Botnet Vet Beset by FBI Dragnet - followed by... Cold Sweat, Upset & Regret

In the first prosecution of its kind in the nation, a man who is well known to members of the “botnet underground” pleaded guilty today to federal charges related to his use of “botnets” – armies of compromised computers – to steal the identities of victims throughout the country by extracting information from their personal computers and wiretapping their communications.

John Schiefer, 26, of Los Angeles (90011), appeared today before United States District Judge A. Howard Matz and pleaded guilty to accessing protected computers to conduct fraud, disclosing illegally intercepted electronic communications, wire fraud and bank fraud...

Schiefer’s “spybot” malware allowed him to intercept communications sent between victims’ computers and financial institutions, such as PayPal. Schiefer sifted through those intercepted communications and mined usernames and passwords to accounts. Using the stolen usernames and passwords, Schiefer made purchases and transferred funds without the consent of the victims. Schiefer also gave the stolen usernames and passwords, as well as the wiretapped communications, to others. (more)