Kaspersky Finds New Malware

Kaspersky Lab has discovered three Flame spyware related malware threats that it said use “sophisticated encryption methods”.

Kaspersky claims that it uncovered the three new hostile programs while analysing a number of Command and Control (C&C) servers used by Flame’s creators.

“Sophisticated encryption methods were utilised so that no one, but the attackers, could obtain the data uploaded from infected machines,” the firm’s statement read.

“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.”

The discovery of the three programs indicates that Flame’s Command and Control platform was being developed in 2006, four years earlier than first thought.

Flame was originally uncovered in May targeting Iranian computer systems. The malware drew widespread concerns within the security industry regarding its advanced espionage capabilities.

The full scale of Flame and its overarching implications remain unknown, despite the ongoing joint research campaign being mounted by Kaspersky, IMPACT, CERT-Bund/BSI and Symantec.

“It was problematic for us to estimate the amount of data stolen by Flame, even after the analysis of its Command and Control servers,” said Kaspersky’s chief security expert, Alexander Gostev.

Following the discovery of the three new related programs, Kaspersky’s chief malware expert Vitaly Kamluk told The INQUIRER that Flame is not the only one in this big family.

“There are others and they aren’t just other known malwares such as Stuxnet, Gauss or Duqu,” he said. “They stay in the shadows and no one has published anything about them yet. Others were probably used for different campaigns.”

Kamluk added that it is “very possible” there are more than the three listed in Kaspersky’s report.

“They started building RedProtocol, yet another ‘language’ for unknown malware. No known client types are using that one, which means that there is even more malware out there,” he added.

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USA In Danger Of Cyber Experts Shortage

Leading cyber experts warned of a shortage of talented computer security experts in the United States, making it extremely difficult to keep corporate and government networks safe at a time when attacks are on the rise.

Symantec Corp Chief Executive Enrique Salem told the Reuters Media and Technology Summit in New York that his company was working with the U.S. military, other government agencies and universities to help develop new programs to train security professionals.

“We don’t have enough security professionals and that’s a big issue. What I would tell you is it’s going to be a bigger issue from a national security perspective than people realize,” he said on Tuesday.

Jeff Moss, a prominent hacking expert who sits on the U.S. Department of Homeland Security Advisory Council, said that it was difficult to persuade talented people with technical skills to enter the field because it can be a thankless task.

“If you really look at security, it’s like trying to prove a negative. If you do security well, nobody comes and says ‘good job.’ You only get called when things go wrong.”

The warnings come at a time when the security industry is under fire for failing to detect increasingly sophisticated pieces of malicious software designed for financial fraud and espionage and failing to prevent the theft of valuable data.

Moss, who goes by the hacker name “Dark Tangent,” said that he sees no end to the labor shortage.

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Spam Is At A Two-Year High

Spam – particularly the kind with malicious attachments – is enjoying a growth spurt, reaching a two-year high overall, which includes the spike last fall just before the SpamIt operation folded its doors, a security firm says.

In fact spam traffic is about double what it was then, according to M86 Security Labs, which analyzes spam levels across selected domains.

“After multiple recent botnet takedowns, cybercriminal groups remain resilient clearly looking to build their botnets and distribute more fake AV in the process,” the company says in its blog. “It seems spammers have returned from a holiday break and are enthusiastically back to work.”

This report coincides with a report yesterday from Internet security company Commtouch, which says a spike in email-attached malware has just ended, but that further waves are expected.

M86 says in its blog that most of the spam is generated by the Cutwail botnet, and malicious spam accounted for 13% of the mix over the past week, which is unusually high, but even that spiked to 24% yesterday.

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AES Encryption Cracked

CRYPTOGRAPHY RESEARCHERS have identified a weakness in the Advanced Encryption Standard (AES) security algorithm that can crack secret keys faster than before.

The crack is the work of a trio of researchers at universities and Microsoft, and involved a lot of cryptanalysis – which is somewhat reassuring – and still does not present much of a real security threat.

Andrey Bogdanov, from K.U.Leuven (Katholieke Universiteit Leuven), Dmitry Khovratovich, who is full time at Microsoft Research, and Christian Rechberger at ENS Paris were the researchers.

Although there have been other attacks on the key based AES security system none have really come close, according to the researchers. But this new attack does and can be used against all versions of AES.

This is not to say that anyone is in immediate danger and, according to Bogdanov, although it is four times easier to carry out it is still something of an involved procedure.

Recovering a key is no five minute job and despite being four times easier than other methods the number of steps required to crack AES-128 is an 8 followed by 37 zeroes.

“To put this into perspective: on a trillion machines, that each could test a billion keys per second, it would take more than two billion years to recover an AES-128 key,” the Leuven University researcher added. “Because of these huge complexities, the attack has no practical implications on the security of user data.” Andrey Bogdanov told The INQUIRER that a “practical” AES crack is still far off but added that the work uncovered more about the standard than was known before.

“Indeed, we are even not close to a practical break of AES at the moment. However, our results do shed some light into the internal structure of AES and indicate where some limits of the AES design are,” he said.

He added that the advance is still significant, and is a notable progression over other work in the area.

“The result is the first theoretical break of the Advanced Encryption Standard – the de facto worldwide encryption standard,” he explained. “Cryptologists have been working hard on this challenge but with only limited progress so far: 7 out of 10 for AES-128 as well as 8 out of 12 for AES-192 and 8 out of 14 rounds for AES-256 were previously attacked. So our attack is the first result on the full AES algorithm.”

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“TDL-4″ Botnet Is Practically Indestructible

A new and improved botnet that has infected more than four million computers is “practically indestructible,” software security experts say.

“TDL-4,” the name for both the bot Trojan that infects PCs and the ensuing collection of compromised computers, is “the most sophisticated threat today,” said Kaspersky Labs researcher Sergey Golovanov in a detailed analysis Monday.

“[TDL-4] is practically indestructible,” Golovanov said and others agree.

“I wouldn’t say it’s perfectly indestructible, but it is pretty much indestructible,” said Joe Stewart, director of malware research at Dell SecureWorks and an internationally-known botnet expert, in an interview today. “It does a very good job of maintaining itself.”

Golovanov and Stewart based their assessments on a variety of TDL-4′s traits, all which make it an extremely tough character to detect, delete, suppress or eradicate.

Because TDL-4 installs its rootkit on the Master Boot Record (MBR), it is invisible to both the operating system and more, importantly, security software designed to sniff out malicious code.

Further,what makes the botnet indestructible is the combination of its advanced encryption and the use of a public peer-to-peer (P2P) network for the instructions issued to the malware by command-and-control (C&C) servers.

“The way peer-to-peer is used for TDL-4 will make it extremely hard to take down this botnet,” said Roel Schouwenberg, senior malware researcher at Kaspersky, ”The TDL guys are doing their utmost not to become the next gang to lose their botnet.”

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Hackers Go After WordPress

Mobile Phone Security Threats On The Rise

Mobile phone security threats rose sharply last year as the growing popularity of Internet-enabled mobile devices like smartphones and tablets provided new opportunities for cybercriminals, security software maker McAfee said.

In its fourth-quarter threat report, released on today, McAfee said the number of pieces of new cellphone malware it found in 2010 rose 46 percent over 2009’s level.

“As more users access the Internet from an ever-expanding pool of devices -computer, tablet, smartphone or Internet TV- web-based threats will continue to grow in size and sophistication,” it said.

McAfee, which is being acquired by Intel for $7.68 billion, said it expected PDF and Flash maker Adobe to remain a favorite of cybercriminals this year, after it surpassed Microsoft  in popularity as a target in 2010.

It attributed the trend to Adobe’s greater popularity in mobile devices and non-Microsoft environments, coupled with the ongoing widespread use of PDF document files to transfer malware.  Read More….

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