Analysis by: Karl Dominguez

 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

This worm arrives via removable drives. It may be downloaded by other malware/grayware/spyware from remote sites. 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.

  TECHNICAL DETAILS

File Size: 243,200 bytes
File Type: PE
Memory Resident: Yes
Initial Samples Received Date: 09 Feb 2011

Arrival Details

This worm arrives via removable drives.

It may be downloaded by other malware/grayware/spyware from remote sites.

It may be unknowingly downloaded by a user while visiting malicious websites.

Installation

This worm drops the following file(s)/component(s):

  • {drive letter}:\garbage\Desktop.ini
  • %System Root%\RECYCLER\{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\{SID}\winsystem.exe

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

It injects itself into the following processes running in the affected system's memory:

  • Explorer.exe

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.)

Autostart Technique

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

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

Propagation

This worm creates the following folders in all removable drives:

  • {drive letter}:\garbage

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

  • {drive letter}:\garbage\pizdec.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:

;{garbage characters}
[AutoRun]
;{garbage characters}
open=.\garbage/pizdec.exe
;{garbage characters}
icon = %System Root%\system32\SHELL32.dll,4
;{garbage characters}
action=Open folder to view files using Windows Explorer
;{garbage characters}
useauTOplay=1
;{garbage characters}
shell\\open\\command=garbage\\pizdec.exe
;{garbage characters}
shell\\explore\\command=garbage////pizdec.exe
;{garbage characters}

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

NOTES:

Other Details

Based on analysis of the codes, it has the following capabilities:

Spreads via MSN Messenger and through the following peer-to-peer (P2P) applications:

  • Ares
  • BearShare
  • DC++
  • eMule
  • iMesh
  • Kazaa
  • LimeWire
  • Shareaza

Performs a denial of service (DoS) attacks on infected systems using SYN flooding

  SOLUTION

Minimum Scan Engine: 8.900
FIRST VSAPI PATTERN FILE: 7.826.09
FIRST VSAPI PATTERN DATE: 09 Feb 2011

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

Identify and delete files detected as WORM_PALEVO.CU using either the Startup Disk or Recovery Console

[ 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\Mircosoft\Windows NT\CurrentVersion\Winlogon
    • Taskman = %System Root%\RECYCLER\{SID}\winsystem.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.
  • {drive letter}:\garbage
  • %System Root%\RECYCLER\{SID}

Step 5

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

[ Learn More ]
;{garbage characters}
[AutoRun]
;{garbage characters}
open=.\garbage/pizdec.exe
;{garbage characters}
icon = %System Root%\system32\SHELL32.dll,4
;{garbage characters}
action=Open folder to view files using Windows Explorer
;{garbage characters}
useauTOplay=1
;{garbage characters}
shell\\open\\command=garbage\\pizdec.exe
;{garbage characters}
shell\\explore\\command=garbage////pizdec.exe
;{garbage characters}

Step 6

Scan your computer with your Trend Micro product to clean files detected as WORM_PALEVO.CU. 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.


Did this description help? Tell us how we did.