Spyware King Gets Four Years For Building Botnets

Mahalo, a startup search engine company, employed Schiefer. Mahalo executives denied knowing that Schiefer was involved in criminal activities, despite Schiefer’s previous convictions. Mahalo CEO Jason Calacanis says that he hopes to rehire Schiefer once he is released from prison.

Schiefer reportedly developed his botnet when he was employed by 3G Communications of Los Angeles. The malicious software allowed Schiefer to see private financial transactions and empty victims’ PayPal and bank accounts.

Schiefer also collected funds from Internet marketing companies to install adware on unsuspecting victims, and used his network of compromised computers to launch denial-of-service attacks on Web sites. As part of his sentence, Schiefer must make restitution of nearly $20,000 to PayPal and other victims of his illegal activities. His sentence is relatively light; Schiefer had faced up to 60 years in prison and fines of up to $1.75 million dollars.

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The hundreds of thousands of computers Schiefer used in his botnet weren’t protected with Spyware Doctor. If they had been, they wouldn’t have been infected with some of the most dangerous spyware around. They also wouldn’t have been infected with the adware that Schiefer deposited on many of the compromised computers.

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Photo Credit: Christopher Boyd