Ethical Hacker Guilty Of Malware Attacks

British cyber security researcher Marcus Hutchins has pleaded guilty to two charges related to malware attacks used to steal details from US-based banking systems, court documents show. The programmer from Ilfracombe, Devon has been in FBI custody since being detained at a Las Vegas Airport in August 2017 on 2 August 2017.

Since entering his plea Hutchins, who goes by the Twiitter handle MalwareTech said in a statement accepting the charges that he “regrets these actions and accept full responsibility for my mistakes.”

If found guilty, he faces up to five years in a US federal prison and fines totaling $250,000 although both the prosecution and defense teams have shown a willingness to accept a plea deal giving him a lighter sentence. Whilst his stock across the Atlantic might be that of a criminal, in the UK he is seen as a hero in online security circles.

In May 2017, Hutchins was instrumental in detecting and activating the kill-switch in the ransomware programming known as Wannacry which crippled software systems in over 150 countries. Targeting networks using out-dated Microsoft operating systems, those typically used by most government agencies, the software encrypted entire databases and demanded a ransom for their safe return.

Among the worst affected was the British NHS public health system, which suffered total shutdown of a third of its hospitals and 8% of its GP surgeries costing nearly $120 million in damages over the space of just a week.

Using his background in hacking private servers, Hutchins discovered a patch that stopped the ransomware spreading to other networks on a server that could then be used as a platform to attack other networks. Microsoft quickly installed the patch and the worm quickly disappeared.

But before his role as hero of the hour, and aged just 18, Hutchins developed and distributed the virus Kronos which was then sold to an anonymous buyer using the name Aurora123.

For three years between July 2012 and August 2015, the malware was used to steal information from privately protected computers in America, including bank details and transactions. Because of his previous good deeds, the case has received significant publicity.

His supporters point to him being a minor when he developed the code that eventually ended up in Kronos malware, that he only realised his mistake when he reverse-engineered said code and that the 5 year statute of limitations has passed on when he committed the original crime.

The FBI for their part has a raft of evidence to the contrary. Under interrogation, during which the defense team claim their client was manipulated into providing false confession, Hutchins admitted creating the password-hacking programming used by Kronos. They also have a Malwaretech blog post which explicitly tells readers how to hack CAPTCHA protected passwords and so infiltrate networks, which is exactly what happened.

For his part, the accused is not shying away from his own guilt. His statement continues that “Having grown up, I’ve since been using the same skills that I misused several years ago for constructive purposes. I will continue to devote my time to keeping people safe from malware attacks.”

How exactly he plans to do that from behind the walls of a federal prison remains to be seen by cultivating his image of the teenage bad-boy done good is sure to be welcomed back to the cyber intelligence community with open arms.

Unlike other perpetrators of similar attacks recently, Hutchins is unlikely to be made an example of. Once his sentence is served, whatever that may be, an extradition back home and a lengthy US travel ban await. Beyond that, Hutchins will emerge as one of the most famous and eminent faces in the battle to shore4 up cyber defense. Not bad for an 18-year old trying to steal passwords out of a bedroom in his parent’s house.

By Jackson Mardon-Heath

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