Beijing Heralds Bust of Major Hacker Ring

Tuesday Feb 9th 2010 by Staff

The Chinese government says it has shut down the country's largest distributor of tools used in malicious Internet attacks.

Wall Street Journal: On Monday, the state-run Xinhua news agency reported that the Chinese government arrested three people for making hacking tools available online. They also shut down the suspects' business, Black Hawk Safety Net, which had generated about $1 million in income from 12,000 subscribers.

U.S. watchers have been skeptical of the announcement, which comes on the heels of news of Chinese attacks on Google and other U.S. companies. China was trying to show that "we care about keeping the Internet free of criminals and we are doing our part," said Alan Paller, director of research at the SANS Institute. "Sadly, the tack they took is just a whack-a-mole exercise," he added, because other hackers will pop up to take the place of those who were put out of business.

Although the bust was only recently announced, the suspects were originally detained in November.

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