Brian McWilliams

Unleashing the dogs of cyber-war on Iraq!

Saddam Hussein could lose Internet access at the flip of a switch, and there's not much his geeks can do about it.

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Unleashing the dogs of cyber-war on Iraq!

Like an artist concealing his signature in the background of a painting, Loay Edmon Al-Botany tucks his name in the source code of Web pages at BabilOnline, the site he manages for Saddam Hussein’s son Uday.

Al-Botany, a lifelong resident of Baghdad, says his work for the government-controlled Iraqi newspaper site doesn’t pay very well — the equivalent of 100 U.S. dollars per month. But he considers himself lucky to have one of the few Internet jobs in the country, and a high-profile position at that.

Any day now, however, it could all come crashing down from a U.S.-led invasion of Iraq, says Al-Botany.

“If USA attack Iraq, the first thing [they will do] is a cyber-war,” he says.

Al-Botany, 30, remembers well the U.S. bombing of Baghdad in 1991, which targeted telecommunications and power systems. This time around, many observers predict that the U.S. will also deploy viruses, government-trained hackers, and special electromagnetic pulse bombs to knock out Iraq’s computers and other sensitive electronic equipment.

But if the U.S. wants to cut off Iraq’s access to the Internet, it need only give a nod to operators of a satellite farm in the woods west of Atlanta, or to a similar facility in the English countryside.

An analysis of network records and routing patterns shows that Iraq’s only Internet service provider, the State Company for Internet Services (SCIS), appears to send and receive nearly all of its traffic over satellite hookups provided by Atlanta International Teleport of Douglasville, Ga., and by SMS Internet of Rugby, Warwickshire.

Whenever Al-Botany or other Iraqis send an e-mail or browse the Web, their bits leave Iraq via SCIS’s satellite modems, bounce off orbiting satellites, and touch down again in satellite dishes run by AIT and SMS, which connect them to the Internet backbone in Georgia and England, respectively.

This provision of Internet access may not be legal. A 1990 executive order prohibits U.S. firms from exporting “goods, technology or services” to Iraq. And a U.N. trade embargo has similarly sanctioned member nations from dealing with Iraq.

But it’s obvious that if predictions about the U.S. launching “offensive computer operations” against Baghdad are correct, George W. Bush and Tony Blair clearly have Saddam right where they want him.

On instructions from the U.S. or U.K. governments, AIT and SMS could effectively disable e-mail and Web access for Iraq’s government and citizens.

Surprisingly, Iraqi computer specialists appear oblivious to their network’s vulnerability to attack. And even though they vow they will get their networks back up and running if they are attacked, they are also in no position to fight back.

Al-Botany, a graduate of Al-Mansour University College, one of Iraq’s top private technical schools, was surprised to learn that the headers of his e-mails to a reporter showed that the messages actually originated from AIT’s network. According to a reverse DNS look-up, the Internet protocol (IP) address from which the e-mails originated, 65.217.28.52, corresponds to the domain name “host52.atlantateleport.com.”

Similarly, Al-Botany was unaware that BabilOnline.net and another site he manages, Iraq2000.com, as well as the Iraq government’s main Web site, Uruklink.net, are all connected to the Internet through England-based SMS Networks.

AIT representatives did not respond to repeated requests by Salon for information about their services to Iraq.

Maggie Corke, a representative of SMS, says the company does not have any Iraqi customers nor does it market its services in Iraq. Corke did acknowledge that SMS provides satellite services to Transtrum, a unit of the Lebanon-based ISP TerraNet.

TerraNet’s Alaa Sami Kadhem is listed as the registrant and administrative contact in the domain record for BabilOnline.net. Sami is also listed as the registrant of Iraq’s Warkaa.net and Baghdadlink.net sites.

Sami and TerraNet representatives did not respond to interview requests.

Iraq’s use of AIT and SMS was likely brokered by a consortium called the Arab Organisation of Satellite Communications (ARABSAT), according to Lucy Norton, an analyst with London-based World Markets Research Center.

ARABSAT, which is headquartered in Saudi Arabia, arranges deals with European and U.S. communications providers on behalf of Arab League nations. Following an eight-year suspension, ARABSAT reestablished links with Iraq’s Ministry of Transport and Communications in 1999, Norton said.

However, U.S. companies providing data communications services to Iraq, even indirectly, are in violation of U.S. law and could be subject to fines and penalties, according to Rob Nichols, a spokesman for the U.S. Treasury Department’s Office of Foreign Assets Control.

Iraq’s vulnerability to cyber-attack doesn’t end with its fragile network connections. A myriad of bugs and misconfigurations in its software make the embattled country’s Internet-connected systems ripe for hack attacks.

Iraq’s DNS servers, key machines that route traffic to various computers in a network, are misconfigured to allow “zone transfers,” a reconnaissance technique used by hackers to target vulnerable machines.

A closer examination of one of the DNS servers, nic1.baghdadlink.net, reveals that it may be running a collection of outdated software with numerous high-risk security vulnerabilities. The apparent bugs in the system, located at IP address 62.145.94.1, include some that potentially give a remote attacker the ability to take control of the server.

At least one of Iraq’s Web servers has already been infected with a computer virus. The system, located at the address 62.145.94.17, last week was attempting to spread the Nimda computer worm to the computers of unprotected Windows users. The server currently is unreachable.

Considering the variety of security flaws in Iraq’s computer networks, it’s a miracle they haven’t been turned inside out by vigilante hackers, according to computer security experts.

“I’d expect to see some defacement activity, at the very least. It’s almost as though they’re extending an invitation to be hacked,” says Robert G. Ferrell, a government security researcher. Ferrell said would-be attackers may suspect, as he does, that the Iraqi systems are being closely monitored by U.S. authorities.

Al-Botany and other Iraqi “geeks” blame much of their country’s Internet backwardness on trade sanctions, which make it difficult to obtain current versions of software or up-to-date training.

Indeed, visiting Iraq’s Web sites is like stepping back into the Internet of the late 1990s. A marquee scrolls across the garishly colored home page at Iraq2000.com, which hosts information about Iraq’s Olympic teams as well as access to numerous Iraqi newspapers. Patriotic music blares on demand.

“Internet languages like Java and HTML, we didn’t learn those because Iraq did not have the Internet until recently,” says “Sameer,” an Iraqi computer scientist who asked that his real name not be published.

After emigrating to the U.S. in 2000, Sameer discovered that his technical skills were anachronistic in the U.S job market. Though successful in the competitive Iraqi college, he has been unable to find work as a programmer. Recently laid off from his job in computer support, Sameer now lives with and depends for support on his brother.

The dearth of broadband Internet connections, or even affordable home dial-up access, creates further difficulties for Iraq’s computer elite.

Ahmed Al-Shalchi, a computer engineer and 1992 graduate of the government-run University of Technology in Baghdad, says his only way onto the Internet is from a dial-up modem connection at his workplace, where he repairs PCs. Sometimes Al-Shalchi logs on from public Internet centers. But a home connection is out of his financial reach, he says.

Given the relatively poor skills and resources of some of Iraq’s best and brightest computer geeks, how capable is the country of conducting cyber-warfare?

“There is nothing to suggest that the Iraqi government has the capability for using cyber-warfare,” says Ahmed Shames, an Iraqi who emigrated in 1996 and now resides in London. Shames, chairman of the Iraqi Prospect Organization, a group of young Iraqi expatriates calling for the overthrow of Saddam, says it is unlikely that Iraq’s ruler has marshaled a cyber-war contingent.

Similarly, Sameer says he has not heard of any Iraqi computer experts being drafted into such service. Instead, he said it was more probable that Saddam would attempt to recruit offensive computer mercenaries from abroad.

Even the author of a recent novel about U.S.-Iraq cyber-war concedes it is doubtful that Saddam has sufficient home-grown talent to harm the U.S. with computer attacks. Bill Neugent, chief engineer for cyber-security at Mitre Corporation and author of “No Outward Sign” (Writers Club Press, 2002), says Iraq could, however, enlist help from sympathetic Muslims in the West. In his book, Iraqi-Americans living in Washington attack U.S. government systems to frame Iraq and goad the U.S. to retaliate.

Instead of cultivating its cyber-war readiness, Iraq’s government appears to be focusing its technical prowess on spying on and restricting its citizens’ use of the Internet. Shames says Iraqis must assume that every message they send or receive is being monitored by Big Brother.

Sometimes, as in the case of Sameer’s sibling back in Baghdad — a teacher and one of the lucky Iraqis to have Internet access at home — e-mail service mysteriously stops for weeks.

“I don’t know why. Maybe it is just a technical problem. Or maybe someone is blocking the account,” says Sameer.

To evade the state’s widely publicized snooping, some savvy Iraqis have set up webmail accounts at providers such as Yahoo, as if calculating that the probable surveillance by U.S. intelligence authorities is less dire.

But there are few means around the government’s blockades of “objectionable” Web content, which, besides porn, includes domain registration sites, according to Heider Sati, an Al-Mansour graduate now running his own London-based IT consulting firm. The restriction, perhaps designed to muzzle protest speech, means Iraqis are unable to register and create their own Web sites. (Sati says he registered and hosts alMansourCollege.net, on behalf of his alma mater, for free.)

Despite these limitations, some of Iraq’s geeks say they would suffer if the country lost its Internet connection, whether due to conventional bombs or cyber-attacks.

“[It's] just like having drugs,” said Al-Shalchi of his dependence on e-mail and Web access.

But for average Iraqis, the Internet is likely still an unreliable luxury, not a necessity. Richard M. Smith, a U.S. computer expert, notes that a counter on the home page of Uruklink.net shows that the vast majority of the site’s visitors are from the U.S.

Like many Iraqi citizens and expatriates with relatives still in the country, Sati is guarded about his views on the outcome of the potential war and refuses to comment on his views of Saddam. But he did say that if a U.S. strike takes out Iraq’s network, he and others will quickly work to restore alternative service to citizens.

“There are many people like me who would do anything to help the Iraqis, as we all feel that this is our responsibility toward Iraq,” says Sati.

Sati’s circumspection lapses a bit, however, as he describes dreams of a day when he can return to Iraq and help lay new fiber networks, beef up the country’s hardware, and otherwise retool its Internet networks.

Even Al-Botany seems to be anticipating big changes ahead. His Web job with SCIS, he says, doesn’t pay enough for him to own a car or a house for himself, his wife, and his toddler son. With his contract with the Iraqi government due to run out in six months, Al-Botany asks whether a reporter could help him find a job in the United States.

Dot-com noir

When Internet marketing goes sour: A sordid tale of spyware, "junk traffic," bodybuilding and a half-baked plan for Hollywood glory.

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Dot-com noir

The men who ran Website Results, an Internet marketing company, had a unique test for gauging the moral fiber of their employees. According to former colleagues, Ronald J. Penna, Michael K. Osborn and Kevin Smith used to pose this question: Imagine there’s a peasant somewhere halfway across the world. If you could push a button and kill the person without getting caught, would you do it for a million dollars?

“For them, it was yes, in a heartbeat. They just wanted to know whether we felt the same way. Who even thinks that way?” said Steve Simkovitch, a salesman who worked for Website Results for most of 1999.

Website Results specialized in the quintessentially dot-com boom service of “search engine optimization” — the business of making sure a client’s Web site ranks high on the listings returned by search engines such as Google or AltaVista. For a time, the company performed so effectively that in August 2000, Penna and his partners sold Website Results to the online ad giant 24/7 Real Media for $95 million in stock.

But less than a year later, in May 2001, the three men were fired from their positions in top management. 24/7 Real Media officials won’t disclose why Penna, Osborn and Smith were sacked. But according to sources close to the company, the trio had built Website Results largely on fast talk and intimidation — a foundation that crumbled once the e-business boom went bust. None of the men, who are said to be in their early 30s, has responded to repeated interview requests.

But their story didn’t end with their firing by Real Media. Shortly afterwards, the three men founded a new company, called Intellitech. In May, Salon reported the strange tale of Intellitech and its “popup ad campaign from hell.” The story detailed how a particularly malevolent form of “spyware” came to be secretly installed on the computers of tens of thousands of Internet users.

The closer one looks, the more bizarre the story of Website Results and Intellitech becomes. Like all previous upheavals in commerce, the digital revolution has produced its share of opportunists and hucksters. But the saga of Website Results’ founders provides a rare insight into the dark side of the Internet boom. Three college buddies moved out to California in the late-1990s with dreams of becoming millionaires — and maybe even movie stars — off the Internet gold rush. Their tools of the trade: software programs that performed sleight-of-hand tricks on search engines, and a host of management tactics seemingly ripped from the pages of a Navy SEALs handbook. Call it dot-com noir — their tale cries out for a 21st century Raymond Chandler.

According to former employees, the story starts in the Hughes Regency, an apartment complex in the less-than-tony Los Angeles suburb of Culver City where Penna, Osborn and Smith first set up shop. They eventually persuaded half of Website Results’ 25 or so employees to rent units in the buildings, according to David Earnest, a salesman for Website Results from February 1999 until December 2000.

Penna and Osborn, avid bodybuilders, outfitted one of the two-bedroom apartments with thousands of dollars worth of professional weightlifting equipment, said Earnest.

“They worked out twice a day and ate nothing but protein. They’re both built like Mack trucks,” he said.

Penna, in particular, used his physique to intimidate employees on a regular basis, according to Owen Hindman, a programmer who resigned in April over what he called the trio’s “shady” morals.

“During meetings, he loved to punch the wall right above somebody’s head and tell them they were crap,” said Hindman.

The three men ran the company like a cult, according to former employees, with most staffers routinely working 16-hour days without bonuses or overtime. Employees were afraid to openly question management, to blow the whistle or to quit.

At the time, Website Results was one of several companies engaged in the nascent business of “search engine optimization” (SEO).

The pitch to Web merchants and other traffic-hungry sites was that Website Results had a secret sauce for getting companies ranked highly by search engines such as AltaVista, Lycos, Webcrawler and the like. Using sleight-of-hand techniques such as “doorway pages” and “cloaking,” Website Results was able to trick the search sites into listing clients at the top of search results.

Christina Wells, who became Website Result’s first salesperson after answering a newspaper ad in 1999, said Website Results signed up blue-chip clients including Orvis, eBay, WebMD and ESPN.

“The SEO market was huge at the time, and when we went into light speed, my commissions should have been running upwards of $20K per month,” said Wells. Instead, she said, the company reneged on the commission system and put salespeople on a flat monthly salary.

Web merchants, in a mad scramble for market share, had little time to look closely under the hood of Website Results’ business. If they had, they might have detected a number of questionable practices.

“Our product was extremely virtual, so it was difficult for customers to verify what we were doing,” said Steve Lazuka, who joined the company as its fourth employee in 1998 and served as vice president of operations for Website Results until leaving in February of 2002.

According to Lazuka, Website Results habitually submitted fraudulent invoices to its largest customers, inflating the amount of traffic it had delivered to their sites, in hopes that they would pay without looking too closely.

“They selectively picked out clients like eBay that had big budgets and paid their bills without tracking whether we really sent them the traffic,” he said.

Garen Razoian, a software developer who was with the company for nine months in 1999, said he attended meetings at which company executives talked of sending such phony invoices.

“That’s the kind of thing they were always considering, as if fraud was a normal way to do business,” said Razoian.

To further pad its billable numbers, the company developed a software program, referred to as “The Zebra Project,” that was designed to make it look as if lots of Web surfers had been clicking at search sites on hyperlinks that led to Website Results’ customers’ sites. Since many clients paid Website Results for delivering traffic on a “cost per click” basis, the automatic program helped to boost its revenue.

“It couldn’t be detected. It went around clicking our clients’ links with false traffic. They were stealing from and cheating our clients,” said Lazuka.

Website Results also began buying “junk” traffic, such as the rights to replace the standard error pages at busy Web sites with its own. The rented “404 error” pages would redirect wayward surfers to designated customer sites, according to Earnest.

“It was totally untargeted and worthless traffic, but most customers had no idea,” said Earnest.

Some clients, however, began to complain about the quality of the traffic delivered by Website Results.

Aron Benon, chief executive of Beverly Hills-based Florist.com, said he was cold-called by the marketing company around July of 2000 and agreed to hire it to drive traffic to his online flower shop.

“After they started sending me these big, fat bills for thousands of dollars, I went down to their offices and asked them to demonstrate what they were doing to bring people to our site. But they couldn’t show me one search engine hit. It was all smoke and mirrors,” said Benon.

Website Results officials later explained to Benon that they actually had purchased placement for his site at what they called an “up-and-coming search engine” named BestoftheWeb.com, run by Volton Technologies.

But when Benon checked the domain registration records for the site, he noticed that Volton’s 3665 Hughes Avenue address was the same as that of Website Results’ humble offices. Volton Technologies, it turns out, had been founded by Penna, Osborn and Smith one month before the sale of Website Results to 24/7 Real Media.

“That’s when I decided they were totally bogus,” said Benon, who reported that Website Results quickly consented to refund his payments.

Website Results’ monthly cash flow — roughly $1 million, according to Earnest’s estimates — caught the eye of 24/7 Real Media. Over the summer of 2000, executives from the New York-based online advertising firm negotiated to purchase Website Results as an independent operating unit run by Penna, Osborn and Smith.

At a celebration dinner at a local restaurant, said Earnest, Penna announced the 24/7 Real Media acquisition to employees, and said management would meet with each individually to discuss their piece of the take.

But after weeks went by and the one-on-ones never happened, disgruntled employees began to defect, according to Earnest.

Meanwhile, Penna and Osborn began outfitting one of the Hughes apartments with thousands of dollars of cameras, lighting and other professional moviemaking equipment, says Peter Wojciechowski, a technical expert who was with Website Results for nearly 18 months until October 2001.

The goal was to produce a Schwarzenegger-style action picture — written by and starring Penna, and using employees on company time as cameramen, sound engineers and other production staff.

The film, tentatively titled “The Punisher,” was never completed.

In May 2001, 24/7 Real Media fired Penna, Osborn and Smith — whom it had kept on to manage the new unit — and took back most of the stock it granted them.

As the three men were being summoned to New York and called on the carpet, 24/7 Real Media sent a pair of 18-wheelers to the Hughes Regency apartments to pack up Website Results’ offices and move them to a corporate park in Santa Monica. A couple of dozen armed security guards stood watch, according to Hindman.

Mark Moran, 24/7 Real Media’s general counsel, said the company is “very happy” with the Website Results acquisition. But he wouldn’t comment on why 24/7 Real Media terminated the founders, whom it had previously credited with building Website Results into “the leading Internet marketing infrastructure company.”

“The biggest thing 24/7 was mad about was the misuse of payroll funds for the movie project. Ron even had his mom on the 24/7 payroll full-time as a makeup artist,” said Lazuka.

Website Results hit a rough stretch of road soon after the 24/7 Real Media deal closed, as many search engines began to deploy tactics to prevent SEO firms from gaming their ranking systems, according to Earnest.

The marketing company was delivering fewer hits for customers; as a result, revenues at the 24/7 Real Media unit, which was meant to act as a cash cow, began to dry up.

To address the changing search-engine environment, 24/7 elected to plow some funds into new technology for Website Results. In a December 2000 conference call with investors, 24/7′s then president, Tom Detmer, reported that the early results of that upgrade were “promising.”

But current 24/7 Website Results technical staffers say a good chunk of their time in late 2000 was not spent revamping the company’s core SEO technology.

Instead, programmers were directed to develop a customizable browser toolbar that could steer traffic to BestoftheWeb.com and collect data on the surfing habits of users — data that could be sold to Internet marketing strategists.

The technology also enabled Website Results to take credit whenever a toolbar user made a purchase at any of the hundreds of online merchants with which the company had established “affiliate” commission accounts.

Dozens of sites, most of them quite small, signed up to distribute co-branded versions of the browser toolbar. But the project was killed in May 2001 when 24/7 Real Media fired Penna, Osborn and Smith and took hands-on control of Website Results.

“The toolbar was never our technology. We never viewed it as being a company project,” said 24/7 general counsel Moran.

But for Penna and associates, who retained the source code, the toolbar apparently provided a technological life raft after they were cut free from 24/7.

Under the auspices of their newly founded company, Intellitech Web Solutions, the three devised a plan to strip the visible front end off the toolbar, leaving only its snooping back end in place.

According to former Intellitech employees, the company also polished up some code designed to automatically and silently install the mutated toolbar when an Internet user viewed a specially designed Web page.

“At that point, it started to become a virus,” said a former staffer who worked on the project.

Last March, Intellitech began to seed the Internet with copies of the backdoor program, using specially designed pop-up ads it purchased at sites, including the family entertainment portal Flowgo.com.

In violation of Flowgo’s policy, the pop-ups automatically sent visitors to another site, where, according to virus researchers, special code exploited a vulnerability in Microsoft’s Internet Explorer browser and forced the spyware onto users’ computers.

According to Hindman, who said he wrote some of the software Intellitech used for its pop-up system, the company also “threw tens of thousands” of such booby-trapped ads every day at visitors to sites where Intellitech had affiliate programs. The ads also popped up on Web surfers who clicked on any of the links Intellitech had established for SEO customers at search engines such as Google.

Hindman finally decided he had seen enough. On April 5, a payday, he picked up his last check and, instead of heading in to work, began making arrangements to move his wife and children out of the Hughes Regency and back to Oklahoma.

“The whole time I worked there, I kept waiting for the FBI to kick in the door,” said Hindman.

Instead, it was Michael Osborn who showed up at Hindman’s apartment that afternoon and banged on the door, wondering why the programmer hadn’t shown up at work.

“I told him I didn’t want to be a part of what they were doing anymore, at which point he started screaming at me. When I shut the door and locked it, he just went crazy. He punched a hole in the door, and when he finally left, there was blood from his fist all over it,” said Hindman.

Later, as fellow employees came by the apartment to say good-bye, they told Hindman it was a good thing that Osborn, and not Penna, had been first to hear the news.

“They said, if it had been Ron, he would have come right through the door,” said Hindman.

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The pop-up ad campaign from hell

It's the latest in Web marketing innovation: Hijacked Web surfers, exploited Web browser vulnerabilities and malicious spyware all wrapped up together.

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The pop-up ad campaign from hell

Looking for state-of-the-art Internet skulduggery? Try this: Thousands of unsuspecting visitors to a family entertainment site are discovering a cornucopia of unwanted, potentially malicious software on their computers — the result of a pop-up ad campaign, a booby-trapped Web site, a compromised Web browser, and strange doings at a shadowy Los Angeles company.

The story starts at Flowgo, a site that prides itself as the leading family entertainment portal. According to officials at eUniverse, the California firm that operates Flowgo, a pop-up ad that ran at the heavily trafficked humor site for a couple of weeks until late April caused the trouble.

The ad, purchased by a Los Angeles Internet marketing firm named IntelliTech Web Solutions, was designed to automatically redirect visitors away from Flowgo (no mouse click required) and to dump them at a booby-trapped site called KoolKatalog.

Once at KoolKatalog, visitors were invited to feed an e-mail address into a digital slot machine created in the Shockwave animation format. Solve the puzzle faster than anyone else, and KoolKatalog would send you a swell prize!

In the nanosecond it took most people to recognize the obvious junk mail trap, the real damage was already nearly done. According to virus experts, code in the pages at KoolKatalog exploited a known flaw in an old version of the Java engine of Microsoft’s Internet Explorer browser to covertly download the first of 10 files onto visitors’ computers.

KoolKatalog is currently inacessible, but its domain name was registered by an IntelliTech employee and the phone number listed in the privacy statement at KoolKatalog is the number for IntelliTech Web Solutions. Phone messages left with the receptionist who answered at that number were not returned.

A contrite spokeswoman for eUniverse said IntelliTech’s automatic redirects violated its ad policy, and eUniverse pulled the pop-ups as soon as it learned what was happening. Flowgo has achieved its success, she said — and helped earn its publicly traded parent several quarters of profitability — by taking great care to protect the safety of its visitors.

But according to virus experts, tens of thousands of Internet users have been back-doored by the KoolKatalog-distributed “malware,” which they have added to their lists of malicious code for scanning.

“When you exploit a security bug to get your program onto someone’s PC, you’ve crossed the boundary into what we consider malicious,” said Craig Schmugar, a researcher with McAfee, which refers to the KoolKatalog-served payload as Downloader-W.

While researchers have not yet completely decoded all functions of the programs, they say two of the files, BVT.exe and ABSR.exe, attach themselves to victims’ browsers and covertly monitor which sites they visit. Other components, including a file called AUSVC.exe, appear to enable the program’s authors to secretly send updates or other files to the infected computer.

What’s more, the install program, a file called CoolStuff.ocx, checks to see whether the victim is running a firewall, and terminates if it finds one. If no security software is monitoring outbound network connections, the installer grabs other files from one of two IntelliTech Web servers, online1net.com and wwws1.com.

“Somebody took a lot of time and attention to create this. There’s a lot of error checking and careful programming in there,” said Vincent Weafer, director of Symantec’s virus research lab. Backdoor.Autoupder, as Symantec calls it, quietly made the software firm’s list of the five most-prevalent viruses in April.

While designed to be stealthy, the malicious code was revealed to many puzzled victims in recent weeks when it began causing instability in their PCs or crashed them.

Others discovered the program after updating their anti-virus signature files. Sam Evans, security analyst for a Midwestern semiconductor firm, said an anti-virus update in late April caused a sudden flood of reports from company employees. Cleaning the code off affected computers was complex and required editing the PC’s system registry.

“We thought we disinfected all the computers, but our intrusion detection system is still reporting that internal machines are attempting to send information out,” said Evans, who added that the company had “black-holed” (blocked access to) the range of Internet protocol addresses used by KoolKatalog and related sites.

Trend Microsystems, which since April 23 has received nearly 5,000 reports of infections by TROJ_SUA.A, as it calls the software, has released a free tool that automates the 49 steps required to remove IntelliTech’s code from an infected PC.

IntelliTech itself has done little to clear up the mystery surrounding the surreptitious installation of its spyware.

Frank Bigott, a resident of Santa Monica, Calif., who holds the domain registration for KoolKatalog, said he had “zero knowledge” of the backdoor program prior to being contacted by Salon. Bigott referred all other questions to his attorney.

The lawyer, William W. Bloch of Beverly Hills, said Bigott resigned his position in sales and marketing at IntelliTech after learning of the incident from Salon. Bloch also gave Salon the cellphone numbers of three men whom he identified as IntelliTech management, but voice-mail messages left at those numbers were not returned.

Bloch says that Bigott determined that IntelliTech’s management had placed the spyware programs on users’ computers “to gain certain things that would result in increased revenue,” such as commissions from affiliate marketing programs.

Susan Henrichsen, deputy attorney general for the state of California, declined to comment on specifics of the IntelliTech situation. But she noted that downloading software onto someone’s computer without permission is tantamount to hacking.

“If, on top of that, you track people with spyware with the intent of selling the information, that goes way over into unfair and deceptive practices. It’s really pretty appalling,” she said.

The spyware tar pit that users encountered at KoolKatalog may have been connected to an earlier software development effort by a company called Volton Technologies, which also had ties to IntelliTech.

The agent of record for the incorporation of Beverly Hills-based Volton Technologies is Michael Osborn, one of the names provided by the lawyer Bloch as a member of IntelliTech management. Volton Technologies previously offered for download an apparently legitimate program that may have provided the technical foundation for KoolKatalog’s twisted creation.

The program, which Volton termed a “browser toolbar enhancement,” offered access to search engines and e-mail from a control panel at the bottom of Web browsers. According to the program’s license, in exchange for the free software, users agreed to allow Volton to collect “anonymous” data on Web page views and responses to ads, as well as an inventory of the software on the user’s PC.

The front door of Volton’s search site, BestoftheWeb.com, invites users to download the toolbar. But the download page offers no link to the software and merely states, “Our new and improved toolbar is coming soon.”

Similarly, a download link at Volton’s BrowserToolbar.com site was disabled for weeks — before suddenly reappearing May 3, when the site was relocated from an IntelliTech-owned hosting firm in Los Angeles, New Directions, to a new ISP in Canada.

Click the download link at Volton’s new version of BrowserToolbar.com, hosted by Alberta-based Myrias Computer Technologies, and a message says a file called Coolstuff4.cab is being installed. But the toolbar installation fails because the server containing the file, online1net.com, is unreachable.

Online1net.com, along with wwws1.com and KoolKatalog, was summarily unplugged last week by Alchemy Communications, the Internet collocation facility that services New Directions.

When contacted by Salon on April 26 about reports of malicious code at the IntelliTech sites, Alchemy’s vice president Jamie Daquino said his position was Shut down first, ask questions later.

“For someone to get written up as a virus, that’s pretty serious. If they’re doing what people are saying, it’s illegal. We don’t want to be associated with that,” said Daquino.

Daquino noted that New Directions, which also goes by aliases including AlphaHostCo, Online Connect Group, Zones Now, Interhostland and Quik-Net, appears to be “companies within companies.”

With its sites darkened by Alchemy, and its devious pop-up ads pulled by eUniverse, IntelliTech’s misguided experiment in viral marketing appears to have been halted.

But Roger Thompson, malicious-code expert for TruSecure, said that spyware like that found at KoolKatalog.com remains a serious threat to the thousands of users who are infected and not aware of it.

“They are definitely still at risk. Only the original authors know exactly how compromised those PCs are. No one should want any uninvited back door on any PC,” said Thompson.

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