The VeriSign Security Review - December 2005 from VeriSign, Inc.

The VeriSign Security Review

December 2005

As 2005 draws to an end, enterprise security professionals will look back and enjoy a small sigh of relief before getting ready to defend the IT infrastructure in the New Year.

In this issue, we look at the latest Sober outbreak as well as observe a few trends for you to reflect on in 2006. We also celebrate VeriSign’s growth and expansion in Europe, as our U.K. staff moves to a new location.

We wish you a happy holiday season!

In this issue:

Hot Topics

Standards and Regulations

News from VeriSign

Ask a VeriSign Consultant

Security Events

Hot Topics

Sober Worm Makes Sobering Sweep

A mass-mailing worm that first appeared two years ago and intermittently since then has reappeared with formidable sophistication. Variants of the Sober worm were launched around November 13, 2005 in spam emails purporting to originate from the FBI, the CIA, the German Bundeskriminalamt, the U.K. National Hi-Tech Crime Unit, and even Paris Hilton. At its peak, the storm of attacks accounted for one of every 13 emails exchanged.

Intelligence from VeriSign® iDefense Malcode Labs suggests that these highly coordinated attacks were launched from Germany or another German-speaking country. Infected computers are possibly being manipulated for “hacktivist” political purposes, as attacks were timed around German political affairs. The image below depicts the progression of the recent Sober worm attacks.

image

The latest attack was launched on November 21, 2005, the day Germany inaugurated its first woman Chancellor, Angela Merkel, and it does not appear to be the last wave. An in-depth code analysis by VeriSign iDefense Malcode Labs revealed that the Sober.AC variant contains a timed trigger which allows it to download other binary components. The date of this trigger is January 5th of 2006, the anniversary of the Nazi party. In addition, the next triggered date – Jan. 6, 2005 – is timed with the "Drei-Koenigs-Treffen" conventions of the major German political parties.

To learn more about the VeriSign iDefense analysis, visit http://www.idefense.com.

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November Threat Summary

Sober variants accounted for the month’s biggest attacks, yet other threats are already looming large. Variants of the infamous MyTob worm surfaced as MyTob.LY and FanBot.A. MyTob.LY is capable of TCP SYN attack on a Chinese state television Web site. FanBot.A has recently sent itself to hundreds of clients via Skype emails. It is capable of spreading through peer-to-peer share folders, PnP (MS05-039) exploitation, and it is also capable of stopping and disabling Microsoft® Windows® Firewall and Windows updates.

Microsoft released a patch for its critical MS05-053 vulnerability. Affecting most current versions of Microsoft® Windows, including XP SP2 and Server 2003, the problem lies in the way the operating system handles Windows Metafile images. Likely to be used in targeted attacks, the flaw is exploited by convincing a user to open a malformed .wmf or .emf file, or preview it using the Microsoft® Outlook preview pane. If successfully exploited, an intruder would be able to execute code on the affected machine.

A Microsoft® Internet Explorer vulnerability that could be used for denial-of-service attacks is now upgraded to “Extremely Critical” because, a U.K. firm discovered, it allows for remote code execution. The flaw is an example of IE incorrectly initializing certain objects, and can be exploited when the JavaScript "Windows()" command is used in combination with the "" event. For more information, see “Unpatched IE Bug Now Extremely Critical” on TechWeb.com.

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Shift in Attack Vectors

The 2005 SANS Top 20 List is now in circulation, and it indicates that applications and network devices are increasingly being targeted in cyber attacks, rather than operating systems and server software. Allen Paller, director of research for the SANS Institute, says that there has been “a 90-degree turn-around” in attacks. Acknowledging that most enterprises have adopted methods to automatically patch the “commonly attacked” systems, he points out that application patching is not nearly as prevalent, making it almost impossible to combat these new types of attacks. Client-side applications, backup, and anti-virus software and network devices are now being recognized as primary targets for compromise. Compiled annually since 2000, this is the first year that network devices have made the list, with Cisco flaws taking three of the 20 slots. Complete details of the report are available at the SANS Web site.

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Routers: The Next Big Target

The Cisco Systems® Internetwork Operating System (IOS) has surpassed the Microsoft® Windows operating system as the biggest target for hackers, because IOS not only controls the Internet but also network routers that could allow hackers to get inside networks and perhaps systems connected to them. The IOS is complex, with various versions in differing states of upgrade, so network administrators and security professionals will face an extremely difficult time trying to protect their networks while using IOS. Cisco recently announced a "heap overflow" vulnerability in IOS that could lead to denial of service exploits, but the company is not aware of any "active exploitation" of the vulnerability and has provided proper patches to protect the system. Much of Cisco's security frustrations lie in users not willing to implement security upgrades due to the amount of required time and effort. Forrester Research analyst Robert Whiteley already refers to IOS as "monolithic and bloated" with each new upgrade, such as the upcoming IOS version 12.4(4)T, adding to the system's size. Cisco is taking to heart the complexity and size issue of IOS and has released IOS XR, a scaled-down version of IOS meant for the Cisco Systems® CRS-1 Carrier Routing System. Internet service provider NetLink Services Internet security specialist George Roettger predicts a large-scale IOS attack within the next year due to increased awareness of IOS vulnerabilities among hackers. Meanwhile, Cisco's network-security business, which had more than $1 billion in revenue in 2004, continues to grow, and Cisco users and the general public have yet to lose faith in the company's ability to protect their networks.

http://www.informationweek.com/story/showArticle.jhtml?articleID=173402976

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New Study Details Phishing Tactics

The Identity Theft Security Council released a comprehensive study on phishing. The study, entitled Online Identity Theft: Phishing Technology, Chokepoints and Countermeasures, is sponsored by the Department of Homeland Security and is published on the Antiphishing.org Web site. It examines the information flow in phishing attacks, technologies used by phishers, as well as countermeasures.

In an illegal industry where billions are at stake, phishers can afford to apply technological and social engineering tactics. This study is a timely dissection of phishing techniques including deceptive attacks, in which users are tricked by fraudulent messages into giving out information; malware attacks, in which malicious software causes data compromises; and DNS-based attacks, in which the lookup of host names is altered to send users to a fraudulent server. Read the full report at

http://www.antiphishing.org/Phishing-dhs-report.pdf.

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Scottrade Breach

Scottrade, one of the largest online brokerage firms has re-issued an announcement to its customers regarding a recent data breach. The new announcement clarifies that none of Scottrade’s systems were directly compromised. Rather, systems of their eCheck Secure Service Provider, Troy Group, Inc. are the ones from which customer private information may have been stolen. A review of press releases from the Troy Group does not provide any details of the compromise, nor information regarding the extent of the data at risk. This begs the question as to whether or not Scottrade is the only eCheck Secure Service customer affected, or if others may also be involved. Scottrade’s updated announcement appears here:

http://www.scottrade.com/security/

Information released by the Troy Group:

http://www.troygroup.com/AboutTROY/ViewPressRelease.asp?PRelId=68

A summary of data breaches and related information:

http://www.consumeraffairs.com/news04/2005/data_breaches_business.html

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Standards and Regulations

Fed Adopts New Flaw-Ranking Standard

The National Institute of Standards and Technology (NIST) completed converting the National Vulnerability Database to the new Common Vulnerability Scoring System, standardizing the severity scores of more than 13,000 known vulnerabilities.

Managed by NIST and funded through the Department of Homeland Security, the National Vulnerability Database receives nearly 1.5 million hits a month and adds an average of 16 new vulnerabilities per day.

An industry initiative aimed at standardizing the severity rankings of security flaws, the Common Vulnerability Scoring System gives vulnerabilities a base score of severity, a temporal score that measures the current danger -- which could be lessened by a widely available patch, for example -- and an environmental score that measures an organization's reliance on the vulnerable systems.

For an industry in which severity ranking has been a complex, fragmented, and liability-ridden exercise, a common standard is welcome by many, and converting the National Vulnerability Database is a significant endorsement of the Common Vulnerability Scoring System. The VeriSign® iDefense Intelligence Service is also among the first to adopt the system and will be implementing it in the first quarter of 2006.

“A standardized view of vulnerability severity allows security professionals to prioritize their workloads and quickly see when those priorities have changed,” says Joseph Payne, president of VeriSign iDefense. “To be most effective, CVSS needs the most accurate and current data possible. The best-in-class vulnerability data available in iDefense Intelligence Reports will give our customers the most effective implementation of CVSS possible.”

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Federal Data Security Law

A draft US law to increase the security and privacy of personal information held by companies was approved by the influential Senate Judiciary Committee. The Personal Data Privacy and Security Act of 2005 includes a duty to disclose security breaches. The bill, sponsored by Senators Arlen Specter and Patrick Leahy, aims to ensure that companies with databases containing personal information on more than 10,000 U.S. citizens establish and implement data privacy and security programs and vet third-party contractors hired to process data. It imposes stiff monetary and criminal penalties for breaching said data. The draft will now move forward to a full Senate hearing.

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News from VeriSign

Password Thefts More Active Than Ever

VeriSign iDefense Security Intelligence Services revealed a 65 percent increase in key-logging activities. By the end of 2005, hackers will have unleashed a record-setting 6,191 programs called keyloggers, up from 3,753 in 2004.

Keyloggers are silently installed to record user’s key strokes. Largely distributed by organized cyber theft groups, they are typically packaged with phishing emails or spyware and often elude traditional security defenses such as firewalls and anti-virus software.

Worth noting is the fast pace of keylogger growth – over twenty fold over the last five years.

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Airspan Uses VeriSign’s Custom Device Certificate Service for 802.16 WiMAX Products

Airspan Networks has selected the VeriSign® Custom Device Certificate Service to help operators ensure broadband wireless service security. Airspan will leverage VeriSign’s highly-scalable intelligent infrastructure services to generate digital certificates in volumes adjusted to their production schedule to keep up with varying levels of customer demand. Additionally, VeriSign will provide Airspan with the expertise to integrate the certificate provisioning process with Airspan’s existing manufacturing operations, providing a more efficient means to generate certificates.  Read the press release for more information.

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VeriSign Opens New London Offices

Christmas comes early for VeriSign’s U.K. office as it moves to a new building in west London between December 10th and 11th. The move underscores VeriSign's plans for rapid expansion in the U.K., as Souheil Badran, vice president of Europe, Middle East, and Africa (EMEA) marketing, explains: "We continue to execute on our growth plans in EMEA and have centralized some functions in the U.K. The new facility provides us with room for growth and closer access to our target customers in the U.K. The facility provides a professional environment for our customers, partners, and prospects and ensures easy access through well positioned transportation links." 

Equidistant between London Heathrow and London City airports with excellent transportation links to London and the M4 corridor, VeriSign’s new office features modern, open-space design, as well as areas set aside for meetings, demonstrations, and training.

New contact information:

From the 11th December, the new address will be:

2nd Floor, Water Front 
Chancellor's Road 
Hammersmith Embankment 
London 
W6 9XR

Sales : +44 (0)800-032-2101  
Fax: +44 (0)800-032-2087

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Ask a VeriSign Consultant

This column is on holiday, and we take the opportunity to invite Ken Dunham, director of malcode intelligence, to give us an outlook of the 2006 threat landscape. We will continue answering your questions sent to askverisignsecurity@verisign.com in the New Year.

2006 Threat Landscape

From January to October 2005, VeriSign® iDefense reported on 2,461 new vulnerabilities, 525 exploit codes, and over 3,000 malicious codes. Over 13,000 unique malcode reports were identified during this time period, of which 97 percent were considered low level malicious code threats. Only one extreme malcode threat incident occurred, for the bot Plug-and-Play exploitation in the summer via ZoTob and other bots. This data leads to a few significant interpretations:

The sheer volume of reported vulnerability and malcode threats continues to be very high. Hackers literally have thousands of new opportunities for attack every year.

High-profile large-scale malicious code attacks are fading into the sunset. Current trends indicate that multi-variant, under-the-radar attacks are quickly becoming the attack technique of choice.

Rapid exploitation has proven to be the highest risk situation to date, where attacks may occur before it is physically possible to fully patch a large network.

Other notable trends in 2005 include:

Criminalization and commoditization have matured. Criminals are making money wherever they can and have developed well funded and organized underground channels to move money and stolen commodities.

Targeted attacks upon select individuals and organizations are on the rise, with lower level hackers getting into the game.

Industrial espionage is big business. (In Operation Horse Race, for example, a programmer created customized Trojans for several thousand dollars per variant.)

Adware and spyware have become a household name. It will continue to be widely distributed in 2006, both legally and illegally through hackers seeking affiliate cash.

Threats are becoming more sophisticated and are moving up the networking chain to DNS servers and hosts.

Automated opportunistic and multi-variant attacks are becoming the norm for attacks.

Financial gain will continue to be the dominant motive of cyber crimes, and 2006 will see criminal gain on the Internet more fully exposed. Continued success by law enforcement, investigations into sophisticated global fraud operations, and research into computer security incidents will help to uncover the truth about such criminal operations.

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Security Events

December 12-16, 2005 
Interop Security Conference 
New York, NY

December 14-15, 2005 
SecureWorld Expo 
Washington, D.C.

January 12, 2006 
NTCA Broadband Summit 
Las Vegas, NV

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