FBI Ran a Forum for Phishers, Spammers and Hackers.

Written by Carl E. Reid on October 17, 2008

While criminals thought it was based in Eastern Europe, the Internet’s top English-speaking cybercrime forum was secretly run by the FBI from this building on the banks of the Monongahela River in Pittsburgh. Photo: John Monroe Butler/ Wired.com

Kevin Poulsen reports that DarkMarket.ws, an online community center for thousands of identity thieves, hackers and credit card swindlers, has been secretly run by an FBI cybercrime agent for the last two years, until its voluntary shutdown earlier this month, according to documents unearthed by a German radio network.

Reports from the German national police obtained by a Southwest German public radio station, blew the lid off the long running sting by revealing its role in nabbing a German credit card forger active on DarkMarket. The FBI agent is identified in the documents as J. Keith Mularski, a senior cyber crime agent based at the National Cyber Forensics Training Alliance (NCFTA) in Pittsburgh, who ran the site under the hacker handle Master Splynter.

The NCFTA is a non-profit information sharing alliance funded by financial firms, internet companies and the federal government. It’s also home to a seven-agent FBI headquarters unit called the Cyber Initiative and Resource Fusion Unit, which evidently ran the DarkMarket sting.

DarkMarket allowed buyers and sellers of stolen identities and credit card data to meet and do business in an entrepreneurial, peer-reviewed environment. Products for sale ran the gamut from specialized hardware, to electronic banking logins collected from phishing attacks, stolen personal data needed to assume a consumer’s identity (“full infos”) and credit card magstripe swipes (“dumps”), which are used to produce counterfeit cards. Vendors were encouraged to submit their goods for review before offering them for sale.

SpamHaus listed Master Splynter as an Eastern European spammer named Pavel Kaminski, who was active as recently as 2005. It’s possible the FBI took over the handle sometime thereafter. In 2004, the Secret Service ran a similar scheme on the crime board ShadowCrew. The difference was that that agency used an informant, who went on to commit more crimes. This is a risk not likely present with agent Mularski.

About Carl E. Reid

Developing his career from the mail room to the board room, Carl E. Reid has achieved success by skillfully blending 40 years of technology and business intelligence experience with his passion for helping companies succeed. Carl is founder and CEO of NetTECH Systems Reid & Associates, Inc., an emerging technology consulting company located in the New York City area. One of his specialties is 15 years as a collaboration and email infrastructure consultant. He has implemented and supported Lotus Notes/Domino and other types of SMTP gateway/network configurations in small to large global companies up to 33,000 employees. Some of his clients have included IBM, Citi, JPMChase, Oxygen, LVMH - Moet Hennessy, MeadWestvaco, non-profits and professional organizations. Carl is a Savvy Business Owner, Public Speaker and Author. His articles have appeared in Network World, Computer Monthly magazines and hundreds of web sites. Combining business technology consulting with professional blogging, Carl specializes in advising clients how to best leverage the Internet as a tool for high impact visibility. Carl's speaking style combines humor with expertise, and his advice is always down-to-earth and practical. He personally publishes Library of Congress recognized newsletter blog, http://www.SavvyIntrapreneur.com and http://www.iTechSpeak.com. Carl wrote the original "Professional Blogger Job Description", being used as standard document within companies. As a business career coach, Carl teaches professionals how to run their career as a profitable business.