Analysis by: kathleenno
 Modified by: Christopher Daniel So
ALIASES:

Infostealer.Daonol!gen (Symantec); Trojan:Win32/Daonol.I (Microsoft); Trojan-PSW.Win32.Kates.j (Kaspersky); Lando (Mcafee); Troj/Delf-FDQ (Sophos)

 PLATFORM:

Windows 2000, Windows XP, Windows Server 2003

 OVERALL RISK RATING:
 REPORTED INFECTION:
 SYSTEM IMPACT RATING:
 INFORMATION EXPOSURE:

  • Threat Type: Spyware

  • Destructiveness: No

  • Encrypted: No

  • In the wild: Yes

  OVERVIEW

This spyware hooks certain APIs to perform its malicious routines. It hooks functions in ws2_32.dll to intercept data. It then waits for the user to access an FTP site then steals the user name and password used.

It then sends the gathered data to a remote IP address. It monitors the HTTP headers being sent by searching for certain strings. It sends the stolen HTTP header to a remote URL as part of the HTTP header. However, as of this writing, the said site is inaccessible.

It blocks sites containing certain strings. It also attempts to remove itself if certain processes are running.

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

It does not have any propagation routine.

It does not have any backdoor routine.

It does not have any downloading capability.

  TECHNICAL DETAILS

File Size: Varies
File Type: DLL
Initial Samples Received Date: 18 Oct 2009
Payload: Blocks websites

Arrival Details

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

Autostart Technique

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

HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\
Windows NT\CurrentVersion\Drivers32
midi9 = "{malware path and file name} 0yAAAAAAAA"

It modifies the following registry entries to ensure it automatic execution at every system startup:

HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\
Windows NT\CurrentVersion\Windows
AppInit_DLLs = "winmm.dll"

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

Other System Modifications

This spyware adds the following registry entries:

HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\
Windows NT\CurrentVersion\Windows
LoadAppInit_DLLs = "1"

Propagation

This spyware does not have any propagation routine.

Backdoor Routine

This spyware does not have any backdoor routine.

Download Routine

This spyware does not have any downloading capability.

NOTES:
It hooks the following APIs to perform its malicious routine:

  • NtOpenKey
  • CreateProcessW
  • ExitProcess

Information Theft

It hooks the following functions in ws2_32.dll to intercept data:
  • connect
  • send
  • recv
  • WSASend
  • WSARecv
It waits for the user to access an FTP site then steals the user name and password used. It then sends the gathered data to the following IP address:
  • {BLOCKED}.{BLOCKED}5.246.34
It monitors the HTTP headers being sent by searching for the following strings:
  • HTTP
  • GET
  • Host:
  • Referer:
It sends the stolen HTTP header to the following URL as part of the HTTP header:
  • http://{BLOCKED}.{BLOCKED}5.246.34/x/?{BLOCKED}xilnoasuedpwpsswtrbkvctwsmrul0

However, as of this writing, the said site is inaccessible.

It blocks sites containing the following strings:
  • DaonolFix
  • Anti
  • Adob
  • AVPU
  • CAUp
  • COMO
  • Enig
  • ESS
  • LIVE
  • Live
  • McHT
  • NOD3
  • Nort
  • Pand
  • SpyS
  • SUPE
  • TMUF
It also attempts to remove itself if the following processes are running:
  • IceSword
  • Malwarebytes

  SOLUTION

Minimum Scan Engine: 8.900
FIRST VSAPI PATTERN FILE: 6.580.01
FIRST VSAPI PATTERN DATE: 27 Oct 2009

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 TSPY_KATES.SMR

Step 3

Restart in Safe Mode

[ Learn More ]

Step 4

Search and delete the file detected as TSPY_KATES.SMR

[ Learn More ]
Please make sure you check the Search Hidden Files and Folders checkbox in the More advanced options option to include all hidden files in the search result.

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_LOCAL_MACHINE\SOFTWARE\Microsoft\Windows NT\CurrentVersion\Drivers32
    • midi9 = "{malware path and file name} 0yAAAAAAAA"
  • In HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\Windows NT\CurrentVersion\Windows
    • LoadAppInit_DLLs = "1"

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_LOCAL_MACHINE\SOFTWARE\Microsoft\Windows NT\CurrentVersion\Windows
    • From: AppInit_DLLs= "winmm.dll"
      To: AppInit_DLLs= ""

Step 7

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