The criminal bot-meisters are now trying to kick other people's bots 
out of compromised machines.

The technology and deep programming skills that these criminals have 
is amazing.  I bet these criminals are making a hell of lot more $$$ 
than any of us.

Of course, MS sails along pocketing $Bs/qtr in profits while their 
vulnerable crap is clogging up Internet and costing mail admins like 
us $Bs in lost time trying to defend against these bots in 
compromised MS machines.

Len


=========================



Brian Krebs on Computer Security  (washington post)

http://blog.washingtonpost.com/securityfix/



Posted at 08:39 AM ET, 10/23/2006




New Bug Installs Legit Anti-Virus Program

Are you using a Microsoft Windows machine to cruise the Web but don't 
have up-to-date anti-virus software installed? No worries: A 
sophisticated new breed of malware identified this week will silently 
download and install a legitimate anti-virus program on your computer 
if it manages to sneak its way onto your machine.

But this isn't a good thing, as the malware is really intended to 
make it easier for spammers to do their business. For several years 
now, the top method for sending spam has been to infect Microsoft 
Windows machines with malware that turns the PCs into "zombies" (or 
"bots") that bad guys can use to anonymously relay junk e-mail. Tons 
of malware in circulation today will actively search for and remove 
other hacking programs that may have already set up shop on infected 
computers. The goal for the spammers is efficiency -- they want to 
ensure their bot networks are not cluttered with competing malware 
that might otherwise slow the machines to a crawl and alert the 
victims to a problem.

A new class of bot programs seeks to accomplish that task by 
downloading and installing a pirated version of Kaspersky Anti-virus, 
according to <http://www.secureworks.com/analysis/spamthru/>research 
published by <http://www.secureworks.com/analysis/spamthru/>Joe 
Stewart, a researcher for Atlanta-based SecureWorks.

"Although we've seen automated spam networks set up by malware before 
... this is one of the more sophisticated efforts," Stewart wrote. 
"The complexity and scope of the project rivals some commercial 
software. Clearly the spammers have made quite an investment in 
infrastructure in order to maintain their level of income."

Stewart says the invader (which he dubbed "Spamthru" because the few 
anti-virus tools that did detect it as malicious assigned it a 
nondescriptive, generic name) also updates itself using a custom-made 
peer-to-peer (P2P) method similar to those employed by popular 
file-trading networks. Most bots are configured to connect to a 
central online chat or Web server that attackers can use to control 
the activities of infected PCs, but those control servers can be a 
single point of failure for the bad guys if the good guys succeed in 
convincing an Internet service provider to shut them down.

By having P2P as a back-up, spammers can redirect zombie machines to 
a new control server if the master server is shuttered. All it takes 
is simply sending a command out to one of the infected PCs and having 
it relayed to the rest of the drone army.

This is hardly the first time a bot program has tried to implement 
P2P. Others, such as the 
<http://www.washingtonpost.com/ac2/wp-dyn/A444-2004Mar17?language=printer>Phatbot
 
family of malware, include built-in file-sharing capabilities, but 
the networks almost always choke after more than a few dozen infected 
machines try to exchange information. According to Stewart, the new 
bot can accommodate communications between several thousand PCs at once.

People who spend a lot of time tracking down and combating botnets 
have long feared that P2P would become the normal mode of 
communications between infected PCs, and that spammers also would 
encrypt the traffic to make it difficult for the 
<http://www.washingtonpost.com/wp-dyn/content/article/2006/03/21/AR2006032100279.html>good
 
guys to gather intelligence on botnet operations. While "Spamthru" 
does include encryption, the data-scrambling technique is used to 
prevent investigators from downloading the HTML code that each 
infected host is directed to send out in their spam runs.

Should the spammers decide to encrypt all of the traffic traveling 
over a botnet's P2P channels, it could soon become a lot tougher for 
botnet hunters like <http://www.changeip.com>ChangeIP.com President 
Sam Norris, a botnet hunter I interviewed earlier this year for a 
<http://www.washingtonpost.com/wp-dyn/content/article/2006/02/14/AR2006021401342.html>Washington
 
Post Magazine article.

In that piece, I wrote: "Norris shares that fear and worries that 
more botmasters will begin to exploit emerging peer-to-peer 
communication technologies of the sort that power controversial 
music- and movie-sharing networks like Kazaa and LimeWire. Such 
networks would allow enslaved computers to communicate instructions 
and share software updates among one other, so that they would no 
longer depend on orders from the master servers that Norris and other 
bot hunters search out and disable every day.

"'When P2P becomes the norm with these bots,'" Norris says, 'that's 
when I call it quits with this botnet stuff, because, at that point, 
it will be pretty much out of my hands.'"



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