Computer security giant McAfee says that things have got worse in the last quarter with spam, malware and web-based threat creation reaching record levels.

McAfee’s latest Third Quarter Threats Report, which covers July to September 2009, also revealed that the number of new file-sharing sites which host unauthorised, copyrighted content increased dramatically. What’s more, another trend on the increase is the number of cybercriminals who are extorting website owners with threats of denial-of-service attacks.

There was a 300% rise in the creation of file-sharing sites following the brief shutdown of the Swedish based Pirate Bay operation. Pirate Bay was a torrent site, one that can host links to copyrighted material and very controversial in the authorised spread of content. And with this huge rise in the number of similar sites, cybercriminals are presented with the ideal opportunity to exploit the way certain sites share content. Malware writers are skilled at creating sites to trick users looking to download copyrighted material into downloading malicious programs.

And McAfee warns that the number of these malicious sites could dramatically increase during the fall and holiday blockbuster film seasons.

File-sharing site problems to one side, McAfee reported that spam and malware levels have reached a record high, with threats surpassing previous levels in the last quarter. And rather gruesomely, web-based attacks have also increased as cybercriminals take advantage of celebrity deaths and natural disasters. At such times, website activity and email traffic dramatically increases, and malware authors quick to take advantage of such news stories and chat to hide their malicious intentions.

McAfee now reckon that of all email traffic, some 92% is spam. In other words, a tiny 8% is legimate email traffic.

The increase in web-based attacks – which target people who visit a malicious Web page, and are delivered to users through spam, phishing, social networks and even through redirects from hijacked legitimate websites – are fast becoming the most dangerous weapon wielded by a cybercriminal.

And McAfee estimates that 55% of all malicious URLs are hosted in the US. What’s more, cybercriminals are getting increasingly effective at utilising SEO techniques to drive traffic to the bad sites.

Denial of Service attacks are a particularly odious tactic employed by cybercriminals and McAfee has seen many more attacks in the latest quarter, and with some involving significant ransom demands.

Cybercriminals are offering for sale, to the highest bidder, botnets which are made up of thousands of zombie computers to attack sites. The botnets are used to knock out even some of the most-protected sites. And when offering such sophisticated botnets, the cybercriminals will often demonstrate their capability to prospective buyers with ‘live’ demonstrations, bringing down targeted websites for a few minutes.

Just recently, four Australian sports betting companies were targetted by cybercriminals and their sites taken down during key sports events, which resulted in the loss of millions of dollars of revenue.

Guest Article by Neil Camp