Hacker John Schiefer Guilty in Botnet Case

(Los Angeles, California) A 26-year-old computer hacker, John Schiefer, agreed to plead guilty to federal fraud and wiretap charges resulting from a scheme which infected as many as 250,000 computers with malicious codes.

Schiefer is known as a "botmaster" skilled in botnet attacks.

A bot is a program that surreptitiously installs itself on computer so a hacker can control it. A botnet is a network of such computers that can harness their collective powers to wreak havoc.

Schiefer was able to collect information sent from the infected computers, including usernames and passwords for Paypal accounts. He and his associates were then able to make purchases using the Paypal accounts. They also shared the password information with others.

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Schiefer says he also found Paypal usernames and passwords using malware that could access usernames filed in a secure storage area on the computers. The malware would send that information to Schiefer, who used it to access the accounts.

Schiefer also defrauded a Dutch Internet company that hired him as a consultant, eventually infecting 150,000 of its computers.

Schiefer will be arraigned on December 3rd in U.S. District Court in Los Angeles. Punishment for his crimes could possibly be 60 years in prison and a $1.75 million fine.

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