http://www.wired.com/politics/security/commentary/securitymatters/2007/10/securitymatters_1004

http://tinyurl.com/2xevsm

The Storm worm first appeared at the beginning of the year, hiding in 
e-mail attachments with the subject line: "230 dead as storm batters 
Europe." Those who opened the attachment became infected, their 
computers joining an ever-growing botnet.

Although it's most commonly called a worm, Storm is really more: a 
worm, a Trojan horse and a bot all rolled into one. It's also the most 
successful example we have of a new breed of worm, and I've seen 
estimates that between 1 million and 50 million computers have been 
infected worldwide.

Old style worms -- Sasser, Slammer, Nimda -- were written by hackers 
looking for fame. They spread as quickly as possible (Slammer infected 
75,000 computers in 10 minutes) and garnered a lot of notice in the 
process. The onslaught made it easier for security experts to detect 
the attack, but required a quick response by antivirus companies, 
sysadmins and users hoping to contain it. Think of this type of worm 
as an infectious disease that shows immediate symptoms.

Worms like Storm are written by hackers looking for profit, and 
they're different. These worms spread more subtly, without making 
noise. Symptoms don't appear immediately, and an infected computer can 
sit dormant for a long time. If it were a disease, it would be more 
like syphilis, whose symptoms may be mild or disappear altogether, but 
which will eventually come back years later and eat your brain.

Storm represents the future of malware. Let's look at its behavior:

  1.. Storm is patient. A worm that attacks all the time is much 
easier to detect; a worm that attacks and then shuts off for a while 
hides much more easily.


  2.. Storm is designed like an ant colony, with separation of duties. 
Only a small fraction of infected hosts spread the worm. A much 
smaller fraction are C2: command-and-control servers. The rest stand 
by to receive orders. By only allowing a small number of hosts to 
propagate the virus and act as command-and-control servers, Storm is 
resilient against attack. Even if those hosts shut down, the network 
remains largely intact, and other hosts can take over those duties.


  3.. Storm doesn't cause any damage, or noticeable performance 
impact, to the hosts. Like a parasite, it needs its host to be intact 
and healthy for its own survival. This makes it harder to detect, 
because users and network administrators won't notice any abnormal 
behavior most of the time.


  4.. Rather than having all hosts communicate to a central server or 
set of servers, Storm uses a peer-to-peer network for C2. This makes 
the Storm botnet much harder to disable. The most common way to 
disable a botnet is to shut down the centralized control point. Storm 
doesn't have a centralized control point, and thus can't be shut down 
that way.

  This technique has other advantages, too. Companies that monitor net 
activity can detect traffic anomalies with a centralized C2 point, but 
distributed C2 doesn't show up as a spike. Communications are much 
harder to detect.

  One standard method of tracking root C2 servers is to put an 
infected host through a memory debugger and figure out where its 
orders are coming from. This won't work with Storm: An infected host 
may only know about a small fraction of infected hosts -- 25-30 at a 
time -- and those hosts are an unknown number of hops away from the 
primary C2 servers.

  And even if a C2 node is taken down, the system doesn't suffer. Like 
a hydra with many heads, Storm's C2 structure is distributed.

  5.. Not only are the C2 servers distributed, but they also hide 
behind a constantly changing DNS technique called "fast flux." So even 
if a compromised host is isolated and debugged, and a C2 server 
identified through the cloud, by that time it may no longer be active.


  6.. Storm's payload -- the code it uses to spread -- morphs every 30 
minutes or so, making typical AV (antivirus) and IDS techniques less 
effective.


  7.. Storm's delivery mechanism also changes regularly. Storm started 
out as PDF spam, then its programmers started using e-cards and 
YouTube invites -- anything to entice users to click on a phony link. 
Storm also started posting blog-comment spam, again trying to trick 
viewers into clicking infected links. While these sorts of things are 
pretty standard worm tactics, it does highlight how Storm is 
constantly shifting at all levels.


  8.. The Storm e-mail also changes all the time, leveraging social 
engineering techniques. There are always new subject lines and new 
enticing text: "A killer at 11, he's free at 21 and ...," "football 
tracking program" on NFL opening weekend, and major storm and 
hurricane warnings. Storm's programmers are very good at preying on 
human nature.


  9.. Last month, Storm began attacking anti-spam sites focused on 
identifying it -- spamhaus.org, 419eater and so on -- and the personal 
website of Joe Stewart, who published an analysis of Storm. I am 
reminded of a basic theory of war: Take out your enemy's 
reconnaissance. Or a basic theory of urban gangs and some governments: 
Make sure others know not to mess with you.

Not that we really have any idea how to mess with Storm. Storm has 
been around for almost a year, and the antivirus companies are pretty 
much powerless to do anything about it. Inoculating infected machines 
individually is simply not going to work, and I can't imagine forcing 
ISPs to quarantine infected hosts. A quarantine wouldn't work in any 
case: Storm's creators could easily design another worm -- and we know 
that users can't keep themselves from clicking on enticing attachments 
and links.

Redesigning the Microsoft Windows operating system would work, but 
that's ridiculous to even suggest. Creating a counterworm would make a 
great piece of fiction, but it's a really bad idea in real life. We 
simply don't know how to stop Storm, except to find the people 
controlling it and arrest them.

Unfortunately we have no idea who controls Storm, although there's 
some speculation that they're Russian. The programmers are obviously 
very skilled, and they're continuing to work on their creation.

Oddly enough, Storm isn't doing much, so far, except gathering 
strength. Aside from continuing to infect other Windows machines and 
attacking particular sites that are attacking it, Storm has only been 
implicated in some pump-and-dump stock scams. There are rumors that 
Storm is leased out to other criminal groups. Other than that, 
nothing.

Personally, I'm worried about what Storm's creators are planning for 
Phase II.

By: Bruce Schneier

*************************************************************************

Considering the bot-attack that recently isolated Estonia from the net 
for a good while, this probably deserves some attention and a lot of 
investigation into world criminal syndicates. It is not the 
loner-hacker who should be considered a threat.

xponent

Awareness Maru

rob


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