Hi,

*The City of Norfolk*, Virginia is reeling from a massive computer meltdown
in which an unidentified family of malicious code destroyed data on nearly
800 computers citywide. The incident is still under investigation, but city
officials say the attack may have been the result of a computer timebomb
planted in advance by an insider or employee and designed to trigger at a
specific date.

* Hap Cluff*, director of the information technology department for the city
of norfolk <http://en.wikipedia.org/wiki/Norfolk,_Virginia>, said the
incident began on Feb. 9, and that the city has been working ever since to
rebuild 784 PCs and laptops that were hit (the city manages roughly 4,500
systems total).

“We don’t believe it came in from the Internet. We don’t know how it got
into our system,” Cluff said. “We speculate it could have been a ‘time bomb’
waiting until a date or time to trigger. Whatever it was, it essentially
destroyed these machines.”

Cluff said the malicious software appears to have been designed to trash
vital operating files in the Windows\System32 folder on the infected
machines. Cluff said a healthy, functioning System32 directory weighs in at
around 1.5GB, but the computers infected with this as-yet-unidentified
malware had their System32 folders chopped down to around a third of that
size, rendering them unbootable. Cluff added that city employees are urged
to store their data on file servers, which were largely untouched by the
attack, but he said employees who ignored that advice and stored important
documents on affected desktop computers may have lost those files.

IT specialists for the city found that the system serving as the
distribution point for the malware within the city’s network was a print
server that handles printing jobs for Norfolk City Hall. However, an exact
copy of the malware on that server may never be recovered, as city computer
technicians quickly isolated and rebuilt the offending print server.

“Obviously, our first reaction was to shut it down and restore services, and
at least initially we weren’t concerned about capturing [the malware] or
setting it aside,” Cluff said.

Cluff said the city is treating the incident as a crime, and that it has
notified the FBI. “We will be quarantining several PCs from various
locations and tracking their chain of custody to assist in any forensics
analysis,” he said.

Only those PCs that happen to have been “shut down” between 4:30 p.m. and
5:30 p.m. Tuesday, Feb. 9 were impacted by the attack, Cluff added. That’s
in part because of the data destruction, but also because the malware also
modified the “boot.ini” file, an essential file that tells the computer the
location of the Windows operating system.

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