(Reuters) - Indian authorities are investigating a computer server in
Mumbai for links to the Duqu malicious software that some security experts
warned could be the next big cyber threat.

Web Werks, a Mumbai-based Web-hosting company, said it had given an image
of the suspicious virtual private server to officials from the Indian
Computer Emergency Response Team (CERT-In), after security firm Symantec
Corp found the server was communicating with computers infected with the
Duqu virus.

The virtual private server was leased to a client in Milan, Italy,
according to Nikhil Rathi, founder of Web Werks. "This is an unmanaged
server. So, you just make it and let the customer access it," he said.
"When you hand over a server to a customer, that's it, it's his. He can
change his password and do whatever he wants with it."

News of Duqu first surfaced last week when Symantec said it had found a
mysterious computer virus that contained code similar to Stuxnet, a piece
of malware believed to have wreaked havoc on Iran's nuclear program.

Government and private investigators around the world are racing to unlock
the secret of Duqu, with early analysis suggesting that it was developed by
sophisticated hackers to help lay the groundwork for attacks on critical
infrastructure such as power plants, oil refineries and pipelines.

The image from Web Werks, a privately held company in Mumbai with about 200
employees, might hold valuable data to help investigators determine who
built Duqu and how it can be used. But putting the pieces together is a
long and difficult process, experts said.

"This one is challenging," said Marty Edwards, director of the U.S.
Department of Homeland Security's Industrial Control Systems Cyber
Emergency Response Team. "It's a very complex piece of software."

He declined to comment on the investigation by authorities in India, but
said that his agency was working with counterparts in other countries to
learn more about Duqu.

An official in India's Department of Information Technology who
investigates cyber attacks also declined to discuss the matter. "I am not
able to comment on any investigations," said Gulshan Rai, director of
CERT-In.

UNLOCKING THE SECRET

Stuxnet is malicious software designed to target widely used industrial
control systems built by Germany's Siemens. It is believed to have crippled
centrifuges that Iran uses to enrich uranium for what the United States and
some European nations have charged is a covert nuclear weapons program.
[ID:nL3E7LI1PL]

Duqu appears to be more narrowly targeted than Stuxnet as researchers
estimate the new Trojan virus has infected at most dozens of machines so
far. By comparison, Stuxnet spread much more quickly, popping up on
thousands of computer systems.

Security firms including Dell Inc's SecureWorks, Intel Corp's McAfee,
Kaspersky Lab and Symantec say they found Duqu victims in Europe, Iran,
Sudan and the United States. They declined to provide their identities.

Duqu -- so named because it creates files with "DQ" in the prefix -- was
designed to steal secrets from the computers it infects, researchers said,
such as design documents from makers of highly sophisticated valves,
motors, pipes and switches.

Experts suspect that information is being gathered for use in developing
future cyber weapons that would target the control systems of critical
infrastructure.

The hackers behind Duqu are unknown, but their sophistication suggests they
are backed by a government, researchers say.

"A cyber saboteur should understand the engineering specifications of every
component that could be targeted for destruction in an operation," said
John Bumgarner, chief technology officer for the U.S. Cyber Consequences
Unit.

That is exactly what the authors of Stuxnet did when they built that cyber
weapon, said Bumgarner, who is writing a paper on the development of
Stuxnet.

"They studied the technical details of gas centrifuges and figured out how
they could be destroyed," he said.

Such cyber reconnaissance missions are examples of an increasingly common
phenomenon known as "blended" attacks, where elite hackers infiltrate one
target to facilitate access to another.

Hackers who infiltrated Nasdaq's computer systems last year installed
malware that allowed them to spy on the directors of publicly held
companies.

In March, hackers stole digital security keys from EMC Corp's RSA Security
division that they later used to breach the networks of defense contractor
Lockheed Martin Corp.

Researchers said they are still trying to figure out what the next phase of
Duqu attacks might be.

"We are a little bit behind in the game," said Don Jackson, a director of
the Dell SecureWorks Counter Threat Unit. "Knowing what these guys are
doing, they are probably a step ahead."

(This story corrects paragraphs one and two after Web Werks said Indian
authorities made copies of the suspicious server and did not seize
equipment, adds Web Werks comment on client in paragraph three and removes
paragraphs eight and nine that referred to equipment being seized)

(Reporting by Supantha Mukherjee in New York, Jim Finkle in Boston;
Additional reporting by Henry Foy in Mumbai; editing by Tiffany Wu)

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