Multiple stories published here over the past few weeks have examined the disruptive power of hacked “Internet of Things” (IoT) devices such as routers, IP cameras and digital video recorders. This post looks at how crooks are using hacked IoT devices as proxies to hide their true location online as they engage in a variety of other types of cybercriminal activity — from frequenting underground forums to credit card and tax refund fraud.
Recently, I heard from a cybersecurity researcher who’d created a virtual “honeypot” environment designed to simulate hackable IoT devices. The source, who asked to remain anonymous, said his honeypot soon began seeing traffic destined for Asus and Linksys routers running default credentials. When he examined what that traffic was designed to do, he found his honeypot systems were being told to download a piece of malware from a destination on the Web.