• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia
TechCybersecurity

How Hackers Make Money from DDoS Attacks

By
David Z. Morris
David Z. Morris
Down Arrow Button Icon
By
David Z. Morris
David Z. Morris
Down Arrow Button Icon
October 22, 2016, 6:06 PM ET
PC Hardware Product Shoots
Portrait of a man sitting in a darkened room with a desktop PC and laptop, photographed for a feature on internet security and hacking, taken on May 10, 2012. (Photo by Gavin Roberts/PC Format Magazine via Getty Images)Gavin Roberts — Getty Images

Yesterday’s attack on the internet domain directory Dyn, which took major sites like Twitter and Paypal offline, was historic in scale. But the motivation for the attack may seem opaque, since no valuable information seems to have been stolen. A group called New World Hackers is claiming credit, but giving conflicting accounts of their motives—and security experts have called them “impostors.”

So why else might someone have done it? This class of hack, known as a distributed denial of service (DDoS) attack, has been around for a while. And while many DDoS attacks are indeed motivated by politics, revenge, or petty trolling, there’s frequently money involved.

Get Data Sheet, Fortune’s technology newsletter.

For instance, DDoS attacks are often used as leverage for blackmail. Once a hacking group has a reputation for being able to field a large and dangerous botnet to knock servers offline, they can demand huge ‘protection’ payments from businesses afraid of facing their wrath. In fact, they don’t even have to do the hacking in the first place—in one recent case, someone posing as a notorious cabal merely emailed blackmail messages and managed to pocket tens of thousands of dollars before they were exposed.

In the current case, there are rumors that Dyn was a target of extortion attempts before the attack. And the hackers behind what may be the biggest DDoS attack in history could demand a pretty penny to leave other companies alone. A wave of impostors will likely give it a shot, too.

There’s another, even darker money-driven application of DDoS attacks—industrial sabotage. Companies seeking to undermine their competition can hire hackers to take the other guys offline. DDoS services are often contracted through so-called “booter” portals where anyone can hire a hacker’s botnet in increments as small as 15 minutes. Researchers found last year that three of the most prominent booter services at the time had over 6,000 subscribers in total, and had launched over 600,000 attacks. (And despite the criminal reputation of Bitcoin, by far the largest method used to pay for DDoS-for-hire was Paypal.)

But it’s unlikely that this was some sort of hit called in by a competitor of Dyn—that tactic seems to primarily appeal to already-shady dealers, including online gambling operations.

For more on security, watch our video.

Finally, DDoS attacks can serve as a kind of smokescreen for more directly lucrative crimes. While a security team is struggling to deal with an army of zombie DVRs pummeling their system, attackers can grab passwords, credit card numbers, or identity information.

In weighing possible explanations for Friday’s attack, it’s important to note the massive scale of the thing. Even if their claims of responsibility aren’t credible, New World Hackers’ description of about 1.2 terabits of data per second thrown at Dyn’s servers is both vaguely plausible and utterly mind-boggling. That’s around twice as powerful as the huge 620 gigabit per second attack that knocked out a single website, Krebs on Security, last month. Dyn has also described the attack as sophisticated, arriving in three separate waves that targeted different parts of their systems.

That kind of operation could have been pulled off by a gang of kids doing it for kicks—and maybe that’s the scarier scenario. But such a massive undertaking suggests bigger, and possibly more lucrative, motivations.

About the Author
By David Z. Morris
See full bioRight Arrow Button Icon

Latest in Tech

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Tech

Tim Cook reveals the advice he gave Apple’s next CEO: The most important decision he’ll make is ‘where he spends his time’
Big TechApple
Tim Cook reveals the advice he gave Apple’s next CEO: The most important decision he’ll make is ‘where he spends his time’
By Alexei OreskovicApril 30, 2026
3 hours ago
Meta’s threat to quit New Mexico ‘is showing the world how little it cares about child safety,’ AG says
LawMeta
Meta’s threat to quit New Mexico ‘is showing the world how little it cares about child safety,’ AG says
By Catherina GioinoApril 30, 2026
6 hours ago
Meta's Hyperion data-center site in Northeastern Louisiana.
NewslettersEye on AI
Big Tech will spend nearly $700 billion on AI this year. No one knows where the buildout ends
By Sharon GoldmanApril 30, 2026
9 hours ago
Financial analyst working at a computer
Personal FinancePersonal Finance Evergreen
AI’s entry-level hiring nightmare is another gift to boomers’ retirement plans
By Catherina GioinoApril 30, 2026
10 hours ago
TOPSHOT - Alphabet Inc. and Google CEO Sundar Pichai speaks during the inauguration of a Google Artificial Intelligence (AI) hub in Paris on February 15, 2024. (Photo by ALAIN JOCARD / AFP via Getty Images)
AIGoogle
Google and Amazon’s biggest profit driver last quarter was their Anthropic stakes—which they haven’t sold
By Eva RoytburgApril 30, 2026
11 hours ago
Elon Musk arrives at the courthouse during his trial against OpenAI
CryptoElon Musk
Elon Musk likes Bitcoin—but he just told a jury most crypto coins are scams
By Jack KubinecApril 30, 2026
12 hours ago

Most Popular

Apple cofounder Ronald Wayne—whose stake would be worth up to $400 billion had he not sold it in 1976—says that at 91, he has no regrets
Success
Apple cofounder Ronald Wayne—whose stake would be worth up to $400 billion had he not sold it in 1976—says that at 91, he has no regrets
By Preston ForeApril 27, 2026
4 days ago
Google Cloud revenue is now 18% of Alphabet's business. Is this the beginning of the end of Google's search identity?
Big Tech
Google Cloud revenue is now 18% of Alphabet's business. Is this the beginning of the end of Google's search identity?
By Alexei OreskovicApril 29, 2026
1 day ago
‘The cost of compute is far beyond the costs of the employees’: Nvidia executive says right now AI is more expensive than paying human workers
AI
‘The cost of compute is far beyond the costs of the employees’: Nvidia executive says right now AI is more expensive than paying human workers
By Sasha RogelbergApril 28, 2026
3 days ago
With no end in sight, Trump considers new options in Iran war—including the ‘Dark Eagle’ hypersonic missile
Big Tech
With no end in sight, Trump considers new options in Iran war—including the ‘Dark Eagle’ hypersonic missile
By Jim EdwardsApril 30, 2026
17 hours ago
China dominates the world's lithium supply. The U.S. just found 328 years' worth in its own backyard
North America
China dominates the world's lithium supply. The U.S. just found 328 years' worth in its own backyard
By Jake AngeloApril 30, 2026
9 hours ago
No, tariffs are not strengthening the economy
Commentary
No, tariffs are not strengthening the economy
By Alex DuranteApril 29, 2026
2 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.