This has been a problem people thought had been happening for a while. It's only with this detailed analysis that the light is being cast on it.
Now we can work on solutions. And we will.
Now we can work on solutions. And we will.
This has been looked at pretty extensively before. Confusingly enough, a lot of the research was done by the creators of BGPmon (http://bgpmon.netsec.colostate.edu/ - same name, concept, and primary functionality with no connection between the two as far as I can tell).
The solution is easy enough, secured peering to prevent hijacking, and a centralized certification process to prevent rogue AS's. We've known this stuff for a good decade now, but the exploitation has never been serious enough to overcome push-backs on the costs (both in terms of hardware and reachability issues) from ISPs.