Microsoft recently reported a new worm found to be exploiting the MS08-067 software flaw in the wild.  Even though our products already detected it generically as W32/IRCbot.gen.a, we decided to take a closer look and make sure we proactively detect all components that the worm might be dropping or downloading.

When run, W32/IRCbot.gen.a copies itself to <system folder>\netmon.exe.  It then drops a rootkit as <system folder>\drivers\sysdrv32.sys (MD5: 0e219b74e2c68a34ca09d8fe114f6d11) and hooks the Windows tcpip.sys driver to remove the outbound connection limits in Windows XP Service Pack 2 and newer. We successfully detect this rootkit as Generic Rootkit.g trojan.  It then follows to establish an outbound connection with a remote IRC server using following credentials:

• PASS h4xg4ng
• NICK [00-USA-XP-9215671]
• USER SP2-ojd, followed by the name of the infected computer.

This worm exploits the MS08-067 vulnerability indeed, and uses a download-and-execute shellcode which behaves in an identical fashion as Conficker’s exploit, with only some differences in implementation. It is encoded using a simple 1-byte XOR key and looks like any other standard PEB shellcode which loads API libraries (i.e. urlmon.dll) and executes URLDownloadToFile() to download malware from already infected systems into new targets. Unlike Conficker which injects a downloaded DLL into running Windows processes, this worm downloads and installs a 66.scr executable file instead.

As mentioned, the Conficker worm uses an exploit derived from the “ms08_067_netapi” Metasploit module to spread itself.  The Metasploit framework has become a popular platform for security tools development and automation. As we can see, the latest version of Metasploit is not only used by whitehatsfor vulnerability assessments and penetration testing, but also for malware development. The W32/IRCbot.gen.a worm is not an exception, it has remote language detection taken from Metasploit’s “smb_fingerprint()” routine implemented in the “smb.rb” module, as well as dcerpc service connection testing code located in the “client.rb” module. By using these routines,  new worm can conveniently determine which operating system and service pack it is targeting to achieve a better infection success rate. The way how W32/IRCbot.gen.a ordered the attack packets is identical to Metasploit’s MS08-067 module  (ms08_067_netapi.rb):

Both Conficker and W32/IRCbot.gen.a uses open source tools similarly to their advantage to make their work much easier.

We went on to investigate additional sites where the worm is connecting to and the payload that it is trying to download. Packet sniffer logs shows that it accesses at least two other remote servers:

• hxxp://98.1[infected].42:443/n
• hxxp://74.2[infected].90:88/jueo.exe

While the first server is not showing any technical activity at the time of research, the second server is still active and hosts additional malware that is installed into infected machines:

Well, hello Donbot ! Upon investigation, the downloaded malware (MD5: 916DB2E2C2D1ED7AF89DD8EBB9C7D84C) detected generically as Generic.dx appears to be a component of an active botnet called Donbot (also known as Bachsoy). Components of Donbot typically create a proxy on infected machines and may be used to relay spam and HTTP traffic. Except for a few, most AV vendors seem to have detection for this malware.

Until recently, Donbot has been a relatively minor player in the lucrative spam business, but it certainly looks like the Donbot authors have decided to expand the potential of their botnet . While other botnets – namely Cutwail and Rustock continue to dominate the distribution of spam, Donbot is making an eager attempt to get a bigger share of the spam revenue pie as one of the top 5 most active botnets worldwide. Clearly, worm authors are focusing on growing their botnets as they might not get another chance like the MS08-067 exploit in a long time.

This would also serve as yet another reminder that there could well be many computers on the Internet that are still not installed with the latest security updates - more than 5 months since the release of the MS08-067 patch.