Analysis by: Abraham Latimer Camba

ALIASES:

FakeAlert-SysDef.al (McAfee), W32/FakeSysDef.ATL!tr (Fortinet), Trojan-FakeAV.Win32.FakeSysDef.atl (Kaspersky)

 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

Infection Channel: Dropped by other malware, Downloaded from the Internet

This Trojan displays fake alerts upon installation. It displays fake scanning results about disk errors.

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.

It does not have any propagation routine.

It does not have any backdoor routine.

It modifies the Internet Explorer Zone Settings.

It does not have any downloading capability.

It deletes the initially executed copy of itself.

  TECHNICAL DETAILS

File Size: 249,856 bytes
File Type: EXE
Memory Resident: Yes
Initial Samples Received Date: 23 Jul 2012
Payload: Displays fake alerts, Connects to URLs/IPs

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:

  • %System Root%\Documents and Settings\All Users\Application Data\{random name}.exe

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

It drops the following files:

  • %Desktop%\File_Recovery.lnk
  • %Start Menu%\Programs\File Recovery\File Recovery.lnk
  • %Start Menu%\Programs\File Recovery\Uninstall File Recovery.lnk
  • %System Root%\Documents and Settings\All Users\Application Data\{random name}
  • %System Root%\Documents and Settings\All Users\Application Data\-{random name}
  • %System Root%\Documents and Settings\All Users\Application Data\-{random name}R
  • %User Profile%\Application Data\Microsoft\Internet Explorer\Quick Launch\File_Recovery.lnk

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

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.)

It terminates the execution of the copy it initially executed and executes the copy it drops instead.

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 name} = "%System Root%\Documents and Settings\All Users\Application Data\{random name}.exe"

Other System Modifications

This Trojan adds the following registry keys:

HKEY_CURRENT_USER\Software\Microsoft\
Windows\CurrentVersion\Policies\
Associations

HKEY_CURRENT_USER\Software\Microsoft\
Windows\CurrentVersion\Policies\
Attachments

HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\
ESENT\Process\{random name}

HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\
ESENT\Process\{random name}\
DEBUG

It 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
CertificateRevocation = "0"

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

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

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

Propagation

This Trojan does not have any propagation routine.

Backdoor Routine

This Trojan does not have any backdoor routine.

Web Browser Home Page and Search Page Modification

This Trojan modifies the Internet Explorer Zone Settings.

Download Routine

This Trojan does not have any downloading capability.

Other Details

This Trojan deletes the initially executed copy of itself

NOTES:

It pretends to scan the system for disk errors.

After doing the fake scan, it displays the following window:

Upon clicking the 'Repair 7 Issues' button, the following window is displayed:

If the 'Buy license now' is clicked, it connects to any of the following URLs to get user billing information:

  • http://{BLOCKED}illa.com
  • http://{BLOCKED}retin.com
  • http://{BLOCKED}esier.com
  • http://{BLOCKED}san.com
  • http://{BLOCKED}isful.com
  • http://{BLOCKED}ingona.com

It displays the following window which contains the form to get the user's billing information:

If the 'I already have an activation code. Click here to activate' button is clicked, the following window is displayed:

It does not have rootkit capabilities.

It does not exploit any vulnerability.

  SOLUTION

Minimum Scan Engine: 9.200
FIRST VSAPI PATTERN FILE: 9.288.03
FIRST VSAPI PATTERN DATE: 27 Jul 2012
VSAPI OPR PATTERN File: 9.289.00
VSAPI OPR PATTERN Date: 28 Jul 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.NAP

Step 3

Restart in Safe Mode

[ Learn More ]

Step 4

Delete this registry key

[ 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\Policies
    • Associations
  • In HKEY_CURRENT_USER\Software\Microsoft\Windows\CurrentVersion\Policies
    • Attachments
  • In HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\ESENT\Process
    • {random name}

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_CURRENT_USER\Software\Microsoft\Internet Explorer\Main
    • Use FormSuggest = "Yes"
  • In HKEY_CURRENT_USER\Software\Microsoft\Windows\CurrentVersion\Internet Settings
    • CertificateRevocation = "0"
  • In HKEY_CURRENT_USER\Software\Microsoft\Windows\CurrentVersion\Internet Settings
    • WarnonBadCertRecving = "0"
  • In HKEY_CURRENT_USER\Software\Microsoft\Windows\CurrentVersion\Internet Settings
    • WarnOnZoneCrossing = "0"
  • In HKEY_CURRENT_USER\Software\Microsoft\Windows\CurrentVersion\Run
    • {random name} = "%System Root%\Documents and Settings\All Users\Application Data\{random name}.exe"

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_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 7

Reset Internet security settings

[ Learn More ]

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

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.
  • %Desktop%\File_Recovery.lnk
  • %System Root%\Documents and Settings\All Users\Application Data\{random name}
  • %System Root%\Documents and Settings\All Users\Application Data\-{random name}
  • %System Root%\Documents and Settings\All Users\Application Data\-{random name}R
  • %User Profile%\Application Data\Microsoft\Internet Explorer\Quick Launch\File_Recovery.lnk

Step 10

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