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WORM_PALEVO.IC

December 30, 2012
 Analysis by: Roland Marco Dela Paz
 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 instant messaging applications, Propagates via network shares, Propagates via removable drives

This worm arrives by connecting affected removable drives to a system. It arrives on a system as a file dropped by other malware or as a file downloaded unknowingly by users when visiting malicious sites.

It connects to a website to send and receive information.

  TECHNICAL DETAILS

File Size:

Varies

File Type:

EXE

Memory Resident:

Yes

Initial Samples Received Date:

01 Mar 2012

Payload:

Compromises system security, Connects to URLs/IPs

Arrival Details

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

It may arrive via network shares.

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

  • %System Root%\RECYCLER\{SID}\{random}.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\{SID}

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

It injects codes into the following process(es):

  • explorer.exe

Autostart Technique

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

HKEY_CURRENT_USER\Software\Microsoft\
Windows\CurrentVersion\Run
{random} = %System Root%\RECYCLER\{SID}\{random}.exe

HKEY_CURRENT_USER\Software\Microsoft\
Windows NT\CurrentVersion\Winlogon
Shell = explorer.exe,%System Root%\RECYCLER\{SID}\{random}.exe

HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\
Windows NT\CurrentVersion\Winlogon
Taskman = %System Root%\RECYCLER\{SID}\{random}.exe

Backdoor Routine

This worm connects to the following websites to send and receive information:

  • {BLOCKED}r.zaberhmar.com
  • dq.{BLOCKED}mes7.com

NOTES:

It may also arrive via MSN Messenger.

It is capable of executing the following commands:

  • Download and execute file
  • Update itself
  • Uninstall itself
  • Propagate itself via MSN Messenger by sending messages containing a link where a copy of itself may be downloaded.
  • Propagate via USB drives
  • Propagate itself via shared folders and P2P networks by dropping copies of itself to the following folders:

    Ares
    BearShare
    DC++
    eMule
    iMesh
    Kazaa
    Limewire
    Shareaza

  SOLUTION

Minimum Scan Engine:

9.200

FIRST VSAPI PATTERN FILE:

8.812.03

FIRST VSAPI PATTERN DATE:

01 Mar 2012

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

Identify and delete files detected as WORM_PALEVO.IC using the Recovery Console

[ Learn More ]

Step 3

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\{SID}

Step 4

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\Microsoft\Windows\CurrentVersion\Run
    • {random} = "%System Root%\RECYCLER\{SID}\{random}.exe"
  • In HKEY_CURRENT_USER\Software\Microsoft\Windows NT\CurrentVersion\Winlogon
    • Shell = "explorer.exe,%System Root%\RECYCLER\{SID}\{random}.exe"
  • In HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\Windows NT\CurrentVersion\Winlogon
    • Taskman = "%System Root%\RECYCLER\{SID}\{random}.exe"

Step 5

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