In the second half of the year, we can report that the
trend towards mass assaults using network worms has dropped significantly with
two major outbreaks, one in September causing larger disruptions
internationally and the second, a worm flooding email systems in late November.
Nevertheless, the virus count continued to rise with alarming force increasing
from 110,000 to approximately 150, 000 by the end of the year.

Overall, it was a tough
year for high profile malware authors around the world, at least according to
the number of convictions. In July three men in their early 20s heading an
international extortion ring were arrested in raids in Russia apparently after
launching big DDoS attacks from botnets against gambling sites, then emailing
them and asking $50,000 for not doing it again.
Despite the money trail
routing itself to Russia via the Caribbean and Latvia, the UK police were
nevertheless able to trace it, leading eventually to the arrests. Various other
virus authors were reached by the long arm of the law including the VBS/Lasku
virus author in Finland, the Peep backdoor author arrested in Taiwan and most
notoriously, the Sasser and Netsky author, Sven Janschen who equally
notoriously received a thirty hour community service order and suspended
sentence for creating a worm that caused damage in the millions of dollars
before it was brought under control.
The American Language Center provides English language courses for
Russian speaking people and reportedly organized the largest spam campaign in
Russian history.
Spam was sent to over 20
million e-mail addresses belonging to Russian speaking people. The campaign was
so pervasive that you can hardly find a Russian who has never received a
message advertising the American Language Center. The killing of Kushnir might
not, however, be related to his company’s spamming although many people might
have wished him dead after receiving yet another spam email from his company.
Russian authorities are currently investigating the crime with suspects in the
thousands.
Phishing is obviously
worth it
In July, the
Financial Times Deutschland reported that German banks lost 70 million Euros
due to phishing attacks over the last year and this figure is growing fast. If
this is the case in one country we can extrapolate that phishing is not only
big business but is also clearly worth it to the criminal fraternity.
As
phishing becomes more widespread, however, so too do the authorities’ ability
to detect it. As a result, typical larger phishing targets, such as those made
onCitibank, eBay, Paypal and US Bankhave been replaced by more focused attacks
against smaller targets in order to find users who still can still be fooled to
respond to a phishing email.
This
has resulted, for example, in a series of attacks against German banks, with
increased activity against organizations like Deutsche Bank and Postbank. As a
result, both Deutsche Bank and Postbank will be introducing one-time passwords,
which are needed to authorize online transactions.

There
is some evidence that the criminal organizations behind phishing attacks have
been jumping from one geographical area to another looking for more targets.
First we saw them in the US, then in Australia and then the UK. In Germany, the
attacks were localized in the German language as was the case earlier in 2005
when phishing cases localized in Danish were detected in Denmark.
It
didn’t take long afterwards in August for a large-scale attack against Nordea
in Sweden. Nordea is the largest bank in the Nordic countries. It also operates
one of the largest Internet banks in the world, with over 4 million Internet
customers in eight countries.
In
this particular case somebody spammed a large amount of spoofed emails with
links pointing to a fake bank. Once again, the attack was localised in the target
language but this time, the scam was aimed at breaking through Nordea’s
one-time password system.
The
system in use by Nordea Sweden consists of a scratch sheet, where you scratch
the paper to uncover the next available pin code for login. Attacking a site
like this is quite a bit more challenging than attacking banks authenticating
users with a bank account number and a constant 4-number pin code as was the
case in Germany.
The fake mails explained
that Nordea was introducing new security measures, which could be accessed at
www.nordea-se.com or www.nordea-bank.net (both fake sites hosted in South
Korea). The fake sites looked fairly real. They were asking the user for his
personal number, access code and the next available scratch code. Regardless of
what was entered, the site would complain about the scratch code and ask for
the next one. In reality, the phishers were trying to hook several scratch
codes for their own use.
Nordea
Sweden took the threat seriously and immediately shut down their whole Internet
bank while they looked into the assault and immobilised it. Apparently this was
done in order to prevent the scammers from using the codes to move money
around.
Overall, by September, the
number of phishing attempts overall had levelled out but this was also marked
by an increase in the volume of spam. This marked rise appears to be caused by
a large number of matchmaking spams. So it would seem that the activities of a
single determined spammer can still make a difference.
Typosquatting for careless
typists
Earlier this year
we saw evidence of typosquatting with the Google surfers mispelling it as
‘googkle’ leading them to all manner of malware ridden sites instead. In the
autumn, an even larger exploit concerning typosquatting was launched – no surprises
there but the sheer scale of the domains created to trick the unwary was
impressive – 150 of them, many of which were targeted to data security
companies.
Among other typosquats we
found:"www-f-secure.com" and "wwwf-secure.com" which at the
moment point to a web site called "nortpnantivirus.com". The good
news is that at least this site isn't used for phishing or for downloading
trojans. Other typosquats related to security firms include the
following: f-secue.com, mesagelabs.com, mcafeeantiviru.com,
bitdefneder.com, pestpatorl.com, wwwbullguard.com, pandafirewall.com,
sendamil.org
and centralcomand.com.
Terror attacks, natural
disasters and exploitation
In a year
characterised by a large number of natural disasters and terror attacks,
another important and regrettable trend repeated itself – members of the
malware community using other people’s misery for profit.
After the 9/11 attack
against the World Trade Center in New York, malware was launched using the
event to trick users into running malicious attachments. Just two weeks after
the September attack the e-mail worm W32/Vote.A@mm was found and exactly a year
after the event another e-mail worm, W32/Chet@mm, was found. While Vote.A
didn't spread very well the Chet worm was widespread and prompted an F-Secure
Radar 2 warning.

In July of this year, the
same pattern repeated itself with the underground terrorist attack in London.
Shortly after the bombing the first trojan was detected as an attachment in
e-mail messages. The ZIP file contained the file ''London Terror Moovie.avi
<124 spaces> Checked By Norton Antivirus.exe'. F-Secure detected the
trojan as 'SpamTool.Win32.Delf.h'
and promptly sent out an update.
The message seems to contain a news
article on the devastation caused by hurricane Katrina but actually directed
the reader to a website called "nextermest.com. Further investigation reveals that the site is just a placeholder
that refreshes to a page that tries to download the Trojan-Downloader.JS.Small.bq
malware.
Major virus outbreak in
August
In
August the Data Security Laboratory in Helsinki’s headquarters mapped the
course of a botwar that took on the proportions of an international incident
before it was stopped. It started with
a new virus round about lunch exploiting a Microsoft patch vulnerability: the
MS05-039 PnP hole. As the virus progressed, CNN was struck as was the Financial
Times, The New York Times and ABC.
The attack which centres around the Zotob virus is
also aided by assaults by bot variants which interestingly compete with each
other over infected machines actively removing the resident infection and
replacing it with their own. Specifically, there are two groups that are
fighting: IRCBot and Bozori vs Zotobs and the other Bots.Widespread disruption,
particularly in the media was eventually brought under control and F-Secure’s
report makes the headlines in over 500 different journals in the days that
follow. Not long after
the outbreak, two young men were arrested regarding the Zotob PnP worm
case.Moroccan authorities arrested "Diabl0", aka Farid Essebar and
Turkish authorities arrested "Coder", aka Atilla Ekici. The suspects
are aged 18 and 21, respectively.
Mobile malware proliferation

Interest in mobile malware continues
to grow in step with the increasing media coverage, To date, F-Secure has
received an increasing number of queries about just how many known mobile
malwares are out there. At the time of writing the total count has already
exceeded 100 – a landmark in the progress of viruses and their assault on the
mobile environment.
Symbian-related malware is the vast majority of all mobile malware. The
large number just shows how popular Symbian devices are, thus making them the
most interesting target for malware authors.
As all currently known Symbian
trojans and worms display several warnings, it would be easy to blame any user
who got phone infected for being stupid or ignorant. However, it seems that the
explanation why people get infected by Cabir and other Bluetooth worms show that
it is not so straightforward.
Firstly, a great deal of Symbian
software requires Bluetooth to be visible in order to work properly. And some
of these programs either switch on the Bluetooth without asking the user, or
display the activation question in such a manner that the user is likely to
answer yes.
Then there are several social
networking applications that use Bluetooth such as YOU-WHO
and CrowdSurfer. Which enable
people to use Bluetooth for social networking and gaming and these naturally
lower the bar for accepting any connections and files from unknown persons.
And finally most Cabir variants are
quite aggressive in spreading, and keep sending the Bluetooth connection
request, even when the user clicks ‘no’ to them. Eventually, the user gets
frustrated and start clicking yes to all questions with inevitable results.
F-Secure
Mobile Anti-Virus has been able to handle 61 (74%) cases of Symbian
malware with generic detection. Which means that the Anti-Virus has been able
to detect and stop the malware without the need for database updates.
Commwarrior continues to spread
Nevertheless certain viruses continue to spread
unchecked, most obviously the infamous Commwarrior which has now been reported
in infection cases in twenty countries so far spanning from as far afield as
India and South Africa.
In August F-Secure received a sample of new Symbian trojan Doomboot.A that
drops Commwarrior.B
and damages the phone such that it does not boot anymore. While other trojans
have dropped several different Cabir variants, Doomboot.A is the first known
trojan that drops Commwarrior and uses a new technique to break the phone.

Like most of the Symbian trojans Doomboot.A also pretends to be a pirate
copied Symbian game. So people who don't download and install pirate copied
games or applications are safe from nasty surprises.
What makes Doomboot troubling is the unpleasant combination of Doomboot
and Commwarrior’s effects on the phone. The Doomboot.A causes the phone not to
boot anymore and Commwarrior causes so much Bluetooth traffic that the phone
will run out of battery in less than one hour. Thus the user who gets his phone
infected with Doomboot.A has less than one hour to figure out what is happening
and disinfect his phone, or he will lose all data.
In September,an otherwise unremarkable Symbian Trojan, SymbOS/Cardtrap.A
is, put a new spin on mobile malware by being able to cross infect a PC if the
user inserts the phone memory card to his PC.
When infecting a Symbian phone, the Cardtrap.A copies two Windows worms
(Win32/Padobot.Z and Win32/Rays) to the memory card of the phone. Padobot.Z is
copied with an autorun.inf file in an attempt to start automatically if the
card is inserted to a PC using Windows. Rays is copied with the filename
SYSTEM.EXE and the same icon as the System folder. This is done as a social
engineering technique so that the user would click on Rays instead of the
System folder. Luckily, both Padobot.Z and Rays are detected by F-Secure Anti-Virus, and we
have added detection and disinfection for them also for F-Secure Mobile Anti-Virus.
Viruses spread to MP3
players and game consoles
At the end of August, reports came through of a commercial MP3 player being shipped
out with a virus. The manufacturer, Creative reported it had accidentally
shipped almost 4000 MP3 players with a Windows virus. This happened in Japan
with the 5GB Zen Neeons players. The filesystem on the players contains one
file that is infected with the Wullik.B (also known as Rays.A) email worm. The
worm does not, however, infect PCs unless the user browses the player’s files
and clicks on the infected file.
In October this
was followed up by a malware alert for Sony Playstation appearing in a firmware
dowgrade tool that turned out to be a trojan rendering the PSP unusable. The
infamous patcher from PSP Team removes a few important system files from the
flash, which makes the system unbootable. This tool has been reported to be the
first "PSP virus" by many sources. Since it does not replicate in any
way, however, by the F-Secure definition it can called a trojan at most. It
definitely falls under the malware umbrella term, however. It is worth
mentioning here that, according to Sony, running any unauthorized code on the
PSP will immediately void the warranty. Hot on the heels of the first PSP
Trojan in October, the data security lab received reports about the first
trojan for the Nintendo DS handheld gaming console.This simple trojan, known as
"DSBrick" overwrites critical memory areas, preventing the console
from booting.
Back with Sony
again, the big news in November was the discovery of a rootkit detected in some
Sony BMG music CDs placed there by the company itself to enforce the copy
control policies of its audio CDs. The rootkit, which acts as a covert method
for monitoring customer behaviour through Digital Rights Management software is
installed when the user inserts the CD to a Windows-based PC, and accepts a license
agreement. Unknown to the user, the rootkit is installed after which, there's
no direct way to uninstall it. The system also opens a possible backdoor for
viruses (or any other malicious program) to use the rootkit to hide themselves.
The good news is that F-Secure’s BlackLight scanner introduced this year in
March is able to detect both the Sony DRM rootkit system and any other malware
that hides using it.
Speaking about the Sony case, Risto Siilasmaa, CEO of F-Secure said:
“The real story, and the very valuable lesson, here is that many companies are
linking their products to ICT technology. This means that they need to educate
themselves on data security issues, build processes to handle claims of
vulnerabilities, train their PR people to deal with these kinds of situation
and so on. Hundreds of consumer electronics companies will find themselves in
the same boat with Sony.”
Also in late November F-Secure issued a Radar Level 1 alert about a New
Sober variant that caused the year’s largest email worm outbreak with everal
millions of infected emails reported by Internet operators. The mails contained
faked messages from such claimed sources as the FBI and CIA asking its
recipients to open an attachment containing the Sober variant worm.
The first Sober was found in October 2003, over two years ago and
F-Secure believes all 25 variants of this virus have been written by the same
individual, operating from somewhere in Germany. Interestingly, the author
seems to be from the old school of virus writers seeking for fame not fortune
since there appears to be no clear financial motive behind the exploit.
Successful product releases and the move from
software to hardware
Back in June, F-Secure released F-Secure Client Security 6.0 and, after
a summer break, the reviews have started to flow in. Most significantly for
F-Secure, Infoworld review of F-Secure Anti-Virus Client Security 6.0 in
September put F-Secure ahead of all the major competitors in a large
review.
To quote the magazine: "Support for real-time protection also
varies among vendors. McAfee’s, Trend Micro’s, and Tenebril’s versions allow
the malware to install, but prevent it from executing, thus leaving it installed
but neutered until a removal scan is started. Others, such as Sunbelt
CounterSpy, block most malware installs while missing others, and, like Trend
Micro, remove existing traces on next scan. F-Secure did the best job of
preventing initial installations, blocking all spyware and malware
attacks."
Also in September, F-Secure launched its flagship consumer product,
F-Secure Internet Security 2006 and shipped out 42,000 boxes of the product
destined for retailers across Europe. The latest version contains a wealth of
new features that will undoubtedly result in favourable reviews still this
year.
And also in September, F-Secure made a significant decision to change
the dynamic of company production: after 17 years as a software company
F-Secure started selling its first hardware product, ever.

The box is called F-Secure Messaging Security Gateway™. It's a 1U-sized
rack-mountable appliance that sits next to your email server and filters spam
and viruses from the message traffic, automatically. The appliance is a result
of collaboration with US manufacturer Proofpoint and initial response has been
favourable.
Please view also the earlier summaries: