WORM_PALEVO.DK

 Analysis by: jasperm

 ALIASES:

Symantec: Trojan.Ascesso ; Microsoft: TrojanDropper:Win32/Agent.FO ; Kaspersky: P2P-Worm.Win32.Palevo.zjw

 PLATFORM:

Windows 2000, Windows XP, Windows Server 2003

 OVERALL RISK RATING:
 DAMAGE POTENTIAL:
 DISTRIBUTION POTENTIAL:
 REPORTED INFECTION:

  • Threat Type: Worm

  • Destructiveness: No

  • Encrypted: Yes

  • In the wild: Yes

  OVERVIEW

Infection Channel:

Propagates via removable drives, Propagates via peer-to-peer networks

It drops copies of itself into folders used for certain peer-to-peer applications.

This worm arrives by connecting affected removable drives to a system. It may be dropped by other malware. It may be unknowingly downloaded by a user while visiting malicious websites.

It drops an AUTORUN.INF file to automatically execute the copies it drops when a user accesses the drives of an affected system.

It opens a random port to allow a remote user to connect to the affected system. Once a successful connection is established, the remote user executes commands on the affected system. It executes commands from a remote malicious user, effectively compromising the affected system. It connects to a website to send and receive information.

It gathers certain information on the affected computer.

  TECHNICAL DETAILS

File Size:

257,536 bytes

File Type:

PE

Memory Resident:

Yes

Initial Samples Received Date:

14 Jan 2011

Payload:

Compromises system security

Arrival Details

This worm arrives by connecting affected removable drives to a system.

It may be dropped by other malware.

It may be unknowingly downloaded by a user while visiting malicious websites.

Installation

This worm drops the following non-malicious files:

  • %System Root%\RECYCLER\s-1-5-21-{random number}\Desktop.ini

(Note: %System Root% is the root folder, which is usually C:\. It is also where the operating system is located.)

It drops the following copies of itself into the affected system:

  • %System Root%\RECYCLER\s-1-5-21-{random number}\msmxeng.exe.exe

(Note: %System Root% is the root folder, which is usually C:\. It is also where the operating system is located.)

It creates the following folders:

  • %System Root%\RECYCLER
  • %System Root%\RECYCLER\s-1-5-21-{random number}
  • {removable drive}:\var

(Note: %System Root% is the root folder, which is usually C:\. It is also where the operating system is located.)

It injects threads into the following normal process(es):

  • EXPLORER.EXE

Autostart Technique

This worm adds the following registry entries to enable its automatic execution at every system startup:

HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\
Windows NT\CurrentVersion\Winlogon
Taskman = %System Root%\RECYCLER\s-1-5-21-{random number}\msmxeng.exe.exe

Propagation

This worm creates the following folders in all removable drives:

  • var

It drops an AUTORUN.INF file to automatically execute the copies it drops when a user accesses the drives of an affected system.

The said .INF file contains the following strings:

[autorun
;{garbage}
open=var/var32.exe
;{garbage}
icon=SHELL32.dll,4
;{garbage}
acTIon=Open folderáto view files usingáWindowsáExplorer
;{garbage}
shElL\oPEn\commaNd=var\\\\\\var32.exe
;{garbage}
SheLl\\\\exPLore\\\\\comMand=var/////////var32.exe
;{garbage}
useautoplay=1
;{garbage}

Backdoor Routine

This worm opens a random port to allow a remote user to connect to the affected system. Once a successful connection is established, the remote user executes commands on the affected system.

It executes the following commands from a remote malicious user:

  • Perform DDoS attacks
  • Download and execute files from a remote server
  • Spread via shared folders and P2P networks
  • Spread via MSN network
  • Perform port scans

It connects to the following websites to send and receive information:

  • {BLOCKED}lmind.cn
  • {BLOCKED}racypetition.com
  • {BLOCKED}eslounge.com

Information Theft

This worm gathers the following information on the affected computer:

  • Mozilla Firefox account information
  • Protected Storage credentials

Other Details

This worm does the following:

  • It drops copies of itself into folders used for the following peer-to-peer applications:
    • Ares Galaxy
    • BearShare
    • DC++
    • eMule
    • eMule Plus
    • iMesh
    • Shareaza
    • Kazaa
    • Limewire

  SOLUTION

Minimum Scan Engine:

8.900

VSAPI PATTERN File:

7.768.06

VSAPI PATTERN Date:

14 Jan 2011

VSAPI PATTERN Date:

1/14/2011 12:00:00 AM

Step 1

For Windows XP and Windows Server 2003 users, before doing any scans, please make sure you disable System Restore to allow full scanning of your computer.

Step 2

Restart in Safe Mode

[ Learn More ]

Step 3

Delete this registry value

[ Learn More ]

Important: Editing the Windows Registry incorrectly can lead to irreversible system malfunction. Please do this step only if you know how or you can ask assistance from your system administrator. Else, check this Microsoft article first before modifying your computer's registry.

 
  • In HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\Windows NT\CurrentVersion\Winlogon
    • Taskman = %System Root%\RECYCLER\s-1-5-21-{Random Number}\MsMxEng.exe

Step 4

Search and delete this folder

[ Learn More ]
Please make sure you check the Search Hidden Files and Folders checkbox in the More advanced options option to include all hidden folders in the search result.
  • %System Root%\RECYCLER
  • {Removable Drive}:\var

Step 5

Search and delete AUTORUN.INF files created by WORM_PALEVO.DK that contain these strings

[ Learn More ]
[autorun
;{garbage}
open=var/var32.exe
;{garbage}
icon=SHELL32.dll,4
;{garbage}
acTIon=Open folderáto view files usingáWindowsáExplorer
;{garbage}
shElL\oPEn\commaNd=var\\\\\\var32.exe
;{garbage}
SheLl\\\\exPLore\\\\\comMand=var/////////var32.exe
;{garbage}
useautoplay=1
;{garbage}

Step 6

Scan your computer with your Trend Micro product to delete files detected as WORM_PALEVO.DK. If the detected files have already been cleaned, deleted, or quarantined by your Trend Micro product, no further step is required. You may opt to simply delete the quarantined files. Please check this Knowledge Base page for more information.


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