Industry Intel

By Ian Moyse

A decade on from the ILOVEYOU worm, what has changed—apart from ‘we’re older and (supposedly) wiser?’

We have allowed the bad in the real world to progressively infect our online world, giving criminals a way to attack victims that is more dangerous for the victim and, coincidentally, safer for the attacker. As recently as a decade ago, bank robbers had to physically enter the bank premises and overcome its defenses. Today, they simply need to be clever enough to trick you, rather than break the defenses of the bank itself.

In humanizing the Internet we have dehumanized cybercrime.

The individual computer user was, and remains, the weak link. The concept of social engineering still poses the principal online threat affecting everyone.

At last week’s Infosecurity Europe show in the UK, I spoke about the latest threats, and how they clash with the realities of the Internet and the Web 2.0 world we live in today. Attendees who spoke to me afterward, many of whom provide support and IT services to business of all sizes, told me they live with these threats every day.

I asked the people watching my talk who thinks malware is still as much of a threat as it ever was, and the sea of hands that shot up spoke volumes: Ten years on, we face the same problem on an increasingly large scale. The attackers however have gotten smarter, and more malicious. We have seen more malware in the last 18 months than the last 18 years combined — and the attacks which deliver that malware to victims are equally creative, ingenious, and devious.

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If you’re a rock-and-roll star, anticipating the imminent arrival of a new recording contract from your lawyer, you can stop reading this post. If you’re not, I’m sorry to be the one to tell you, it was not your hours of practice playing Rock Band, or singing in the shower, that attracted the attention of the music industry. A spammed message, supposedly from a record company, which claims to have a contract attached, is (surprise!) malicious.

The contract, in this case, is no contract at all, but a Trojan that can brick your computer if you run the file inside the Zip archive attached to the message.

We’ve been watching our favorite spam-propagated malware, Trojan-Downloader-Tacticlol (aka Oficla, Sasfis, Fregee, or Losabel). This is its new, extra stupid come-on of the moment. The message appears to come from Rock Out Records and says, in part:

“We have prepared a contract and added the paragraphs that you wanted to see in it. Our lawyers made alterations on the last page. If you agree with all the provisions we are ready to make the payment on Friday for the first consignment. We are enclosing the file with the prepared contract.”

In our tests of the Trojan, it pulls down a number of malicious payloads, some of which modify key Windows files responsible for the operation of the computer. As a consequence of the infection, your computer may not be able to boot up, instead leaving you stuck with a blue screen of despair.

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If you’re a customer or an employee of McAfee, chances are, you’re having a rough week. The company published a false positive, or FP, in its antivirus definitions that went out to customers a few days ago. The FP resulted in some computers going into a loop where the antivirus engine misidentified a key component of the Windows operating system as malicious, Windows replaced the quarantined file, and then the McAfee engine removed it again.

I really feel badly both for McAfee’s customers as well as their researchers. The customers certainly didn’t deserve or want their protection to go haywire. Security firms that make antimalware programs, like Webroot and McAfee do, confront the risk of publishing false positives every day. I don’t think there’s a single company that doesn’t strive for a zero percent false positive rate (aside from the snake oil pitchmen who sell rogue antivirus products, whose entire business model is predicated on lies and deception).

Every legitimate company in this space has had to retract some definition set at some point because it misidentifies or removes the wrong thing. We’ve done it, too; It’s nothing to be proud of, but it’s the reality of the situation in which anti-malware researchers work. The malware creators do their best to make this task as difficult as possible. We also know that every minute longer it takes to work on an updated definition, is another minute where our customers roam the Web unprotected from the dangers that lurk around virtually every corner. In the rush to press forward, we sometimes make mistakes. And as a result of those mistakes, we’ve made some improvements over time: Our desktop Webroot Antivirus product can’t, for example, accidentally quarantine some of the key system files Windows needs just to remain operational, as long as those system files remain unmodified by malware.

What happened with McAfee has been the subject of a lot of water-cooler discussion here, too. One of the bright points that has come out of the internal conversations I’ve shared with some of my colleagues is this: Putting the definitions into the cloud, instead of letting them reside on the “endpoint” (the desktop computer running the antivirus software) has a clear advantage in cases like this. If a definition hosted in the cloud goes horribly, horribly wrong, we can pull that definition from circulation immediately, thereby limiting the scope of the damage, and hopefully containing it to the small number of users who happen to be in the unlucky position to be first to use a defective definition set.

Another point that someone made concerned the Webroot Web Security Service, which is a Web filtering service we sell to businesses as a way to protect their entire network from dangerous Web sites hosting malware-pushing exploit kits or phishing pages. Web SaaS provides a critical layer of protection from Web-based threats in the unlikely event that you might have to temporarily remove a misbehaving endpoint anti-malware product. Our Email SaaS service does the same for threats that might come through corporate mail systems. SaaS security won’t ever totally replace some sort of security app running on the computer, but it does a bang-up job keeping you safe from most threats.

When it comes to offering protection, the state of the Internet today demands a far more rapid response to threats. We need to respond immediately to new attacks, so our customers are protected the minute we discover something new. And likewise, we need to be able to pull back changes immediately, so we can limit the damage if we make mistakes. This immediacy is the benefit of keeping some security components out in the cloud, and we’re working towards a goal that protects not just the computer, but the people using that computer, the minute new threats reveal themselves. Waiting days and days for protection just isn’t an option anymore.

For the past couple of weeks, owners of Web sites have been hit with a wave of attacks that surreptitiously infect unsuspecting visitors with a wide variety of malware types. The first wave inflicted rogue antivirus on unlucky victims, but late last week victims who visited infectious sites were redirected into a drive-by download site that pushes clickers onto a vulnerable visitor’s computer.

The affected web sites have been modified to add malicious, obfuscated Javascript code to the footer of each page. Some Web hosts are trying to notify customers or fix the problems. At first, the problem affected sites that run the open-source WordPress publishing system, but the attack has broadened into non-Wordpress (and non-blog) Web sites. The gobbledygook Javascript opens an iframe hosted from a different Web site, and the code that loads inside that iframe redirects the victim’s browser to yet another site, which loads the infection and executes it.

I’m going to name (domain) names in this post, so please, for your own sake, use this information only to block the domains at your gateway or in your Hosts file — don’t go visiting them just to see what happens. I guarantee you won’t like what happens.

In the earlier attacks that began the week of April 5th, the malicious script directed victims to a page hosting the Eleonor exploit kit; The kit uses several well-worn methods to try to push executable malware (typically the Tacticlol downloader, which malware distributors have been using of late to push down rogue antivirus programs) at susceptible browsers, or computers running vulnerable versions of Adobe Acrobat or the Java Runtime Engine.

Those attacks originated from several domains, including corpadsinc.com, mainnetsoll.com, and networkads.net — all of which are hosted on the same IP address in Turkey, and are still live and hosting the exploit page.

But last week the script began directing users into a page on the domain name yahoo-statistic.com, a site which, despite its name, has nothing at all to do with the giant portal. That page, which loads in an iframe, opens other malicious sites which push the infection.

The list of affected sites is global, including a newspaper in Florida; the English-language page of a government’s Ministry of Women’s Affairs Web site; the Web site of a Spanish lawyer’s association; and a car dealership Web site in Indonesia. And as of today, visitors to this growing list of Web sites are still getting hit with Trojans.

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Phishing Trojans that try to remain below the radar are still prevalent, but a number of files coming through Threat Research point to a disturbing trend: Several new variants of existing malware families are taking a scorched earth approach to infected computers, rendering the PC unbootable (just check out the batch file at left for just one egregious example) once the malware has retrieved whatever data it’s trying to steal, or deliberately crashing it, repeatedly, if you try to remove it.

Since the middle of last year, we’ve seen a sprinkling of malware that also wipes out key files on the hard drive, sometimes preventing a reboot, after an infection. This isn’t hostageware, which overtly threatens to delete the contents of the hard drive if you don’t pay up, but something more sinister.

In some cases, the crashes we saw were the result of poor coding by the malware author. But increasingly it appears that this behavior is deliberate, and occurs without warning. And this unfortunate trend appears to be getting worse, leaving a raft of perplexed, angry victims unable to use their computers in the wake of an infection.

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Liz Lemon should be livid. Jack would be damned angry…in a quiet, repressed sort of way.

The rogue antivirus goons have taken on 30 Rock, the NBC meta-sitcom about the internal workings of a sketch comedy show.

In a subplot from last week’s episode (which I will recap for those who may have missed it), Alec Baldwin’s character teams up with one of the writing team to prank the rest of the writers. The two form a secret society named the Silver Panthers, and when the prank is successfully sprung on the unsuspecting writers, Baldwin’s character Jack begins to walk out of the room, but pauses, turns back to the victims, and ominously utters the (we assume) Silver Panther motto: “Circulus et Pruna.”

Latin scholars (who, I’m sure, are all ardent 30 Rock fans) probably chuckled when they heard Baldwin’s character utter the nonsense phrase “circle and (burning) charcoal (ember).” Or is it circle and plum? Meanwhile, the rest of us were left scratching our heads and wondering what the hell does that mean?

And so, turning to the font of all worldly knowledge, many Googled the phrase and may have been surprised to find that not one, not a few, but every search result on the first page (and most of the second page of results) led to a Fakealert trap that tries to force victims into downloading and running the installer for a Rogue Antivirus product.

The scoundrels.

It’s actually kind of an astonishing feat, as well as a horrific example of the current state of search results. When you consider that few, if any, outside Tina Fey’s production team had heard the phrase Circulus et Pruna uttered prior to last Thursday night at 9:30 (8:30 central), one has to wonder how the purveyors of these rogue antivirus products managed to wrest such total control of a nonsense Latin phrase from the world’s largest and (in theory) most comprehensive Internet search engine — mere moments after those words were spoken on television.
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By Mike Kronenberg

Attention Facebook and Twitter users: You’re still at risk. Last year, our survey found that lots of people using social networking sites were taking the risk of financial loss, identity theft, and malware infection. Have things gotten any better? Well, the answer is yes but, unfortunately, not better enough — and potentially a lot worse for some of you.

The results of our 2010 survey reveals that more of you are adhering to some safe behaviors — like blocking profiles from being visible through public search engines. That’s a good thing, but the downside is over 25 percent of you haven’t changed your default privacy settings. And more that three quarters of survey respondents haven’t placed any restrictions on who can see their recent activity.

I worry about this because you can’t escape the fact that rogue operators are always trying to extract details about you. They want access to anything that can help them dig into your private life. They can break into Web mail accounts, get your credit card number, steal your identity, or even attack you through cyber-stalking.

And they’ll do anything to get the info, from attacking you with malware to tricking you into revealing passwords.

With that, and our survey in mind, on the following page I’ve posted a few suggestions you can follow to protect yourself.

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A new version of Trojan-Pushu is doing some interesting stuff to bypass captchas used by Microsoft’s Hotmail/Live.com/MSN webmail services in order to spam people with links to malicious Yahoo Groups pages.

The three-year-old spy (known by a variety of other aliases, including Cutwail, Pushdo, Diehard, and Rabbit) has always been, primarily, a spam bot. In this case, however, the spy is not sending spam by connecting to open mail relays or more traditional means; It’s spamming through the Hotmail/Live.com Web mail interface. Most interestingly, during the course of the spam sessions, the spy apparently pulls down “audio captchas” and successfully sends back the correct response, which permits it to continue spamming.

Audio captchas are just what they sound like they are: A voice, often female, reads a sequence of 10 numbers in an artificially noisy background. The purpose is simple: to ensure that a human being, and not some automated process, is entering data into a form. Just as you would type in the scrambled-up letters from a captcha image to proceed, with an audio captcha you have to type the correct numbers from the recording, or the site won’t let you continue.

That doesn’t seem to be a problem for this Pushu variant. We’ve seen Trojans attempt to crack visual captchas a number of ways, including using optical character recognition; employing a mechanical turk service (where humans are paid fractions of a penny for each correctly entered captcha); or by prompting the victim him- or herself to enter captcha text, disguising the captcha form as some sort of Windows prompt. This is the first time I’ve heard of a Trojan attempt to crack the audio captcha, let alone succeed.

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Pretty much since it arrived on the malware scene, Koobface has used the technique of sending messages with Web links — in your name, to your friends — as a method of propagating the infection to others. Using your name is a powerful social engineering trick, and the makers of the worm have tried innumerable ways to mask the danger behind those dangerous links: They’ve used “short link” services like Bit.ly to hide the destination; They build pages on sites normally considered safe, like Blogspot or Google Reader, that simply redirect users to a dangerous page; and they use stolen credentials for the Web servers of legitimate businesses to upload their own malicious content there.

Since February, Koobface has tried another technique: It has used different URL encoding schemes, which many browsers but few humans can interpret. You click an odd-looking link and before you know it, you’re on a site that’s trying to push an infection at your PC.

This “new” trick actually harkens back to 2001, when spammers were using so-called dotless IP address tricks to bypass security features in Internet Explorer. A Windows patch issued in October of that year fixed the bug in IE that gave dotless IP addresses additional security permissions. But the IE, Firefox, and other browsers remain capable of taking a URL in the form of (for example) http://1078900434 and correctly translating to a standard IP address, then loading, the page hosted at the IP address that number represents. (The dotless link above will take you to Webroot’s Web site.)

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A new Windows Update-themed stupid malware trick that’s making the rounds appears to be trying to capitalize on the recent frequency of “out of band” Windows patches Microsoft has been releasing lately.

The spy, which serves as nothing more than a vehicle for the fraudulent sale of a fake product called Antimalware Defender, so closely resembles a Windows Update installation dialog that some members of our threat research team who saw these files had to pause and look carefully at the dialog box before deciding it is, in fact, a big fat hoax. Even the Microsoft Knowledge Base article the dialog box references is a real KB article…though it has nothing to do with security.

The entire scam is facilitated through a nearly-1MB DLL file, which contains all the instructions required to display the fake popups from the System Tray, the fake Windows Update dialog box, and the fake antivirus “scan” window which appears when you play along with the app. The DLL appears when you visit certain Websites that push drive-by downloads at visitors.

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An insidious new Trojan that finds its way onto Windows PCs in the course of a drive-by infection employs a novel method to propagate: It connects to Web servers using stolen FTP credentials, and if successful, modifies any HTML and PHP files with extra code. The code opens an iFrame pointing to a page that loads browser exploits. The exploit pushes down the infection, which then perpetuates the process. The initial infection vector in this case was a spam message supposedly from Amazon.com containing a link to the page which performs the drive-by attacks.

The malware, which we’re calling Trojan-Backdoor-Protard, appears to seek out Web servers for which the FTP credentials may have been previously stolen in an earlier attack. Those servers all contain a pair of benign HTML tags that appears to be long strings of gibberish characters.

Code within the scripts this spy uses indicate the malware’s creators are calling the server modifications a Gootkit, and the gibberish embedded in the files Gootkit Tags. The Trojan also loads itself on an infected machine using a registry key, naming the service that loads either “kgootkit” or “gootkitsso.” During the course of researching the malware, we observed the Trojan modify these pages such that the Trojan inserted the malicious code between the two Gootkit Tags.

It stands to reason that, if you find these so-called Gootkit Tags embedded within files on your own Web server, you can be fairly confident that an FTP password has been compromised, and all your FTP passwords should be changed immediately.

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All day, I’ve been getting reports from my Twitter-using friends and acquaintances that they’ve been receiving tweets of short URLs. I took a look and it looks like another phishing campaign aimed at users of the social network is underway. The short URLs, prefaced with the message “This you???” lead to a fake Twitter login page.

The fake login page is hosted on a domain that points to a server in China. Other domains that are currently hosted on that same server’s IP address, including bzpharma.net, have previously been implicated in earlier Twitter spam campaigns. The same domain appears to also be attempting to phish credentials to AOL’s Bebo social network, and has reportedly begun spamming users with fake pharma ads.

It appears a lot of people may get tripped up in the rush to see what the link is all about. After you type anything at all into the phishing version of the Twitter login form, your browser is redirected to a hastily created, empty blog page on Blogspot. Meanwhile, the tweets keep on coming.

Just a reminder to our Twitter fans: Please look at the address bar before you enter your Twitter credentials. As you can see from the screenshot above, it’s painfully obvious that this is not the legitimate twitter.com URL.