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Crilock-A variant spreads faster than previous forms of CryptoLocker

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January 2, 2014

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A security blog post from Trend Micro warns that hackers in the wild have brewed up a variant of the now infamous CryptoLocker ransomware that uses worm-like features to spread itself even faster across removable drives.

The recently discovered Crilock-A variant can spread more easily than previous forms of CryptoLocker, and faster as well, making it something that system admins need to look at seriously.

This latest find is also notable because it comes under previously unseen disguises, such as a fake Adobe Photoshop and Microsoft Office software activators that have been seeded on P2P sites.

Analysis of the malware, detected as Worm_Crilock.A, shows that this virus can spread via removable drives. This update is considered significant because this routine was unheard of in other CRILOCK variants.

The addition of software propagation routines means that the malware can easily spread, unlike other known CRILOCK variants. Aside from its unique propagation techniques, the new malware bears numerous differences from known CryptoLocker variants.

Rather than relying on a downloader malware to infect systems, this malware pretends to be an activator for various software such as Adobe Photoshop and Microsoft Office in peer-to-peer (P2P) file sharing sites.

Uploading the malware in P2P sites allows bad guys to easily infect systems without the need to create and send spammed messages.

CryptoLocker, the Bitcoin demanding ransomware menace, has infected as many as a quarter of a million computers since it first surfaced in September 2013, according to research from Dell SecureWorks’ Counter Threat Unit.

Earlier versions of the CryptoLocker typically arrived in email as an executable file disguised as a PDF, packed into a .zip attachment.

A spam run targeting millions of U.K. consumers prompted a warning from the British National Crime Agency back in November. Only Windows computers can be infected by the malware.

If it successfully executes itself, CryptoLocker encrypts the contents of a hard drive and any connected LAN drives before demanding payment of up to 2 Bitcoins (payable within 72 hours) for a private key needed to decrypt the data.

The malware uses a well-designed combination of 256-bit AES and 2048-bit RSA encryption technology which means that without backups, victims have little choice but to pay up if they ever want to see their data again.

For now, it's still unclear whether the latest worm-like variant is a copycat or the work of the regional CryptoLocker crew. The latest variant uses hardcoded command and control nodes and omits the utilization of domain generation algorithm (DGA) routines to create multiple potential command points, a more sophisticated feature common in earlier variants.

"Hardcoding the URLs makes it easier to detect and block the related malicious URLs," explain Trend Micro researchers Mark Manahan and Jimelle Monteser.

"DGA, on the other hand, may allow cybercriminals to evade detection as it uses a large number of potential domains. This could mean that the malware is still in the process of being refined and improved upon. Thus, we can expect latter variants to have the DGA capability."

Trend Micro's blog entry, Defending Against CryptoLocker, outlines various ways of protecting a computer and a network against CryptoLocker malware.

In other internet security news

Based on several internal NSA documents, the German newspaper Der Spiegel reports that the National Security Agency installed multiple backdoors to access personal and corporate computers, hard drives, routers, switches and several other electronic devices from companies such as Cisco, Dell, HP, Western Digital, Seagate, Maxtor, Sony and Samsung.

Specifically, the TAO (Office of Tailored Access Operations) is described as a "squad of digital plumbers" that deals with hard targets-- systems that are very difficult to infiltrate.

The TAO has reportedly been responsible for accessing the protected networks of heads of state worldwide. The agency works closely with the CIA and the FBI to undertake sensitive missions, and has successfully penetrated the security of several undersea fiber-optic cables.

The TAO also intercepts the deliveries of several types of electronic equipment to plant spyware devices in an effort to gain remote access to those systems once they are delivered and become operational.

The Der Spiegel report describes a 50-page product catalog of tools and techniques that an NSA division called ANT, which stands for Advanced or Access Network Technology, uses to gain access to several devices.

This follows a report that the security firm RSA intentionally allowed the NSA to create a backdoor into its encryption tokens.

"For nearly every lock, ANT seems to have a key in its toolbox. And no matter what walls companies erect, the NSA's specialists seem already to have gotten past them," the report said.

The ANT department prefers targeting the BIOS-- code on a chip on the motherboard that runs when the machine starts up. The spyware infiltration is largely invisible to other security programs and can persist if a machine is wiped and a new operating system is installed.

With the exception of Dell, the companies cited in the report and contacted by Der Spiegel claimed they had no knowledge of any NSA backdoors into their equipment.

In a blog post Sunday, a Cisco spokesperson wrote-- "At this time, we do not know of any new product security vulnerabilities, and will continue to pursue all avenues to determine if we need to address any new issues. If we learn of a security weakness in any of our products, we will immediately address it."

"As we have stated before, and communicated to Der Spiegel, we do not work with any government to weaken our products for exploitation, nor to implement any so-called security back doors in our products," it added.

The NSA declined to comment on the report but said the TAO was key for national defense. "Tailored Access Operations (TAO) is a unique national asset that is on the front lines of enabling the U.S. NSA to defend the nation and its allies," the agency said in a statement.

"We won't discuss specific allegations regarding the TAO's mission, but its work is centered on computer network exploitation in support of foreign intelligence collection," the NSA added.

The end does not appear to be in sight for the revelations from the documents obtained by Edward Snowden, according to Glenn Greenwald, the journalist who first collaborated with Snowden to publish the material.

In a speech delivered by video to the Chaos Communication Congress (CCC) in Hamburg on Friday, he said, "There are a lot more stories to come, a lot more documents that will be covered. It's important that we understand what it is we're publishing, so what we say about them is accurate."

In other internet security news

In August of this year, Gibson Security, a group of freelance security vulnerability researchers, notified the image search service Snapchat that it had found serious security holes in the system that needed to be addressed quickly.

Having heard absolutely nothing back from Snapchat, the group has now released the details and some security exploit code to back up its claims.

"Given that it's been around four months since our last Snapchat release, we figured we'd do a refresher on the latest version, and see which of the released exploits had been fixed (full disclosure-- none of them)," said the group in a December 24 missive to the internet security community.

Gibson studied Snapchat's Android app, and claims to have found serious security holes in its private API-– the interface between the software and the Snapchat servers, that enable an attacker to decode and decrypt received data and then build a database linking various users to their cell numbers.

It appears that photos sent via Snapchat are encrypted using AES and a key hardwired into the application's code, allowing anyone to decrypt and view intercepted images. But separately, DDoS (denial-of-service) attacks are also possible, we're told.

"We were able to crunch through no less than thousand phone numbers-- an entire sub-range in the American number format (XXX) YYY-ZZZZ. All that in approximately just seven minutes on a gigabit line on a virtual server," the report states.

Given some asynchronous code optimizations, we believe that you could potentially crunch through that many in as little as a minute and a half, or, in a worst case scenario, in just two minutes.

This means you'd be railing through as many as 6666 phone numbers a minute, or, in our worst case, 5000. The published exploit code can harvest these phone numbers, and a separate piece can register multiple bogus accounts for spamming purposes, we're told.

Snapchat's application allows its predominantly young users base to send up to ten second views of pictures before they are permanently deleted. Given the current fad for sexting, and the ensuing moral panic that it has recently inspired, the service has a significant following among those who wish to send sleazy messages to someone.

This crucial young adult market has had venture capitalists valuing the company at roughly $800 million in June 2013, although Evan Spiegel, Snapchat’s 23-year-old co-founder and CEO reportedly turned down a $3 billion offer from Facebook and a $4 billion counter-bid offer from Chinese eCommerce conglomerate Tencent Holdings.

Snapchat's small audience might be young, but they are also very fickle, and if malware can easily use the newly released information, then those kinds of valuation numbers might fall to the ground faster than how they went up in the first place.

In other internet-security news

Target said earlier this morning that hackers have stolen data from some 40 million credit and debit cards of customers who visited its brick-and-mortar stores during the first three weeks of the holiday season in the second-largest such security breach reported by a major U.S. retailer.

Worse-- in terms of the speed at which the hackers were able to access large numbers of credit cards, the data theft was totally unprecedented and never seen before.

The whole thing took place in the nineteen days from the day before Thanksgiving to Sunday, in the heart of the annuel Christmas holiday sales season that is so vital to all major retailers.

Target, the number three retailer in the United States said late Thursday that it was working with federal law enforcement and outside experts to prevent similar attacks in the future. It didn't disclose how its systems were compromised, however.

Experts said the incident couldn't have come at a worse time for Target, which is working to boost sales away from rivals in the last week of the holiday shopping season.

Several complaints from angry customers began to surface on social media as they learned of it early Thursday morning. "Most of these attacks are just a cost of doing business," said Mark Rasch, a former U.S. cyber crimes prosecutor.

"But an attack that's targeted against a major retailer during the peak of the Christmas season is much more than that because it undermines confidence," he added.

The largest security breach against a retailer, uncovered in 2007 at TJX Companies led to the theft of data from more than 90 million credit cards over a span of about 18 months.

Since then, many companies have gotten far more adept at identifying intruders. However, criminals have responded by developing more-powerful attack strategies, spending months on reconnaissance to launch highly sophisticated schemes with the goal of extracting as much data as they can in the shortest period of time.

Investigators believe that hackers compromised software installed on point-of-sales terminals that customers use to swipe magnetic strips on cards when paying for merchandise at Target stores, according to a person familiar with the investigation but not authorized to discuss the matter.

Target warned customers in an alert on its website that the criminals had stolen names, payment card numbers, expiration dates and their corresponding 3-digit security codes at the back.

The company had identified the security breach on Sunday and had begun responding to it the same day, spokeswoman Molly Snyder said.

Krebs on Security, a closely watched security industry blog that broke the news late Wednesday evening, said the breach involved nearly all of Target's 1,797 stores in the United States.

It's not yet clear how the attackers were able to compromise point-of-sales terminals a6t so many Target stores. "It's very clear by now that this is a sophisticated crime, and the timing couldn't have been worse," Snyder said.

The U.S. Secret Service is working on the investigation, according to an agency spokeswoman. A Federal Bureau of Investigation spokeswoman declined to comment.

Unhappy Target customers began to weigh in early on Thursday, posting complaints on Target's Facebook page. "Thank you Target for nearly costing me and my wife our identities, we will never shop or purchase anything in your store again," said one posting.

"Shop at Target, become a target," remarked another. "Gee, thanks." JP Morgan Chase & Co, one of the biggest U.S. credit card issuers, said it was monitoring the accounts involved for suspicious activity and urged customers to contact their bank if they noticed anything unusual.

MasterCard and Visa officials had declined to comment late on Wednesday, after news of the security breach had surfaced. An American Express spokeswoman said the company was aware of the incident and was putting several fraud controls in place.

In other internet security news

A top federal judge said today that he believes the U.S. government's once-secret collection of domestic phone records is unconstitutional, setting up likely appeals and further challenges to the data mining revealed by classified documents leaker Edward Snowden.

U.S. District Judge Richard Leon said the National Security Agency's bulk collection of metadata-- phone records of the time and numbers called without any disclosure of content violates privacy rights in the United States.

Leon's preliminary ruling favored five plaintiffs challenging the practice, but he limited his decision only to their case.

"I cannot imagine a more indiscriminate and arbitrary invasion of privacy than this systematic and high-tech collection and retention of personal data on virtually every citizen for purposes of querying and analyzing it without prior judicial approval," said Leon, an appointee of President George W. Bush.

"Surely such a program infringes on that degree of privacy that our own Founders enshrined in the Fourth Amendment," the judge added.

Leon's ruling said that the "plaintiffs in this case have also shown a strong likelihood of success on the merits of a Fourth Amendment claim," adding "as such, they too have adequately demonstrated irreparable injury."

Leon also noted that the government "does not cite a single instance in which analysis of the NSA's bulk metadata collection actually stopped an imminent attack, or otherwise aided the government in achieving any objective that was time-sensitve in nature."

But the judge put off enforcing his order barring the government from collecting the information, pending an appeal by the U.S. government.

The whole issue is highly controversial as both the White House and Congress have spent thousands of hours on this since the Snowden affair broke out in June 2013.

A Justice Department spokesman said Monday that "we believe the program is constitutional as previous judges have found," but said that the ruling is being studied nevertheless.

Democratic Senator Mark Udall of Colorado, a strong critic of the NSA data mining, said Leon's ruling showed that "the bulk collection of Americans' phone records conflicts directly with Americans' privacy rights under the U.S. Constitution and has failed to make us safer."

He called on Congress to pass legislation he proposed to "ensure that the NSA focuses on terrorists and spies and not innocent American civilians."

Explosive revelations earlier this year by Edward Snowden, a former NSA contractor, triggered new debate about national security and privacy interests in the aftermath of the September 11, 2001 terrorist attacks in New York and on the Pentagon.

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Source: Trend Micro.

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