Analysis by: Abraham Latimer Camba
ALIASES:

Trojan:Win32/FakeSysdef (Microsoft), Trojan-FakeAV.Win32.FakeSysDef.bfn (Kaspersky), FakeAlert-SysDef.al (McAfee), Mal/FakeAV-RY (Sophos)

 PLATFORM:

Windows 2000, Windows XP, Windows Server 2003

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

  • Threat Type: Trojan

  • Destructiveness: No

  • Encrypted: Yes

  • In the wild: Yes

  OVERVIEW

Infection Channel: Dropped by other malware, Downloaded from the Internet

This Trojan displays fake alerts upon installation. It displays fake scanning results about disk errors.

This Trojan arrives on a system as a file dropped by other malware or as a file downloaded unknowingly by users when visiting malicious sites.

It modifies Internet Explorer security settings. This puts the affected computer at greater risk, as it allows malicious URLs to be accessed by the computer.

It deletes the initially executed copy of itself.

  TECHNICAL DETAILS

File Size: 252,928 bytes
File Type: EXE
Memory Resident: Yes
Initial Samples Received Date: 06 Aug 2012
Payload: Displays fake alerts, Connects to URLs/IPs

Arrival Details

This Trojan arrives on a system as a file dropped by other malware or as a file downloaded unknowingly by users when visiting malicious sites.

Installation

This Trojan drops the following copies of itself into the affected system and executes them:

  • %System Root%\Documents and Settings\All Users\Application Data\{random name 1}.exe
  • %System Root%\Documents and Settings\All Users\Application Data\{random name 2}.exe

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

It drops the following files:

  • %Desktop%\File_Recovery.lnk
  • %Start Menu%\Programs\File Recovery\File Recovery.lnk
  • %Start Menu%\Programs\File Recovery\Uninstall File Recovery.lnk
  • %System Root%\Documents and Settings\All Users\Application Data\{random name 2}
  • %System Root%\Documents and Settings\All Users\Application Data\-{random name 2}
  • %System Root%\Documents and Settings\All Users\Application Data\-{random name 2}r
  • %User Profile%\Application Data\Microsoft\Internet Explorer\Quick Launch\File_Recovery.lnk

(Note: %Desktop% is the current user's desktop, which is usually C:\Windows\Profiles\{user name}\Desktop on Windows 98 and ME, C:\WINNT\Profiles\{user name}\Desktop on Windows NT, and C:\Documents and Settings\{User Name}\Desktop on Windows 2000, XP, and Server 2003.. %Start Menu% is the current user's Start Menu folder, which is usually C:\Windows\Profiles\{user name}\Start Menu on Windows 98 and ME, C:\WINNT\Profiles\{user name}\Start Menu on Windows NT and C:\Windows\Start Menu or C:\Documents and Settings\{User name}\Start Menu on Windows 2000, XP, and Server 2003.. %System Root% is the root folder, which is usually C:\. It is also where the operating system is located.. %User Profile% is the current user's profile folder, which is usually C:\Windows\Profiles\{user name} on Windows 98 and ME, C:\WINNT\Profiles\{user name} on Windows NT, and C:\Documents and Settings\{user name} on Windows 2000, XP, and Server 2003.)

It creates the following folders:

  • %Start Menu%\Programs\File Recovery
  • %User Temp%\smtmp
  • %User Temp%\smtmp\1
  • %User Temp%\smtmp\2

(Note: %Start Menu% is the current user's Start Menu folder, which is usually C:\Windows\Profiles\{user name}\Start Menu on Windows 98 and ME, C:\WINNT\Profiles\{user name}\Start Menu on Windows NT and C:\Windows\Start Menu or C:\Documents and Settings\{User name}\Start Menu on Windows 2000, XP, and Server 2003.. %User Temp% is the current user's Temp folder, which is usually C:\Documents and Settings\{user name}\Local Settings\Temp on Windows 2000, XP, and Server 2003.)

It terminates the execution of the copy it initially executed and executes the copy it drops instead.

Autostart Technique

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

HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\
Windows\CurrentVersion\Run
{random name 1}.exe = "%System Root%\Documents and Settings\All Users\Application Data\{random name 1}.exe"

HKEY_CURRENT_USER\Software\Microsoft\
Windows\CurrentVersion\Run
{random name 2} = "%System Root%\Documents and Settings\All Users\Application Data\{random name 2}.exe"

Other System Modifications

This Trojan adds the following registry keys:

HKEY_CURRENT_USER\Software\Microsoft\
Windows\CurrentVersion\Explorer\
Taskband

HKEY_CURRENT_USER\Software\Microsoft\
Windows\CurrentVersion\Explorer\
User Shell Folders\New

HKEY_CURRENT_USER\Software\Microsoft\
Windows\CurrentVersion\Policies\
ActiveDesktop

HKEY_CURRENT_USER\Software\Microsoft\
Windows\CurrentVersion\Policies\
Associations

HKEY_CURRENT_USER\Software\Microsoft\
Windows\CurrentVersion\Policies\
Attachments

HKEY_CURRENT_USER\Software\Microsoft\
Windows\CurrentVersion\Policies\
System

HKEY_LOCAL_MACHINE\Software\Microsoft\
ESENT\Process\{random name 2}

HKEY_LOCAL_MACHINE\Software\Microsoft\
ESENT\Process\{random name 2}\
DEBUG

It adds the following registry entries:

HKEY_CURRENT_USER\Software
0df15996-87ec-4c84-a01b-a82c457edea3 = ""

HKEY_CURRENT_USER\Software
nsreg = "{hex values}"

HKEY_CURRENT_USER\Software
pth = "{hex values}"

HKEY_CURRENT_USER\Software\Microsoft\
Internet Explorer\Main
Use FormSuggest = "Yes"

HKEY_CURRENT_USER\Software\Microsoft\
Windows\CurrentVersion\Explorer
EnableAutoTray = "0"

HKEY_CURRENT_USER\Software\Microsoft\
Windows\CurrentVersion\Explorer\
Taskband
_Favorites = "{hex values}"

HKEY_CURRENT_USER\Software\Microsoft\
Windows\CurrentVersion\Explorer\
Advanced
Hidden = "0"

HKEY_CURRENT_USER\Software\Microsoft\
Windows\CurrentVersion\Explorer\
Advanced
ShowSuperHidden = "0"

HKEY_CURRENT_USER\Software\Microsoft\
Windows\CurrentVersion\Explorer\
Advanced
Start_ShowControlPanel = "0"

HKEY_CURRENT_USER\Software\Microsoft\
Windows\CurrentVersion\Explorer\
Advanced
Start_ShowHelp = "0"

HKEY_CURRENT_USER\Software\Microsoft\
Windows\CurrentVersion\Explorer\
Advanced
Start_ShowMyComputer = "0"

HKEY_CURRENT_USER\Software\Microsoft\
Windows\CurrentVersion\Explorer\
Advanced
Start_ShowMyDocs = "0"

HKEY_CURRENT_USER\Software\Microsoft\
Windows\CurrentVersion\Explorer\
Advanced
Start_ShowMyGames = "0"

HKEY_CURRENT_USER\Software\Microsoft\
Windows\CurrentVersion\Explorer\
Advanced
Start_ShowMyMusic = "0"

HKEY_CURRENT_USER\Software\Microsoft\
Windows\CurrentVersion\Explorer\
Advanced
Start_ShowMyPics = "0"

HKEY_CURRENT_USER\Software\Microsoft\
Windows\CurrentVersion\Explorer\
Advanced
Start_ShowNetConn = "0"

HKEY_CURRENT_USER\Software\Microsoft\
Windows\CurrentVersion\Explorer\
Advanced
Start_ShowNetPlaces = "0"

HKEY_CURRENT_USER\Software\Microsoft\
Windows\CurrentVersion\Explorer\
Advanced
Start_ShowPrinters = "0"

HKEY_CURRENT_USER\Software\Microsoft\
Windows\CurrentVersion\Explorer\
Advanced
Start_ShowRecentDocs = "0"

HKEY_CURRENT_USER\Software\Microsoft\
Windows\CurrentVersion\Explorer\
Advanced
Start_ShowRun = "0"

HKEY_CURRENT_USER\Software\Microsoft\
Windows\CurrentVersion\Explorer\
Advanced
Start_ShowSearch = "0"

HKEY_CURRENT_USER\Software\Microsoft\
Windows\CurrentVersion\Explorer\
Advanced
Start_ShowSetProgramAccessAndDefaults = "0"

HKEY_CURRENT_USER\Software\Microsoft\
Windows\CurrentVersion\Explorer\
Advanced
Start_ShowUser = "0"

HKEY_CURRENT_USER\Software\Microsoft\
Windows\CurrentVersion\Explorer\
Advanced
TaskbarGlomLevel = "2"

HKEY_CURRENT_USER\Software\Microsoft\
Windows\CurrentVersion\Explorer\
Advanced
TaskbarGlomming = "0"

HKEY_CURRENT_USER\Software\Microsoft\
Windows\CurrentVersion\Internet Settings
CertificateRevocation = "0"

HKEY_CURRENT_USER\Software\Microsoft\
Windows\CurrentVersion\Internet Settings
WarnonBadCertRecving = "0"

HKEY_CURRENT_USER\Software\Microsoft\
Windows\CurrentVersion\Internet Settings
WarnOnZoneCrossing = "0"

HKEY_CURRENT_USER\Software\Microsoft\
Windows\CurrentVersion\Policies\
ActiveDesktop
HidNoChangingWallPaperden = "1"

HKEY_CURRENT_USER\Software\Microsoft\
Windows\CurrentVersion\Policies\
Associations
LowRiskFileTypes = ".zip;.rar;.nfo;.txt;.exe;.bat;.com;.cmd;.reg;.msi;.htm;.html;.gif;.bmp;.jpg;.avi;.mpg;.mpeg;.mov;.mp3;.m3u;.wav;.scr;"

HKEY_CURRENT_USER\Software\Microsoft\
Windows\CurrentVersion\Policies\
Attachments
SaveZoneInformation = "1"

HKEY_CURRENT_USER\Software\Microsoft\
Windows\CurrentVersion\Policies\
Explorer
NoDesktop = "1"

HKEY_CURRENT_USER\Software\Microsoft\
Windows\CurrentVersion\Policies\
System
DisableTaskMgr = "0"

HKEY_LOCAL_MACHINE\Software\Microsoft\
ESENT\Process\{random name 2}\
DEBUG
TraceLevel = ""

HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\
Windows\CurrentVersion\policies\
system
DisableTaskMgr = "0"

It modifies the following registry entries:

HKEY_CURRENT_USER\Software\Microsoft\
Internet Explorer\Download
CheckExeSignatures = "No"

(Note: The default value data of the said registry entry is Yes.)

HKEY_CURRENT_USER\Software\Microsoft\
Windows\CurrentVersion\WinTrust\
Trust Providers\Software Publishing
State = "23e00"

(Note: The default value data of the said registry entry is 23c00.)

Web Browser Home Page and Search Page Modification

This Trojan modifies Internet Explorer zone settings.

Other Details

This Trojan connects to the following possibly malicious URL:

  • http://{BLOCKED}calnter.com
  • http://{BLOCKED}sagedi.com
  • http://{BLOCKED}nalacad.com
  • http://{BLOCKED}neal.com
  • http://{BLOCKED}meduca.com
  • http://{BLOCKED}etica.com

It deletes the initially executed copy of itself

NOTES:

This Trojan sets the attributes of all files in the affected system into Hidden to trick the users that the files have been deleted.

It moves all files in the following folders:

From: %System Root%\Documents and Settings\All Users\Start Menu
To: %User Temp%\smtmp\1

From: %User Profile%\Application Data\Microsoft\Internet Explorer\Quick Launch
To: %User Temp%\smtmp\2

  SOLUTION

Minimum Scan Engine: 9.200
VSAPI OPR PATTERN File: 9.307.00
VSAPI OPR PATTERN Date: 06 Aug 2012

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

Scan your computer with your Trend Micro product and note files detected as TROJ_FAKESYS.JQ

Step 3

Restart in Safe Mode

[ Learn More ]

Step 4

Delete this registry key

[ 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_CURRENT_USER\Software\Microsoft\Windows\CurrentVersion\Explorer
    • Taskband
  • In HKEY_CURRENT_USER\Software\Microsoft\Windows\CurrentVersion\Explorer\User Shell Folders
    • New
  • In HKEY_CURRENT_USER\Software\Microsoft\Windows\CurrentVersion\Policies
    • ActiveDesktop
  • In HKEY_CURRENT_USER\Software\Microsoft\Windows\CurrentVersion\Policies
    • Associations
  • In HKEY_CURRENT_USER\Software\Microsoft\Windows\CurrentVersion\Policies
    • Attachments
  • In HKEY_CURRENT_USER\Software\Microsoft\Windows\CurrentVersion\Policies
    • System
  • In HKEY_LOCAL_MACHINE\Software\Microsoft\ESENT\Process
    • {random name 2}

Step 5

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_CURRENT_USER\Software
    • 0df15996-87ec-4c84-a01b-a82c457edea3 = ""
  • In HKEY_CURRENT_USER\Software
    • nsreg = "{hex values}"
  • In HKEY_CURRENT_USER\Software
    • pth = "{hex values}"
  • In HKEY_CURRENT_USER\Software\Microsoft\Internet Explorer\Main
    • Use FormSuggest = "Yes"
  • In HKEY_CURRENT_USER\Software\Microsoft\Windows\CurrentVersion\Explorer
    • EnableAutoTray = "0"
  • In HKEY_CURRENT_USER\Software\Microsoft\Windows\CurrentVersion\Explorer\Advanced
    • Hidden = "0"
  • In HKEY_CURRENT_USER\Software\Microsoft\Windows\CurrentVersion\Explorer\Advanced
    • ShowSuperHidden = "0"
  • In HKEY_CURRENT_USER\Software\Microsoft\Windows\CurrentVersion\Explorer\Advanced
    • Start_ShowControlPanel = "0"
  • In HKEY_CURRENT_USER\Software\Microsoft\Windows\CurrentVersion\Explorer\Advanced
    • Start_ShowHelp = "0"
  • In HKEY_CURRENT_USER\Software\Microsoft\Windows\CurrentVersion\Explorer\Advanced
    • Start_ShowMyComputer = "0"
  • In HKEY_CURRENT_USER\Software\Microsoft\Windows\CurrentVersion\Explorer\Advanced
    • Start_ShowMyDocs = "0"
  • In HKEY_CURRENT_USER\Software\Microsoft\Windows\CurrentVersion\Explorer\Advanced
    • Start_ShowMyGames = "0"
  • In HKEY_CURRENT_USER\Software\Microsoft\Windows\CurrentVersion\Explorer\Advanced
    • Start_ShowMyMusic = "0"
  • In HKEY_CURRENT_USER\Software\Microsoft\Windows\CurrentVersion\Explorer\Advanced
    • Start_ShowMyPics = "0"
  • In HKEY_CURRENT_USER\Software\Microsoft\Windows\CurrentVersion\Explorer\Advanced
    • Start_ShowNetConn = "0"
  • In HKEY_CURRENT_USER\Software\Microsoft\Windows\CurrentVersion\Explorer\Advanced
    • Start_ShowNetPlaces = "0"
  • In HKEY_CURRENT_USER\Software\Microsoft\Windows\CurrentVersion\Explorer\Advanced
    • Start_ShowPrinters = "0"
  • In HKEY_CURRENT_USER\Software\Microsoft\Windows\CurrentVersion\Explorer\Advanced
    • Start_ShowRecentDocs = "0"
  • In HKEY_CURRENT_USER\Software\Microsoft\Windows\CurrentVersion\Explorer\Advanced
    • Start_ShowRun = "0"
  • In HKEY_CURRENT_USER\Software\Microsoft\Windows\CurrentVersion\Explorer\Advanced
    • Start_ShowSearch = "0"
  • In HKEY_CURRENT_USER\Software\Microsoft\Windows\CurrentVersion\Explorer\Advanced
    • Start_ShowSetProgramAccessAndDefaults = "0"
  • In HKEY_CURRENT_USER\Software\Microsoft\Windows\CurrentVersion\Explorer\Advanced
    • Start_ShowUser = "0"
  • In HKEY_CURRENT_USER\Software\Microsoft\Windows\CurrentVersion\Explorer\Advanced
    • TaskbarGlomLevel = "2"
  • In HKEY_CURRENT_USER\Software\Microsoft\Windows\CurrentVersion\Explorer\Advanced
    • TaskbarGlomming = "0"
  • In HKEY_CURRENT_USER\Software\Microsoft\Windows\CurrentVersion\Internet Settings
    • CertificateRevocation = "0"
  • In HKEY_CURRENT_USER\Software\Microsoft\Windows\CurrentVersion\Internet Settings
    • WarnonBadCertRecving = "0"
  • In HKEY_CURRENT_USER\Software\Microsoft\Windows\CurrentVersion\Internet Settings
    • WarnOnZoneCrossing = "0"
  • In HKEY_CURRENT_USER\Software\Microsoft\Windows\CurrentVersion\Policies\Explorer
    • NoDesktop = "1"
  • In HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\Windows\CurrentVersion\policies\system
    • DisableTaskMgr = "0"
  • In HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\Windows\CurrentVersion\Run
    • {random name 1}.exe = %System Root%\Documents and Settings\All Users\Application Data\{random name 1}.exe
  • In HKEY_CURRENT_USER\SOFTWARE\Microsoft\Windows\CurrentVersion\Run
    • {random name 2} = %System Root%\Documents and Settings\All Users\Application Data\{random name 2}.exe

Step 6

Restore this modified 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_CURRENT_USER\Software\Microsoft\Internet Explorer\Download
    • From: CheckExeSignatures = "No"
      To: CheckExeSignatures = "Yes"
  • In HKEY_CURRENT_USER\Software\Microsoft\Windows\CurrentVersion\WinTrust\Trust Providers\Software Publishing
    • From: State = "23e00"
      To: State = "23c00"

Step 7

Reset Internet security settings

[ Learn More ]

Step 8

Search and delete these files

[ Learn More ]
There may be some component files that are hidden. Please make sure you check the Search Hidden Files and Folders checkbox in the "More advanced options" option to include all hidden files and folders in the search result.
  • %Desktop%\File_Recovery.lnk
  • %System Root%\Documents and Settings\All Users\Application Data\{random name 2}
  • %System Root%\Documents and Settings\All Users\Application Data\-{random name 2}
  • %System Root%\Documents and Settings\All Users\Application Data\-{random name 2}r
  • %User Profile%\Application Data\Microsoft\Internet Explorer\Quick Launch\File_Recovery.lnk

Step 9

  1. Open a command prompt.
    • For Windows 2000, Windows XP, and Windows Server 2003 users, click Start>Run. In the Open input box, type CMD then press Enter.
  2. In the CMD console, type the following:

    ATTRIB [+R | -R] [+A | -A ] [+S | -S] [+H | -H] [+I | -I] [drive:][path][file name] [/S [/D] [/L]]

    Where:
    + Sets an attribute.
    - Clears an attribute
    R Read-only file attribute
    A Archive file attribute
    S System file attribute
    H Hidden file attribute
    I Not content indexed file attribute
    [drive:][path][filename]
    Specifies a file or files for attrib to process
    /S Processes matching files in the current folder and all subfolders.
    /D Processes folders
    /L Work on the attributes of the Symbolic Link versus the target of the Symbolic Link
    Example:
    To unhide all files and folders (including subfolders) in drive D:
    ATTRIB –H D:\* /S /D
  3. Repeat Step 2 for folders and files in other drives or directories.

Step 10

Restoring a File to its Original Location

  1. Click Start>Run.
  2. In the text box, type the following:
    command /c copy
    • xcopy "%User Temp%\smtmp\1\*" "%System Root%\Documents and Settings\All Users\Start Menu" /s
    • xcopy "%User Temp%\smtmp\2\*" "%User Profile%\Application Data\Microsoft\Internet Explorer\Quick Launch" /s
  3. Press Enter.

Step 11

Search and delete these folders

[ 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.
  • %Start Menu%\Programs\File Recovery
  • %User Temp%\smtmp

Step 12

Restart in normal mode and scan your computer with your Trend Micro product for files detected as TROJ_FAKESYS.JQ. 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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