The recent surge in cybercrime:

In recent years, cybercrime has skyrocketed. Since 2014, hackers have pulled off some major hits: they nabbed over $81 million in an online bank heist, infiltrated computers at Sony Pictures Entertainment and the Democratic National Committee, and even launched cyberattacks on critical infrastructure in Ukraine and the United Kingdom.

The surge in cyber threats stems from the tactics of three main groups:

1. Organized crime: Cybercrime gangs deal in stolen data like credit card numbers and carry out extortion schemes for profit.

2. Hacktivist movements: These groups acquire and release sensitive data and documents, often to expose perceived wrongdoing. Cybercrime gangs have adopted hacktivist methods to make money.

3. State-sponsored hacking: Countries back hacking groups for intelligence and military reasons.

Origins of Hacking: Tracing to Early Internet Years:

Before the World Wide Web burst onto the scene in 1989, the Internet was a playground for tech-savvy folks. Back between 1969 and the late '80s, a "hacker" was someone who loved messing around with technology. These hackers hung out on bulletin board systems (BBS), which were like early chat rooms online.

Hacker culture emerged from a blend of hippie counterculture and gave rise to the Whole Earth Catalog. This catalog promoted self-sufficient ways of living that stood out from mainstream society. The Whole Earth 'Lectronic Link (WELL) quickly became a go-to spot for counterculture tech enthusiasts, partly because Grateful Dead lyricist John Perry Barlow was involved.

Barlow teamed up to start the Electronic Frontier Foundation (EFF), a defender of online freedom against government interference. The EFF saw the internet as a cool place for free speech, which was backed by tech-savvy MIT students. They also adopted a rebellious and funny vibe, inspired by the hacker group Cult of the Dead Cow.

Russia emerged as a cybercrime hub in the 1990s:

In the 1990s, Russia saw a surge in cybercrime. After the collapse of the Soviet Union, many tech and engineering graduates faced a tough job market. Some left the country, but others turned to illegal activities like credit card fraud. With online shopping becoming popular, these crimes found fertile ground. Eventually, these scattered individuals formed criminal groups, pooling their skills for more organized criminal activities.

Card fraud had a drawback: crooks had to resort to old-school tactics to turn stolen card numbers into cash. Usually, this meant using the cards to buy stuff they could sell later. To tackle this, American financial companies started checking cards from the former Eastern Bloc more carefully.

A Cybercriminal's Weapon:

Evgeniy Bogachev, a software coder, crafted a dangerous tool called Zeus, aimed at exploiting online banking services. He peddled this virus in the dark corners of the internet's hacker community, starting at a mere $3,000.

Zeus wasn't your typical virus. Instead of attacking banks directly, it targeted the computers of unsuspecting bank customers. Here's how it worked: when a user logged into their bank account from a computer infected with Zeus, everything looked normal on their screen " just like the bank's website. But behind the scenes, Zeus was at work. It siphoned money from the user's account without them knowing and snatched their password, giving thieves a golden ticket to steal even more cash later on.

Cybercriminals peddle ransomware and pilfered data:

Pulling off cybercrimes like ransomware attacks and data theft involves more than just sitting behind a computer screen. Criminals often need to take their schemes into the real world. For instance, those who steal credit card information have to find ways to sell it, while hackers who target online banks must figure out how to turn their ill-gotten gains into cash. To do this, they enlist the help of "money mules" who agree to deposit small amounts of the stolen money into their bank accounts in exchange for a share of the loot. However, involving more people in the operation not only cuts into the profits but also raises the risk of getting caught.

Criminals are turning to ransomware, a type of virus that locks up computers until the owner pays a fee in bitcoins. This cybercrime tactic became even more popular with a later version of Zeus offering this option.

Ransomware is big money. According to the nonprofit Cyber Threat Alliance, one ransomware campaign raked in a whopping $325 million.

Data Theft from Call Center Exposed:

Some crooks made big bucks by stealing people's info. Take, for instance, ex-employees at an Indian call center. They found a loophole in the system that let them sneak into the servers. Once inside, they could swipe all kinds of stuff, like customer accounts from TalkTalk, a UK telecom company.

Using sneaky tricks, they pretended to be TalkTalk workers. Then they conned TalkTalk customers out of over GBP 100,000.

The Dark Web harbors criminals:

The Dark Web started as a project by the US Naval Research Laboratory (NRL) to assist intelligence agents in accessing websites without exposing their identities. On the regular internet, connections between computers are established through unique internet protocol (IP) addresses. So, when you visit a site like the BBC, your IP address gets linked to the BBC server's address. This means your IP is visible to your internet service provider, the BBC, and any other computers in between. For certain folks like CIA agents, having their IP linked to their agency could be risky.

The NRL came up with a cool idea called "onion routing" for a new internet protocol they named Tor, short for "triple-encryption onion routing". Here's how it works: instead of sending a message directly, Tor encrypts it and passes it through a series of computers. Each computer peels off a layer of encryption to figure out where to send the message next, but they don't know who sent it or where it's ultimately going. It's like passing a secret note through a chain of friends, but none of them know who wrote it or who it's for.

Government and Tor:

To avoid drawing attention, the government teamed up with the Electronic Frontier Foundation to offer Tor to everyone. Tor lets you browse the internet anonymously. Over two million folks now use it through a special browser.

The government's Tor project unintentionally gave rise to a shadowy side of the internet called the Dark Web. These are websites you can only access with Tor, where people can do all sorts of sketchy stuff. One famous example was Silk Road, a website where people bought and sold drugs, using Bitcoin to stay hidden. It was a big deal until the cops busted it in 2013 and locked up the guy behind it, Ross Ulbricht, for life. But shutting down Silk Road didn't stop similar sites from popping up. The Dark Web also became a hotspot for trading secret business info. Cybercriminals are now using mobile apps for their shady dealings. Big messaging apps like WhatsApp and iMessage make it so messages are hidden, even from the companies behind the apps.

Criminals Adopt Hacktivist Methods:

Hacktivists are usually in it for the message, not the money. They strike to make a point, whether it's about politics, personal grudges, or just causing chaos. Like when Anonymous targeted the Church of Scientology or when LulzSec hacked Fox TV and spilled the beans on thousands of X Factor hopefuls.

But then came the dark twist. Criminals caught on to these tactics and saw a golden opportunity. They hijacked the Distributed Denial of Service (DDOS) attack strategy. Imagine a flood of page requests hitting a website so hard that it just gives up. That's the DDOS attack. And it got even nastier with tools like Low Orbit Ion Cannon, making the whole process a piece of cake for the bad guys.

Criminal hackers offer a service that'll release DDOS attacks on anyone for a price. These attacks can knock a business offline for hours, causing huge financial losses. Tracking down the culprits behind these attacks is extremely difficult, leaving victims and investigators frustrated.

Hackers Amplify Attacks through IoT:

Hackers ramped up their Distributed Denial of Service (DDOS) attacks by using viruses that hijacked computers worldwide, turning them into launchpads for attacks. With the advent of the Internet of Things (IoT), breaking into computers became a cakewalk. Unlike before, when hackers relied on emails or shady websites to infect computers, IoT opened up a whole new playground of vulnerable internet-connected devices. Harnessing this newfound power, hackers orchestrated major attacks, with even online games like Minecraft becoming battlegrounds.

In the world of Minecraft, players build their digital realms, often paying to safeguard their creations on computer servers run by external companies. Hosting these Minecraft worlds can be quite profitable. However, trouble brews when hackers launch massive DDOS attacks against these server hosts. Sometimes, these attacks are commissioned by rival servers, while other times they're aimed at extorting money from the hosting companies. Security expert Robert Coelho made a startling discovery during these attacks. Instead of coming from regular computers, the requests bombarding the servers were originating from infected webcams, security cameras, smart TVs, and other internet-connected devices.

Nations Utilize Hacking for Defense and Spying:

Inspectors from the International Atomic Energy Agency expressed concerns about Iran's Natanz nuclear facility potentially developing nuclear weapons. To counter this threat, a complex computer virus known as Stuxnet was deployed. This virus targeted the machines controlling the centrifuges at Natanz. When infected, these machines began malfunctioning, causing the centrifuges to spin out of control until they broke down. Many suspect that the United States and Israel were behind the Stuxnet attack.

Back in December 2015, some hackers got into the computer systems that controlled important parts of Ukraine's power network. They messed with things and ended up cutting off electricity to over 100 cities and towns. Ukraine said it looked like Russia had something to do with it, either "directly or indirectly."

In 2017, hackers targeted UK companies vital for power supply, planting a disruptive virus. They sought secret information and aimed to destabilize the power grid. Secureworks identified at least four British oil and gas companies affected, suspecting ties to the Russian government.

Hackers Weaponize Stolen Data:

Cybercriminals and state hackers have adopted tactics from groups like Anonymous and LulzSec, turning stolen data into weapons. They manipulate the news media by leaking sensitive information they've stolen. Take the example of Ashley Madison, a dating site for extramarital affairs. The so-called Impact Team breached their security, snatching up customer records containing names, addresses, and intimate desires. Threatening to expose it all if the site wasn't shut down, they played a game of cat and mouse with the owners. Eventually, they unleashed a flood of corporate emails and documents, manipulating the press along the way. By dangling this "salacious" subject in front of them and releasing data bit by bit, they kept the story alive, stirring up waves of public attention.

In 2014, a hacking crew called Guardians of Peace infiltrated Sony Pictures Entertainment. They leaked movies that hadn't hit theaters yet and tons of private documents and emails. The U.S. government connected these hackers to North Korea's ruler, Kim Jong Un. They did this because the movie The Interview made fun of him.

North Korea might also be behind hacks on banks worldwide. From 2015 to 2018, these hackers swiped at least $122 million.