'Pump-and-Dump' Spam Surge Linked to Russian Bot Herders

The recent surge in e-mail spam hawking penny stocks and penis enlargement pills is the handiwork of Russian hackers running a botnet powered by tens of thousands of hijacked computers.

Internet security researchers and law enforcement authorities have traced the operation to a well-organized hacking gang controlling a 70,000-strong peer-to-peer botnet seeded with the SpamThru Trojan.

According to Joe Stewart, senior security researcher at SecureWorks, in Atlanta, the gang functions with a level of sophistication rarely seen in the hacking underworld.