Abney Associates

The indictment of nine alleged participants in a fraud scheme that involved infecting thousands of business computers with Zeus malware to steal millions of dollars shows that the malware remains a formidable ongoing threat, financial services security experts say.

The victims in the case included a Nebraska bank and a Nebraska company, according to an announcement of the indictment from federal prosecutors. The indictment was unsealed in connection with the April 11 arraignment of two Ukrainian nationals, who were recently extradited from the United Kingdom. Three other Ukrainians and a Russian have not yet been arrested; the indictment also names three other "John Doe" defendants.

"These actors are only a few of those who operate Zeus botnets out of a sea of cybercriminals who use variations to commit fraud," says Ryan Sherstobitoff, a threat researcher at security vendor McAfee, a unit of Intel. "Zeus will always be a continuing threat, and cybercriminals will continue to use Zeus to steal money. We as an industry must be vigilant."

Kevin Haley, security response director at security vendor Symantec, says the indictments won't put much of a dent in the use of the malware. "Zeus is not a gang; it's a toolkit, a very popular one used by many gangs," he says. "While today there is one less gang, there are still plenty of others using Zeus to attack us."

Andreas Baumhof, chief technology officer at anti-fraud vendor ThreatMetrix, says that when it comes to fighting fraud, the latest indictments are "like taking a scoop of sand out of the beach.

"The thing about Zeus is that the people who develop and distribute Zeus are not the same people who use Zeus to steal money," Baumhof says. "Now we have a couple less people using Zeus."

Zeus is a continuing threat because many financial institutions aren't looking necessarily for the malware itself, says George Tubin, banking expert at anti-malware provider Trusteer. "What [banks] are trying to do is use different authentication means and different fraud prevention technologies to try to spot when fraud happens," he says. "But very few institutions are actually trying to identify when man-in-the-middle malware [such as Zeus] is being used."

Zeus Scheme

The nine defendants in the case revealed April 11 allegedly used the malware to capture passwords, account numbers and other information necessary to log into online banking accounts, federa