Microsoft Along With FBI & EC3 Shattered The Notorious ZeroAccess Botnet

Microsoft Along With FBI & EC3 Shattered The Notorious ZeroAccess Botnet Responsible For Infecting More Than 2 Million Computers

Redmond based software giant Microsoft yet again got a huge success against a big racket of cyber criminals while shattering one of the world's largest and most rampant botnets named 'ZeroAccess'. The Sirefef botnet, also known as ZeroAccess, is responsible for infecting more than 2 million computers, specifically targeting search results on Google, Bing and Yahoo search engines, and is estimated to cost online advertisers $2.7 million each month. Tech giant Microsoft working alongside the Federal Bureau of Investigation (FBI), Europol's European Cybercrime Centre (EC3) have successfully disrupted this notorious botnet. This is Microsoft’s first botnet action since the Nov. 14 unveiling of its new Cybercrime Center — a center of excellence for advancing the global fight against cyber crime — and marks the company’s eighth botnet operation in the past three years.

“This operation marks an important step in coordinated actions that are initiated by private companies and, at the same time, enable law enforcement agencies around Europe to identify and investigate the criminal organizations and networks behind these dangerous botnets that use malicious software to gain illicit profits,” said Troels Oerting, head of the EC3. “EC3 added its expertise, information communications technology infrastructure and analytic capability, as well as provided the platform for high-level cooperation between cyber crime units in five European countries and Microsoft.”

Due to its botnet architecture, ZeroAccess is one of the most robust and durable botnets in operation today and was built to be resilient to disruption efforts, relying on a peer-to-peer infrastructure that allows cyber criminals to remotely control the botnet from tens of thousands of different computers. ZeroAccess is used to commit a slew of crimes, including search hijacking, which “hijacks” people’s search results and redirects people to sites they had not intended or requested to go to in order to steal the money generated by their ad clicks. ZeroAccess also commits click fraud, which occurs when advertisers pay for clicks that are not the result of legitimate, interested human users’ clicks, but are the result of automated Web traffic and other criminal activity. Research by the University of California, San Diego shows that as of October 2013, 1.9 million computers were infected with ZeroAccess, and Microsoft determined there were more than 800,000 ZeroAccess-infected computers active on the Internet on any given day.

How It Happened:- 

Last week, Microsoft filed a civil suit against the cyber criminals operating the ZeroAccess botnet and received authorization from the U.S. District Court for the Western District of Texas to simultaneously block incoming and outgoing communications between computers located in the U.S. and the 18 identified Internet Protocol (IP) addresses being used to commit the fraudulent schemes. In addition, Microsoft took over control of 49 domains associated with the ZeroAccess botnet. A10 Networks provided Microsoft with advanced technology to support the disruptive action.

As Microsoft executed the order filed in its civil case, Europol coordinated a multijurisdictional criminal action targeting the 18 IP addresses located in Europe. Specifically, Europol worked with Latvia, Luxembourg, Switzerland, the Netherlands and Germany to execute search warrants and seizures on computer servers associated with the fraudulent IP addresses located in Europe. This is the second time in six months that Microsoft and law enforcement have worked together to successfully disrupt a prevalent botnet. It demonstrates the value coordinated operations have against cyber criminal enterprises. For more information about this botnet operation click here

ZeroAccess is counted as a very sophisticated malware, blocking attempts to remove it, therefore recommended for every Microsoft user to click Here for detailed instructions on how to remove this threat. As Microsoft found that the ZeroAccess malware disables security features on infected computers, leaving the computer susceptible to secondary infections, it is critical that victims rid their computers of ZeroAccess by using malware removal or antivirus software as quickly as possible. 

In conversation with press David Finn, executive director and associate general counsel of the Microsoft Digital Crimes Unit said -“Microsoft is committed to working collaboratively — with our customers, partners, academic experts and law enforcement — to combat cybercrime. And we’ll do everything we can to protect computer users from the sinister activities and criminal networks that victimize innocent people and businesses around the world.” 

While talking about ZeroAccess botnet take down, I would like to remind you that in Match, last year Microsoft has successfully shutdown two command and control (C&C) server of world's of the most dangerous banking trojan Zeus.

-Source (Microsoft Official Blog)

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Hackers Exploiting Old Ruby on Rails Vulnerability To Compromise Web Servers & Create Botnet

Hackers Exploiting Old Ruby on Rails Vulnerability (CVE-2013-0156) To Compromise Web Servers & Create IRC Botnet

A critical vulnerability on Ruby on Rails spotted in January this year which was deemed “critical” at the same time yet again found in the wild. The vulnerability known as CVE-2013-0156 that affected versions 3.0.20 and 2.3.16 again rises it's hand. Though a security patch was released by the Rails developers. But as we all know that many server administrator used to be unaware of these events have not patched their systems. As a result hackers and cyber criminals are actively exploiting a critical vulnerability in the Ruby on Rails Web application development framework in order to compromise Web servers and create a dangerous botnet. This major security issue was first discovered by a security consultant Mr. Jeff Jarmoc of research firm Matasano Security. In his blog Jarmoc said "It’s pretty surprising that it’s taken this long to surface in the wild, but less surprising that people are still running vulnerable installations of Rails. It also appears to be affecting some web hosts." According to his blog post -the exploit that's currently being used by attackers adds a custom cron job -- a scheduled task on Linux machines that executes a sequence of commands. Those commands download a malicious C source file from a remote server, compile it locally and execute it. The resulting malware is a bot that connects to an IRC (Internet Relay Chat) server and joins a predefined channel where it waits for commands from the attackers. A pre-compiled version of the malware is also downloaded in case the compilation procedure fails on the compromised systems.

"Functionality is limited, but includes the ability to download and execute files as commanded, as well as changing servers," Jarmoc said. "There's no authentication performed, so an enterprising individual could hijack these bots fairly easily by joining the IRC server and issuing the appropriate commands." But the matter of relief is that Jarmoc concluded while saying "this is a pretty straightforward skiddy exploit of a vulnerability that has been publicly known, and warned about, for months."

But still administrators who have not yet patched their Rails version should immediately should update the Ruby on Rails installations on their servers to at least versions 3.2.11, 3.1.10, 3.0.19 or 2.3.15 which contain the patch for this vulnerability. However, the best course of action is probably to update to the latest available Rails versions, depending on the branch used, since other critical vulnerabilities have been addressed since then. 

Brief About RoR:- Ruby on Rails is a popular framework for developing Web applications based on the Ruby programming language and is used by major websites including Hulu, GroupOn, GitHub and Scribd.

-Source (Network World)

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3 Russian Cyber Criminal Who Was The Master Mind of Banking Trojan 'Gozi' Charged in New York

3 Russian Cyber Criminal Who Was The Master Mind of Banking Trojan 'Gozi' Charged in New York 

Yet again another serious issue of cyber crime get resolved when the FBI tracked and figured out the master mind of infamous 'Gozi banking Trojan' which effected more than millions of system world wide, including a handful at NASA, leading to tens of millions of dollars in lost banking funds and damages to computer systems and networks. Three alleged international cyber criminals from Russia, responsible for creating and distributing 'Gozi' that infected over one million computers and caused tens of millions of dollars in losses charged in Manhattan Federal Court. Mihai Ionut Paunescu aged 28, a Romanian, Deniss Calovskis, 27, a Latvian, and Nikita Vladimirovich Kuzmin, 25, of the Russian Federation, are charged with computer intrusion, conspiracy to commit bank and wire fraud and access device fraud. Federal authorities said the three were arrested last week; Kuzmin is being held in New York, while Paunescu is in custody in Romania and Calovskis in Latvia. 

According to the press release of FBI -Deniss Calovskis, a/k/a “Miami,” a Latvian national who allegedly wrote some of the computer code that made the Gozi virus so effective, was arrested in Latvia in November 2012. Mihai Ionut Paunescu, a/k/a “Virus,” a Romanian national who allegedly ran a “bulletproof hosting” service that enabled cyber criminals to distribute the Gozi virus, the Zeus trojan, and other notorious malware and to conduct other sophisticated cyber crimes, was arrested in Romania in December 2012. 

The cases are being handled by the Complex Frauds Unit of the United States Attorney’s Office. Assistant United States Attorneys Sarah Lai, Nicole Friedlander, and Thomas G.A. Brown, along with Trial Attorney Carol Sipperly of the Computer Crime and Intellectual Property Section of the Department of Justice on the Paunescu case, are in charge of the prosecution. The charges contained in the Indictments are merely accusations, and the defendants are presumed innocent unless and until proven guilty.

Defendant	Age and Residence	Charges	Maximum Penalty
Nikita Kuzmin	25; Moscow, Russia	Conspiracy to commit bank fraud; bank fraud; conspiracy to commit access device fraud; access device fraud; conspiracy to commit computer intrusion; computer intrusion	95 years in prison
Deniss Calovskis	27; Riga, Latvia	Conspiracy to commit bank fraud; conspiracy to commit access device fraud; conspiracy to commit computer intrusion; conspiracy to commit wire fraud; conspiracy to commit aggravated identity theft	67 years in prison
Mihai Ionut Paunescu	28; Bucharest, Romania	Conspiracy to commit computer intrusion; conspiracy to commit bank fraud; conspiracy to commit wire fraud	60 years in prison

Brief About Gozi:-
The Gozi virus is malicious computer code, or “malware,” that steals personal bank account information, including usernames and passwords, from the users of affected computers. It was named by private sector information security experts in the U.S. who, in 2007, discovered that previously unrecognized malware was stealing personal bank account information from computers across Europe on a vast scale, while remaining virtually undetectable in the computers it infected. To date, the Gozi virus has infected over one million victim computers worldwide, among them at least 40,000 computers in the U.S., including computers belonging to the National Aeronautics and Space Administration (NASA), as well as computers in Germany, Great Britain, Poland, France, Finland, Italy, Turkey, and elsewhere, and it has caused tens of millions of dollars in losses to the individuals, businesses, and government entities whose computers were infected.

The Gozi virus was distributed to victims’ computers in several different ways. In one method, the virus was disguised as an apparently benign .pdf document which, when opened, secretly installed the Gozi virus on the victim’s computer. Once installed, the Gozi virus—which was intentionally designed to be undetectable by anti-virus software—collected data from the infected computer in order to capture personal bank account information including usernames and passwords. That data was then transmitted to various computer servers controlled by the cyber criminals who used the Gozi virus. These cyber criminals then used the personal bank account information to transfer funds out of the victims’ bank accounts and ultimately into their own personal possession.

For Detailed Information Click Here

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USA Accused For Planting "Flame" Malware to Hack France President's Network

USA Accused For Planting "Flame" Malware to Hack France President's Network

A well known French newspaper named "L'Express" has accused that United States is using dangerous cyber weapon "Flame" to break into the computer networks inside France’s presidential palace also known as the Elysee. In his report L'Express has published details of what it claims was a sophisticated state-sponsored hack into the offices of the French presidency earlier this year with the intention of stealing data. According to the newspaper, the malware attack took place in May 2012, shortly before the second round of presidential elections in France, but has been kept secret until now. The newspaper alleges that the attackers reportedly found their targets on Facebook, identifying people working inside the presidential palace and connecting with them on the social network. The social engineering laid the groundwork for the next phase of the attack; the victims were then sent links to a fake Elysee intranet page where their login credentials were stolen. Workers at the Élysée Palace are said to have been befriended on Facebook by hackers, who then sent their victims a link to what purported to be a login page for the Élysée intranet site. In this way, it's claimed, login credentials were stolen. It is alleged that malware was then installed on the network, infecting computers belonging to senior political advisors, including Xavier Musca, Secretary-General of Nicolas Sarkozy's office. The United States Embassy in Paris has denied any involvement in hacking its ally. “We categorically refute allegations of unidentified sources,” Mitchell Moss, Embassy spokesman, told l’Express. “France is one of our best allies. Our cooperation is remarkable in the areas of intelligence, law enforcement and cyber defense. It has never been so good and remains essential to achieve our common fight against extremist threat.” Though the secretary  of Department of Homeland Security Janet Napolitano did not deny the U.S. was involved. She told l’Express: “We have no greater partner than France, we have no greater ally than France. We cooperate in many security-related areas. I am here to further reinforce those ties and create new ones.”

While talking about Flame, we would like to remind you that after the episode of 'Duqu'; In the middle of this year The Iranian Computer Emergency Response Team (MAHER) claims to have discovered a new targeted Stuxnet attacking the country's internal system. This newly found Stuxnet have been dubbed Flame (also known as Flamer or Skywiper). Flame the next generation cyber weapon which is also known as 'The Super Spy' has already fascinated the cyber-security industry with its sophistication and versatility as a Swiss-Army knife of cyber-spying. Later it was spotted in the wild when software giant Microsoft confirmed that its Windows Server Update Services (WSUS), Windows Update (WU) has been infected by Flame malware. Also in many fields, the name of 'Flame' was on the high node. 

-Source (NS & threatpost)

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Three Secrets & Full Analysis of Flame's Command & Control Servers Unraveled

Three Secrets & Full Analysis of Flame's Command & Control Servers Unraveled

Flame the next generation cyber weapon which is also known as 'The Super Spy' has already fascinated the cyber-security industry with its sophistication and versatility as a Swiss-Army knife of cyber-spying. Recently security firm Kaspersky lab has published a new report on the sophisticated nation-state sponsored Flame cyber-espionage campaign. During the research, conducted by Kaspersky Lab in partnership with International Telecommunication Union’s cybersecurity executing arm - IMPACT, CERT-Bund/BSI and Symantec, a number of Command and Control (C&C) servers used by Flame’s creators were analyzed in detail. The analysis revealed new, groundbreaking facts about Flame. Particularly, traces of three yet undiscovered malicious programs were found, and it was discovered that the development of the Flame platform dates back to 2006.

Main findings:

• The development of Flame’s Command and Control platform started as early as December 2006.
• The C&C servers were disguised to look like a common Content Management System, to hide the true nature of the project from hosting providers or random investigations.
• The servers were able to receive data from infected machines using four different protocols; only one of them servicing computers attacked with Flame.
• The existence of three additional protocols not used by Flame provides proof that at least three other Flame-related malicious programs were created; their nature is currently unknown.
• One of these Flame-related unknown malicious objects is currently operating in the wild.
• There were signs that the C&C platform was still under development; one communication scheme named “Red Protocol” is mentioned but not yet implemented.
• There is no sign that the Flame C&Cs were used to control other known malware such as Stuxnet or Gauss.

The Flame cyber-espionage campaign was originally discovered in May 2012 by Kaspersky Lab during an investigation initiated by the International Communication Union. Following this discovery, ITU-IMPACT acted swiftly to issue an alert to its 144 member nations accompanied with the appropriate remediation and cleaning procedures. The complexity of the code and confirmed links to developers of Stuxnet all point to the fact that Flame is yet another example of a sophisticated nation-state sponsored cyber operation. Originally it was estimated that Flame started operations in 2010, but the first analysis of its Command and Control infrastructure (covered by at least 80 known domains names) shifted this date two years earlier.

The findings in this particular investigation are based on the analysis of the content retrieved from several C&C servers used by Flame. This information was recovered despite the fact that Flame’s control infrastructure went offline immediately after Kaspersky Lab disclosed the existence of malware. All servers were running the 64-bit version of the Debian operating system, virtualized using OpenVZ containers. Most of the servers’ code was written in the PHP programming language. Flame’s creators used certain measures to make the C&C server look like an ordinary Content Management System, in order to avoid attention from the hosting provider.

Sophisticated encryption methods were utilized so that no one, but the attackers, could obtain the data uploaded from infected machines. The analysis of the scripts used to handle data transmissions to the victims revealed four communication protocols, and only one of them was compatible with Flame. It means that at least three other types of malware used these Command and Control servers. There is enough evidence to prove that at least one Flame-related malware is operating in the wild. These unknown malicious programs are yet to be discovered.

Another important result of the analysis is that the development of the Flame C&C platform started as early as December 2006. There are signs that the platform is still in the process of development, since a new, yet not implemented protocol called the “Red Protocol” was found on the servers. The latest modification of the servers’ code was made on May 18, 2012 by one of the programmers.

“It was problematic for us to estimate the amount of data stolen by Flame, even after the analysis of its Command and Control servers. Flame’s creators are good at covering their tracks. But one mistake of the attackers helped us to discover more data that one server was intended to keep. Based on this we can see that more than five gigabytes of data was uploaded to this particular server a week, from more than 5,000 infected machines. This is certainly an example of cyber espionage conducted on a massive scale,” commented Alexander Gostev, Chief Security Expert, Kaspersky Lab. 

Here we want to remind you that after the episode of 'Duqu'; In the middle of this year The Iranian Computer Emergency Response Team (MAHER) claims to have discovered a new targeted Stuxnet attacking the country's internal system. This newly found Stuxnet have been dubbed Flame (also known as Flamer or Skywiper). Later it was spotted in the wild when software giant Microsoft confirmed that its Windows Server Update Services (WSUS), Windows Update (WU) has been infected by Flame malware. Also in many fields, the name of 'Flame' was on the high node. 

For detailed analysis on Flame's command and control (C&C) servers click Here

-Source (Kaspersky)

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Hacker Sentenced to 30 Months in Prison for Selling Access to Botnets & Infecting 72,000 PCs

Hacker Sentenced to 30 Months in Prison for Selling Access to Botnets & Infecting 72,000 PCs

A 30-year old computer hacker received a thirty month in prison sentence for creating a botnet and a charge of violating the Computer Fraud and Abuse Act. According to Depertment of Justice - Joshua Schichtel, of Phoenix, was sentenced today to 30 months in prison for selling command-and-control access to and use of thousands of malware-infected computers, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division and U.S. Attorney for the District of Columbia Ronald C. Machen Jr.

Schichtel was sentenced by Chief U.S. District Judge Royce C. Lamberth in the District of Columbia.  In addition to his prison term, Schichtel was ordered to serve three years of supervised release. 

Schichtel entered a guilty plea on Aug. 17, 2011, to one count of attempting to cause damage to multiple computers without authorization by the transmission of programs, codes or commands, a violation of the Computer Fraud and Abuse Act.

According to court documents, Schichtel sold access to “botnets,” which are networks of computers that have been infected with a malicious computer program that allows unauthorized users to control infected computers.  Individuals who wanted to infect computers with various different types of malicious software (malware) would contact Schichtel and pay him to install, or have installed, malware on the computers that comprised those botnets.  Specifically, Schichtel pleaded guilty to causing software to be installed on approximately 72,000 computers on behalf of a customer who paid him $1,500 for use of the botnet.

This case was investigated by the Washington Field Office of the FBI.  The case is being prosecuted by Corbin Weiss, Senior Counsel in the Criminal Division’s Computer Crime and Intellectual Property Section and Special Assistant U.S. Attorney for the District of Columbia.

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C&C Servers of World's Third Largest Spam Botnet "Grum" Been Knocked Down

C&C Servers of World's Third Largest Spam Botnet "Grum" Been Knocked Down

Researcher get another big success by taking down two of the command and control(C&C) servers belong to  the world's largest spam botnet named "Grum". Though  this is not complete victory, as there are still two other C&C servers are currently working actively, but researchers are very much optimistic that the volume of spam will drop this take down. 

Atif Mushtaq, senior staff scientist at security firm FireEye, said in a blog post that the botnet known as Grum drew its last dying breath on Wednesday, after six servers in Ukraine and one in Russia were shut down. In a tense faceoff with whitehats, the botnet operators had deployed those servers following the disconnection earlier this week of separate servers in the Netherlands and Panama. Faced with the threat of losing a 100,000-computer network that generated an estimated 18 billion spam messages a day, the Grum operators were desperately trying to transition to those machines when they stopped working.

"Grum's takedown resulted from the efforts of many individuals," Mushtaq wrote. "This collaboration is sending a strong message to all the spammers: 'Stop sending us spam. We don't need your cheap Viagra or fake Rolex. Do something else, work in a Subway or McDonalds, or sell hotdogs, but don't send us spam." We would also like to give you reminder that, this year Microsoft closed two C&C server of Zeus, another dangerous botnet. Also researcher from different parts of the world have unveiled the mystery of few other botnets like Bredolab, Rustock, Duqu and so on. 

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