Drones to Diplomas: How Russia’s Largest Private University is Linked to a $25M Essay Mill

A sprawling academic cheating network turbocharged by Google Ads that has generated nearly $25 million in revenue has curious ties to a Kremlin-connected oligarch whose Russian university builds drones for Russia’s war against Ukraine.

The link between essay mills and Russian attack drones might seem improbable, but understanding it begins with a simple question: How does a human-intensive academic cheating service stay relevant in an era when students can simply ask AI to write their term papers? The answer – recasting the business as an AI company – is just the latest chapter in a story of many rebrands that link the operation to Russia’s largest private university.

Search in Google for any terms related to academic cheating services — e.g., “help with exam online” or “term paper online” — and you’re likely to encounter websites with the words “nerd” or “geek” in them, such as thenerdify[.]com and geekly-hub[.]com. With a simple request sent via text message, you can hire their tutors to help with any assignment.

These nerdy and geeky-branded websites frequently cite their “honor code,” which emphasizes they do not condone academic cheating, will not write your term papers for you, and will only offer support and advice for customers. But according to This Isn’t Fine, a Substack blog about contract cheating and essay mills, the Nerdify brand of websites will happily ignore that mantra.

“We tested the quick SMS for a price quote,” wrote This Isn’t Fine author Joseph Thibault. “The honor code references and platitudes apparently stop at the website. Within three minutes, we confirmed that a full three-page, plagiarism- and AI-free MLA formatted Argumentative essay could be ours for the low price of $141.”

Google prohibits ads that “enable dishonest behavior.” Yet, a sprawling global essay and homework cheating network run under the Nerdy brands has quietly bought its way to the top of Google searches – booking revenues of almost $25 million through a maze of companies in Cyprus, Malta and Hong Kong, while pitching “tutoring” that delivers finished work that students can turn in.

When one Nerdy-related Google Ads account got shut down, the group behind the company would form a new entity with a front-person (typically a young Ukrainian woman), start a new ads account along with a new website and domain name (usually with “nerdy” in the brand), and resume running Google ads for the same set of keywords.

UK companies belonging to the group that have been shut down by Google Ads since Jan 2025 include:

–Proglobal Solutions LTD (advertised nerdifyit[.]com);
–AW Tech Limited (advertised thenerdify[.]com);
–Geekly Solutions Ltd (advertised geekly-hub[.]com).

Currently active Google Ads accounts for the Nerdify brands include:

-OK Marketing LTD (advertising geekly-hub[.]net⁩), formed in the name of Olha Karpenko, a young Ukrainian woman;
–Two Sigma Solutions LTD (advertising litero[.]ai), formed in the name of Olekszij (Alexey) Pokatilo.

Mr. Pokatilo has been in the essay-writing business since at least 2009, operating a paper-mill enterprise called Livingston Research alongside Alexander Korsukov, who is listed as an owner. According to a lengthy account from a former employee, Livingston Research mainly farmed its writing tasks out to low-cost workers from Kenya, Philippines, Pakistan, Russia and Ukraine.

Pokatilo moved from Ukraine to the United Kingdom in Sept. 2015 and co-founded a company called Awesome Technologies, which pitched itself as a way for people to outsource tasks by sending a text message to the service’s assistants.

The other co-founder of Awesome Technologies is 36-year-old Filip Perkon, a Swedish man living in London who touts himself as a serial entrepreneur and investor. Years before starting Awesome together, Perkon and Pokatilo co-founded a student group called Russian Business Week while the two were classmates at the London School of Economics. According to the Bulgarian investigative journalist Christo Grozev, Perkon’s birth certificate was issued by the Soviet Embassy in Sweden.

Around the time Perkon and Pokatilo launched Awesome Technologies, Perkon was building a social media propaganda tool called the Russian Diplomatic Online Club, which Perkon said would “turbo-charge” Russian messaging online. The club’s newsletter urged subscribers to install in their Twitter accounts a third-party app called Tweetsquad that would retweet Kremlin messaging on the social media platform.

Perkon was praised by the Russian Embassy in London for his efforts: During the contentious Brexit vote that ultimately led to the United Kingdom leaving the European Union, the Russian embassy in London used this spam tweeting tool to auto-retweet the Russian ambassador’s posts from supporters’ accounts.

Neither Mr. Perkon nor Mr. Pokatilo replied to requests for comment.

A review of corporations tied to Mr. Perkon as indexed by the business research service North Data finds he holds or held director positions in several U.K. subsidiaries of Synergy University, Russia’s largest private education provider. Synergy has more than 35,000 students, and sells T-shirts with patriotic slogans such as “Crimea is Ours,” and “The Russian Empire — Reloaded.”

The president of Synergy University is Vadim Lobov, a Kremlin insider whose headquarters on the outskirts of Moscow reportedly features a wall-sized portrait of Russian President Vladimir Putin in the pop-art style of Andy Warhol. For a number of years, Lobov and Perkon co-produced a cross-cultural event in the U.K. called Russian Film Week.

Mr. Lobov was one of 11 individuals reportedly hand-picked by the convicted Russian spy Marina Butina to attend the 2017 National Prayer Breakfast held in Washington D.C. just two weeks after President Trump’s first inauguration.

While Synergy University promotes itself as Russia’s largest private educational institution, hundreds of international students tell a different story. Online reviews from students paint a picture of unkept promises: Prospective students from Nigeria, Kenya, Ghana, and other nations paying thousands in advance fees for promised study visas to Russia, only to have their applications denied with no refunds offered.

“My experience with Synergy University has been nothing short of heartbreaking,” reads one such account. “When I first discovered the school, their representative was extremely responsive and eager to assist. He communicated frequently and made me believe I was in safe hands. However, after paying my hard-earned tuition fees, my visa was denied. It’s been over 9 months since that denial, and despite their promises, I have received no refund whatsoever. My messages are now ignored, and the same representative who once replied instantly no longer responds at all. Synergy University, how can an institution in Europe feel comfortable exploiting the hopes of Africans who trust you with their life savings? This is not just unethical — it’s predatory.”

This pattern repeats across reviews by multilingual students from Pakistan, Nepal, India, and various African nations — all describing the same scheme: Attractive online marketing, promises of easy visa approval, upfront payment requirements, and then silence after visa denials.

Reddit discussions in r/Moscow and r/AskARussian are filled with warnings. “It’s a scam, a diploma mill,” writes one user. “They literally sell exams. There was an investigation on Rossiya-1 television showing students paying to pass tests.”

The Nerdify website’s “About Us” page says the company was co-founded by Pokatilo and an American named Brian Mellor. The latter identity seems to have been fabricated, or at least there is no evidence that a person with this name ever worked at Nerdify.

Rather, it appears that the SMS assistance company co-founded by Messrs. Pokatilo and Perkon (Awesome Technologies) fizzled out shortly after its creation, and that Nerdify soon adopted the process of accepting assignment requests via text message and routing them to freelance writers.

A closer look at an early “About Us” page for Nerdify in The Wayback Machine suggests that Mr. Perkon was the real co-founder of the company: The photo at the top of the page shows four people wearing Nerdify T-shirts seated around a table on a rooftop deck in San Francisco, and the man facing the camera is Perkon.

Where are they now? Pokatilo is currently running a startup called Litero.Ai, which appears to be an AI-based essay writing service. In July 2025, Mr. Pokatilo received pre-seed funding of $800,000 for Litero from an investment program backed by the venture capital firms AltaIR Capital, Yellow Rocks, Smart Partnership Capital, and I2BF Global Ventures.

Meanwhile, Filip Perkon is busy setting up toy rubber duck stores in Miami and in at least three locations in the United Kingdom. These “Duck World” shops market themselves as “the world’s largest duck store.”

This past week, Mr. Lobov was in India with Putin’s entourage on a charm tour with India’s Prime Minister Narendra Modi. Although Synergy is billed as an educational institution, a review of the company’s sprawling corporate footprint (via DNS) shows it also is assisting the Russian government in its war against Ukraine.

The website bpla.synergy[.]bot, for instance, says the company is involved in developing combat drones to aid Russian forces and to evade international sanctions on the supply and re-export of high-tech products.

KrebsOnSecurity would like to thank the anonymous researcher NatInfoSec for their assistance in this investigation.

Update, Dec. 8, 10:06 a.m. ET: Mr. Pokatilo responded to requests for comment after the publication of this story. Pokatilo said he has no relation to Synergy nor to Mr. Lobov, and that his work with Mr. Perkon ended with the dissolution of Awesome Technologies.

“I have had no involvement in any of his projects and business activities mentioned in the article and he has no involvement in Litero.ai,” Pokatilo said of Perkon.

Mr. Pokatilo said his new company Litero “does not provide contract cheating services and is built specifically to improve transparency and academic integrity in the age of universal use of AI by students.”

“I am Ukrainian,” he said in an email. “My close friends, colleagues, and some family members continue to live in Ukraine under the ongoing invasion. Any suggestion that I or my company may be connected in any way to Russia’s war efforts is deeply offensive on a personal level and harmful to the reputation of Litero.ai, a company where many team members are Ukrainian.”

Update, Dec. 11, 12:07 p.m. ET: Mr. Perkon responded to requests for comment after the publication of this story. Perkon said the photo of him in a Nerdify T-shirt (see screenshot above) was taken after a startup event in San Francisco, where he volunteered to act as a photo model to help friends with their project.

“I have no business or other relations to Nerdify or any other ventures in that space,” Mr. Perkon said in an email response. “As for Vadim Lobov, I worked for Venture Capital arm at Synergy until 2013 as well as his business school project in the UK, that didn’t get off the ground, so the company related to this was made dormant. Then Synergy kindly provided sponsorship for my Russian Film Week event that I created and ran until 2022 in the U.K., an event that became the biggest independent Russian film festival outside of Russia. Since the start of the Ukraine war in 2022 I closed the festival down.”

“I have had no business with Vadim Lobov since 2021 (the last film festival) and I don’t keep track of his endeavours,” Perkon continued. “As for Alexey Pokatilo, we are university friends. Our business relationship has ended after the concierge service Awesome Technologies didn’t work out, many years ago.”

Microsoft Patch Tuesday, August 2025 Edition

Microsoft today released updates to fix more than 100 security flaws in its Windows operating systems and other software. At least 13 of the bugs received Microsoft’s most-dire “critical” rating, meaning they could be abused by malware or malcontents to gain remote access to a Windows system with little or no help from users.

August’s patch batch from Redmond includes an update for CVE-2025-53786, a vulnerability that allows an attacker to pivot from a compromised Microsoft Exchange Server directly into an organization’s cloud environment, potentially gaining control over Exchange Online and other connected Microsoft Office 365 services. Microsoft first warned about this bug on Aug. 6, saying it affects Exchange Server 2016 and Exchange Server 2019, as well as its flagship Exchange Server Subscription Edition.

Ben McCarthy, lead cyber security engineer at Immersive, said a rough search reveals approximately 29,000 Exchange servers publicly facing on the internet that are vulnerable to this issue, with many of them likely to have even older vulnerabilities.

McCarthy said the fix for CVE-2025-53786 requires more than just installing a patch, such as following Microsoft’s manual instructions for creating a dedicated service to oversee and lock down the hybrid connection.

“In effect, this vulnerability turns a significant on-premise Exchange breach into a full-blown, difficult-to-detect cloud compromise with effectively living off the land techniques which are always harder to detect for defensive teams,” McCarthy said.

CVE-2025-53779 is a weakness in the Windows Kerberos authentication system that allows an unauthenticated attacker to gain domain administrator privileges. Microsoft credits the discovery of the flaw to Akamai researcher Yuval Gordon, who dubbed it “BadSuccessor” in a May 2025 blog post. The attack exploits a weakness in “delegated Managed Service Account” or dMSA — a feature that was introduced in Windows Server 2025.

Some of the critical flaws addressed this month with the highest severity (between 9.0 and 9.9 CVSS scores) include a remote code execution bug in the Windows GDI+ component that handles graphics rendering (CVE-2025-53766) and CVE-2025-50165, another graphics rendering weakness. Another critical patch involves CVE-2025-53733, a vulnerability in Microsoft Word that can be exploited without user interaction and triggered through the Preview Pane.

One final critical bug tackled this month deserves attention: CVE-2025-53778, a bug in Windows NTLM, a core function of how Windows systems handle network authentication. According to Microsoft, the flaw could allow an attacker with low-level network access and basic user privileges to exploit NTLM and elevate to SYSTEM-level access — the highest level of privilege in Windows. Microsoft rates the exploitation of this bug as “more likely,” although there is no evidence the vulnerability is being exploited at the moment.

Feel free to holler in the comments if you experience problems installing any of these updates. As ever, the SANS Internet Storm Center has its useful breakdown of the Microsoft patches indexed by severity and CVSS score, and AskWoody.com is keeping an eye out for Windows patches that may cause problems for enterprises and end users.

GOOD MIGRATIONS

Windows 10 users out there likely have noticed by now that Microsoft really wants you to upgrade to Windows 11. The reason is that after the Patch Tuesday on October 14, 2025, Microsoft will stop shipping free security updates for Windows 10 computers. The trouble is, many PCs running Windows 10 do not meet the hardware specifications required to install Windows 11 (or they do, but just barely).

If the experience with Windows XP is any indicator, many of these older computers will wind up in landfills or else will be left running in an unpatched state. But if your Windows 10 PC doesn’t have the hardware chops to run Windows 11 and you’d still like to get some use out of it safely, consider installing a newbie-friendly version of Linux, like Linux Mint.

Like most modern Linux versions, Mint will run on anything with a 64-bit CPU that has at least 2GB of memory, although 4GB is recommended. In other words, it will run on almost any computer produced in the last decade.

There are many versions of Linux available, but Linux Mint is likely to be the most intuitive interface for regular Windows users, and it is largely configurable without any fuss at the text-only command-line prompt. Mint and other flavors of Linux come with LibreOffice, which is an open source suite of tools that includes applications similar to Microsoft Office, and it can open, edit and save documents as Microsoft Office files.

If you’d prefer to give Linux a test drive before installing it on a Windows PC, you can always just download it to a removable USB drive. From there, reboot the computer (with the removable drive plugged in) and select the option at startup to run the operating system from the external USB drive. If you don’t see an option for that after restarting, try restarting again and hitting the F8 button, which should open a list of bootable drives. Here’s a fairly thorough tutorial that walks through exactly how to do all this.

And if this is your first time trying out Linux, relax and have fun: The nice thing about a “live” version of Linux (as it’s called when the operating system is run from a removable drive such as a CD or a USB stick) is that none of your changes persist after a reboot. Even if you somehow manage to break something, a restart will return the system back to its original state.

Who is the DOGE and X Technician Branden Spikes?

At 49, Branden Spikes isn’t just one of the oldest technologists who has been involved in Elon Musk’s Department of Government Efficiency (DOGE). As the current director of information technology at X/Twitter and an early hire at PayPal, Zip2, Tesla and SpaceX, Spikes is also among Musk’s most loyal employees. Here’s a closer look at this trusted Musk lieutenant, whose Russian ex-wife was once married to Elon’s cousin.

When President Trump took office again in January, he put the world’s richest man — Elon Musk — in charge of the U.S. Digital Service, and renamed the organization as DOGE. The group is reportedly staffed by at least 50 technologists, many of whom have ties to Musk’s companies.

DOGE has been enabling the president’s ongoing mass layoffs and firings of federal workers, largely by seizing control over computer systems and government data for a multitude of federal agencies, including the Social Security Administration, the Department of Homeland Security, the Office of Personnel Management, and the Treasury Department.

It is difficult to find another person connected to DOGE who has stronger ties to Musk than Branden Spikes. A native of California, Spikes initially teamed up with Musk in 1997 as a lead systems engineer for the software company Zip2, the first major venture for Musk. In 1999, Spikes was hired as director of IT at PayPal, and in 2002 he became just the fourth person hired at SpaceX.

In 2012, Spikes launched Spikes Security, a software product that sought to create a compartmentalized or “sandboxed” web browser that could insulate the user from malware attacks. A review of spikes.com in the Wayback Machine shows that as far back as 1998, Musk could be seen joining Spikes for team matches in the online games Quake and Quake II. In 2016, Spikes Security was merged with another security suite called Aurionpro, with the combined company renamed Cyberinc.

Spikes’s LinkedIn profile says he was appointed head of IT at X in February 2025. And although his name shows up on none of the lists of DOGE employees circulated by various media outlets, multiple sources told KrebsOnSecurity that Spikes was working with DOGE and operates within Musk’s inner circle of trust.

In a conversation with KrebsOnSecurity, Spikes said he is dedicated to his country and to saving it from what he sees as certain ruin.

“Myself, I was raised by a southern conservative family in California and I strongly believe in America and her future,” Spikes said. “This is why I volunteered for two months in DC recently to help DOGE save us from certain bankruptcy.”

Spikes told KrebsOnSecurity that he recently decided to head back home and focus on his job as director of IT at X.

“I loved it, but ultimately I did not want to leave my hometown and family back in California,” Spikes said of his tenure at DOGE. “After a couple of months it became clear that to continue helping I would need to move to DC and commit a lot more time, so I politely bowed out.”

Prior to founding Spikes Security, Branden Spikes was married to a native Russian woman named Natalia whom he’d met at a destination wedding in South America in 2003.

Branden and Natalia’s names are both on the registration records for the domain name orangetearoom[.]com. This domain, which DomainTools.com says was originally registered by Branden in 2009, is the home of a tax-exempt charity in Los Angeles called the California Russian Association.

Here is a photo from a 2011 event organized by the California Russian Association, showing Branden and Natalia at one of its “White Nights” charity fundraisers:

In 2011, the Spikes couple got divorced, and Natalia changed her last name to Haldeman. That is not her maiden name, which appears to be “Libina.” Rather, Natalia acquired the surname Haldeman in 1998, when she married Elon Musk’s cousin.

Reeve Haldeman is the son of Scott Haldeman, who is the brother of Elon Musk’s mother, Maye Musk. Divorce records show Reeve and Natalia officially terminated their marriage in 2007. Reeve Haldeman did not respond to a request for comment.

A review of other domain names connected to Natalia Haldeman’s email address show she has registered more than a dozen domains over the years that are tied to the California Russian Association, and an apparently related entity called the Russian Heritage Foundation, Inc.:

russianamericans.org
russianamericanstoday.com
russianamericanstoday.org
russiancalifornia.org
russianheritagefoundation.com
russianheritagefoundation.org
russianwhitenights.com
russianwhitenights.org
theforafoundation.org
thegoldentearoom.com
therussianheritagefoundation.org
tsarinahome.com

Ms. Haldeman did not respond to requests for comment. Her name and contact information appears in the registration records for these domains dating back to 2010, and a document published by ProPublica show that by 2016 Natalia Haldeman was appointed CEO of the California Russian Foundation.

The domain name that bears both Branden’s and Natalia’s names — orangetearoom.com — features photos of Ms. Haldeman at fundraising events for the Russian foundation through 2014. Additional photos of her and many of the same people can be seen through 2023 at another domain she registered in 2010 — russianheritagefoundation.com.

The photo of Branden and Natalia above is from one such event in 2011 (tied to russianwhitenights.org, another Haldeman domain). The person on the right in that image — Ivan Y. Podvalov — appears in many fundraising event photos published by the foundation over the past decade. Podvalov is a board member of the Congress of Russian Americans (CRA), a nonprofit group that is known for vehemently opposing U.S. financial and legal sanctions against Russia.

Writing for The Insider in 2022, journalist Diana Fishman described how the CRA has engaged in outright political lobbying, noting that the organization in June 2014 sent a letter to President Obama and the secretary of the United Nations, calling for an end to the “large-scale US intervention in Ukraine and the campaign to isolate Russia.”

“The US military contingents must be withdrawn immediately from the Eastern European region, and NATO’s enlargement efforts and provocative actions against Russia must cease,” the message read.

The Insider said the CRA director sent another two letters, this time to President Donald Trump, in 2017 and 2018.

“One was a request not to sign a law expanding sanctions against Russia,” Fishman wrote. “The other regretted the expulsion of 60 Russian diplomats from the United States and urged not to jump to conclusions on Moscow’s involvement in the poisoning of Sergei Skripal.”

The nonprofit tracking website CauseIQ.com reports that The Russian Heritage Foundation, Inc. is now known as Constellation of Humanity.

The Russian Heritage Foundation and the California Russian Association both promote the interests of the Russian Orthodox Church. This page indexed by Archive.org from russiancalifornia.org shows The California Russian Foundation organized a community effort to establish an Orthodox church in Orange County, Calif.

A press release from the Russian Orthodox Church Outside of Russia (ROCOR) shows that in 2021 the Russian Heritage Foundation donated money to organize a conference for the Russian Orthodox Church in Serbia.

A review of the “Partners” listed on the Spikes’ jointly registered domain — orangetearoom.com — shows the organization worked with a marketing company called Russian American Media. Reporting by KrebsOnSecurity last year showed that Russian American Media also partners with the problematic people-search service Radaris, which was formed by two native Russian brothers in Massachusetts who have built a fleet of consumer data brokers and Russian affiliate programs.

When asked about his ex-wife’s history, Spikes said she has a good heart and bears no ill-will toward anyone.

“I attended several of Natalia’s social events over the years we were together and can assure you that she’s got the best intentions with those,” Spikes told KrebsOnSecurity. “There’s no funny business going on. It is just a way for those friendly immigrants to find resources amongst each other to help get settled in and chase the American dream. I mean, they’re not unlike the immigrants from other countries who come to America and try to find each other and help each other find others who speak the language and share in the building of their businesses here in America.”

Spikes said his own family roots go back deeply into American history, sharing that his 6th great grandfather was Alexander Hamilton on his mom’s side, and Jessie James on his dad’s side.

“My family roots are about as American as you can get,” he said. “I’ve also been entrusted with building and safeguarding Elon’s companies since 1999 and have a keen eye (as you do) for bad actors, so have enough perspective to tell you that Natalia has no bad blood and that she loves America.”

Of course, this perspective comes from someone who has the utmost regard for the interests of the “special government employee” Mr. Musk, who has been bragging about tossing entire federal agencies into the “wood chipper,” and who recently wielded an actual chainsaw on stage while referring to it as the “chainsaw for bureaucracy.”

“Elon’s intentions are good and you can trust him,” Spikes assured.

A special note of thanks for research assistance goes to Jacqueline Sweet, an independent investigative journalist whose work has been published in The Guardian, Rolling Stone, POLITICO and The Intercept.

Stark Industries Solutions: An Iron Hammer in the Cloud

Two weeks before Russia invaded Ukraine in February 2022, a large, mysterious new Internet hosting firm called Stark Industries Solutions materialized and quickly became the epicenter of massive distributed denial-of-service (DDoS) attacks on government and commercial targets in Ukraine and Europe. An investigation into Stark Industries reveals it is being used as a global proxy network that conceals the true source of cyberattacks and disinformation campaigns against enemies of Russia.

At least a dozen patriotic Russian hacking groups have been launching DDoS attacks since the start of the war at a variety of targets seen as opposed to Moscow. But by all accounts, few attacks from those gangs have come close to the amount of firepower wielded by a pro-Russia group calling itself “NoName057(16).”

As detailed by researchers at Radware, NoName has effectively gamified DDoS attacks, recruiting hacktivists via its Telegram channel and offering to pay people who agree to install a piece of software called DDoSia. That program allows NoName to commandeer the host computers and their Internet connections in coordinated DDoS campaigns, and DDoSia users with the most attacks can win cash prizes.

A report from the security firm Team Cymru found the DDoS attack infrastructure used in NoName campaigns is assigned to two interlinked hosting providers: MIRhosting and Stark Industries. MIRhosting is a hosting provider founded in The Netherlands in 2004. But Stark Industries Solutions Ltd was incorporated on February 10, 2022, just two weeks before the Russian invasion of Ukraine.

PROXY WARS

Security experts say that not long after the war started, Stark began hosting dozens of proxy services and free virtual private networking (VPN) services, which are designed to help users shield their Internet usage and location from prying eyes.

Proxy providers allow users to route their Internet and Web browsing traffic through someone else’s computer. From a website’s perspective, the traffic from a proxy network user appears to originate from the rented IP address, not from the proxy service customer.

These services can be used in a legitimate manner for several business purposes — such as price comparisons or sales intelligence — but they are also massively abused for hiding cybercrime activity because they can make it difficult to trace malicious traffic to its original source.

What’s more, many proxy services do not disclose how they obtain access to the proxies they are renting out, and in many cases the access is obtained through the dissemination of malicious software that turns the infected system into a traffic relay — usually unbeknownst to the legitimate owner of the Internet connection. Other proxy services will allow users to make money by renting out their Internet connection to anyone.

Spur.us is a company that tracks VPNs and proxy services worldwide. Spur finds that Stark Industries (AS44477) currently is home to at least 74 VPN services, and 40 different proxy services. As we’ll see in the final section of this story, just one of those proxy networks has over a million Internet addresses available for rent across the globe.

Raymond Dijkxhoorn operates a hosting firm in The Netherlands called Prolocation. He also co-runs SURBL, an anti-abuse service that flags domains and Internet address ranges that are strongly associated with spam and cybercrime activity, including DDoS.

Dijkxhoorn said last year SURBL heard from multiple people who said they operated VPN services whose web resources were included in SURBL’s block lists.

“We had people doing delistings at SURBL for domain names that were suspended by the registrars,” Dijkhoorn told KrebsOnSecurity. “And at least two of them explained that Stark offered them free VPN services that they were reselling.”

Dijkxhoorn added that Stark Industries also sponsored activist groups from Ukraine.

“How valuable would it be for Russia to know the real IPs from Ukraine’s tech warriors?” he observed.

CLOUDY WITH A CHANCE OF BULLETS

Richard Hummel is threat intelligence lead at NETSCOUT. Hummel said when he considers the worst of all the hosting providers out there today, Stark Industries is consistently near or at the top of that list.

“The reason is we’ve had at least a dozen service providers come to us saying, ‘There’s this network out there inundating us with traffic,'” Hummel said. “And it wasn’t even DDoS attacks. [The systems] on Stark were just scanning these providers so fast it was crashing some of their services.”

Hummel said NoName will typically launch their attacks using a mix of resources rented from major, legitimate cloud services, and those from so-called “bulletproof” hosting providers like Stark. Bulletproof providers are so named when they earn or cultivate a reputation for ignoring any abuse complaints or police reports about activity on their networks.

Combining bulletproof providers with legitimate cloud hosting, Hummel said, likely makes NoName’s DDoS campaigns more resilient because many network operators will hesitate to be too aggressive in blocking Internet addresses associated with the major cloud services.

“What we typically see here is a distribution of cloud hosting providers and bulletproof hosting providers in DDoS attacks,” he said. “They’re using public cloud hosting providers because a lot of times that’s your first layer of network defense, and because [many companies are wary of] over-blocking access to legitimate cloud resources.”

But even if the cloud provider detects abuse coming from the customer, the provider is probably not going to shut the customer down immediately, Hummel said.

“There is usually a grace period, and even if that’s only an hour or two, you can still launch a large number of attacks in that time,” he said. “And then they just keep coming back and opening new cloud accounts.”

MERCENARIES TEAM

Stark Industries is incorporated at a mail drop address in the United Kingdom. UK business records list an Ivan Vladimirovich Neculiti as the company’s secretary. Mr. Neculiti also is named as the CEO and founder of PQ Hosting Plus S.R.L. (aka Perfect Quality Hosting), a Moldovan company formed in 2019 that lists the same UK mail drop address as Stark Industries.

Reached via LinkedIn, Mr. Neculiti said PQ Hosting established Stark Industries as a “white label” of its brand so that “resellers could distribute our services using our IP addresses and their clients would not have any affairs with PQ Hosting.”

“PQ Hosting is a company with over 1,000+ of [our] own physical servers in 38 countries and we have over 100,000 clients,” he said. “Though we are not as large as Hetzner, Amazon and OVH, nevertheless we are a fast growing company that provides services to tens of thousands of private customers and legal entities.”

Asked about the constant stream of DDoS attacks whose origins have traced back to Stark Industries over the past two years, Neculiti maintained Stark hasn’t received any official abuse reports about attacks coming from its networks.

“It was probably some kind of clever attack that we did not see, I do not rule out this fact, because we have a very large number of clients and our Internet channels are quite large,” he said. “But, in this situation, unfortunately, no one contacted us to report that there was an attack from our addresses; if someone had contacted us, we would have definitely blocked the network data.”

DomainTools.com finds Ivan V. Neculiti was the owner of war[.]md, a website launched in 2008 that chronicled the history of a 1990 armed conflict in Moldova known as the Transnistria War and the Moldo-Russian war.

Transnistria is a breakaway pro-Russian region that declared itself a state in 1990, although it is not internationally recognized. The copyright on that website credits the “MercenarieS TeaM,” which was at one time a Moldovan IT firm. Mr. Neculiti confirmed personally registering this domain.

DON CHICHO & DFYZ

The data breach tracking service Constella Intelligence reports that an Ivan V. Neculiti registered multiple online accounts under the email address dfyz_bk@bk.ru. Cyber intelligence firm Intel 471 shows this email address is tied to the username “dfyz” on more than a half-dozen Russian language cybercrime forums since 2008. The user dfyz on Searchengines[.]ru in 2008 asked other forum members to review war.md, and said they were part of the MercenarieS TeaM.

Back then, dfyz was selling “bulletproof servers for any purpose,” meaning the hosting company would willfully ignore abuse complaints or police inquiries about the activity of its customers.

DomainTools reports there are at least 33 domain names registered to dfyz_bk@bk.ru. Several of these domains have Ivan Neculiti in their registration records, including tracker-free[.]cn, which was registered to an Ivan Neculiti at dfyz_bk@bk.ru and referenced the MercenarieS TeaM in its original registration records.

Dfyz also used the nickname DonChicho, who likewise sold bulletproof hosting services and access to hacked Internet servers. In 2014, a prominent member of the Russian language cybercrime community Antichat filed a complaint against DonChicho, saying this user scammed them and had used the email address dfyz_bk@bk.ru.

The complaint said DonChicho registered on Antichat from the Transnistria Internet address 84.234.55[.]29. Searching this address in Constella reveals it has been used to register just five accounts online that have been created over the years, including one at ask.ru, where the user registered with the email address neculitzy1@yandex.ru. Constella also returns for that email address a user by the name “Ivan” at memoraleak.com and 000webhost.com.

Constella finds that the password most frequently used by the email address dfyz_bk@bk.ru was “filecast,” and that there are more than 90 email addresses associated with this password. Among them are roughly two dozen addresses with the name “Neculiti” in them, as well as the address support@donservers[.]ru.

Intel 471 says DonChicho posted to several Russian cybercrime forums that support@donservers[.]ru was his address, and that he logged into cybercrime forums almost exclusively from Internet addresses in Tiraspol, the capital of Transnistria. A review of DonChicho’s posts shows this person was banned from several forums in 2014 for scamming other users.

Cached copies of DonChicho’s vanity domain (donchicho[.]ru) show that in 2009 he was a spammer who peddled knockoff prescription drugs via Rx-Promotion, once one of the largest pharmacy spam moneymaking programs for Russian-speaking affiliates.

Mr. Neculiti told KrebsOnSecurity he has never used the nickname DonChicho.

“I may assure you that I have no relation to DonChicho nor to his bulletproof servers,” he said.

Below is a mind map that shows the connections between the accounts mentioned above.

Earlier this year, NoName began massively hitting government and industry websites in Moldova. A new report from Arbor Networks says the attacks began around March 6, when NoName alleged the government of Moldova was “craving for Russophobia.”

“Since early March, more than 50 websites have been targeted, according to posted ‘proof’ by the groups involved in attacking the country,” Arbor’s ASERT Team wrote. “While NoName seemingly initiated the ramp of attacks, a host of other DDoS hacktivists have joined the fray in claiming credit for attacks across more than 15 industries.”

CORRECTIV ACTION

The German independent news outlet Correctiv.org last week published a scathing investigative report on Stark Industries and MIRhosting, which notes that Ivan Neculiti operates his hosting companies with the help of his brother, Yuri.

The report points out that Stark Industries continues to host a Russian disinformation news outlet called “Recent Reliable News” (RRN) that was sanctioned by the European Union in 2023 for spreading links to propaganda blogs and fake European media and government websites.

“The website was not running on computers in Moscow or St. Petersburg until recently, but in the middle of the EU, in the Netherlands, on the computers of the Neculiti brothers,” Correctiv reporters wrote.

“After a request from this editorial team, a well-known service was installed that hides the actual web host,” the report continues. “Ivan Neculiti announced that he had blocked the associated access and server following internal investigations. “We very much regret that we are only now finding out that one of our customers is a sanctioned portal,” said the company boss. However, RRN is still accessible via its servers.”

Correctiv also points to a January 2023 report from the Ukrainian government, which found servers from Stark Industries Solutions were used as part of a cyber attack on the Ukrainian news agency “Ukrinform”. Correctiv notes the notorious hacker group Sandworm — an advanced persistent threat (APT) group operated by a cyberwarfare unit of Russia’s military intelligence service — was identified by Ukrainian government authorities as responsible for that attack.

PEACE HOSTING?

Public records indicate MIRhosting is based in The Netherlands and is operated by 37-year old Andrey Nesterenko, whose personal website says he is an accomplished concert pianist who began performing publicly at a young age.

DomainTools says mirhosting[.]com is registered to Mr. Nesterenko and to Innovation IT Solutions Corp, which lists addresses in London and in Nesterenko’s stated hometown of Nizhny Novgorod, Russia.

This is interesting because according to the book Inside Cyber Warfare by Jeffrey Carr, Innovation IT Solutions Corp. was responsible for hosting StopGeorgia[.]ru, a hacktivist website for organizing cyberattacks against Georgia that appeared at the same time Russian forces invaded the former Soviet nation in 2008. That conflict was thought to be the first war ever fought in which a notable cyberattack and an actual military engagement happened simultaneously.

Responding to questions from KrebsOnSecurity, Mr. Nesterenko said he couldn’t say whether his network had ever hosted the StopGeorgia website back in 2008 because his company didn’t keep records going back that far. But he said Stark Industries Solutions is indeed one of MIRhsoting’s colocation customers.

“Our relationship is purely provider-customer,” Nesterenko said. “They also utilize multiple providers and data centers globally, so connecting them directly to MIRhosting overlooks their broader network.”

“We take any report of malicious activity seriously and are always open to information that can help us identify and prevent misuse of our infrastructure, whether involving Stark Industries or any other customer,” Nesterenko continued. “In cases where our services are exploited for malicious purposes, we collaborate fully with Dutch cyber police and other relevant authorities to investigate and take appropriate measures. However, we have yet to receive any actionable information beyond the article itself, which has not provided us with sufficient detail to identify or block malicious actors.”

In December 2022, security firm Recorded Future profiled the phishing and credential harvesting infrastructure used for Russia-aligned espionage operations by a group dubbed Blue Charlie (aka TAG-53), which has targeted email accounts of nongovernmental organizations and think tanks, journalists, and government and defense officials.

Recorded Future found that virtually all the Blue Charlie domains existed in just ten different ISPs, with a significant concentration located in two networks, one of which was MIRhosting. Both Microsoft and the UK government assess that Blue Charlie is linked to the Russian threat activity groups variously known as Callisto Group, COLDRIVER, and SEABORGIUM.

Mr. Nesterenko took exception to a story on that report from The Record, which is owned by Recorded Future.

“We’ve discussed its contents with our customer, Stark Industries,” he said. “We understand that they have initiated legal proceedings against the website in question, as they firmly believe that the claims made are inaccurate.”

Recorded Future said they updated their story with comments from Mr. Neculiti, but that they stand by their reporting.

Mr. Nesterenko’s LinkedIn profile says he was previously the foreign region sales manager at Serverius-as, a hosting company in The Netherlands that remains in the same data center as MIRhosting.

In February, the Dutch police took 13 servers offline that were used by the infamous LockBit ransomware group, which had originally bragged on its darknet website that its home base was in The Netherlands. Sources tell KrebsOnSecurity the servers seized by the Dutch police were located in Serverius’ data center in Dronten, which is also shared by MIRhosting.

Serverius-as did not respond to requests for comment. Nesterenko said MIRhosting does use one of Serverius’s data centers for its operations in the Netherlands, alongside two other data centers, but that the recent incident involving the seizure of servers has no connection to MIRhosting.

“We are legally prohibited by Dutch law and police regulations from sharing information with third parties regarding any communications we may have had,” he said.

A February 2024 report from security firm ESET found Serverius-as systems were involved in a series of targeted phishing attacks by Russia-aligned groups against Ukrainian entities throughout 2023. ESET observed that after the spearphishing domains were no longer active, they were converted to promoting rogue Internet pharmacy websites.

PEERING INTO THE VOID

A review of the Internet address ranges recently added to the network operated by Stark Industries Solutions offers some insight into its customer base, usage, and maybe even true origins. Here is a snapshot (PDF) of all Internet address ranges announced by Stark Industries so far in the month of May 2024 (this information was graciously collated by the network observability platform Kentik.com).

Those records indicate that the largest portion of the IP space used by Stark is in The Netherlands, followed by Germany and the United States. Stark says it is connected to roughly 4,600 Internet addresses that currently list their ownership as Comcast Cable Communications.

A review of those address ranges at spur.us shows all of them are connected to an entity called Proxyline, which is a sprawling proxy service based in Russia that currently says it has more than 1.6 million proxies globally that are available for rent.

Reached for comment, Comcast said the Internet address ranges never did belong to Comcast, so it is likely that Stark has been fudging the real location of its routing announcements in some cases.

Stark reports that it has more than 67,000 Internet addresses at Santa Clara, Calif.-based EGIhosting. Spur says the Stark addresses involving EGIhosting all map to Proxyline as well. EGIhosting did not respond to requests for comment.

EGIhosting manages Internet addresses for the Cyprus-based hosting firm ITHOSTLINE LTD (aka HOSTLINE-LTD), which is represented throughout Stark’s announced Internet ranges. Stark says it has more than 21,000 Internet addresses with HOSTLINE. Spur.us finds Proxyline addresses are especially concentrated in the Stark ranges labeled ITHOSTLINE LTD, HOSTLINE-LTD, and Proline IT.

Stark’s network list includes approximately 21,000 Internet addresses at Hockessin, De. based DediPath, which abruptly ceased operations without warning in August 2023. According to a phishing report released last year by Interisle Consulting, DediPath was the fourth most common source of phishing attacks in the year ending Oct. 2022. Spur.us likewise finds that virtually all of the Stark address ranges marked “DediPath LLC” are tied to Proxyline.

A large number of the Internet address ranges announced by Stark in May originate in India, and the names that are self-assigned to many of these networks indicate they were previously used to send large volumes of spam for herbal medicinal products, with names like HerbalFarm, AdsChrome, Nutravo, Herbzoot and Herbalve.

The anti-spam organization SpamHaus reports that many of the Indian IP address ranges are associated with known “snowshoe spam,” a form of abuse that involves mass email campaigns spread across several domains and IP addresses to weaken reputation metrics and avoid spam filters.

It’s not clear how much of Stark’s network address space traces its origins to Russia, but big chunks of it recently belonged to some of the oldest entities on the Russian Internet (a.k.a. “Runet”).

For example, many Stark address ranges were most recently assigned to a Russian government entity whose full name is the “Federal State Autonomous Educational Establishment of Additional Professional Education Center of Realization of State Educational Policy and Informational Technologies.”

A review of Internet address ranges adjacent to this entity reveals a long list of Russian government organizations that are part of the Federal Guard Service of the Russian Federation. Wikipedia says the Federal Guard Service is a Russian federal government agency concerned with tasks related to protection of several high-ranking state officials, including the President of Russia, as well as certain federal properties. The agency traces its origins to the USSR’s Ninth Directorate of the KGB, and later the presidential security service.

Stark recently announced the address range 213.159.64.0/20 from April 27 to May 1, and this range was previously assigned to an ancient ISP in St. Petersburg, RU called the Computer Technologies Institute Ltd.

According to a post on the Russian language webmaster forum searchengines[.]ru, the domain for Computer Technologies Institute — ctinet[.]ru — is the seventh-oldest domain in the entire history of the Runet.

Curiously, Stark also lists large tracts of Internet addresses (close to 48,000 in total) assigned to a small ISP in Kharkiv, Ukraine called NetAssist. Reached via email, the CEO of NetAssist Max Tulyev confirmed his company provides a number of services to PQ Hosting.

“We colocate their equipment in Warsaw, Madrid, Sofia and Thessaloniki, provide them IP transit and IPv4 addresses,” Tulyev said. “For their size, we receive relatively low number of complains to their networks. I never seen anything about their pro-Russian activity or support of Russian hackers. It is very interesting for me to see proofs of your accusations.”

Spur.us mapped the entire infrastructure of Proxyline, and found more than one million proxies across multiple providers, but by far the biggest concentration was at Stark Industries Solutions. The full list of Proxyline address ranges (.CSV) shows two other ISPs appear repeatedly throughout the list. One is Kharkiv, Ukraine based ITL LLC, also known as Information Technology Laboratories Group, and Integrated Technologies Laboratory.

The second is a related hosting company in Miami, called Green Floid LLC. Green Floid featured in a 2017 scoop by CNN, which profiled the company’s owner and quizzed him about Russian troll farms using proxy networks on Green Floid and its parent firm ITL to mask disinformation efforts tied to the Kremlin’s Internet Research Agency (IRA). At the time, the IRA was using Facebook and other social media networks to spread videos showing police brutality against African Americans in an effort to encourage protests across the United States.

Doug Madory, director of Internet analysis at Kentik, was able to see at a high level the top sources and destinations for traffic traversing Stark’s network.

“Based on our aggregate NetFlow, we see Iran as the top destination (35.1%) for traffic emanating from Stark (AS44477),” Madory said. “Specifically, the top destination is MTN Irancell, while the top source is Facebook. This data supports the theory that AS44477 houses proxy services as Facebook is blocked in Iran.”

On April 30, the security firm Malwarebytes explored an extensive malware operation that targets corporate Internet users with malicious ads. Among the sites used as lures in that campaign were fake Wall Street Journal and CNN websites that told visitors they were required to install a WSJ or CNN-branded browser extension (malware). Malwarebytes found a domain name central to that operation was hosted at Internet addresses owned by Stark Industries.

Thread Hijacking: Phishes That Prey on Your Curiosity

Thread hijacking attacks. They happen when someone you know has their email account compromised, and you are suddenly dropped into an existing conversation between the sender and someone else. These missives draw on the recipient’s natural curiosity about being copied on a private discussion, which is modified to include a malicious link or attachment. Here’s the story of a thread hijacking attack in which a journalist was copied on a phishing email from the unwilling subject of a recent scoop.

In Sept. 2023, the Pennsylvania news outlet LancasterOnline.com published a story about Adam Kidan, a wealthy businessman with a criminal past who is a major donor to Republican causes and candidates, including Rep. Lloyd Smucker (R-Pa).

Several months after that piece ran, the story’s author Brett Sholtis received two emails from Kidan, both of which contained attachments. One of the messages appeared to be a lengthy conversation between Kidan and a colleague, with the subject line, “Re: Successfully sent data.” The second missive was a more brief email from Kidan with the subject, “Acknowledge New Work Order,” and a message that read simply, “Please find the attached.”

Sholtis said he clicked the attachment in one of the messages, which then launched a web page that looked exactly like a Microsoft Office 365 login page. An analysis of the webpage reveals it would check any submitted credentials at the real Microsoft website, and return an error if the user entered bogus account information. A successful login would record the submitted credentials and forward the victim to the real Microsoft website.

But Sholtis said he didn’t enter his Outlook username and password. Instead, he forwarded the messages to LancasterOneline’s IT team, which quickly flagged them as phishing attempts.

LancasterOnline Executive Editor Tom Murse said the two phishing messages from Mr. Kidan raised eyebrows in the newsroom because Kidan had threatened to sue the news outlet multiple times over Sholtis’s story.

“We were just perplexed,” Murse said. “It seemed to be a phishing attempt but we were confused why it would come from a prominent businessman we’ve written about. Our initial response was confusion, but we didn’t know what else to do with it other than to send it to the FBI.”

In 2006, Kidan was sentenced to 70 months in federal prison after pleading guilty to defrauding lenders along with Jack Abramoff, the disgraced lobbyist whose corruption became a symbol of the excesses of Washington influence peddling. He was paroled in 2009, and in 2014 moved his family to a home in Lancaster County, Pa.

The FBI hasn’t responded to LancasterOnline’s tip. Messages sent by KrebsOnSecurity to Kidan’s emails addresses were returned as blocked. Messages left with Mr. Kidan’s company, Empire Workforce Solutions, went unreturned.

No doubt the FBI saw the messages from Kidan for what they likely were: The result of Mr. Kidan having his Microsoft Outlook account compromised and used to send malicious email to people in his contacts list.

Thread hijacking attacks are hardly new, but that is mainly true because many Internet users still don’t know how to identify them. The email security firm Proofpoint says it has tracked north of 90 million malicious messages in the last five years that leverage this attack method.

One key reason thread hijacking is so successful is that these attacks generally do not include the tell that exposes most phishing scams: A fabricated sense of urgency. A majority of phishing threats warn of negative consequences should you fail to act quickly — such as an account suspension or an unauthorized high-dollar charge going through.

In contrast, thread hijacking campaigns tend to patiently prey on the natural curiosity of the recipient.

Ryan Kalember, chief strategy officer at Proofpoint, said probably the most ubiquitous examples of thread hijacking are “CEO fraud” or “business email compromise” scams, wherein employees are tricked by an email from a senior executive into wiring millions of dollars to fraudsters overseas.

But Kalember said these low-tech attacks can nevertheless be quite effective because they tend to catch people off-guard.

“It works because you feel like you’re suddenly included in an important conversation,” Kalember said. “It just registers a lot differently when people start reading, because you think you’re observing a private conversation between two different people.”

Some thread hijacking attacks actually involve multiple threat actors who are actively conversing while copying — but not addressing — the recipient.

“We call these multi-persona phishing scams, and they’re often paired with thread hijacking,” Kalember said. “It’s basically a way to build a little more affinity than just copying people on an email. And the longer the conversation goes on, the higher their success rate seems to be because some people start replying to the thread [and participating] psycho-socially.”

The best advice to sidestep phishing scams is to avoid clicking on links or attachments that arrive unbidden in emails, text messages and other mediums. If you’re unsure whether the message is legitimate, take a deep breath and visit the site or service in question manually — ideally, using a browser bookmark so as to avoid potential typosquatting sites.