Microsoft Files Lawsuit Against Chinese Source of Malware Found on New PCs

Microsoft (NASDAQ:MSFT) has decided to tackle some online fraudsters in China head on. It’s filing a lawsuit against a Chinese site which the US company says is a hub for a new kind of malware that’s being found on some brand-new Microsoft Windows machines sold in the country.

According to Bloomberg Businessweek, an undercover Microsoft employee, bought a Windows computer in southern China, only to find, in his own words:

As soon as we powered on this particular computer, of its own accord without any instruction from us, it began reaching out across the internet, attempting to contact a computer unfamiliar to us.

The malware was identified as Nitol, and traced back to servers belonging to the hosting service 3322.org (which now redirects to PubYun.com, which seems to be its new branding), which is owned by Chinese businessman Peng Yong. Microsoft alleges that the hosting service is home to Nitol and a huge amount of other kinds of online viruses – over 500 strains in all. Apparently, 3322.org is notorious and has been for some time. Back in 2008, the Russian anti-virus maker Kaspersky Lab claimed that 40 percent of all malware programs made partial use of 3322.org. So it’d be a huge victory for Microsoft if it can bring down 3322/PubYun once and for all. But with the lawsuit filed in the US, and the rogue hosting service apparently being Shanghai-based, it’s not clear how it’s going to help.

Malware menace

Clearly, malware on a brand-new machine – which should only come pre-loaded with the finest bloatware – is hugely alarming to Microsoft. The offending Windows laptop was made by Hedy, a shanzhai and shady maker of HTC phone rip-offs and other random shit that it churns out.

Microsoft explains in its court filings:

In short, 3322.org is a major hub of illegal internet activity, used by criminals every minute of every day to pump malware and instructions to the computers of innocent people worldwide.

An infographic made by Norton anti-virus last year showed that 85 percent of Chinese adults had been the victim of cybercrime – if that stat can be believed. But there’s no doubt that malware and other viruses can lead to things like stolen identities or hacked passwords, which then leads to other kinds of cyber crimes that can end up costing people real money.

[Source: Bloomberg Businessweek]