Researchers at DroneBL have spotted signs of a stealthy router-based botnet worm targeting routers and DSL modems. The worm, called psyb0t, has been circulating since at least January this year, infecting vulnerable embedded Linux devices such as the Netcomm NB5 ADSL modem and launching denial-of-service attacks on some Web sites. The group estimates there are 100,000 hosts infected with this malware. The author of this worm has some sophisticated programming knowledge.
Source: https://threatpost.com/researchers-spot-router-based-botnet-worm-032309/72540/