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Kaspersky discovers new mobile malware running on Android

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September 7, 2013

Kaspersky Labs just reported what appears to be the first sighting of mobile malware that piggybacks on a separate mobile botnet and uses the resources of other malware once it's installed. For now, the malware currently only seems to affect smartphones running on Android.

"For the first time, malware is being distributed using mobile botnets that were created using completely different malware," said Kaspersky Lab expert Roman Unuchek in a filed report.

The malware is actually a trojan called Obad.a, which the company has already branded the most sophisticated piece of mobile worm it has spotted so far.

For now, it comes in about twelve flavors and usually spreads via SMS, hacked apps websites, or in the dodgier end of the Android market scene.

Now it appears that the Obad boys have teamed up with the makers of malware called Opfake.a, which uses a separate method of propagation by exploiting a security hole in Google Cloud Messaging (GCM).

GCM was designed to ping out updates and repair phone settings remotely, and allows the sending of 4 Kb messages to anyone using a specific mobile app.

And Kaspersky Lab has discovered more than a million installers of Opfake in circulation to this date. The code sets up a backdoor communications channel to C&C servers, then starts pinging out premium text messages, stealing contacts, and spamming itself outwards. But now, some copies are carrying Obad as an extra payload, further complicating matters for mobile users.

Once Opfake is installed, it uses GCM to send out a message of an update. In one case, 600 were sent in just a few hours and loaded Obad.a under the names of mms.apk or mmska.apk.

Once installed, the pernicious malware gains Device Administrator privileges and hides itself from file searches, before contacting its C&C servers and spamming itself out in a splurge of activity.

"These peaks are the result of using third-party botnet resources-– ie, mobile devices infected with other malware," said Unuchek. "That means that the owners of Backdoor.AndroidOS.Obad.a not only command their own software to spread itself, they also take advantage of Trojans operated by other cybercriminals as well."

The Obad payload isn't carried on all Opfake samples, and Unuchek concludes that the malware team "rented part of a mobile botnet to spread their brainchild."

So far, 83 percent of Obad infections have come from Russia, with outbreaks reported in Kazakhstan, Uzbekistan, Belarus, and Ukraine.

After consultations with Google, Kaspersky reports that the security hole that allows Obad to embed itself has been patched, but only in the Android 4.3 build, meaning that unless you have one of a very few Nexus devices, you're wide open to several attacks.

In other internet security news

New hacking software has just been discovered that's linked to several attacks against governments and organizations involved in high-tech industries such as space exploration and nuclear power.

And the malware has been adapted to exploit a recently uncovered Java security flaw. NetTraveler has been outfitted to exploit a recently patched Java security flaw as part of a watering-hole-style attack involving compromised websites that redirects victims to an attack site hosting exploit code and viruses.

Surfaced a few days ago, the latest variants of the malware appear to be targeting dissident Uyghur activists from China, internet security firm Kaspersky Lab warns.

The company was first to warn about the cyber attack back in June but subsequent checks revealed that the malware has been silently doing the rounds since 2004!

NetTraveler (also known as “Travnet”, “Netfile” or Red Star APT) is an advanced persistent threat that has infected hundreds of high profile victims in more than forty countries. Known targets of NetTraveler include Tibetan/Uyghur activists, oil industry companies, scientific research centres and institutes, universities, private companies, governments and their institutions, embassies and military contractors.

Immediately after the public exposure of NetTraveler's operations in June 2013, the attackers shut down all known command-and-control systems and moved them to new servers in China, Hong Kong and Taiwan.

After the switch, the attacks continued more or less unabated. Over the last few days, several spear-phishing emails were sent to multiple Uyghur activists. The Java exploit (CVE-2013-2465) used to distribute this new variant of the Red Star APT was only patched by Oracle less than two months ago.

Earlier attacks have used Office exploits (CVE-2012-0158) that were patched by Microsoft in April of last year.

More details on the evolution of the threat can be found in a blog post by Costin Raiu, director of global research at Kaspersky Lab.

The Uyghur community is an ethnic group who mostly live in Eastern and Central Asia. The community has long desired independence, or at the very least greater autonomy, from Chinese rule.

In other internet security news

Citadel, the nasty botnet at the very heart of a widely criticized takedown by Microsoft in June of this year, has made a comeback and it's stealing banking credentials again, this time mostly from Japanese users, according to Trend Micro.

The security vendor claims to have found at least nine IP addresses, mostly located in Europe and the United States, functioning as the botnet’s command and control servers.

About 96 percent of the overall connections to these C&C servers come from Japan, proving that most of the banking Trojan infections are from that country alone, suggested Trend Micro.

The security firm added the following in a blog post-- "During a six-day period, we detected no less than 20,000 unique IP addresses connecting to those infected servers, with only a very minimal decrease from beginning to end. This means that there is still a large number of infected systems stealing online banking credentials and sending them to the cybercriminals responsible for the botnet."

The banks and financial institutions targeted in this campaign have already released warnings and advisories to their customers regarding the attack itself.

Users are reminded to read those warnings properly before logging into their online banking accounts. As well as Japanese financial and banking organizations, the botnet has also been targeting popular webmail services such as Gmail, Hotmail and Yahoo Mail, Trend Micro added.

Overall, Citadel was the subject of Operation B54, what Microsoft described back in June as its "most aggressive botnet operation to date".

Working closely with the FBI, financial institutions and other technology firms, Microsoft said it disrupted some 1,400 botnets associated with the Trojan malware, which still managed to grab more than $500 million from several bank accounts around the globe.

But the initiative was slammed by the security community after Microsoft allegedly seized hundreds of domains as part of its swoop which were already being sinkholed by researchers to find out more about the botnet.

Additionally, British security vendor Sophos claimed at the time that the takedown wasn’t nearly as successful as was initially made out.

Threat researcher James Wyke said in a blog post that only half of the 72 Citadel C&C servers Sophos was tracking appeared on Microsoft’s list.

Worse, about 21.4 percent of those on Microsoft’s list failed to point to a sinkhole, implying “either that the sinkholing was unsuccessful or that the domains have already been re-appropriated by the Citadel botnet owners”, he added.

“Overall, takedown efforts such as this can provide immediate benefit to the public by effectively disabling the control channels used to administer a very dangerous piece of Trojan or malware,” said Wyke.

“But the long-term effect of this particular takedown on Citadel is unlikely to be significant. It looks as though many of the botnets weren't knocked out, and rebuilding those that were taken down will not take too long, I would say.”

It now appears that those concerns were well founded. We will keep you updated on this and on other stories.

In other internet security news

Over the weekend, internet users in China were met with very slow response times or no response at all as the country's .cn domain extension came under severe DDoS (distributed denial of service) attacks from many parts of the world.

The attacks were the largest of its kind ever in the history of that country's internet communications, according to the China Internet Network Information Center, a state agency that manages the .cn country TLD (top level domain).

To be sure, the double-barreled attacks took place at around 2.00 AM Sunday, and then again at 4 AM. The second attack was long-lasting and large-scale, according to state media, which said that internet service was slowly being restored in some parts of the country.

Official state media said the attacks targeted websites with the .cn country domain, as well as the popular microblogging site Sina Weibo.

Distributed Denial of Service (DDoS) attacks aren't technically hack attempts per se, since they can be done without breaking into any server systems.

Typically, DDoS attacks overwhelm a website's servers by flooding them with hundreds of thousands of requests per minute. That makes websites either unreachable, extremely slow or unresponsive.

To bring down larger sites, attackers will sometimes organize large numbers of infected computers to send requests all at once.

Chinese authorities closely regulate content and websites available to internet users in the country. The restrictions are extremely sophisticated, leading some to call it "The Great Firewall."

It's still unclear whether the attack is related to political events in China, which appears to be in the midst of carrying out a big crackdown on internet dissent.

The Chinese government is also wrapping up the trial of former political kingpin Bo Xilai, leading some Web users in China to note the timing of the attack.

".Cn domain names under attack?," one user said on Weibo. "Saw this news and laughed. On every 'festive occasion' doesn't China's internet become paralyzed?"

Another user lodged a more practical complaint, noting that the sluggish internet would probably leave many Chinese without sleep.

In other internet security news

Microsoft's new Windows 8 operating system is so vulnerable to the average hacker that Germany's businesses and government workers should not use it, the country's top authorities have warned in a series of leaked documents.

According to several files published in the German weekly 'Der Zeit', the Euro nation's officials fear Germans' data is not secure thanks to the OS' Trusted Computing technology-– a set of specifications and protocols that relies on every computer having a unique cryptographic key built into the hardware that's used to dictate what software can be run.

Authorities at Germany's Federal Office for Information Security (BSI) later clarified that it was the Trusted Computing specs in Windows 8 in conjunction with the Trusted Platform Module (TPM) chip embedded in the hardware that creates the alleged security issues.

BSI released a statement that backtracked slightly, insisting that using Windows 8 in combination with a TPM may make a system safer, but noting that it is investigating "some critical aspects related to specific scenarios in which Windows 8 is operated in combination with a hardware that has a TPM 2.0".

Trusted Computing is a controversial large set of specifications developed by a group of companies including AMD, Cisco, Fujitsu, Hewlett-Packard, IBM, Intel, Microsoft and Wave Systems Corp.

The technology is designed to stop the use of software and the files which do not contain the correct digital rights permissions (thus protecting the property of vendors behind the protocols), including "unauthorised operating systems" (a specific function of the much-maligned Secure Boot).

Microsoft argues that Secure Boot protects users from rootkits and other malware attacks. The set of permissions is automatically updated online, outside of the control of the user.

A machine that contains a Trusted Platform Module and runs software adhering to the Trusted Computing specifications is, arguably, under the control of the vendor-– in this case Microsoft.

It also identifies the machine to the vendor, meaning that users' identities can be linked to their machines as well as their online activities. As Microsoft is a U.S. company, opponents to the protocols argue, users' data is theoretically accessible to U.S. spooks in the National Security Agency via the Foreign Intelligence Surveillance Act, as Der Zeit points out.

A TPM 2.0 chip is being built into more and more computers running Windows 8. The newspaper obtained an internal document from Germany's Ministry of Economic Affairs written at the beginning of 2012. It warned of "the loss of full sovereignty over information technology" and that "the security objectives of confidentiality" and integrity are no longer guaranteed".

It continued-- "The use of Trusted Computing is unacceptable for the federal administration and the operators of critical infrastructure."

And Trusted Platform Module 2.0 is considerably more invasive than older versions. Once this is rolled out across all Windows PCs, the Germans fear, there will be "simply no way to tell what exactly Microsoft does to its system through remote updates".

"From the perspective of the BSI, the use of Windows 8 in combination with a TPM 2.0 is accompanied by a loss of control over the operating system and the hardware used. This results in new risks for the user, especially for the federal government and critical infrastructure."

We previously described Trusted Computing as the "widely derided idea of computing secured for, and against, its users".

The leaked documents advised that Windows 7 is still safe to use, at least until 2020. Windows 8, on the other hand, is so tied up with Trusted Computing protocols that it is already "unfit for use".

As can be expected, Microsoft has denied there was any backdoor. In a lengthy statement, a spokeswoman insisted that users cannot expect "privacy without good security". Redmond argued that users could purchase machines whose manufacturers had disabled the TPMs.

Presumably this will one day become a selling point, although Microsoft still argues that this will actually make the hardware less "secure".

She said-- "TPM 2.0 is designed to be on by default with no user interaction required. Since most users accept OS defaults, requiring the user to enable the TPM will lead to IT users being less secure by default and increase the risk that their privacy will be violated. We believe that government policies promoting this result are ill-advised."

It's also important to note that any user concerns about TPM 2.0 are addressable. The first concern, generally expressed as “lack of user control,” isn't correct as most OEMs have the ability to turn off the TPM in x86 machines. Thus, purchasers can buy PCs with TPMs disabled (of course, they will also be unable to utilize the security features enabled by the technology).

The second concern, generally expressed as “lack of user control over choice of operating system,” is also incorrect. In fact, Windows has been designed so that users can clear/reset the TPM for ownership by another OS if they wish. Many TPM functions can also be used by multiple OSes (including Linux) concurrently.

If you need reliability when it comes to SMTP servers, get the best, get Port 587.

Get a powerful Linux Dual-Core dedicated server for less than $2.67 a day!

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Source: Kaspersky Labs.

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