10 Threats from 2010 We’d Prefer Remain History


By Andrew Brandt

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With 2010 finally behind us, and an unknown number of cyberattacks likely to come in the new year, I thought I’d run down a brief list of the malicious campaigns criminals pulled off last year that I’d really dread to see anyone repeat. Now that they’re in the past, they should stay there.

Operation Aurora: Google’s accusation (with Adobe, Juniper Networks, Rackspace, Yahoo! and Symantec) that China hacked its servers, allegedly stealing private emails stored on the company’s servers. The big surprise wasn’t that it was happening, but that companies were publicly talking about it.

Abused ccTLDs: 2010 saw lots more malicious content originating from previously un-abused country code top-level domains, which are assigned to national authorities, such as the .in (India) and .cc (Cocos (Keeling) Islands) top-level domains. The Cocos Islands’ .cc domain deserves particular note because the more than 2200 malicious domains (discovered during 2010) hosted under this ccTLD outnumber the approximately 600 human inhabitants of the tiny archipelago by nearly 4-to-1.

Koobface: “the little social network worm that could” employed new URL obfuscation techniques, introduced its own keylogger, and focused efforts on a smaller number of social media sites, while Facebook got more proactive at shutting down the worm’s operations quickly. Maybe this year they’ll disappear altogether.

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Fake Flash Update Needs Flash to Work


By Andrew Brandt

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If you live in the US, you may have played sports, barbequed, or enjoyed the last long weekend of the summer outside doing something fun outdoors. Unfortunately, that wasn’t an option here in Boulder, where a large wildfire generated a thick plume of smoke and ash. So, what’s a malware analyst to do indoors on a beautiful day with toxic smoke outside? Why, spend some quality time with Koobface, of course.

I took a closer look at the worm’s behavior and also noted that, since the Migdal keylogger site went dark for the Koobface crew, they’ve switched to using a new domain as the dead drop for credentials stolen by the Koobface password stealer payload: m24.in, the Web site of some sort of media company based in India. The behavior I saw by the keylogger was virtually identical to that used by the Migdal variant, reported in a previous post. The payload is even named m24.in.exe, just like the Migdal payload was named after the domain where it posted stolen passwords.

It’s been a while since the worm changed its primary method of infection: For nearly its entire existence, Koobface has spread by manipulating the social network accounts of infected users so it appears the user posted a link to a video. Of course, the worm does the posting in the name of the user, and the link points to a page which purports to be some sort of streaming video, but actually pushes the malware on anyone who visits.

And, in order to take on the appearance of a real online video, it uses Flash.

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Pro-Israel Website Receives Passwords Stolen by Koobface


By Andrew Brandt

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Is the team behind the Koobface worm taking a stance on the Israeli-Palestinian peace talks, or is this notorious worm’s most recent, bizarre twist just a coincidence?

We’ve seen Koobface hijack legitimate Web sites for more than a year, using them not only to host malicious payload files, but also to work as proxy command-and-control servers for the botnet. One such hijacked Web domain, migdal.org.il, popped up in a number of blog posts and on Web sites which list the domains used to host malware, as far back as this past May, when the Koobface crew began using a slew of new hijacked servers as distribution points for its malicious files.

And since the summer, Koobface has been delivering a password stealing Trojan among the several payloads it brings down to an infected computer. That Trojan’s name is migdal.org.il.exe, and the stolen passwords it scrapes from infected computers are sent right back to the migdal.org.il Web server, which is physically located at an ISP in the UK.

Migdal also seems to be (if you can believe the content posted to the Web site) a French jewish organization that provides aid and resources to Israeli children and border guards, and whose leadership opposes many of the Israeli concessions that Palestinian negotiators have requested during the long peace process. Have the Koobface gang gone political, or are they just capitalizing on a convenient situation with an abandoned Web site?

(Update: The site went down on September 3rd, the day after this post went live. Thanks, helpful ISP who shall remain nameless.)

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Facebook “Photo Album” Spam Drops Trojans


By Andrew Brandt

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A spammed link campaign that spread through Facebook rapidly over the weekend delivered a malicious payload designed to take control of the Facebook account of any infected user, steal passwords, and hijack clicks in the victim’s browser. The messages appear as links sent by a friend, accompanied by the brain-damaged text “You? I find it on Google.

Clicking the link directs recipients to a page on online-photo-albums.org which, at the time, pointed to malware hosted on a server (now offline) based in Bosnia and Herzegovina.

This installer drops no fewer than six payloads, including the “clickjacker” Trojan-Bamital, which redirects the browser to a different site when a user on an infected machine clicks a linked result in a very specific subset of search engine Web sites (such as, for example, results on the South Korean version of Google, Google.kr, but not the main Google.com site itself).

In addition, album.exe file also drops Trojan-Downloader-Suurch, which can download and install additional payloads, and leads hapless Web surfers into the abyss by hijacking searches on a broader set of search engines, and injecting its own code into the search results page. The album.exe installer also drops a DLL which captures passwords and other data entered into Web forms in Internet Explorer, and forwards that data on to a different Web domain (which happens to be hosted at the same IP address in Bosnia that was used for the album.exe download — and remains online as I publish this).

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Weird New Koobface URLs Use Old Tricks


By Andrew Brandt

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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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New Research: IT Pros Sound Off On 2010 Security Concerns


Research from the enterprise security experts at Webroot

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With the explosion of social networking sites like Twitter and Facebook in 2009, it’s no surprise cybercriminals have set their sights on these Web sites for new victims. Facebook now has over 400 million active users and Twitter has over six million — a sizeable pool of potential targets.

These new threats are a cause of great concern for IT managers and businesses. Webroot recently surveyed over 800 IT professionals in the US, UK and Australia, at companies ranging from 100 to 500 people in size, to learn what are their biggest concerns for 2010. Eighty percent of those who responded anticipate Web 2.0-based malware threats will be among their biggest challenges, and 73% said these types of malware are much harder to manage than email-based threats.

Many IT admins reported they thought their organizations were sufficiently protected, but that wasn’t always the case: Significant numbers reported attacks from viruses (60%), spyware (57%), phishing attacks (47%), hacking attacks (35%), and SQL injections of their Web sites (32%). What’s more, because malicious hackers have a financial motive, individuals who possess sensitive business data are perfect targets. Increasingly, small and medium-sized businesses (SMBs) come under attack because they are less likely to have the multpile layers of protection that larger enterprises do.

Data breaches, when they happen, can be devastating to SMBs: According the the FBI, blended Web and email attacks led to approximately $100 million in attempted losses last year. SMBs can take precautions to make sure they aren’t a part of these staggering statistics. It is important to keep up with the latest threat vectors by using a security service with URL filtering, end user policy management and virus protection, and by making sure employees are educated on know to avoid threats in a growing landscape — especially when it comes to social media.

Webroot will address this topic in greater depth when our CTO Gerhard Eschelbeck delivers a Web security trend report at the RSA Conference 2010 Wednesday, March 3, at 4:30 p.m. PST in the Briefing Center on the Expo Hall floor. We’ll continue the conversation at Infosec Wednesday, April 28 at 3:20 p.m. GMT in Earls Court when Eschelbeck  presents Securing the Internet for a Web 2.0 Collaborative Culture.

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‘Spongeface’ Koobface Variant Uses Spongebob as a Tease


By Andrew Brandt

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A new variant of the Koobface social networking worm is sending social networkers links that lead to fake videos supposedly posted by the beloved cartoon antihero Spongebob Squarepants. The fake videos only display a popup message labeled “Adobe Flash Player Update” that says “This content requires Adobe Flash Player 10.37. Would you like to install it now?” Clicking anywhere on the page downloads the Koobface installer to the victim’s PC.

The technique isn’t new, but this is the first sign that the crew behind Koobface is switching from ‘holiday mode’ (when they sent around links to videos that were supposedly posted by Santa Claus) to ‘post-holiday mode.’

In other ways, the worm features a few small tweaks: Its Captcha tool, which attempts to convince infected users to enter the text of a captcha into a dialog box, has been modified to read and properly display the new ReCaptcha format used by some social network sites. The new format randomly places black circles ‘behind’ the text, and inverts the text of the captcha phrase where the text and black circles intersect.

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Friends, Followers, Fans: Be On Guard in 2010


By Mike Kronenberg

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Do you use a social networking site? Be prepared, because I predict in 2010 it’ll be a major target for cyber criminals. Among the threat experts here at Webroot, we’ve discussed the ROI opportunity that social networks present an enterprising hacker who strings together the personal information people choose to share on social networks, or who creates a program to infect PCs with one click of a malicious link.

I’ve also discussed the issue with my colleagues in the security industry. Each of us acknowledges that users of all kinds – be it individuals, public figures, nonprofits, or corporations – assume a certain level of risk when signing on to one. But we all agree social networks are pretty much essential in today’s networked society and economy.

Given that, I’d like to share my take on the top five reasons why social networks hold such great appeal for cybercriminals so you can begin thinking about how you’ll use them in 2010. Continue reading

New Koobface Creates its Own Malicious Web Pages


By Andrew Brandt

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Over the past several months, we’ve seen Koobface steadily progress in its ability to infect systems with malware. In our latest tests, we’ve found that the most recent version of this social-networm has a few new holiday-themed tricks up its sleeve. Among those tricks are a new, improved “captcha breaker” utility; A tool to check whether you have a Google and/or a Blogspot account (and, if not,  it creates a new Google account); And a tool designed to create Google Reader pages on the fly, which the worm then uses to post malicious code. Those Google Reader accounts then end up linked in private messages and wall-to-wall posts on a variety of social network sites.

The Koobface-generated Google Reader pages have been floating around for a little while now, but I’d never seen the worm in action. What I found fascinating was that I could observe the process of the worm creating a new Google account on my testbed.

In order to create the Google account, it downloaded and ran four new applications: “v2googlecheck” simply looks at your browser cookies to determine whether you already have a Google account; “v2newblogger” creates a new account if one doesn’t already exist; “v2captcha” prompts the user of the infected machine to enter a captcha into a dialog box that looks like a Windows login dialog (in order to complete the account creation); and “v2reader,” which creates the new page, and passes that information to the worm.

Once the Google account is created, it then uses that account to generate a new, malicious Google Reader page.

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Internet Security Trends – A Look Back at 2009, A Look Ahead to 2010


By Gerhard Eschelbeck

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It’s been a busy year in Internet security — cybercriminals were crafty and creative while we security vendors worked hard to stay a step ahead. Let’s take a look back at the biggest security trends of 2009, and at predictions for what’s ahead in 2010.

2009 – The Year in Review

Conficker. Targeted at enterprise networks but also crossing over to individuals who could bring it home on a USB stick, Conficker generated a lot of media discussion which drove confusion among consumers and concern among IT admins. Conficker renewed the public’s focus on Internet security, at a time when the threat landscape was growing more complex.

Consolidation. In 2009, we saw Symantec acquire MessageLabs, McAfee acquire MX Logic, Cisco acquire ScanSafe, M86 acquire Finjan, and Barracuda acquire Purewire. Many large vendors have track records of poorly integrating smaller companies after acquiring them for a key piece of technology. At the endof this year, we’re left asking, will true innovation now only be possible among the few independent vendors remaining?

Social Media. Concerned about productivity and infection, enterprises struggled with corporate usage policies of social networks — media that is now ubiquitous, and also integral to communicating with and understanding customers. Meanwhile, consumers adopted social networks en masse, providing cybercriminals with a huge target for harvesting personal data via Koobface and various spam campaigns.

The Cloud. While the definition of “cloud computing” and “in the cloud” held different meanings in 2009, enterprises continued to adopt security as a service for its easier, faster, more efficient and cost-effective distribution of security updates. Vendors extended their SaaS-based technology into their consumer solutions after proven success in the enterprise market — an exciting convergence of technologies.

Malware Trends. We saw a changing Internet user who is highly mobile, presenting a new set of attack vectors for malware authors. We also saw increasingly sophisticated malware — cybercriminals using email to distribute malicious Web links and manipulating SEO by programming malicious links near the top of search results for popular news stories — and an explosion of social engineering tactics employing fake security alerts and rogue AV products with new variants launched seemingly in real-time.

2010 — The Year Ahead

Threat Landscape. The malware attacks of today are different than in recent years. Hybrid malware, combining the use of Web and email to carry out sophisticated attacks, will become even more prevalent in 2010. Narrowly targeted malware, which requires the presence of specific applications or data to engage in malicious activity, will also be on the rise. Finally, the increasing “real-feel” of phishing sites and emails — as evidenced by a recent Verified by Visa scam — are keeping security vendors, IT directors and consumers on their toes.

Social Media. Attacks on social networks will continue to increase in volume and scope, targeting communities such as Facebook and Twitter as well as those we’ll see emerge in the coming year. Social networks present a very good ROI for cybercriminals using them as a platform for perpetrating URL-based attacks. This trend will intensify — through shortened links, user-generated content, videos, and so forth. Friend, Follower, Tweeter, beware.

The Cloud Grows. We predict cloud computing as the computing platform, such as the Amazon data center model, will be the next generation of the Internet. Computing will become like a utility, similar to how we use electricity today. We will pay for what we use; the PC will become the visualization tool we look into for applications in the cloud. More cloud computing platforms will become available as we capitalize on this economical, scalable model.

While this may seem like a daunting list of threats and predictions, the good news is, the security industry has never been stronger: The level of innovation, the raised awareness, the healthy competition among vendors — together make for an optimistic outlook. We at Webroot wil continue to work hard to create effective technologies to make the Internet and the cloud a safe place for consumers and businesses alike.

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