Russian cybercrime: means, motive and opportunity

The Russian hacker is an established trope of pop culture and news analysis alike and thus gets recycled ad nauseam, but it is based on fact, that they are disproportionately active in the world of cybercrime (and, indeed, cyberespionage). My latest Moscow News column, ‘Why are Russians excellent cybercriminals,’ briefly explores some of the reasons. In the future, I also want to look at the MVD’s Department K, its computer crime directorate, as well as the FSB’s Center for Information Security.

Russian discourse on organized crime: why does it prefer to think itself a victim?

There is, it must be said, a great deal of rubbish said and written about Russian organized and transnational crime in the West. Sadly, there’s quite a lot coming from Russia, too. A particularly depressing and, I feel, increasingly common theme emerging in Russian outlets that are often connected with the state uses not so much Western discourse so much as a caricature of Western discourse as a means to attack it, in a technique that is strikingly similar to Soviet-era propaganda.

Consider a recent piece run by Voice of Russia under the rubric Is Russian mafia dangerous? It’s an interesting and telling mix of the accidentally accurate and the (surely?) deliberately propagandistic. (more…)

Operation Ghost Click: FBI (and friends) take down major Russian and Estonian cybercrime operation

It can sometimes seem like one of the more striking ironies of the modern global underworld is that the criminals are so much more willing to cooperate than states. A case in point would seem to be today’s breaking story about the FBI’s Operation Ghost Click and the unsealing of an indictment against a major cybercriminal venture that had hijacked 4 million computers in a hundred countries. Through front companies such as Esthost and Rove Digital, they made perhaps $14 million, largely through redirecting browsers to pay-per-click ad sites using DNSChanger malware. (Worried that yours was infected? Check here, courtesy of the FBI.)

The criminals were Russian and Estonian nationals. Moscow and Tallinn may be at daggers’ drawn, but it seems that their crooks are still happy to work together when there’s profit to be made.

Well, yes and no.  (more…)

Viktor Bout’s conviction: first thoughts

So, arms dealer and get-anything-anywhere shipper Viktor Bout was today found guilt on all four counts of his indictment, that is:

  • conspiracy to kill US nationals;
  • conspiracy to kill US government officers;
  • conspiracy to acquire and use anti-aircraft missiles; and
  • conspiracy to provide material support to a foreign terrorist organization.

Of course Bout and his lawyers will appeal, and they are likely to have the continued support of the Russian government and ‘party of power.’ Voice of Russia has already flatly said that “The evidence against the businessman was quite ridiculous” and no doubt a chorus of similar disapproval will come from Russia, with the LDPR’s Leonid Slutsky dismissing the verdict as “a typical American propaganda ploy.” OK, he’s in the LDPR, but it is worth remembering that he is also first deputy chairman of the Duma’s Foreign Affairs Committee. Indeed, a collection of deputies in the Russian State Duma sent a letter to Presiding Judge of The Southern District of the Federal Court of New York Shira Scheindlin on October 7 inter alia stating that:

V. Bout’s case, according to his lawyers, is based mostly on non proven facts, speculation, dubious allegations, doubtful evidence and unpersuasive accusations, that have been proclaimed in the media for almost 10 years as the truth. Therefore, the formation of a negative international public opinion about V. Bout has started years before the provocative DEA operation [Relentless], which resulted in his arrest.

They claimed, needless to say, that Bout’s arrest was part of a shadowy plot to abort the ‘reset’ in Russo-American relations.

What is the big picture, though? I doubt it will have a major impact on US-Russian relations, even thought the ‘reset’ hasn’t really taken that much hold. Given that I suspect that Bout had a relationship with the GRU, military intelligence, I wonder if this will be another nail in the coffin of that organization, or at least dead-duck chief Shlyakhturov. If Bout was indeed a sometimes-agent or at least contact for the GRU, then it may also put a crimp in some of their operations.

But what about the global arms market, is that likely to feel the absence of Viktor? He’s certainly a character, but more than that was extremely good at what he did. I doubt his network can survive much more of an absence. There will, of course, be arms dealers – there always will. But they are unlikely to have the same range of connections, organizational capacities, attention to detail and ability to draw on Russian arms stocks as Viktor. So the capacities and efficiency of the global illegal arms market is degraded, if only slightly. But every little helps.

On Military Police in the Moscow News

In this week’s column for the Moscow News, ‘Tough job for Russia’s new military police‘, I return to the vexed issues of crime in the ranks (still monstrously high) and the prospects for the new voennaya politsiya, something I’ve already written on here, although at that point without the benefit of Main Military Prosecutor Fridinskii’s splendid recent soundbite that “the scope of military corruption is mindboggling; it seems people have lost shame and a sense of proportion.” Nonetheless, the point does need to be reiterated that no police force – especially one drawn from an already-all-too-often-corrupted service – can ‘fix’ the problem. That needs to be a cultural process, a transformation of the Russian military that includes effective and law-based policing, but also extends to respect for all ranks, transparency of expenditures and a culture that holds senior officers to account. I think it’s a great step forward – but I’ll really start to believe in the VP when I see a senior officer in handcuffs, or them raid one of the underground factories producing counterfeit that you can still find sited on remote military bases to enjoy their “extraterritoriality” from regular law enforcement.

Good news about Russian crime (even while recognizing how far there is to go)

Maybe I’m going soft in my old age, or maybe something really is changing – a little. My latest Moscow News column riffs off my blogpost on the conviction of Sergei Butorin – ‘Osya’ – on multiple murder counts to tease out some good news from Russia on the law enforcement front. Let’s be clear about this: there are still numerous and massive problems, not least of which is the endemic culture of corruption. Even the recent purge was often an excuse for further extortion, as venal senior officers gouged bribes out of their underlings in return for a clear report. But while holding in our minds that Russia is still plagues top to bottom with corruption, criminality and the abuse of power, let’s not refuse to acknowledge that there are some signs of progress…

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