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Zero Day

Ryan Naraine, Emil Protalinski and Dancho Danchev

New ransomware locks PCs, demands premium SMS for removal

By | April 22, 2009, 1:30pm PDT

Summary: UPDATE: Another variant has been detected. Following the recently uncovered hybrid scareware with elements of ransomware, and last year’s GPcode ransomware attacks, cybercriminals have once again demonstrated their interest in the concept of ransomware. PandaLabs is reporting on a newly discovered ransomware variant which locks the affected user’s PC, and demands a premium SMS in order to [...]

UPDATE: Another variant has been detected.

Following the recently uncovered hybrid scareware with elements of ransomware, and last year’s GPcode ransomware attacks, cybercriminals have once again demonstrated their interest in the concept of ransomware.

PandaLabs is reporting on a newly discovered ransomware variant which locks the affected user’s PC, and demands a premium SMS in order to deactivate it.

Trj/SMSlock.A doesn’t have any self-propagation functions and appears to be coming under the form of a typical fake codec that has been affecting users for over a week now. The message (in Russian) demands that the affected user sends an SMS with the pseudo-unique number to the given number in order to receive deactivation code. From a monetization perspective, the approach is pretty similar to the recent Trojan-SMS.Python.Flocker mobile malware which was transferring account credit, and mimicking the original functionality of the RedBrowser mobile malware which was automatically sending SMS messages to premium-rate numbers in 2006.

Just how dangerous is SMSlock.A? Compared to GPcode, it’s the work of less technically sophisticated people, making it fairly easy to bypass. Dr.Web has even released a generator for deactivation codes so that affected users don’t have to pay.

Ransomware is not a fad, that’s for sure. In fact, Trend Micro’s Annual Threat Report: Cybercriminals are Working Faster than Ever stated that ransomware attacks are prone to increase in a targeted fashion during Q2 of 2009. And whereas the current variants do not have self-propagation functions, their primarily propagation vector remains the hundreds of currently active blackhat search engine optimization campaigns serving the ubiquitous fake codecs (Cybercriminals syndicating Google Trends keywords to serve malware; Massive comment spam attack on Digg.com leads to malware).

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Dancho Danchev is an independent security consultant and cyber threats analyst, with extensive experience in open source intelligence gathering, malware and cybercrime incident response.

Disclosure

Dancho Danchev

More details on Dancho Danchev's current and past professional affiliations, can be found in his LinkedIn profile.

Biography

Dancho Danchev

Dancho Danchev is an independent security consultant and cyber threats analyst, with extensive experience in open source intelligence gathering, and cybercrime incident response. He's been an active security blogger since 2007, and maintains a popular security blog sharing real-time threats intelligence data with the rest of the community on a daily basis. More details on Dancho Danchev's current and past professional affiliations, can be found in his LinkedIn profile. You can also follow him on Twitter

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RE: New ransomware locks PCs, demands premium SMS for removal
birumut Updated - 3rd May 2011
Great!!! thanks for sharing this information to us!
seslisohbet seslichat
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but I would think that anybody who has data that valuable as to pay a ransom to retrieve it would know exactly how to fix the problem without paying the ransom. And that those who don't have data that valuable would just as soon pay someone to reinstall the OS and programs.
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It's not maybe, you do overestimate...
ThePrairiePrankster 22nd Apr 2009
the average person's intelligence when it comes to computers.

I know a few well off folks who think when Windows Update is done and asks for a restart that it's really just a hacker in disguise. They called me up a few time lately this past months and wonder why that MS Update screwed up their PC, they can't see email or a web page and don't know how they got "infected". I tell them to restart their systems and lo and behold, I fixed it! LOL

I was nice, it was a freebie and I tell them to call me again when something happens. I figure I am banking some goodwill and that I will hear from them when something really happens down the road.

Cheers!
Enough said!
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RE: If they are really...
fatman65535 23rd Apr 2009
I believe that acronym is:

YATFSTHAC

or something close

YATFSTHAC = You Are Too F------ Stupid To Have A Computer
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Or this....
ThePrairiePrankster 23rd Apr 2009
I
D
1
0
T

They are ID ten T's indeed....LOL
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Agreed!
ThePrairiePrankster 23rd Apr 2009
happy
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Or...
eric_s@... 23rd Apr 2009
You have to be smarter than the equipment before you're allowed to operate it.
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Huh?
Mewshew 22nd Apr 2009
Everyone with valuable data is a tech wizard now? When did that happen?
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Or, perhaps...
fairportfan 23rd Apr 2009
...can afford to hire one?
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LMAO!
ejhonda 23rd Apr 2009
That's a good one. Thanks for the smile!
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One of them was my Ma
ThePrairiePrankster 23rd Apr 2009
And I gotta be nice to her, you know? LOL
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I wouldn't be
Lerianis 23rd Apr 2009
If it was my mother, I can honestly say that I would be berating her for getting infected with something like this, with the NUMEROUS times I have told her to let me look at something (unless it's from RealArcade's main site) before installing it.
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Small victories
ejhonda 23rd Apr 2009
I hear you on that - I finally have my parents instilled with the level of skepticism needed to stay safe(r). But my father now tells me stories of his co-workers and the rumors and bad security information that get passed around his workplace.

Where does he work? (get ready...)

IBM.
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Who haven't figured out yet who gets the revenue from the premium rate calls. Follow the money and lock up the people who handle it. Then slap the telco's wrist and get it relisted as a freecall number.
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When I saw ransomware in the title...
kozmcrae 22nd Apr 2009
I first thought you were talking about Microsoft lock-in. I guess everybody is trying to get at our money these days.
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This is a problem only if you use WINDOWS.

Why would anyone use Windows for surfing the web?

Firefox, for example, is cross functional with other
operating systems.
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Because it's very, very securable
mechBgon 22nd Apr 2009
"Why would anyone use Windows for surfing the web?"

Why not? I've hunted more wild malware than you can imagine, using various Windows OSes, and I've racked up hundreds of thousands of infection-free machine-hours on a Windows fleet as a sysadmin. I'm satisfied with Windows securability. Vista's default setup is a decent starting point, and despite its age, WinXP has potential too.

For those interested in what I meant by "securability," I've made a guide that's probably not beyond the comprehension of the audience here, and that's at http://www.mechbgon.com/security for those interested. Unlike most Windows security guides I've seen, it actually starts with the foundation: using a low-rights user account.

Microsoft MVP, 2006-2009
SiteAdvisor Experienced Reviewer
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Windows is very securable
Lerianis 23rd Apr 2009
And everyone should be using a 'low-rights' user account as much as they can. I personally don't because some games I play don't like standard user accounts and have to be played in Administrator mode to play right.
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Consider using RunAs, or Vista
mechBgon Updated - 23rd Apr 2009
I know exactly what you mean regarding games. My Mechwarrior4 games (ironically a Microsoft product) will not run as a Limited user on WinXP, although they run fine as a Standard (non-Admin) user on Vista. That's because Vista has file-system and Registry virtualization, letting the program modify a *phantom* copy of the Registry to overcome these sorts of compatibility problems.

If you're on WinXP for the near future, one option is to create an Admin-level account, give the account a password so RunAs can function, and then right-click the game and choose RunAs from the right-click menu (if you don't see RunAs, then hold your SHIFT key down while you right-click). Now you can run that program as the Admin-level account, while the rest of your user session remains safely at non-Admin level. If the game has per-user setup, you will need to set up your control layout and settings again.

If your version of WinXP is XP Pro or MCE, you can also create a custom shortcut that'll always launch the game (or whatever program) as the Admin account. To do so, create a shortcut to the game/program, then right-click your shortcut and choose Properties. In its Properties panel, add runas /user:yourAdminAccount'sName /savecred at the beginning of the Target: line, and change the Start In: line to your non-Admin account's folder within C:\Documents and Settings. Now use the shortcut, type the password, and it'll remember it for future use when you use that shortcut.
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A Well Disguised Troll
TheGooch1 28th Apr 2009
Is still a troll.

Glad you could join us. Can we stick to the topic? Please?
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Yep, It's Another Windows Hit
itanalyst2@... Updated - 23rd Apr 2009
Ballmer will use this as the basis for the "pay as you go" version of Windows 7.

In Mother Redmond, you pay Windows!!!
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Get real
Lerianis 23rd Apr 2009
This could happen on OSX, Linux, etc.

The problem is NOT the OS, it is stupid people downloading and running things that they should KNOW are scams after all these years.

If this was a two year old we were talking about, I would give them some slack... but not 20 year olds and 40 year olds, who are the ones who are most hit by viruses and other malware like this.
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Wake up
T1Oracle 23rd Apr 2009
Ransomware has been a standard feature in Windows since XP. MS calls it Windows Genuine Advantage.
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The problem *IS* the OS....
Rick S._z 28th Apr 2009
"... it creates a startup registry entry like this:

HKLM\SOFTWARE\Microsoft\Windows NT\CurrentVersion\Winlogon\ Userinit =C:\WINDOWS\System32\userinit.exe,c:\malware.exe

This means that everytime the user tries to login to the system, along with userinit.exe (A legitimate windows process responsible for loading user profiles which contain desktop themes, fonts, wallpapers, etc) a malware instance will be launched at the same time."

OK, Mr. GetReal: Can you tell me which part of this process "COULD" happen on Linux again?

The "creates a start up Registry key under "HKLM\SOFTWARE\Microsoft\Windows NT\CurrentVersion\Winlogon\" is gonna run on Linux?

Or the "malware.exe" part? (A "*.exe" file is gonna run on Linux, ya think?).

You were saying something about "stupid people", right?
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No But
TheGooch1 28th Apr 2009
/etc/init.d/malware ran on a coworkers computer, it started the malware that patched the kernel so that ransomware runs whenever the kernel loads. He tried booting from a Live CD to undo the damage, but ended up wiping and reinstalling his distro to fix it. No data loss, though.

That's rather hilarious. Thank you for brightening my morning happy
Typical.
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loverock just got his third zdnet NIC
InAction Man 23rd Apr 2009
loverock=raid6=gerix76

Now answering your question: loverock is busy trolling a Linux article, noax will be missing for a while.
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RE: Where are ...
fatman65535 23rd Apr 2009
LD is probably hiding in his underground bunker; as it has been ages since he has seen 'the light' (quite literally - that is)

(satire)
(sarcasm)
He can't seem to comprehend that Linux has evolved since its early days. And just to prove all of us wrong; he still keeps on trying to compile a 12 year old kernel; with the wrong compiler. In his confused state, he does not realize that x86 and 68K architectures are radically different. He expects 68K binaries to run on an x86 box. I mean, what the hell, they both have a '6' and and '8' in them? He will never get it!!!
(/sarcasm)
(/satire)

As far as Bott and No Axe, who the hell cares?
0 Votes
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It is still too 'command-line only' in most areas, and that is the main reason why the regular user won't use it.

Add to that, most Windows programs will not work on Linux (yes, this is true even with WINE) and.... I'm not switching.

If Linux TRULY wants to become a major player, they are going to have to: support DirectX 9-11, be able to install programs written for Windows Vista and 7 on them without any 'tweaking', and be able to play ******** computer games without having to do a bunch of 'tweaking'.

Until then..... Windows is going to be my choice of operating system, and the same things apply to OSX, to be blunt.
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LMAO
T1Oracle 23rd Apr 2009
MS has you completely brainwashed.

Supporting Windows in Linux would be a major step backwards. If even Apple doesn't try because they know better than to add Windows software to a stable OS.

Who needs Direct X when there's OpenGL? Vista is irrelevant compared to XP, and 7 isn't even out yet. Win XP is the only one with a valuable user base.

Regardless, technology should advance not stagnate by clinging to the mistakes of the past.
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Going backwards.
fatman65535 Updated - 23rd Apr 2009
(sarcasm)

Would that be anything like putting 1930's "Flash Gordon" style technology on the ISS???

Not that long ago, on some cable channel, I saw the 1960 flick "The Angry Red Planet" http://www.imdb.com/title/tt0052564/

In it control room was a Burroghs computer - powered by VACUUM TUBES. God, I would have hated to have to maintain that monstrosity!!!

(/sarcasm)
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Valve stats, anyone?
mechBgon 24th Apr 2009
"Vista is irrelevant compared to XP, and 7 isn't even out yet. Win XP is the only one with a valuable user base."

I've been watching Valve's hardware/software survey month by month. The ratio of WinXP users to Vista/7 users is now 1.61 to 1 and dropping. WinXP is losing userbase to Vista/7 at a rate of several percent per month. If you're interested in following the stats yourself, here's the site:

http://store.steampowered.com/hwsurvey/
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And the time overhead, too.

I ran Linux for years, using a Windows VM to workround apps that I couldn't get to run on it. but even with that setup, I was spending hours trying to get commodity apps to do what I needed them to do.

Eventually, I gave up and chose to go back to Windows as I already had the hardware and software for it, and haven't looked back since.

Blue screens and viruses ( never had a virus on Windows ) are nonexistent, and I do about zero work to prevent them.

I don't see how so many people can be fooled into installing virues/malware/etc when looking at the practically zero effort it takes me to avoid the same.

I am just not that amazing. Which means, they must be reaally below below average.
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humans are evolved
ljenux-23043766007667558234416105604265 28th Oct 2009
but you still in australopithecus phase
I posted a report here on this a month ago.
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Why is it...
library assistant 23rd Apr 2009
that every time security issue hits this site, the posts end up as one of these:

1) people who get hit are stupid,

2) if you use (fill in the name of the OS/program here) instead

3) everybody thinks they are a commedian (should that read commodian?)

C'mon people this isn't an AOL forum.

There are some people who are intelligent and still, against their better judgement, make a wrong decision.

There ARE people who want to see something more than ridicule, and less-than-funny quips. For some people, the operating system is based more on what someone else (boss) dictates because they may not have the say so to choose the OS even if they think something else is better or are stuck because of software needs and compatability isses.

Can we maybe have some constructive discussion here?
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Vista and Win 7 not affected
Qbt Updated - 23rd Apr 2009
It would have been great if the story mentioned that Vista and Windows 7 are immune to this. Instead lets just say "PCs" and let the trolls assume all Windows versions are affected, instead of 6 year and older versions.

http://www.pandasecurity.com/homeusers/security-info/about-malware/encyclopedia/overview.aspx?lst=vis&idvirus=208557&sitepanda=particulares
and it users are the victims. PERIOD!
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I find it funny
Cylon Centurion 23rd Apr 2009
You guys can run Linux and not know how to keep Windows secure.


It just boggles my mind.
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Customer Used Backasswards Compatability
mobyprick@... 23rd Apr 2009
My customer used backasswards compatability (98) to install the ransom ware on his system.
I found it and killed it but Vista CAN get the malware, and it WAS a STUPID USER(he owns the company)who installed the scare ware.
Luckily it's easy to kill the one he had, it was a "folder locker". He likes normal girly porn.
it won't matter.

Which is a lie.

The code can be augmented to breach Vista as well. It's large and bloaty enough.
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Then End Process.A Microsoft search for the file then delete it.Some files are hidden so in MY Computer>Tools>Folder Options>View click out the hide stuff then Apply>Ok.
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Good Shot!
mobyprick@... Updated - 23rd Apr 2009
Bulls Eye Balthor!
End process and delete downloaded alien files, and remove "unknown or invisible name" from admin privileges.
re-boot and it's gone for good.
Silly Haxor wannabes, this has got to be constructed from a Haxor Utility, not even as tough as Sub-7.
This can affect any system; MS Windows, Mac OS X or Linux. Anyone can write an application that transmitted to your system, convince you to install it on you system and you have been had by these fellows for some money.
Right now MS Windows is the dominate player so that these people target the largest market for the biggest bag for the buck. However, as Mac and Linux gets more popular they will get a taste of junk the MS Windows has been experiencing for so many years. Remember that there is a running botnet of Mac from pirated software so we Macs are not as immune as we first thought.
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MS APOLOGIST speaks. (NT)
Intellihence 28th Oct 2009
(NT)
Mac - 2 viruses in the wild,
Windo$e - about 1.5 million viruses in the wild!

1 botnet of Macs is hardly a deluge f malware.
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:evilgrin:
Ransomware is interesting in the rather intimate relationship established between the victim and hacker. Direct interaction occurs and both sides have to give a little extra information in order to do a transaction. I'll be following this trend on justaskgemalto.com the digital security site.
0 Votes
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Great!!! thanks for sharing this information to us!
seslisohbet seslichat

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