NZ Herald
  • Home
  • Latest news
  • Video
  • New Zealand
  • Sport
  • World
  • Business
  • Entertainment
  • Podcasts
  • Quizzes
  • Opinion
  • Lifestyle
  • Travel
  • Viva
  • Weather forecasts

Subscriptions

  • Herald Premium
  • Viva Premium
  • The Listener
  • BusinessDesk

Sections

  • Latest news
  • New Zealand
    • All New Zealand
    • Crime
    • Politics
    • Education
    • Open Justice
    • Scam Update
    • The Great NZ Road Trip
  • On The Up
  • World
    • All World
    • Australia
    • Asia
    • UK
    • United States
    • Middle East
    • Europe
    • Pacific
  • Business
    • All Business
    • MarketsSharesCurrencyCommoditiesStock TakesCrypto
    • Markets with Madison
    • Media Insider
    • Business analysis
    • Personal financeKiwiSaverInterest ratesTaxInvestment
    • EconomyInflationGDPOfficial cash rateEmployment
    • Small business
    • Business reportsMood of the BoardroomProject AucklandSustainable business and financeCapital markets reportAgribusiness reportInfrastructure reportDynamic business
    • Deloitte Top 200 Awards
    • CompaniesAged CareAgribusinessAirlinesBanking and financeConstructionEnergyFreight and logisticsHealthcareManufacturingMedia and MarketingRetailTelecommunicationsTourism
  • Opinion
    • All Opinion
    • Analysis
    • Editorials
    • Business analysis
    • Premium opinion
    • Letters to the editor
  • Sport
    • All Sport
    • OlympicsParalympics
    • RugbySuper RugbyNPCAll BlacksBlack FernsRugby sevensSchool rugby
    • CricketBlack CapsWhite Ferns
    • Racing
    • NetballSilver Ferns
    • LeagueWarriorsNRL
    • FootballWellington PhoenixAuckland FCAll WhitesFootball FernsEnglish Premier League
    • GolfNZ Open
    • MotorsportFormula 1
    • Boxing
    • UFC
    • BasketballNBABreakersTall BlacksTall Ferns
    • Tennis
    • Cycling
    • Athletics
    • SailingAmerica's CupSailGP
    • Rowing
  • Lifestyle
    • All Lifestyle
    • Viva - Food, fashion & beauty
    • Society Insider
    • Royals
    • Sex & relationships
    • Food & drinkRecipesRecipe collectionsRestaurant reviewsRestaurant bookings
    • Health & wellbeing
    • Fashion & beauty
    • Pets & animals
    • The Selection - Shop the trendsShop fashionShop beautyShop entertainmentShop giftsShop home & living
    • Milford's Investing Place
  • Entertainment
    • All Entertainment
    • TV
    • MoviesMovie reviews
    • MusicMusic reviews
    • BooksBook reviews
    • Culture
    • ReviewsBook reviewsMovie reviewsMusic reviewsRestaurant reviews
  • Travel
    • All Travel
    • News
    • New ZealandNorthlandAucklandWellingtonCanterburyOtago / QueenstownNelson-TasmanBest NZ beaches
    • International travelAustraliaPacific IslandsEuropeUKUSAAfricaAsia
    • Rail holidays
    • Cruise holidays
    • Ski holidays
    • Luxury travel
    • Adventure travel
  • Kāhu Māori news
  • Environment
    • All Environment
    • Our Green Future
  • Talanoa Pacific news
  • Property
    • All Property
    • Property Insider
    • Interest rates tracker
    • Residential property listings
    • Commercial property listings
  • Health
  • Technology
    • All Technology
    • AI
    • Social media
  • Rural
    • All Rural
    • Dairy farming
    • Sheep & beef farming
    • Horticulture
    • Animal health
    • Rural business
    • Rural life
    • Rural technology
    • Opinion
    • Audio & podcasts
  • Weather forecasts
    • All Weather forecasts
    • Kaitaia
    • Whangārei
    • Dargaville
    • Auckland
    • Thames
    • Tauranga
    • Hamilton
    • Whakatāne
    • Rotorua
    • Tokoroa
    • Te Kuiti
    • Taumaranui
    • Taupō
    • Gisborne
    • New Plymouth
    • Napier
    • Hastings
    • Dannevirke
    • Whanganui
    • Palmerston North
    • Levin
    • Paraparaumu
    • Masterton
    • Wellington
    • Motueka
    • Nelson
    • Blenheim
    • Westport
    • Reefton
    • Kaikōura
    • Greymouth
    • Hokitika
    • Christchurch
    • Ashburton
    • Timaru
    • Wānaka
    • Oamaru
    • Queenstown
    • Dunedin
    • Gore
    • Invercargill
  • Meet the journalists
  • Promotions & competitions
  • OneRoof property listings
  • Driven car news

Puzzles & Quizzes

  • Puzzles
    • All Puzzles
    • Sudoku
    • Code Cracker
    • Crosswords
    • Cryptic crossword
    • Wordsearch
  • Quizzes
    • All Quizzes
    • Morning quiz
    • Afternoon quiz
    • Sports quiz

Regions

  • Northland
    • All Northland
    • Far North
    • Kaitaia
    • Kerikeri
    • Kaikohe
    • Bay of Islands
    • Whangarei
    • Dargaville
    • Kaipara
    • Mangawhai
  • Auckland
  • Waikato
    • All Waikato
    • Hamilton
    • Coromandel & Hauraki
    • Matamata & Piako
    • Cambridge
    • Te Awamutu
    • Tokoroa & South Waikato
    • Taupō & Tūrangi
  • Bay of Plenty
    • All Bay of Plenty
    • Katikati
    • Tauranga
    • Mount Maunganui
    • Pāpāmoa
    • Te Puke
    • Whakatāne
  • Rotorua
  • Hawke's Bay
    • All Hawke's Bay
    • Napier
    • Hastings
    • Havelock North
    • Central Hawke's Bay
    • Wairoa
  • Taranaki
    • All Taranaki
    • Stratford
    • New Plymouth
    • Hāwera
  • Manawatū - Whanganui
    • All Manawatū - Whanganui
    • Whanganui
    • Palmerston North
    • Manawatū
    • Tararua
    • Horowhenua
  • Wellington
    • All Wellington
    • Kapiti
    • Wairarapa
    • Upper Hutt
    • Lower Hutt
  • Nelson & Tasman
    • All Nelson & Tasman
    • Motueka
    • Nelson
    • Tasman
  • Marlborough
  • West Coast
  • Canterbury
    • All Canterbury
    • Kaikōura
    • Christchurch
    • Ashburton
    • Timaru
  • Otago
    • All Otago
    • Oamaru
    • Dunedin
    • Balclutha
    • Alexandra
    • Queenstown
    • Wanaka
  • Southland
    • All Southland
    • Invercargill
    • Gore
    • Stewart Island
  • Gisborne

Media

  • Video
    • All Video
    • NZ news video
    • Business news video
    • Politics news video
    • Sport video
    • World news video
    • Lifestyle video
    • Entertainment video
    • Travel video
    • Markets with Madison
    • Kea Kids news
  • Podcasts
    • All Podcasts
    • The Front Page
    • On the Tiles
    • Ask me Anything
    • The Little Things
    • Cooking the Books
  • Cartoons
  • Photo galleries
  • Today's Paper - E-editions
  • Photo sales
  • Classifieds

NZME Network

  • Advertise with NZME
  • OneRoof
  • Driven Car Guide
  • BusinessDesk
  • Newstalk ZB
  • What the Actual
  • Sunlive
  • ZM
  • The Hits
  • Coast
  • Radio Hauraki
  • The Alternative Commentary Collective
  • Gold
  • Flava
  • iHeart Radio
  • Hokonui
  • Radio Wanaka
  • iHeartCountry New Zealand
  • Restaurant Hub
  • NZME Events

SubscribeSign In
Advertisement
Advertise with NZME.
Home / Business

<i>Simon Hendery:</i> Cyber crime gets more spooky

By Simon Hendery
NZ Herald·
26 Mar, 2008 04:00 PM4 mins to read

Subscribe to listen

Access to Herald Premium articles require a Premium subscription. Subscribe now to listen.
Already a subscriber?  Sign in here

Listening to articles is free for open-access content—explore other articles or learn more about text-to-speech.
‌
Save

    Share this article

Opinion by

KEY POINTS:

As cyber-criminals become increasingly powerful and better organised, those working against them on the "good" side of IT security seem to be responding with a more cloak-and-dagger approach to their work.

A case in point: Scott Montgomery, vice president of product management at Nasdaq-listed internet security firm Secure Computing, who visited New Zealand last week.

Montgomery's CV lists him as an adviser to a number of Washington DC security consultancies.

Given a major US-led multi-nation cyber-terrorism war games exercise - Cyber Storm II - had wrapped up just days earlier, that seemed like a good topic to quiz Montgomery on.

Unfortunately the security shutters came down very quickly. Montgomery refused to even confirm or deny whether he was personally involved in the exercise, which was aimed at testing defences in the US, UK, Australia, New Zealand and Canada against online attacks.

"That's one area where I really can't comment. The defenders won. That's all I can say."

Probed a bit further, he was willing to admit that, as with Cyber Storm I, the official public debrief on the exercise is likely to reveal there is room for improvement in how the alliance partners worked together to thwart potential online attacks against critical national infrastructure.

"I love this exercise because it shows that we can get a great deal of co-operation among friendly governments."

Montgomery says there are broadly two types of malicious cyber activity: the profit-motivated activities of criminals making money through online scams, such as stealing bank account details, and the "cyber-terrorism" pursuit of trying to bring down vital infrastructure networks through hacking.

All the countries involved in Cyber Storm have some reliance on the internet when it comes to controlling infrastructure for vital services such as telecommunications, water or power supplies, Montgomery says.

"This is, I think, very fertile ground for disruptive attacks."

After Cyber Storm I, New Zealand watchdog the Centre for Critical Infrastructure Protection had its charter enhanced to give it oversight for security of key assets such as the country's power generation, telecommunications, water and gas networks, he says.

Talking up the perils of IT crime and terrorism is obviously a good marketing ploy for a company like Secure Computing, given it is in the business of selling protection against this type of threat. But that's not to say Montgomery is overselling the dangers. The US Department of Justice has estimated online fraud is generating more than US$100 billion ($124.6 billion) in annual revenue for the criminals involved, whereas information security is a US$20 billion market.

Scott Kriens, chief executive of internet technology company Juniper Networks, spelt out the problems arising from the discrepancy between those figures earlier this year.

"If you think about it, if there's US$100 billion being made for the crime itself, and there's US$20 billion being spent defending it ... if each party takes an equal share of revenue and applies it to their R&D [research and development] we're being outspent five-to-one by the people making money from the attacks," he said. Kriens said the solution was for IT vendors to work together on security issues.

One manifestation of the dark side of the internet is the growing ranks of compromised computers that have unwittingly become part of "botnet" networks.

Some researchers believe the Storm worm botnet, for example, now has control over millions of "zombie" computers around the world.

Montgomery says the Storm botnet is the underworld equivalent of worthy "grid" networks run by scientists who ask computer users to make spare processing time on their machines available for research-focused number-crunching.

"If you look at what it takes to generate a million spam messages, you don't need millions of devices to generate a million messages, you need a handful of machines. So the Storm bot-herders have collected so many machines for the tasks that they typically do, it's like hunting a housefly with a shotgun. It makes me very nervous what they're going to unleash next."

Advertisement
Advertise with NZME.
Advertisement
Advertise with NZME.
Save

    Share this article

Latest from Business

Premium
Media InsiderUpdated

From the heartbreak of losing her husband at just 48, a couple's enduring media legacy

09 May 07:13 PM
Premium
Opinion

Fran O'Sullivan: Political games hinder vital superannuation reform

09 May 05:00 PM
Premium
Opinion

Mary Holm: Is there are pot of gold waiting for those who invest in non-bank deposits?

09 May 05:00 PM

“Not an invisible footprint”: Why technology supply chains need optimising

sponsored
Advertisement
Advertise with NZME.

Latest from Business

Premium
From the heartbreak of losing her husband at just 48, a couple's enduring media legacy

From the heartbreak of losing her husband at just 48, a couple's enduring media legacy

09 May 07:13 PM

'It allows me to focus on myself and the kids and figure out life without Allan.'

Premium
Fran O'Sullivan: Political games hinder vital superannuation reform

Fran O'Sullivan: Political games hinder vital superannuation reform

09 May 05:00 PM
Premium
Mary Holm: Is there are pot of gold waiting for those who invest in non-bank deposits?

Mary Holm: Is there are pot of gold waiting for those who invest in non-bank deposits?

09 May 05:00 PM
Premium
Noise ban, off-limit interviews: TVNZ's rules as RNZ moves in; Ad agencies take aim at global merger

Noise ban, off-limit interviews: TVNZ's rules as RNZ moves in; Ad agencies take aim at global merger

09 May 10:58 AM
Deposit scheme reduces risk, boosts trust – General Finance
sponsored

Deposit scheme reduces risk, boosts trust – General Finance

NZ Herald
  • About NZ Herald
  • Meet the journalists
  • Newsletters
  • Classifieds
  • Help & support
  • Contact us
  • House rules
  • Privacy Policy
  • Terms of use
  • Competition terms & conditions
  • Our use of AI
Subscriber Services
  • NZ Herald e-editions
  • Daily puzzles & quizzes
  • Manage your digital subscription
  • Manage your print subscription
  • Subscribe to the NZ Herald newspaper
  • Subscribe to Herald Premium
  • Gift a subscription
  • Subscriber FAQs
  • Subscription terms & conditions
  • Promotions and subscriber benefits
NZME Network
  • The New Zealand Herald
  • The Northland Age
  • The Northern Advocate
  • Waikato Herald
  • Bay of Plenty Times
  • Rotorua Daily Post
  • Hawke's Bay Today
  • Whanganui Chronicle
  • Viva
  • NZ Listener
  • What the Actual
  • Newstalk ZB
  • BusinessDesk
  • OneRoof
  • Driven CarGuide
  • iHeart Radio
  • Restaurant Hub
NZME
  • About NZME
  • NZME careers
  • Advertise with NZME
  • Digital self-service advertising
  • Book your classified ad
  • Photo sales
  • NZME Events
  • © Copyright 2025 NZME Publishing Limited
TOP