Hacker Admits to Creating Botnets

Filed in archive Malware on November 10, 2007

A Los Angeles hacker who worked as a information security consultant by day has admitted to writing and distributing malware to over a quarter of a million computers, creating a botnet that stole Paypal login information and allowed him to empty unsuspecting user's bank accounts.

Prosecutors say John Schiefer, 26, was known as "The Botmaster" in the underground world of hackers he belonged to. He pled guilty to 4 counts of wiretapping and fraud and faces up to 60 years in prison. He also admitted to defrauding the Internet advertising company Simpel Internet out of $19,000 while working for them as a consultant. He reportedly installed his malicious programs on over 150,000 of their computers.

Schiefer will be arraigned on December 3. According to the U.S. Attorney's Office for the Central District of California, this is the first prosecution of a hacker for this kind of activity. It probably won't be the last.