Microsoft Hotmail Vulnerability

Release Date:
October 15, 2003

Severity:
Critical (Potential Hotmail worm)

Systems Affected:
Internet Explorer and any software application used for reading Hotmail messages.

Status:
Microsoft has already patched the Hotmail system.

Description:
Finjan Software discovered a new critical cross site scripting vulnerability in 
Microsoft's Web-based e-mail service, Hotmail.  This vulnerability had the potential 
to allow hackers to develop an attack that could have caused significant computer 
damage during regular e-mail use.  The new vulnerability was reported to Microsoft and 
fixed within 24hrs.
This vulnerability resulted from the failure of Hotmail's active content filter to 
adequately block Active X controls and affected all system platforms that read Hotmail 
e-mail messages.  An exploit could have launched automatically once a user opened an 
e-mail message.  The vulnerability could have also potentially allowed a worm to read 
the address book of a Hotmail account, replicate and send itself to everyone in the 
address book, and have this process repeat at an exponential rate. This potential very 
dangerous Hotmail worm could have a large impact to the Hotmail user community.  Due 
to preliminary detection and reporting to Microsoft, this scenario was prevented.
"This vulnerability was discovered and reported to us by Finjan Software", said 
Stephen Toulouse, security program manager, Microsoft Corporation.  "We worked with 
Finjan Software to fix the issue within 24 hours and helped protect Hotmail users." 

"Finjan asked us to replicate the vulnerability to validate their findings," said Drew 
Copley, research engineer at eEye Digital Security. "Their discovery of the 
vulnerability in Hotmail is accurate and had the potential to allow hackers to steal 
contacts, write e-mails in the name of the Hotmail user, and run active scripting.  
This security issue was extremely dangerous because these are the components required 
to create an automated, mail-borne worm."
 

Technical details:
The potential worm could have done anything that the user could do. It was a 
potentially automatic attack. Users had to simply read the infected email message.
This was a cross-site scripting vulnerability of the Hotmail server.
The purpose of Hotmail's active content filter is to block the injection of any active 
content into Hotmail messages. However, the basic failure that allowed this 
vulnerability is that there was no blocking of dangerous tags if they are prefixed 
with more than two dashes, e.g. ---<LINK,  ---<object,  ---<iframe.
For example: <iframe src=http://www.finjan.com> 
The LINK tag can be used to call a CSS file that includes JavaScript code.

The injected JavaScript code is responsible for:
-Getting Passport/Wallet cookies.
-Automatic launching of malicious code.
-Identity theft using a spoofed re-login window (suggested by [EMAIL PROTECTED]).
-Read and Disclose User inbox & contacts.
-Sending an e - mail message.

The JavaScript code has been used for creating demos, but Finjan Software won't reveal 
this source code.
The ActiveX control could have been used for a destructive payload of the propagating 
worm. It also allows propagation to non-Hotmail users.
The basic attack does not require an ActiveX control. The ActiveX control is the 
payload that can be used to extend the attack to non-Hotmail users, or to perform any 
malicious activity, including formatting of the hard disk
Upon using the ActiveX control, end user may get a security warning. It depends on the 
security setting of the browser. An example: 
http://www.finjan.com/mcrc/demos/activex.cfm (Click on the 'test me' button after 
reading the disclaimer)


Protection:
This specific vulnerability has been eliminated by Microsoft based on Finjan Software 
notification. Finjan's content security products: SurfinGate for Web, SurfinGate for 
E-mail, SurfinShield Corporate and SurfinGuard Pro, provided proactive defense against 
this Hotmail vulnerability prior to its detection and correction.  Finjan's patented 
behavior inspection engine will protect computer users from similar future 
vulnerabilities and comparable potential exploits.


Credit: Dror Shalev and Menashe Eliezer.
Reviewers: Drew Copley (thePull) , Liu Die Yu, Jelmer and http-equiv.
           


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