Analysis by: Kathleen Notario
 Modified by: jasperm

ALIASES:

Kaspersky: P2P-Worm.Win32.Palevo.kad; Microsoft: Worm:Win32/Rimecud.P; NOD32: Win32/Peerfrag.EU

 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

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

It drops copies of itself into all the removable drives connected to an affected system. 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 runs certain commands that it receives remotely from a malicious user. Doing this puts the affected computer and information found on the computer at greater risk. It connects to a website to send and receive information.

It gathers certain information on the affected computer.

  TECHNICAL DETAILS

Ports: Random UDP ports
File Size: Varies
File Type: PE
Memory Resident: Yes
Initial Samples Received Date: 10 Nov 2010
Payload: Collects system information, Executes commands, Connects to URLs/Ips

Arrival Details

This worm arrives via removable drives.

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\{random SID}\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\{random SID}\rundll32.exe

It creates the following folders:

  • System Root%\RECYCLER\{random SID}

It injects itself into the following processes as part of its memory residency routine:

  • 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\{random SID}\rundll32.exe

Propagation

This worm creates the following folders in all removable drives:

  • system32

It drops copies of itself into the following folders used in peer-to-peer (P2P) networks:

  • Ares Galaxy
  • BearShare
  • DC++
  • eMule
  • eMule Plus

It drops copies of itself into all the removable drives connected to an affected system.

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

  • system32/rundll.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
;{garbage characters}
open=system32/rundll.exe
;{garbage characters}
:nop
;{garbage characters}
icon=%SystemRoot%\system32\SHELL32.dll,4
;{garbage characters}
action=Open folder to view files using Windows Explorer
;{garbage characters}
shell\open\command=system32/rundll.exe
;{garbage characters}
shell\explore\command=system32/rundll.exe
;{garbage characters}
useautoplay=1
;{garbage characters}
[AutoRun]
:END

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 command(s) 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 scanning

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

  • {BLOCKED}ws.org
  • {BLOCKED}lness.co
  • ns3.{BLOCKED}in.org

Information Theft

This worm gathers the following information on the affected computer:

  • System information
  • Mozilla Firefox account information
  • Protected Storage credentials

  SOLUTION

Minimum Scan Engine: 8.900
VSAPI PATTERN File: 7.611.00
VSAPI PATTERN Date: 10 Nov 2010
VSAPI PATTERN Date: 11/10/2010 12:00:00 AM

Step 1

Before doing any scans, Windows XP, Windows Vista, and Windows 7 users must disable System Restore to allow full scanning of their computers.

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\{random SID}\rundll32.exe

Step 4

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. %System Root%\RECYCLER
{removable drive}:\system32

Step 5

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

[ Learn More ]
[autorun
;{garbage characters}
open=system32/rundll.exe
;{garbage characters}
:nop
;{garbage characters}
icon=%SystemRoot%\system32\SHELL32.dll,4
;{garbage characters}
action=Open folder to view files using Windows Explorer
;{garbage characters}
shell\open\command=system32/rundll.exe
;{garbage characters}
shell\explore\command=system32/rundll.exe
;{garbage characters}
useautoplay=1
;{garbage characters}
[AutoRun]
:END

Step 6

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