The malware adds the following file to the parent directory of where it was executed:
- %cwd%\...\[random filename]
For example, if the program is run in C:\Windows\System32, the file is dropped in C:\Windows.
The malware then creates this registry :
- HKLM\SOFTWARE\Microsoft\Windows NT\CurrentVersion\Drivers32 aux[n+1] = [path to random filename]
Where n is the existing number of aux (e.g., if your machine originally has aux and aux2 the malware will create aux3)
Once the trojan has executed (and delivered its payload), it deletes itself.
Once installed, Daonol will inject itself into system processes and steal information, including passwords, from the user.
It will also blocks execution of regedit and bat files.
If the file dropped by the trojan is manually deleted by the user, it is automatically restored by the injected processes.
As the malware prevents execution of the regedit file, not being able to run regedit can be taken as a sign the computer may be infected.