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November 27th, 2008

Another Worm Exploiting MS08-067 Windows Flaw Spotted In The Wild

Microsoft’s Security Response Center and McAfee are warning on increased network scanning activity during the last couple of days courtesy of the very latest W32/Conficker.worm exploiting the already patched MS08-067 vulnerability. After last month’s ruckus made by Microsoft’s out-of-band patch, another threat leveraging the MS08-067 vulnerability was recently reported to have been causing more trouble in the wild.

What’s particularly interesting in the latest wave of copycat worms is that W32/Conficker.worm is patching the infected host in order to ensure that competing malicious parties wouldn’t be able to get in using it.

This malware mostly spreads within corporations but also was reported by several hundred home users. It opens a random port between port 1024 and 10000 and acts like a web server. It propagates to random computers on the network by exploiting MS08-067. Once the remote computer is exploited, that computer will download a copy of the worm via HTTP using the random port opened by the worm. The worm often uses a .JPG extension when copied over and then it is saved to the local system folder as a random named dll.

At McAfee Avert Labs they have also seen a few proof-of-concept binaries using the exploit code that was released into the wild to attack this Windows Server Service vulnerability; the latest is W32/Conficker.worm. According to the description in their Virus Information Library, W32/Conficker.worm decides how it will load itself as a Windows Service depending on whether the compromised version of Windows is Windows 2000. Once loaded in the service space, the worm attempts to download files from the Internet–specifically, further malware from trafficconverter.biz and data files from maxmind.com.

The public release of the proof of concept code in September, prompted an immediate reaction by international underground communities releasing several different modifications of the exploit, with the Chinese to be first to release a do-it-yourself tool allowing subnet scanning and automatic exposure to malware hosted on a third-party server.

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