that it was infected. This also made the machine vulnerable to other security bugs.

The malware affected both Windows and Mac operating systems. On its web site, the F.B.I. outlines how to detect this particular program and how to get rid of it.

Mr. Bharara described the scheme as “cyber infestation of the first order” that reflected the global nature of Internet fraud.

Computer Free Silicon Valley School, That Doesn’t Compute


- By MATT RICHTEL - The New York Times - October 22, 2011

LOS ALTOS, Calif. — The chief technology officer of eBay sends his children to a nine-classroom school here. So do employees of Silicon Valley giants like Google, Apple, Yahoo and Hewlett-Packard.

But the school’s chief teaching tools are anything but high-tech: pens and paper, knitting needles and, occasionally, mud. Not a computer to be found. No screens at all. They are not allowed in the classroom, and the school even frowns on their use at home.

Schools nationwide have rushed to supply their classrooms with computers, and many policy makers say it is foolish to do otherwise. But the contrarian point of view can be found at the epicenter of the tech economy, where some parents and educators have a message: computers and schools don’t mix.

This is the Waldorf School of the Peninsula, one of around 160 Waldorf schools in the country that subscribe to a teaching philosophy focused on physical activity and learning through creative, hands-on tasks. Those who endorse this approach say computers inhibit creative thinking, movement, human interaction and attention spans.

The Waldorf method is nearly a century old, but its foothold here among the digerati puts into sharp relief an intensifying debate about the role of computers in education.

“I fundamentally reject the notion you need technology aids in grammar school,” said Alan Eagle, 50, whose daughter, Andie, is one of the 196 children at the Waldorf elementary school; his son William, 13, is at the nearby middle school. “The idea that an app on an iPad can better teach my kids to read or do arithmetic, that’s ridiculous.”

Mr. Eagle knows a bit about technology. He holds a computer science degree from Dartmouth and works in executive communications at Google, where he has written speeches for the chairman, Eric E. Schmidt. He uses an iPad and a smartphone. But he says his daughter, a fifth grader, “doesn’t know how to use Google,” and his son is just learning. (Starting in eighth grade, the school endorses the limited use of gadgets.)

Three-quarters of the students here have parents with a strong high-tech connection. Mr. Eagle, like other parents, sees no contradiction. Technology, he says, has its time and place: “If I worked at Miramax and made good, artsy, rated R movies, I wouldn’t want my kids to see them until they were 17.”

While other schools in the region brag about their wired classrooms, the Waldorf school embraces a simple, retro look — blackboards with colorful chalk, bookshelves with encyclopedias, wooden desks filled with workbooks and No. 2 pencils.

On a recent Tuesday, Andie Eagle and her fifth-grade classmates refreshed their knitting skills, crisscrossing wooden needles around balls of yarn, making fabric swatches. It’s an activity the school says helps develop problem-solving, patterning, math skills and coordination. The long-term goal: make socks.

Down the hall, a teacher drilled third-graders on multiplication by asking them to pretend to turn their bodies into lightning bolts. She asked them a math problem — four times five — and, in unison, they shouted “20” and zapped their fingers at the number on the blackboard. A roomful of human calculators.

In second grade, students standing in a circle learned language skills by repeating verses after the teacher, while simultaneously playing catch with bean bags. It’s an exercise aimed at synchronizing body and brain. Here, as in other classes, the day can start with a recitation or verse about God that reflects a nondenominational emphasis on the divine.

Andie’s teacher, Cathy Waheed, who is a former computer engineer, tries to make learning both irresistible and highly tactile. Last year she taught fractions by having the children cut up food — apples, quesadillas, cake — into quarters, halves and sixteenths.

“For three weeks, we ate our way through fractions,” she said. “When I made enough fractional pieces of cake to feed everyone, do you think I had their attention?”

Some education experts say that the push to equip classrooms with computers is unwarranted because studies do not clearly show that this leads to better test scores or other measurable gains.

Is learning through cake fractions and knitting any better? The Waldorf advocates make it tough to compare, partly because as private schools they administer no standardized tests in elementary grades. And they would be the first to admit that their early-grade students may not score well on such tests because, they say, they don’t drill them on a standardized math and reading curriculum.

When asked for evidence of the schools’ effectiveness, the Association of Waldorf Schools of North America points to research by an affiliated group showing that 94 percent of students graduating from Waldorf high schools in the United States between 1994 and 2004 attended college, with many heading to prestigious institutions like Oberlin, Berkeley and Vassar.

Of course, that figure may not be surprising, given that these are students from families that value education highly enough to seek out a selective private school, and usually have the means to pay for it. And it is difficult to separate the effects of the low-tech instructional methods from other factors. For example, parents of students at the Los Altos school say it attracts great teachers who go through extensive training in the Waldorf approach, creating a strong sense of mission that can be lacking in other schools.

Absent clear evidence, the debate comes down to subjectivity, parental choice and a difference of opinion over a single world: engagement. Advocates for equipping schools with technology say computers can hold students’ attention and, in fact, that young people who have been weaned on electronic devices will not tune in without them.

Ann Flynn, director of education technology for the National School Boards Association, which represents school boards nationwide, said computers were essential. “If schools have access to the tools and can afford them, but are not using the tools, they are cheating our children,” Ms. Flynn said.

Paul Thomas, a former teacher and an associate professor of education at Furman University, who has written 12 books about public educational methods, disagreed, saying that “a spare approach to technology in the classroom will always benefit learning.”

“Teaching is a human experience,” he said. “Technology is a distraction when we need literacy, numeracy and critical thinking.”

And Waldorf parents argue that real engagement comes from great teachers with interesting lesson plans.

“Engagement is about human contact, the contact with the teacher, the contact with their peers,” said Pierre Laurent, 50, who works at a high-tech start-up and formerly worked at Intel and Microsoft. He has three children in Waldorf schools, which so impressed the family that his wife, Monica, joined one as a teacher in 2006.

And where advocates for stocking classrooms with technology say children need computer time to compete in the modern world, Waldorf parents counter: what’s the rush, given how easy it is to pick up those skills?

“It’s supereasy. It’s like learning to use toothpaste,” Mr. Eagle said. “At Google and all these places, we make technology as brain-dead easy to use as possible. There’s no reason why kids can’t figure it out when they get older.”

There are also plenty of high-tech parents at a Waldorf school in San Francisco and just north of it at the Greenwood School in Mill Valley, which doesn’t have Waldorf accreditation but is inspired by its principles.

California has some 40 Waldorf schools, giving it a disproportionate share — perhaps because the movement is growing roots here, said Lucy Wurtz, who, along with her husband, Brad, helped found the Waldorf high school in Los Altos in 2007. Mr. Wurtz is chief executive of Power Assure, which helps computer data centers reduce their energy load.

The Waldorf experience does not come cheap: annual tuition at the Silicon Valley schools is $17,750 for kindergarten through eighth grade and $24,400 for high school, though Ms. Wurtz said financial assistance was available. She says the typical Waldorf parent, who has a range of elite private and public schools to choose from, tends to be liberal and highly educated, with strong views about education; they also have a knowledge that when they are ready to teach their children about technology they have ample access and expertise at home.

The students, meanwhile, say they don’t pine for technology, nor have they gone completely cold turkey. Andie Eagle and her fifth-grade classmates say they occasionally watch movies. One girl, whose father works as an Apple engineer, says he sometimes asks her to test games he is debugging. One boy plays with flight-simulator programs on weekends.

The students say they can become frustrated when their parents and relatives get so wrapped up in phones and other devices. Aurad Kamkar, 11, said he recently went to visit cousins and found himself sitting around with five of them playing with their gadgets, not paying attention to him or each other. He started waving his arms at them: “I said: ‘Hello guys, I’m here.’ ”

Finn Heilig, 10, whose father works at Google, says he liked learning with pen and paper — rather than on a computer — because he could monitor his progress over the years.

“You can look back and see how sloppy your handwriting was in first grade. You can’t do that with computers ’cause all the letters are the same,” Finn said. “Besides, if you learn to write on paper, you can still write if water spills on the computer or the power goes out.”

America's Child Death Shame


BBC News - October 17, 2011

Why is the problem of violence against children so much more acute in the US than anywhere else in the industrialized world, asks Michael Petit, President of Every Child Matters.

Every day in the United States 7 children are badly beaten and killed by their abusive parents.  Over the past 10 years, more than 20,000 American children are believed to have been killed in their own homes by family members. That is nearly four times the number of US soldiers killed in Iraq and Afghanistan.

The child maltreatment death rate in the US is triple Canada's and 11 times that of Italy. Millions of children are reported as abused and neglected every year. Why is that?

Downward spiral
Part of the answer is that teen pregnancy, high-school dropout, violent crime, imprisonment, and poverty, all factors associated with abuse and neglect - are generally much higher in the US.

Further, other rich nations have social policies that provide child care, universal health insurance, pre-school, parental leave and visiting nurses to virtually all in need.

In the US, when children are born into young families not prepared to receive them, local social safety nets may be frayed, or non-existent. As a result, they are unable to compensate for the household stress the child must endure.

In the most severe situations, there is a predictable downward spiral and a child dies. Some 75% of these children are under four, while nearly half are under one.

Geography matters a lot in determining child wellbeing. Take the examples of Texas and Vermont.

Texas prides itself in being a low tax, low service state. Its per capita income places it in the middle of the states, while its total tax burden - its willingness to tax itself - is near the bottom.

Vermont, in contrast, is at the other extreme. It is a high-tax, high-service state.

Mix of risks
In looking at key indicators of wellbeing, children from Texas are twice as likely to drop out of high school as children from Vermont. They are four times more likely to be uninsured, four times more likely to be incarcerated, and nearly twice as likely to die from abuse and neglect.

In Texas combination of elements add to the mix of risks that a child faces. These include a higher poverty rate in Texas, higher proportions of minority children, lower levels of educational attainment, and a political culture, which holds a narrower view of the role of government in addressing social issues.

Texas, like many other traditionally conservative states, is likely to have a weaker response to families that need help in the first place, and be less efficient in protecting children after abuse occurs.

The sharp differences between the states raises the question of an expanded federal role.

Are children Texas children first? Or are they first American children with equal opportunity and protection?

Blame parents?
A national strategy, led by our national government, needs to be developed and implemented. For a start, the Congress should adopt legislation that would create a National Commission to End Child Abuse and Neglect Fatalities.

And no children's programs should be on the chopping block, federal or state. Children did not crash the US economy. It is both shortsighted economic policy and morally wrong to make them pay the price for fixing it.

But instead as the US economy lags, child poverty soars, and states cut billions in children's services, we are further straining America's already weak safety net.

Inevitably, it means more children will die. The easy answer is to blame parents and already burdened child protection workers. But easy answers don't solve complex problems.

And with millions of children injured and thousands killed, this problem is large indeed, and it deserves a large response.

Michael Petit is the president of Every Child Matters. He served as the state of Maine's human services commissioner, and as deputy of the Child Welfare League of America.

http://www.bbc.co.uk/news/magazine-15193530

Buoyed by Wall Street 99% Protests, Rallies Sweep the Globe

Buoyed by the longevity of the Occupy Wall Street encampment in Manhattan, a wave of protests swept across Asia, the Americas and Europe over the weekend, with hundreds and in some cases thousands of people expressing discontent with the economic tides in marches, rallies and occasional clashes with the police.

- By CARA BUCKLEY and RACHEL DONADIO - The New York Times - October 15, 2011

Buoyed by the longevity of the Occupy Wall Street encampment in Manhattan, a wave of protests swept across Asia, the Americas and Europe over the weekend, with hundreds and in some cases thousands of people expressing discontent with the economic tides in marches, rallies and occasional clashes with the police.

In Rome on Saturday, a rally thick with tension spread over several miles. Small groups of restive young people turned a largely peaceful protest into a riot, setting fire to at least one building and a police van and clashing with police officers, who responded with water cannons and tear gas. The police estimated that dozens of protesters had been injured, along with 26 law enforcement officials; 12 people were arrested.

By early Sunday in New York, 92 people had been arrested, including 24 accused of trespassing in a Greenwich Village branch of Citibank and 45 during a raucous rally of thousands of people in and around Times Square. More than 1,000 people filled Washington Square Park on Saturday night, but almost all of them left after dozens of police officers with batons and helmets streamed through the arch and warned that they would be enforcing a midnight curfew. Fourteen were arrested for remaining in the park.

Three police officers were injured dealing with a rambunctious crowd at 46th Street and 7th Avenue; they were treated at Bellevue Hospital Center and released.

In Chicago, about 175 people were arrested at about 1 a.m. on Sunday after refusing to leave Grant Park before the 11 p.m. closing time, said Officer Laura Kubiak, a spokeswoman for the Chicago Police Department.Other than in Rome, the demonstrations across Europe were largely peaceful, with thousands of people marching past ancient monuments and gathering in front of capitalist symbols like the European Central Bank in Frankfurt. Similar scenes unfolded across cities on several continents, including in Sydney, Australia; Tokyo; Hong Kong; Toronto; and Los Angeles, where several thousand people marched to City Hall as passing drivers honked their support.

But just as the rallies in New York have represented a variety of messages — signs have been held in opposition to President Obama yards away from signs in support of him — so did Saturday’s protests contain a grab bag of sentiments, opposing nuclear power, political corruption and the privatization of water.

Yet despite the difference in language, landscape and scale, the protests were united in frustration with the widening gap between the rich and the poor.

“I have no problem with capitalism,” Herbert Haberl, 51, said in Berlin. “But I find the way the financial system is functioning deeply unethical . We shouldn’t bail out the banks. We should bail out the people.”

In New York, where the occupation of Zuccotti Park in Lower Manhattan was moving into its second month, a large crowd marched north early Saturday afternoon to Washington Square Park, where it was joined by several hundred college students who decried, among other things, student debt and unemployment.

In late afternoon, the crowds marched up Avenue of the Americas toward a heavily barricaded Times Square, beseeching onlookers to join in with cries of “You are the 99 percent.”

At Times Square, they convened with thousands of other protesters and caught hundreds of tourists unawares. “We thought they were going to stay down on Wall Street,” said Sandi Bernard — who is 59 and was visiting from Waldorf, Md. — while wondering if she would have trouble making the 8 p.m. curtain call for “Spider-Man: Turn Off the Dark.”

Some tourists pumped their fists and whooped from atop double-decker sightseeing buses as the protesters cheered back. To keep 42nd Street clear the police shunted marchers up to 46th Street, where officers and the pressed-in masses had several run-ins. At one point the police pushed the barricades in toward the crowd, and the crowd pushed back. At another point two mounted officers moved their horses briefly into the throng.

Three people were arrested trying to take down barricades, the police said. Later, as officers tried to disperse people east on 46th Street, 42 people who the police said defied their orders were taken away, in plastic handcuffs, in three police wagons. One witness, Harry Kaback, a 26-year-old comic selling tickets to the Ha! comedy club, said the protesters were “getting rowdy” with the police and shouting in their faces.

For the protesters, marching on Times Square held almost as much significance as did protesting against Wall Street.

“Times Square represents business as usual — buy, buy, buy in this economic climate, watch the latest show,” said Elias Holtz, 29, a Web designer who lives in Bushwick, Brooklyn. “But the crisis is everywhere.”

The protest moved back to Washington Square Park, where people listened to speeches and debated whether to stay while police officers marched down Fifth Avenue and into the square. One officer gave a warning as midnight approached: “The park closes at 24:00 hours. You can exit to the east, west or south. You have 10 minutes.”

Virtually everyone chose to leave, save 14 protesters who remained sitting in the dry bed of the park’s fountain and were arrested, the police said. Many headed back to Zuccotti Park, where there is no curfew.

Earlier, about a dozen protesters entered a Chase branch in Lower Manhattan and withdrew their money from the bank while 300 other people circled the block, some shouting chants and beating on drums. The former Chase customers, who declined to reveal how much they had in their accounts — though a few acknowledged it was not much — said they planned to put their money into smaller banks or credit unions.

“The more resources we give to small institutions, the more they’ll be able to provide conveniences like free A.T.M.’s and streamlined online banking so they can compete with the larger banks,” said Hannah Appel, 33, a postdoctoral fellow at Columbia University.

Five people wearing masks were arrested during the march to Times Square for “loitering with masks,” said Paul J. Browne, the Police Department’s chief spokesman, an apparent reference to an old state law prohibiting masked gatherings (the law does not apply to masquerade parties).

And two dozen people were arrested at a Citibank branch on LaGuardia Place on trespassing charges.

Some witnesses said that the protesters had tried to leave but were locked inside by bank employees. “They were trying to leave, but they wouldn’t let them,” said Meaghan Linick, 23, of Greenpoint, Brooklyn. She said one woman who had been inside and left was forced back inside by police officers.

Citibank, in a statement, said the protesters “were very disruptive and refused to leave after being repeatedly asked, causing our staff to call 911.” The statement continued, “The police asked the branch staff to close the branch until the protesters could be removed.”

In Washington, several hundred people marched through downtown, beginning in the early morning, passing by several banks. Escorted by the police, the marchers also demonstrated in front of the White House and the Treasury Department before moving on to a rally on the National Mall, where they were joined by representatives of unions and other supporters.

“You see how people are beholden to corporate interests no matter how hard you might have worked to get them elected,” said Kelly Mears, 24, a former software engineer. “There is a disconnect.”

Saturday’s protests sprang not only from the Occupy Wall Street movement that began last month in New York, but also from demonstrations in Spain in May. This weekend, the global protest effort came as finance ministers and central bankers from the Group of 20 industrialized nations meet in Paris to discuss economic issues, including ways to tackle Europe’s sovereign debt crisis.

Tens of thousands of protesters assembled in Madrid on Saturday evening, when chants mingled with live music, including a rendition of Beethoven’s “Ode to Joy,” lending the downtown area an upbeat feel on an unusually balmy fall afternoon.

Brief clashes were reported in London, where the police were out in force with dozens of riot vans, canine units and hundreds of officers. But the gathering, attended by people of all ages, was largely peaceful, with a picnic atmosphere and people streaming in and out of a nearby Starbucks.

The WikiLeaks founder, Julian Assange, made an appearance when a crowd assembled in front of St. Paul’s Cathedral. To loud cheers, Mr. Assange called the protest movement “the culmination of a dream.”

In Rome, the protests Saturday were as much about the growing dissatisfaction with the government of Prime Minister Silvio Berlusconi, who narrowly survived a vote of confidence on Friday, as they were about global financial inequities. Tens of thousands of people turned out for what started as peaceful protests and then devolved into ugly violence. The windows of shops and banks were smashed, a police van was destroyed, and some Defense Ministry offices were set alight.

“We don’t feel represented by the government. We feel made fun of,” Alessia Tridici, 18, said in Rome. “We’re upset because we don’t have prospects for the future. We’ll never see a pension. We’ll have to work until we die.”

Cara Buckley reported from New York, and Rachel Donadio from Rome. Reporting was contributed by Jack Ewing from Frankfurt; Nicholas Kulish from Berlin; Joseph Goldstein, Elizabeth A. Harris, Colin Moynihan and Christopher Maag from New York; Catherine Garcia from Los Angeles; Raphael Minder from Madrid; Ron Nixon from Washington; and Ravi Somaiya from London.