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Claims worldwide spam levels have declined 30 percent over the Christmas period due to the loss of one botnet are so far unfounded.

UK-based security firm SoftScan stated in the first week of January this year they discovered a 30 percent reduction in spam, citing the possible cause being the result of a major botnet temporarily losing control of its clients.

Security companies have yet to see an equal drop-off globally and suggest that decrease may be in the UK only.

Experts from Marshal's TRACE (Threat Research and Content Engineering) team have drilled into both UK and Asian traffic and have yet to find the reduction, however discovered a more sinister matter - one malicious worm, discovered in September, may in fact be responsible for the deluge of Christmas spam and new year phishing e-mails.

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Bradley Anstis, Asia Pacific director of research and product development for Marshal said after accounting for weekend drops in spam and the expected general increase in spam in December one should notice a drop-off in January; however that has not happened this year.

Anstis said in the middle of November last year, phishing e-mails as a percentage of global spam were at a year low at just under 0.5 percent. This figure spiked at 2.25 percent at the start of December and fell to 1.4 percent around January 7.

"The worm responsible, Stration, was found by Kaspersky in September and Marshal in October, but the problem is we have not seen a drop-off in spam and we have honeypots all around the world and we have drilled into UK and Asian traffic," Anstis said.

"That worm alone, by itself was responsible for 27 percent of all e-mail threats in October, which would make it the most successful botnet ever seen, but the big worry about Stration is that it is self-morphing, which gave us quite a concern, and from a technical viewpoint it is a step forward for bot writers because it was designed for longevity and to step around technology.

"If you look at the time the drop-off happened, and remember you are looking at a percentage of all spam, in January phishing spam was rising and legitimate spam dropped off."

This is an alarming trend, according to Antsis. Antsis said the TRACE team has started to notice alarming similarities between phishing and spam e-mails and said perhaps there is more money to be made from spammers sending out phishing e-mails than on-selling e-mail addresses to organized crime.

"This would mean to me the spammers we hurt from day one are latching onto good money from phishing attacks and I suspect they are now working in cahoots," Antsis said.

"Traditionally they used to sell the lists to phishing organizations, but they have now worked out they can make more money from phishing attacks, which may become the big security threat of 2007 as successful phishing is not just an e-mail now but a number of different elements intended to surround victims."

109th CONGRESS

1st Session

H. R. 1099

To criminalize Internet scams involving fraudulently obtaining personal information, commonly known as phishing.

IN THE HOUSE OF REPRESENTATIVES

March 3, 2005

Ms. HOOLEY (for herself, Mr. ENGEL, and Mr. CASE) introduced the following bill; which was referred to the Committee on the Judiciary

---

A BILL

To criminalize Internet scams involving fraudulently obtaining personal information, commonly known as phishing.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the 'Anti-phishing Act of 2005'.

SEC. 2. FINDINGS.

Congress finds the following:

(1) American society is increasingly dependent on the Internet for communications, entertainment, commerce, and banking.

(2) For the Internet to reach its full potential in these and other respects, it must continue to be a trustworthy medium. This means, for example, that Internet users should be able to trust the stated origin of Internet communications and the stated destination of Internet hyperlinks.

(3) Internet users are increasingly subjected to scams based on misleading or false communications that trick the user into sending money, or trick the user into revealing enough information to enable various forms of identity theft that result in financial loss.

(4) One class of such scams, called 'phishing', uses false e-mail return addresses, stolen graphics, stylistic imitation, misleading or disguised hyperlinks, so-called 'social engineering', and other artifices to trick users into revealing personally identifiable information. After obtaining this information, the 'phisher' then uses the information to create unlawful identification documents and/or to unlawfully obtain money or property.

(5) These crimes victimize not only the individuals whose information is stolen, but the entire online community, including millions of people who rely on the integrity of the Internet's system of addresses and hyperlinks.

SEC. 3. CRIMINAL OFFENSE.

(a) In General- Chapter 63 of title 18, United States Code, is amended by adding at the end the following:

'Sec. 1351. Internet fraud

'(a) Website- Whoever knowingly, with the intent to carry on any activity which would be a Federal or State crime of fraud or identity theft--

'(1) creates or procures the creation of a website or domain name that represents itself as a legitimate online business, without the authority or approval of the registered owner of the actual website or domain name of the legitimate online business; and

'(2) uses that website or domain name to induce, request, ask, or solicit any person to transmit, submit, or provide any means of identification to another;

shall be fined under this title or imprisoned up to five years, or both.

'(b) Messenger- Whoever knowingly, with the intent to carry on any activity which would be a Federal or State crime of fraud or identity theft--

'(1) falsely represents itself as being sent by a legitimate online business;

'(2) includes an Internet information location tool that refers or links users to an online location on the World Wide Web that falsely purports to belong to or be associated with such legitimate online business; and

'(3) induces, requests, asks, or solicits a recipient of the electronic mail message directly or indirectly to provide, submit, or relate any means of identification to another;

shall be fined under this title or imprisoned up to five years, or both.

'(c) Definitions- In this section:

'(1) The term 'domain name' has the meaning given that term in section 46 of the Act entitled 'An Act to provide for the registration and protection of trademarks used in commerce, to carry out the provisions of certain international conventions, and for other purposes' (in this subsection referred to as the 'Trademark Act of 1946') (15 U.S.C. 1127).

'(2) The term 'Internet' has the meaning given that term in section 230(f)(1) of the Communications Act of 1934 (47 U.S.C. 230(f)(1)).

'(3) The term 'electronic mail message' has the meaning given that term in section 3 of the CAN-SPAM Act of 2003 (15 U.S.C. 7702).

'(4) The term 'initiate' has the meaning given that term in section 3 of the CAN-SPAM Act of 2003 (15 U.S.C. 7702).

'(5) The term 'procure' means intentionally to pay or provide consideration to, or induce, another person to create a website or domain name.

'(6) The term 'recipient' has the meaning given that term in section 3 of the CAN-SPAM Act of 2003 (15 U.S.C. 7702).

'(7) The term 'Internet information location tool' when used in this section has the meaning given that term in section 231 of the Communications Act of 1934 (47 U.S.C. 231).

'(8) The term 'means of identification' when used in this section has the meaning given that term in section 1028 of this title.'.

(b) Chapter Analysis- The chapter analysis for chapter 63 of title 18, United States Code, is amended by adding at the end the following:

'1351. Internet fraud.'.

END

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