Analysis by: JasperM

 PLATFORM:

Windows 2000, XP, Server 2003

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

  • Threat Type: Worm

  • Destructiveness: No

  • Encrypted: No

  • In the wild: Yes

  OVERVIEW

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 executes commands from a remote malicious user, effectively compromising the affected system.

It steals system information.

  TECHNICAL DETAILS

File Size: 253,447 bytes
File Type: PE
Memory Resident: Yes
Initial Samples Received Date: 05 Nov 2010
Payload: Compromises system security, Connects to URLs/Ips, Steals information

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-1-5-21-8041228422-6811293282-944773298-9385\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-1-5-21-8041228422-6811293282-944773298-9385\wmfcgr.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-1-5-21-8041228422-6811293282-944773298-9385

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

It is injected into the following processes running in memory:

  • 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-1-5-21-8041228422-6811293282-944773298-9385\wmfcgr.exe

Propagation

This worm creates the following folders in all removable drives:

  • RECYCLING

It drops the following copy(ies) of itself in all removable drives:

  • RECYCLING\autorun.exe

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]
open=RECYCLING\autorun.exe
icon=%SystemRoot%\system32\SHELL32.dll,4
action=Open folder to view files
shell\open=Open
shell\open\command=RECYCLING\autorun.exe
shell\open\default=1

Backdoor Routine

This worm executes the following commands from a remote malicious user:

  • Perform DDoS attacks
  • Download and execute other files from the server
  • Spread via MSN messenger
  • Spread via P2P applications
  • Perform port scanning

It connects to the following URL(s) to send and receive commands from a remote malicious user:

  • {BLOCKED}lowingbabes.net
  • {BLOCKED}mera.com
  • {BLOCKED}nibaaaq.com

Information Theft

This worm steals system information.

Other Details

This worm does the following:

  • It also steals the following information:
    • Mozilla Firefox account information
    • Protected Storage credentials
  • It drops copies of itself in folders used by the following P2P applications:
    • Ares Galaxy
    • BearShare
    • DC++
    • eMule
    • eMule Plus
  • It connects to the servers using random UDP ports.

  SOLUTION

Minimum Scan Engine: 8.900
VSAPI PATTERN File: 7.596.11
VSAPI PATTERN Date: 05 Nov 2010
VSAPI PATTERN Date: 11/5/2010 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-1-5-21-8041228422-6811293282-944773298-9385\wmfcgr.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}:\RECYCLING

Step 5

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

[ Learn More ]
[autorun]
open=RECYCLING\autorun.exe
icon=%SystemRoot%\system32\SHELL32.dll,4
action=Open folder to view files
shell\open=Open
shell\open\command=RECYCLING\autorun.exe
shell\open\default=1

Step 6

Scan your computer with your Trend Micro product to delete files detected as WORM_PALEVO.CKY. 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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