In its 2007 data security summary, F-Secure reports of a steep increase in the amount of new malware detected during 2007. This indicates that network criminals are producing new malware variants in bulk. Social engineering remains a key method for propagating malware, and more productive malware development tools and kits are increasingly used by the criminals. The successful social engineering methods the Storm gang used during the first half of 2007 were further developed in the second half of the year. Also the technical setup of the Storm botnet is unique: in addition to using a novel peer-to-peer setup to avoid one vulnerable central point of control, the botnet also has a capability of using DDoS-attacks to retaliate against anti-virus researchers investigating the botnet.