Tag Archive for Botnet

40 Years of Malware – Part 4

2011 marks the 40th anniversary of the computer virus. Help Net Security notes that over the last four decades, malware instances have grown from 1,300 in 1990, to 50,000 in 2000, to over 200 million in 2010. Fortinet (FTNT) marks this dubious milestone with an article which counts down some of the malware evolution low-lights. The Sunnyvale,CA network security firm says that viruses evolved from an academic proof of concepts, to geek pranks which have evolved into cybercriminal tools. By 2005, the virus scene had been monetized, and almost all viruses developed for the sole purpose of making money via more or less complex business models. According to FortiGuard Labs, the most significant computer viruses over the last 40 years are:

- See Part 1 Here  - See Part 2 Here  – See Part 3 Here  – See Part 4 Here

Storm2007 – By 2007, Botnets have infected millions world-wide using Zombie systems send spam to generate Denial of Service (DoS) attacks, compromise passwords and data. By 2007 cybercriminals had developed a lucrative business models they were protecting. The attackers became more concerned about protecting their zombie computers. Until 2007, botnets lacked robustness, by neutralizing its unique Control Center (PDF), a botnet could be taken down, because Zombies didn’t have anyone to report to (and take commands from) anymore. The Storm botnet was the first to feature a peer-to-peer architecture (PDF) to decentralize its command and control functions. At the peak of the outbreak, the Storm Botnet was more powerful than many supercomputers and accounted for 8% of all malware running in the world according to FortiGuard.

Koobface2008Koobface (an anagram for Facebook) spreads by pretending to be the infected user on social networks, prompting friends to download an update to their Flash player to view a video. The update is a copy of the virus. Once infected, users would serve as both vectors of infection for other social network contacts and as human robots to solve CAPTCHA challenges for cyber-criminals, among other things. Koobface is also the first botnet to recruit its Zombie computers across multiple social networks (Facebook, MySpace, hi5, Bebo, Friendster, etc). FortiGuard estimates that over 500,000 Koobface zombies are online at the same time.

Conficker2009Conficker (aka Downadup) is a particularly sophisticated and long-lived virus, as it’s both a worm, much like Sasser, and an ultra-resilient botnet, which download destructive code from a random Internet servers. (We still see it pop-up from time to time at work). Conficker targeted the Microsoft Windows OS and used Windows flaws and Dictionary attacks on admin passwords to crack machines and link them to a computer under the control of the attacker. Conficker’s weakness is its propagation algorithm is poorly calibrated, causing it to be discovered more often according to Fortinet. In 2009 some networks were so saturated by Conficker, that it caused planes to be grounded, hospitals and military bases were impacted. Conficker infected bout 7 million systems worldwide.

Advanced Persistent ThreatAdvanced Persistent Threat (aka APT, Operation Aurora) was a cyber attack which began in mid-2009 and continued through December 2009. The attack was first publicly disclosed by Google (GOOG) on January 12, 2010, in a blog post. In the blog post, Google said the attack originated in China and were both sophisticated and well resourced and consistent with an advanced persistent threat attack. According to Wikipedia the attack also included Adobe (ADBE), Dow Chemical (DOW), Juniper Networks (JNPR),Morgan Stanley (MS), Northrop Grumman,(NOC), Rackspace (RAX), Symantec (SYMC) and Yahoo (YHOO).  There is speculation that the primary goal of the attack was to gain access to and potentially change source code repositories at these high-tech, security and defense contractor companies.

The definition of an Advanced Persistent Threat depends on who you ask, Greg Hoglund, CEO at HBGary told Network World an Advanced Persistent Threat is a nice way for the Air Force and DoD to not have to keep saying “Chinese state-sponsored threat.” He says,” APT is “the Chinese government’s state-sponsored espionage that’s been going on for 20 years,” Mr. Hoglund told Network World.

Stuxnet USB2010 - Stuxnet‘s discovery in September 2010 ushered in the era of cyber war. According to most threat researchers today, only governments have the necessary resources to design and implement a virus of such complexity.Stuxnet is the first piece of malware specifically designed to sabotage nuclear power plants. It can be regarded as the first advanced tool of cyber-warfare. Stuxnet was almost certainly a joint U.S. / Israeli creation for damaging the Iranian nuclear weapons program, which it did, by destroying a thousand centrifuges used for uranium enrichment.

To spread, Stuxnet exploited several critical vulnerabilities in Microsoft (MSFT) Windows, which, until then, were unknown, including one guaranteeing its execution when inserting an infected USB key into the target system, even if a systems autorun capabilities were disabled. From the infected system, Stuxnet was then able to spread into an internal network, until it reached its target: a Siemens industrial software system that run Iran’s Bushehr nuclear reactor and most likely intended to destroy or neutralize the industrial system.

Duqu2011Duqu is the current star in the world of malware but, as history shows, that fame will be short-lived. Just like fashion models, modern malware has a lifespan in the media eye of a couple of weeks to a couple of months, tops. They then fade into the shadow of more dangerous and sophisticated tools, according to Help Net Security.

Gary Warner, director of Research in Computer Forensics in the UAB College of Arts and Sciences blogged that Duqu is a data stealing program that shares several blocks of code with Stuxnet. In fact, one of the two pieces of malware we’ve seen that is described as being Duqu is also detected as Stuxnet by some AV vendors.

Symantec disclosed in their report that one of the infections they were analyzing had been infected via a Word Document that exploited the system using a previously unknown 0-day attack.

On November 3, 2011, Microsoft released a Microsoft Security Advisory (2639658) Vulnerability in TrueType Font Parsing Could Allow Elevation of Privilege. The advisory starts with an executive summary which says, in part:

Microsoft is investigating a vulnerability in a Microsoft Windows component, the Win32k TrueType font parsing engine. An attacker who successfully exploited this vulnerability could run arbitrary code in kernel mode. The attacker could then install programs; view, change, or delete data; or create new accounts with full user rights. We are aware of targeted attacks that try to use the reported vulnerability; overall, we see low customer impact at this time. This vulnerability is related to the Duqu malware.

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Every couple of years a new malware is crowned the most innovative or dangerous cyber threat in the wild. The anti-malware industry is built on a game of chicken between malware creators and the anti-malware creators, with end users stuck squarely in the middle. As this series of article as shown this game has been going on for 40 years since computers were bigger than many houses and were as user friendly as the DMV.

 

Who Moved My SPAM?

SPAm logoAnalysis of the spam trends by security vendor Commtouch reveals a significant drop in global spam levels according to the Help Net Security.  The article say that the average spam level for Q4 2010 was 83% down from 88% in Q3 2010. The beginning of December saw a low of nearly 74%. The New York Times also noted the decline in SPAM during Q4 2010. The NYT cites data from MessageLabs that global spam volumes dropped to about 30 billion messages a day from about 70 billion before Christmas. MessageLabs says the decline added to a downward trend under way since August, when spam peaked at some 200 billion spam messages a day, or 92.2 percent of all e-mail.

Symantec SPAM levels

computer spamThere are several theories why SPAM is drying up. One theory in the NYT article for why the botnets stopped spamming is that an important source of business may have dried up. September 2010 saw the Russians close down SpamIt, the organization allegedly behind much of the worlds pharmacy spam. Without SpamIt, “at least for now, there’s no content to fill the spamming cannons that Rustock has,” John Reid, of Spamhaus, a nonprofit group that tracks spammers, told the NYT.

Another theory put forward is that the botnet operators are intimidated. The NYT reports that in addition to going after SpamIt, Russian authorities recently arrested two spammers in Taganrog,in southern Russia, who had a database of nearly two billion United States and European Union e-mail addresses they had used to spread malicious programs, according to the HostExploit blog. “Even if the people were unrelated, the chilling effect of arrests can cause others to lay-low for a while,” Mr. Reid said, adding, “But all this is speculation.”

Symantec MessageLabsMatt Sergeant, senior anti-spam technologist at MessageLabs, a unit of the security-software maker Symantec (SYMC) wrote in a blog post, “Did the people in charge of these botnets suddenly go on vacation? Currently there are no explanations on why these botnets stopped spamming.”

Another theory could be that SPAMmers are changing tactics. The botnet operators appear to be shifting their focus to more lucrative social networking and mobile channels. Jamie Tomasello, Abuse Operations Manager at Cloudmark, told Help Net Security that these platforms allow SPAMmers to reach more responsive recipients compared with traditional email messages.

In a survey of Facebook users by F-Secure, the anti-malware firm, found that social networking spam is now a problem for three out of four Facebook users reported by ITNewsLink. F-Secure also found that 78 percent think spam is a problem on the site and 49 percent report they frequently see something in their newsfeed that they consider spam.

cloudmarkMs. Tomasello explains that technically, a botnet can send any kind of content and so they are increasingly being used to send messages that spoof content from social networking sites. This works in a similar way to email phishing attacks, where a message would drive the recipient to a malicious payload, or to a website to capture the recipient’s social network credentials. The cybercriminal could then log in to the social networking site with the compromised credentials and send spam via the platform to the compromised recipient’s friends.

Cloudmark’s Tomasello says that these messages can be much more convincing than email spam messages because social networks, and the friends a user is connected with, are often well trusted. Once a cybercriminal has compromised credentials they will use them to try to gain access to other e-commerce, social network, email or bank accounts, because many internet users use the same username and password combination across multiple web sites.

Mobile devices are also seeing increased threats. Gareth Maclachlan, Chief Operating Officer of AdaptiveMobile, a mobile security firm told ITnewslink “With the increasing pervasiveness of Smartphone devices, 2010 has undoubtedly been the year that fraudsters have truly turned their attention to mobile platforms.” Mr. Maclachlan continues:

With Smartphone penetration reported to reach 37 per cent in Europe and 44 per cent in the US by 2012, we predict that the number of threats targeted at unsuspecting mobile users will continue to increase at an exponential rate throughout the course of 2011. Even more significantly, the nature of the threats we are seeing will increase in sophistication. … next year will see the emergence of the ‘compound threat’ – intelligent scams designed to exploit multiple phone capabilities in order to reap maximum reward for the criminals, before the user even realises they have become a victim.

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My SPAM data tracks with what the big boys are saying. The average number of SPAM emails I receive has dropped to a near record low 12.3 SPAM messages per day in January 2011 from a high of 77.5 SPAM messages in May of 2009.  The record low monthly average was 11.0 SPAM messages in May 2010. The number of SPAM messages I get on my Blackberry has been minimal, but the number of junk email’s I get even through LinkedIn has climbed.

Average Daily SPAMAre SPAMmers taking a break or reloading?

What are you doing to prevent SPAM on mobile devices?

CAPTCHAs Broken

Mims Bits on MIT‘s Technology Review reports that researcher from UC San Diego have figured out how spammers use low-cost workers in Russia, Southeast Asia, and China to solve millions of CAPTCHAs in near real-time.

A CAPTCHA is that bit of distorted text you have to type back at a webpage when you’re trying to sign up for a new email account or leave a comment on a blog.  In order to prevent spammers from flooding the web with their malware researchers developed CAPTCHAs. CAPTCHAs are designed to be easy for humans to solve but challenging enough for computers to get right that automated systems would not be effective.

In what Mims calls an epic new analysis by the UC San Diego researchers, they uncovered the “seedy underbelly” of a sophisticated, highly automated, world-wide network of services that help spammers get past the CAPTCHAs. The article says that the inventors of CAPTCHA probably didn’t expect thousands of laborers working for less than $50 a month would be recruited by spammers to solve an endless stream of CAPTCHAs.  Automated middlemen deliver the  CAPTCHAs to the workers by and then sell the results to spammers in real-time, so that their spam bots can use those solutions to post to blogs and set up fraudulent email accounts according to a paper (PDF) delivered at the USENIX Security 10 Symposium.

The UC San Diego researchers analyzed where the workers involved in this scheme were located and found that they are based in India, Russia, Southeast Asia and China. The system is so efficient at delivering CAPTCHAs to workers in these remote locales that the average time for delivery of a solution hovers around 20 seconds. ImageToText, one of the CAPTCHA services the researchers experimented with was able to deliver correct results in “a remarkable range of languages,” including Dutch, Korean, Vietnamese, Greek and Arabic.

Even setting the sample CAPTCHAs to Klingon , as a control in their experiment, could not stop ImageToText, according to Technology Review. The workers managed to solve a handful of the Klingon CAPTCHAs despite odds of less than one in one thousand of their randomly getting the right answer.

The results of this landmark study, says Mims,  show that a number of sites, including those run by Microsoft (MSFT), AOLGoogle (GOOG) and the widely used reCAPTCHA, are regularly compromised by spammers employing these services. The researchers conclude that their investigation with an anonymous “Mr. E” who actually runs one of these services, proves that for advanced spammers, CAPTCHAs aren’t so much a barrier as a cost of doing business.

DarkReading has a report that independent security researcher Chad Houck recently demonstrated his work on solving Google’s (NASDAQ: GOOG) reCAPTCHA. reCAPTCHA was designed to stop software bots attempts to create free accounts on the Google services for their malware ways.  Despite recent enhancements made by Google, DarkReading says Houck came up with algorithms that could beat reCAPTCHA 30 percent of the time.

A 30% success rate means that automated software using Mr. Houck’s algorithm will be able to create one Google account out of just three attempts. Multiply those odds by the endless attempts by tens of thousands of zombies in a typical botnet, reCAPTCHA is broken.

In the DarkReading article, Houck notes that “[ReCAPTCHA] has never been wholly secure. There are always ways to crack it.” The researcher has since published a white paper on it, and has also released his algorithms online. For now at least, a Google spokesperson says there has not been any sign of this particular attack being actively used.

2009 SPAM results

PC World chronicles how analysts at the a California-based security company FireEye executed a plan to shut down the Mega-D (or Ozdok) botnet in early November 2009. At one point the Mega-D botnet reportedly accounted for 32 percent of all spam. In order to shut down this threat, Afit Mushtaq and two FireEye colleagues went after Mega-D’s command infrastructure.

According to the article, the botnet’s command infrastructure was its weak-point. The Mega-D owned bots infesting PC’s were directed from online command and control (C&C) servers throughout the world. If the bots could be separated from their controllers, the researchers found that the undirected bots would sit idle on the PC’s not delivering their malware. Mushtaq found that every Mega-D bot had been assigned a list of destinations to try if it couldn’t reach its primary command server.  Taking down Mega-D would need a carefully coordinated attack.

To coordinate the attach the FireEye team contacted the Internet Service Providers (ISP’s) that hosted Mega-D control servers. Mushtaq’s research showed  that most of the Mega-D C&C servers were based in the United States, with others in Turkey and Israel. The FireEye team received cooperation for the U.S. based IPS’s but not the overseas ISPs. The FireEye team took down the U.S. based C&C servers.

Since the ISP’s in Israel and Turkey refused to cooperate, PC World reports that Mushtaq and company contacted domain-name registrars holding records for the domain names that Mega-D used for its control servers. The registrars collaborated with FireEye to point Mega-D’s existing domain names to no­­where. This cut off the botnet’s pool of domain names that the bots would use to reach the overseas ISP based Mega-D C&C servers.

As a last step, PC World says that FireEye and the registrars worked to claim spare domain names that Mega-D’s controllers listed in the bots’ programming and pointed them to “sinkholes” (servers FireEye had set up to sit quietly and log efforts by Mega-D bots to check in for orders). Using those logs, FireEye estimated that the botnet consisted of about 250,000 Mega-D-infected computers.

MessageLabs reports that Mega-D had “consistently been in the top 10 spam bots” for the earlier year. The botnet’s output fluctuated from day-to-day, but on November 1 Mega-D accounted for 11.8 percent of all spam that MessageLabs saw. Three days after FireEye’s operation, Mega-D’s share of Internet spam to less than 0.1 percent, MessageLabs states.

Mushtaq recognizes that FireEye’s successful offensive against Mega-D was just one battle in the war on malware. The criminals behind Mega-D may try to revive their botnet, he says, or they may abandon it and create a new one. But other botnets continue to thrive. “FireEye did have a major victory,” says Joe Stewart, director of malware research with SecureWorks in the PC World article, “The question is, will it have a long-term impact?”

Mushtaq says that FireEye is sharing its method with domestic and international law enforcement,  “we’re definitely looking to do this again,” Mushtaq says. “We want to show the bad guys that we’re not sleeping.”

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The take down of Mega-D by FireEye has had a noted decrease in the level of SPAM I observed. During the 10 months before the Mega-D take down, the daily average of SPAM messages (DASM) received 49. After the November 2009 Take down, DASM rate dropped to 33. A step down in to the numbers reveals that the November 2009 DASM was 35 and the December DASM was 29.


The overall DASM trend line for 2009 was down. In order to keep the trend going down, firms should investigate the ShadowserverASN & Netblock Alerting & Reporting Service. This free reporting service is designed for organizations that directly own or control network space. The service provides reports detailing detected malicious activity to aid in their detection and mitigation program.  Shadowserver has provided this service for over two years, and now generate over 4,000 reports nightly.  The reporting service monitors and alerts the following activity:

  • Detected Botnet Command and Control servers
  • Infected systems (drones)
  • DDoS attacks (source and victim)
  • Scans
  • Clickfraud
  • Compromised hosts
  • Proxies
  • Spam relays
  • Malicious software droppers and other related information.

Detected malicious activity on a subscriber’s network is flagged and included in daily summary reports detailing the previous 24 hours of activity. These customized reports are made freely available to the responsible network operators as a subscription service.

Smartphone Botnet

Two researchers from TippingPoint’s Digital Vaccine Group duped thousands of iPhone and Android smartphone users into joining a mobile botnet by spreading a seemingly innocuous weather application. Kelly Jackson Higgins at DarkReading writes that Derek Brown and Daniel Tijerina created a smartphone application called WeatherFist. Over 8,000 users downloaded WeatherFist, which grabbed information from users, including their GPS co-ordinates and telephone numbers, before displaying local weather information.

The researchers chose not to distribute their application via the official iPhone and Android application stores, rather TippingPointthey distributed the WeatherFist application via third-party app markets like Cydia, SlideME and Modmyi. The apps could only be installed on jailbroken iPhones or Android devices where users had specifically given permission for non-approved applications to be run. “We wanted people to feel comfortable using the application and putting it on their phone so we would have permission to do a lot of things like pass GPS coordinates, write to the file system, and surf,” Brown told DarkReading.

At the 2010 RSA Security Conference the researchers claimed they also wrote a malicious version of their WeatherFist application, which they dubbed WeatherFistBadMonkey. According to the DarkReading report, the malicious app behaves more like traditional botnet code, stealing information and capable of distributing spam. “We could enable or disable system services [with a malicious app],” Brown says. The TippingPoint researchers told Dark Reading they wanted to prove how an app could behave like much of the traditional Windows malware which, steals information, and allows hackers to gain remote control of hijacked devices.

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Smartphones are a part of  today’s network and Brown and Tijerina claim that the results of this research shows a security hole in networks. Some of the ways to plug these new holes are to:

  1. Update policies for the  proper use of smartphones
  2. Prohibit unsafe modifications of smartphones
  3. Allow apps only from reputable app stores
  4. Provide training on smartphone application usage
  5. Lock down the Wi-Fi network settings to keep smartphones from ‘phoning home’ any information that shouldn’t leave the firm.

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