Analysis by: Anthony Joe Melgarejo

ALIASES:

Trojan:Win32/FakeSysdef (Microsoft), FakeAlert-SysDef.al (McAfee), UltraDefragFraud!gen16 (Symantec), Mal/FakeAV-RY (Sophos), Trojan.Win32.FakeSysDef.atz (v) (Sunbelt)

 PLATFORM:

Windows 2000, Windows XP, Windows Server 2003

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

  • Threat Type: Trojan

  • Destructiveness: No

  • Encrypted: Yes

  • In the wild: Yes

  OVERVIEW

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

  TECHNICAL DETAILS

File Size: 254,464 bytes
File Type: EXE
Memory Resident: Yes
Initial Samples Received Date: 14 Aug 2012

Arrival Details

This Trojan 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 Trojan drops the following copies of itself into the affected system and executes them:

  • {All Users' Profile}\Application Data\{random file name}.exe

It drops the following files:

  • {All Users' Profile}\Application Data\{random file name}
  • %User Profile%\Application Data\Microsoft\Internet Explorer\Quick Launch\File_Recovery.lnk
  • %Desktop%\File_Recovery.lnk
  • %Start Menu%\Programs\File Recovery\File Recovery.lnk
  • %Start Menu%\Programs\File Recovery\Uninstall File Recovery.lnk

(Note: %User Profile% is the current user's profile folder, which is usually C:\Windows\Profiles\{user name} on Windows 98 and ME, C:\WINNT\Profiles\{user name} on Windows NT, and C:\Documents and Settings\{user name} on Windows 2000, XP, and Server 2003.. %Desktop% is the current user's desktop, which is usually C:\Windows\Profiles\{user name}\Desktop on Windows 98 and ME, C:\WINNT\Profiles\{user name}\Desktop on Windows NT, and C:\Documents and Settings\{User Name}\Desktop on Windows 2000, XP, and Server 2003.. %Start Menu% is the current user's Start Menu folder, which is usually C:\Windows\Profiles\{user name}\Start Menu on Windows 98 and ME, C:\WINNT\Profiles\{user name}\Start Menu on Windows NT and C:\Windows\Start Menu or C:\Documents and Settings\{User name}\Start Menu on Windows 2000, XP, and Server 2003.)

It creates the following folders:

  • %Start Menu%\Programs\File Recovery

(Note: %Start Menu% is the current user's Start Menu folder, which is usually C:\Windows\Profiles\{user name}\Start Menu on Windows 98 and ME, C:\WINNT\Profiles\{user name}\Start Menu on Windows NT and C:\Windows\Start Menu or C:\Documents and Settings\{User name}\Start Menu on Windows 2000, XP, and Server 2003.)

Autostart Technique

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

HKEY_CURRENT_USER\Software\Microsoft\
Windows\CurrentVersion\Run
{random file name} = "{All Users' Profile}\Application Data\{random file name}.exe"

Other System Modifications

This Trojan adds the following registry entries:

HKEY_CURRENT_USER\Software\Microsoft\
Internet Explorer\Main
Use FormSuggest = "Yes"

HKEY_CURRENT_USER\Software\Microsoft\
Windows\CurrentVersion\Internet Settings
WarnOnZoneCrossing = "0"

HKEY_CURRENT_USER\Software\Microsoft\
Windows\CurrentVersion\Internet Settings
WarnonBadCertRecving = "0"

HKEY_CURRENT_USER\Software\Microsoft\
Windows\CurrentVersion\Internet Settings
CertificateRevocation = "0"

HKEY_CURRENT_USER\Software\Microsoft\
Windows\CurrentVersion\Policies\
Associations
LowRiskFileTypes = ".zip;.rar;.nfo;.txt;.exe;.bat;.com;.cmd;.reg;.msi;.htm;.html;.gif;.bmp;.jpg;.avi;.mpg;.mpeg;.mov;.mp3;.m3u;.wav;.scr;"

HKEY_CURRENT_USER\Software\Microsoft\
Windows\CurrentVersion\Policies\
Attachments
SaveZoneInformation = "1"

HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\
ESENT\Process\{random file name}\
DEBUG
Trace level = ""

It modifies the following registry entries:

HKEY_CURRENT_USER\Software\Microsoft\
Internet Explorer\Download
CheckExeSignatures = "no"

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

HKEY_CURRENT_USER\Software\Microsoft\
Windows\CurrentVersion\Internet Settings\
Zones\3
1601 = "0"

(Note: The default value data of the said registry entry is 1.)

HKEY_CURRENT_USER\Software\Microsoft\
Windows\CurrentVersion\WinTrust\
Trust Providers\Software Publishing
State = "23e00"

(Note: The default value data of the said registry entry is "23c00".)

Other Details

This Trojan connects to the following possibly malicious URL:

  • http://{BLOCKED}isful.com
  • http://{BLOCKED}tal.com
  • http://{BLOCKED}tmemo.com
  • http://{BLOCKED}nrid.com

  SOLUTION

Minimum Scan Engine: 9.200
FIRST VSAPI PATTERN FILE: 9.322.02
FIRST VSAPI PATTERN DATE: 14 Aug 2012
VSAPI OPR PATTERN File: 9.323.00
VSAPI OPR PATTERN Date: 15 Aug 2012

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 TROJ_FAKESYS.KG

Step 3

Restart in Safe Mode

[ Learn More ]

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 file name} = "{All Users' Profile}\Application Data\{random file name}.exe"
  • In HKEY_CURRENT_USER\Software\Microsoft\Internet Explorer\Main
    • Use FormSuggest = "Yes"
  • In HKEY_CURRENT_USER\Software\Microsoft\Windows\CurrentVersion\Internet Settings
    • WarnOnZoneCrossing = "0"
  • In HKEY_CURRENT_USER\Software\Microsoft\Windows\CurrentVersion\Internet Settings
    • WarnonBadCertRecving = "0"
  • In HKEY_CURRENT_USER\Software\Microsoft\Windows\CurrentVersion\Internet Settings
    • CertificateRevocation = "0"
  • In HKEY_CURRENT_USER\Software\Microsoft\Windows\CurrentVersion\Policies\Associations
    • LowRiskFileTypes = ".zip;.rar;.nfo;.txt;.exe;.bat;.com;.cmd;.reg;.msi;.htm;.html;.gif;.bmp;.jpg;.avi;.mpg;.mpeg;.mov;.mp3;.m3u;.wav;.scr;"
  • In HKEY_CURRENT_USER\Software\Microsoft\Windows\CurrentVersion\Policies\Attachments
    • SaveZoneInformation = "1"
  • In HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\ESENT\Process\{random file name}\DEBUG
    • Trace Level = ""

Step 5

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_CURRENT_USER\Software\Microsoft\Internet Explorer\Download
    • From: CheckExeSignatures = "no"
      To: CheckExeSignatures = "yes"
  • In HKEY_CURRENT_USER\Software\Microsoft\Windows\CurrentVersion\WinTrust\Trust Providers\Software Publishing
    • From: State = "23e00"
      To: State = "23c00"

Step 6

Reset Internet security settings

[ Learn More ]

Step 7

Search and delete these files

[ Learn More ]
There may be some component files that are hidden. Please make sure you check the Search Hidden Files and Folders checkbox in the "More advanced options" option to include all hidden files and folders in the search result.
  • {All Users' Profile}\Application Data\{random file name}
  • %User Profile%\Application Data\Microsoft\Internet Explorer\Quick Launch\File_Recovery.lnk
  • %Desktop%\File_Recovery.lnk

Step 8

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.
  • %Start Menu%\Programs\File Recovery

Step 9

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