APNIC community folks may also be interested in this news, as a warning about 
serious consequences for IP address hijacking, at least in the USA.

All the best,

Paul.

________________________________________________________________________
Paul Wilson, Director-General, APNIC                        [email protected]
http://www.apnic.net                                            @apnicdg


Forwarded message:

> Begin forwarded message:
>
> Spammers Plead Guilty, Company Forfeits $4.9 Million
>
> NEWS RELEASE SUMMARYgg – June 10, 2022
> SAN DIEGO – Three employees of the affiliate marketing platform Amobee 
> pleaded guilty in federal court today to hijacking Internet Protocol (IP) 
> addresses to send unsolicited commercial email messages, commonly known as 
> “spam.”
>
> The three employees, Jacob Bychak, Mark Manoogian, and Abdul Mohammed Qayyum, 
> joined Daniel Dye and Vincent Tarney in pleading guilty to violating the 
> federal CAN-SPAM statute for their involvement in misusing the stolen IP 
> addresses to send spam.
>
> The defendants’ employer, formerly known as both Adconion Direct Inc. and 
> Frontline Direct (hereafter, “Adconion”), previously agreed to forfeit 
> $4,939,526 as the fraudulent proceeds of a wire fraud conspiracy in which its 
> employees hijacked more than 500,000 IP addresses to send over 10 billion 
> commercial emails to people in the United States and elsewhere.
>
> IP addresses are the beginning and ending points for sending data via the 
> internet. A discrete bundle of IP addresses in numeric order is known as a 
> range or block. In this case, the defendants pleaded guilty to using 
> fraudulent Letters of Authorization (“LOAs”) to take control of large blocks 
> of IP addresses registered to eleven different entities without the 
> registrants’ knowledge or consent. As part of the fraudulent scheme, the 
> defendants used email accounts set up to impersonate the IP blocks’ true 
> registrants. In particular, the defendants used and created email addresses 
> with the true registrants’ domain name (e.g., ect.net) to impersonate real 
> and fictitious employees. They then emailed the fraudulent LOAs, which were 
> written on fake letterheads and included forged signatures, from these 
> imposter email accounts to various Internet hosting companies to falsely 
> represent to the hosting companies that the true registrants authorized them 
> to use the IP addresses.
>
> All the IP blocks hijacked by the defendants were IPv4 addresses. Demand for 
> a finite number of IPv4 addresses available has driven up their value over 
> time. Between December 2010 and September 2014, when the defendants’ conduct 
> occurred, a block of 65,534 IP addresses, referred to as a Class B block, was 
> worth approximately $650,000. Today, it is worth as much as $3.3 million. 
> Internet Service Providers like Yahoo and Google routinely employ filters to 
> block spam from reaching a recipient’s inbox. Once an IP address is 
> associated with spam, the filters typically block messages sent from that IP 
> address. Spammers need a constant supply of fresh unblocked IP addresses to 
> deliver the unwanted commercial email.
>
> The defendants’ jobs with Adconion were to acquire fresh IP addresses and 
> employ other measures to circumvent the spam filters. To conceal Adconion’s 
> ties to the stolen IP addresses and the spam sent from these IP addresses, 
> the defendants used a host of DBAs, virtual addresses, and fake names 
> provided by the company. While defendants touted ties to well-known name 
> brands, the email marketing campaigns associated with the hijacked IP 
> addresses included advertisements such as “BigBeautifulWomen,” “iPhone4S 
> Promos,” and “LatinLove[Cost-per-Click].”
>
> Today’s guilty pleas arise from an October 2018 indictment for which trial 
> began on May 23, 2022. Following opening statements, the trial was 
> interrupted by the recent COVID surge and had yet to resume. In exchange for 
> misdemeanor pleas, the defendants have each agreed to admit their involvement 
> in the scheme, to undertake 100 hours of community service, and to pay a 
> maximum $100,000 fine.
>
> This case was investigated by the Federal Bureau of Investigation with 
> assistance provided by the Internal Revenue Service and the Department of 
> Justice’s Computer Crime and Intellectual Property Section.
>
> “The defendants generated millions of dollars for their company by 
> high-jacking hundreds of thousands of IP addresses, enabling them to 
> illegally inundate consumers with over 10 billion email ads,” said U.S. 
> Attorney Randy Grossman. ““This case was the first in the nation to charge 
> violations of the CAN-SPAM Act’s provision against using hijacked IP 
> addresses to send spam. We are committed to using all the tools at our 
> disposal to protect the internet and everyone who depends on it.” Grossman 
> thanked the prosecution team as well as the investigating agencies, the 
> American Registry of Internet Numbers, Yahoo, The Spamhaus Project, and The 
> National Cyber-Forensics and Training Alliance.
>
> “These defendants spent years illegally sending billions of spam emails 
> nationwide which made millions of dollars,” said FBI Special Agent in Charge 
> Stacey Moy. “The FBI remains committed to pursuing these criminal 
> conspiracies, no matter how long it takes, and holding them accountable in a 
> court of law. I want to thank the United States Attorney’s Office for their 
> ongoing support and partnership in bringing this case to an end.”
>
> The defendants are scheduled to be sentenced on October 3, 2022, at 10:30 
> a.m. before U.S. District Judge Gonzalo P. Curiel.
>
> DEFENDANTS                                             Case Number 
> 18cr4683-GPC
> Jacob Bychak                          Age: 36                                 
>   Carlsbad, CA
> Mark Manoogian                    Age: 39                                   
> Carlsbad, CA
> Abdul Mohammed Qayyum   Age: 40                                   Oceanside, 
> CA
>
> SUMMARY OF CHARGES
>
> CAN-SPAM – Title 18, U.S.C., Section 1037(a)(5) and (b)(3)
> Maximum penalty: One year in custody and $100,000 fine
>
> AGENCIES
>
> Federal Bureau of Investigation
> Internal Revenue Service
>
>
> Kelly Thornton
> Director of Media Relations
> U.S. Attorney’s Office
> Southern District of California
> 619.546.9726
> Follow us on Twitter @SDCAnews


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