Fascinating history of an illegal industry:
Today’s schemes are technologically very demanding and extremely complex. It starts with the renting of computer servers in several countries. First the Carders are active to obtain the credit cards and client identities wrongfully. These data are then passed to the falsifiers who manufacture wonderful official documents so that they can be used to identify oneself. These identities and credit card infos are then sold as credit card kits to operators. There is still an alternative where no credit card is needed: in the U.S. one can buy so-called Visa or MasterCard gift cards. However, these with a certain amount of money charged Visa or MasterCard cards usually only usable in the U.S.. Since this anonymous gift cards to buy, these are used to over the Internet with fake identities to pay. Using a false identity and well-functioning credit card servers are then rented and domains purchased as an existing, unsuspecting person. Most of the time an ID is required and in that case they will simply send a forged document. There is yet another alternative: a payment system called WebMoney (webmoney.ru) that is in Eastern Europe as widespread as PayPal in Western Europe. Again, accounts are opened with false identities. Then the business is very simple in Eastern Europe: one buys domains and rents servers via WebMoney and uses it to pay.
As soon as the server is available, a qualified server admin connects to it via a chain of servers in various countries with the help of SSH on the new server. Today complete partitions are encrypted with TrueCrypt and all of the operating system logs are turned off. Because people consider the servers in Germany very reliable, fast and inexpensive, these are usually configured as HIDDEN CONTENT SERVERS. In other words, all the illegal files such as pictures, videos, etc. are uploaded on these servers – naturally via various proxies (and since you are still wondering what these proxies can be – I’ll explain that later). These servers are using firewalls, completely sealed and made inaccessible except by a few servers all over the world – so-called PROXY SERVERs or FORWARD SERVERs. If the server is shut down or Someone logs in from the console, the TrueCrypt partition is unmounted. Just as was done on the content servers, logs are turned off and TrueCrypt is installed on the so-called proxy servers or forward servers. The Russians have developed very clever software that can be used as a proxy server (in addition to the possibilities of SSL tunneling and IP Forwarding). These proxy servers accept incoming connections from the retail customers and route them to the content Servers in Germany – COMPLETELY ANONYMOUSLY AND UNIDENTIFIABLY. The communication link can even be configured to be encrypted. Result: the server in Germany ATTRACTS NO ATTENTION AND STAYS COMPLETELY ANONYMOUS because its IP is not used by anyone except for the proxy server that uses it to route the traffic back and forth through a tunnel – using similar technology as is used with large enterprise VPNs. I stress that these proxy servers are everywhere in the world and only consume a lot of traffic, have no special demands, and above all are completely empty.
Networks of servers around the world are also used at the DNS level. The DNS has many special features: the refresh times have a TTL (Time To Live) of approximately 10 minutes, the entries usually have multiple IP entries in the round robin procedure at each request and rotate the visitor to any of the forward proxy servers. But what is special are the different zones of the DNS linked with extensive GeoIP databases … Way, there are pedophiles in authorities and hosting providers, allowing the Russian server administrators access to valuable information about IP blocks etc. that can be used in conjuction with the DNA. Each one who has little technical knowledge will understabd the importance and implications of this… But what I have to report to you is much more significant than this, and maybe they will finally understand to what extent the public is cheated by the greedy politicians who CANNOT DO ANYTHING against child pornography but use it as a means to justify total monitoring.
Source : Bruce Schneier