China offers Internet pirates bulletproof havens for illegal file sharing

data center called CyberBunker, which is based in an old nuclear facility of the 1950s, about 120 miles south-west of Amsterdam.

Research published last year showed that most bulletproof hosts are located in China, where criminals are able to take advantage of low costs and legal loopholes to avoid prosecution.

Despite officials in Beijing talking in tough terms about computer crime — hacking potentially carries a death sentence in China — the authorities rarely cooperate with other countries to take action against hi-tech criminals. As a result, just a handful of firms in China are responsible for hosting thousands of criminal enterprises online.

A study of online crime conducted by the University of Alabama showed that more than 22,000 Web sites which sent pharmaceutical spam were hosted by six bulletproof servers in China.

Richard Cox of Spamhaus, a British organization that watches spammers and monitors bulletproof hosts, said it was almost impossible to stop expansion of such services. “At the moment there are a number of individuals who are setting up bulletproof hosting sites in China,” he said. “No matter how big a part of the Chinese network we block, the administrators there just do not care.”

Johnson writes that the long-term impact of offshore hosting is becoming more problematic as investigators worldwide try to cut the links between criminal groups and protected internet servers. One notorious gang of hackers, known as the Russian Business Network, after disappearing for two years amid scrutiny from the authorities in Moscow, has also reportedly returned to action. The group started as a bulletproof host in St Petersburg but had connections to a wide range of criminal activities online. Widely known in the computer security community, it is being investigated by the FBI. The Russian authorities, meanwhile, have been keen to foster greater communication to stop the spread of criminal activity online.

Some are hopeful that greater co-operation between international governments will help prevent the development of new piracy havens, but others suggest that it is unlikely that a complete block on such activities will ever be possible.

“There will always be a place to run to,” said Rob Holmes, of IP Cybercrime. “Each time a law passes, or a new country creates some kind of stumbling block for them, they’ll always find another place to do this. It goes back to the speakeasies in the 1920s – when one place got busted, they would just congregate in another place.”