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Mykonos Software has developed code for websites that detects hackers. Rather than trying to fend them off, it feeds the hackers phony data while at the same time delaying the hacker. The concept is similar to the LaBrea 'tar pit' (early description at http://www.sans.org/reading_room/whitepapers/attacking/labrea-approach-securing-networks_36) that was intended to slow port scanners to a crawl.

The article lists some of the concerns of the Mykonos approach, including retaliation. On the other hand, sometimes smart offensive is the best defense: the immune system adapts to intruders and actively hunts them down. Mykonos has the advantage in that it lulls the hackers into thinking that they are actually making progress. It changes the cost/benefit of hacking by distracting hackers from attacking more vulnerable/valuable websites while poisoning the information they collect with rubbish.
Instead of blocking attacks, a startup distracts attackers with false information.
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