Scan4You operator convicted of computer fraud

hacker photoPhoto © AdobeStock

A federal jury in Alexandria this week convicted a resident of Latvia of three counts related to his operation of “Scan4you,” an online counter- antivirus service that helped computer hackers to determine whether their viruses and other malicious software would be detected by antivirus software.

Ruslans Bondars, 37, was convicted after a five-day jury trial of one count of conspiracy to violate the Computer Fraud and Abuse Act, one count of conspiracy to commit wire fraud, and one count of computer intrusion with intent to cause damage and aiding and abetting. Sentencing is scheduled for Sept. 21, according to Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Acting U.S. Attorney Tracey Doherty-McCormick of the Eastern District of Virginia and Special Agent in Charge Matthew J. DeSarno of the FBI Washington Field Office’s Criminal Division.

“Ruslans Bondars helped hackers test and improve the malware they then used to inflict hundreds of millions of dollars in losses on American companies and consumers,” said Cronan. “Today’s verdict should serve as a warning to those who aid and abet criminal hackers: the Criminal Division and our law enforcement partners consider you to be just as culpable as the hackers whose crimes you enable—and we will work tirelessly to identify you, prosecute you, and seek stiff sentences that reflect the seriousness of your crimes.”

Malware clearinghouse

According to testimony at trial and court documents, from at least 2009 until 2016, Bondars operated Scan4you, which for a fee provided computer hackers with information they used to determine whether their malware would be detected by antivirus software, including and especially by antivirus software used to protect major U.S. retailers, financial institutions and government agencies from computer intrusions.

For example, one Scan4you customer used the service to test malware that was subsequently used to steal approximately 40 million credit and debit card numbers, as well as approximately 70 million addresses, phone numbers and other pieces of personal identifying information, from retail store locations throughout the United States, causing one retailer approximately $292 million in expenses resulting from the intrusion.

Another Scan4you customer used the service to assist the development of “Citadel,” a widely used malware strain that was used to infect over 11 million computers worldwide, including in the United States, and resulted in over $500 million in fraud-related losses.  The Citadel developer took advantage of a special feature of Scan4you that allowed its integration directly into the Citadel malware toolkit through an Application Programming Interface, or API.  The API tool allowed Scan4you users the flexibility to scan malware without the need to directly submit the malware to Scan4you’s website.

At its height, Scan4you was one of the largest services of its kind and had thousands of users.  Malware developed with the assistance of Scan4you included some of the most prolific malware known to the FBI and was used in major computer intrusions committed against American businesses.

Scan4you differed from legitimate antivirus scanning services in multiple ways.  For example, while legitimate scanning services share data about uploaded files with the antivirus community and notify their users that they will do so, Scan4you instead informed its users that they could upload files anonymously and promised not to share information about the uploaded files with the antivirus community.

Comments

About the Author

Truman Lewis
A former reporter and bureau chief, Truman Lewis has covered presidential campaigns, state politics and stories ranging from organized crime to environmental and consumer protection.