In a first, feds commandeer botnet, issue 'stop' command

By Dan Goodin in San Francisco 

Posted in Security, 13th April 2011 23:55 GMT

http://www.theregister.co.uk/2011/04/13/coreflood_botnet_takedown/

For the first time ever, the US government has attempted to take down a botnet 
by setting up a substitute control channel that temporarily disables the 
underlying malware running on hundreds of thousands of infected end user 
computers.

The move, announced Wednesday after federal prosecutors seized domain names, IP 
addresses and servers operated by the operators, is intended to cut the head 
off a notorious botnet known as Coreflood, which has infected more than 2 
million Windows machines since 2002. During and 11-month period starting in 
March 2009, Coreflood siphoned some 190 GB worth of banking passwords and other 
sensitive data from  more than 413,000 infected users as they browsed the net, 
authorities said.

In a step never before taken in the US, federal prosecutors have obtained a 
court order allowing them to set up a substitute command and control server 
that will direct infected machines to temporarily stop running the underlying 
malware. The substitute instructions will have to be issued continuously for 
the foreseeable future because infected machines are automatically programmed 
to be reload Coreflood each time they are restarted.

“Issuing the stop command to the Coreflood software will further limit the 
ability of the operators of the botnet to regain control of the botnet through 
a variety of illegal means,” prosecutors wrote in a motion filed Tuesday for a 
court order to take over the C&C server. “Indeed, failure to issue the stop 
command will increase the likelihood that the operators of the botnet will be 
able to successfully regain control of some part of their illicit network.”

Prosecutors also obtained an order to log the IP addresses of all computers 
that report to the substitute C&C server. The government attorneys will then 
work with the underlying ISPs to track down each end user so he can be informed 
of the infection and be instructed how to use various antivirus products to 
disinfect the compromised machine.

According to the court filing, no US law enforcement authority has ever sought 
court permission to control a seized botnet using a substitute C&C server. 
Dutch officials took a similar approach last year when they beheaded the 
Bredolab botnet, another network of infected machines used to steal vast 
amounts of financial information from its victims.

The novel legal move came in a lawsuit prosecutors filed against 13 Coreflood 
operators named only as John Does because their true identities are unknown. It 
accuses them of engaging in wire fraud, bank fraud and illegal interception of 
electronic communications. The complaint and accompanying motions weren't 
unsealed until Wednesday, when the temporary restraining order they requested 
was granted.

The order gives the feds control over two IP addresses (207.210.74.74 and 
74.63.232.233) and 29 domain names used to run the Coreflood C&C server. It 
also grants feds authority to use a “trap and trace” device to capture the IP 
addresses of the compromised computers.

The motions recited a litany of invasions into the online comings and goings of 
those infected by the Coreflood malware. They included an unnamed defense 
contractor in Tennessee. After obtaining the online  credentials from the 
firm's bank account, the operators managed to steal almost $242,000 from the 
firm after attempting to transfer more than $934,000. A North Carolina 
investment company lost more than $151,000.

According to security researcher Joe Stewart of Secure Works, Coreflood started 
out as platform for launching DDoS, or distributed denial-of-service, attacks, 
but soon moved on to financial crime. Eventually, the botnet was able to 
compromise accounts even when they used two-factor authentication schemes such 
as those that rely on a physical token that generates one-time passwords.

It's impossible to know exactly how many victims have been claimed by 
Coreflood, because machines are constantly being infected, disinfected, and in 
some cases, reinfected. While investigators counted 413,710 infected machines 
from March 2009 to January 2010, the total number of machines that were, or had 
been, part of Coreflood is more than 2.3 million, with more than 1.8 million of 
them appearing to be located in the US.

The substitute C&C will be operated by the non-profit Internet System 
Consortium, with additional assistance coming from Microsoft.

PDFs of the government's complaint and TRO motion are here and here. ®
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