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'Code Red II' - A Meaner
Internet Worm
By Elinor Mills Abreu
8-7-1

SAN FRANCISCO (Reuters) - A smarter and nastier version of the ``Code Red'' worm is spreading across the Internet, potentially exposing sensitive information and setting infected computers up to launch attacks on other Web servers, security experts said on Monday.
 
The new worm, dubbed ``Code Red II'' surreptitiously infects computers running Microsoft's Windows NT or 2000 operating systems and its Internet Information Server Web server software, and then spreads to other machines.
 
The malicious program, which first surfaced on Saturday, is not spreading any faster than its predecessor, but it could prove to be far more damaging because of the way that it leaves servers vulnerable to future hacking, experts said.
 
``Every single human being on the Internet with a clue can break into your server if you have been infected by Code Red II,'' said Alan Paller, research director at the Systems Administration, Networking and Security Institute (SANS).
 
``If you have credit card numbers stored on your Web server you have to consider them forfeit,'' Paller added.
 
Computers infected by the virus are easy targets for malicious hackers who could find potential victims by simply looking at the Internet addresses of the computers that are scanning their own Web-connected computers, experts said.
 
``The people who run Web sites are frantic,'' Paller said. ''The companies that run big Web hosting services, they're just getting hammered.''
 
Code Red II installs a ``back door'' onto an infected computer's machine that would allow anyone using a Web browser to remotely access the server and execute commands, said Elias Levy, chief technology officer at <http://SecurityFocus.comSecurityFocus.com.
 
The new worm also allows a remote attacker to access files on the computer's ``C'' and ``D'' drives, Levy said.
 
``We're seeing some indication that people are starting to look through the back doors,'' said Levy, who captured a version of the new worm on Saturday.
 
``The number of potentially vulnerable machines has gone down,'' Levy said. However, Code Red II ``is a lot more aggressive and fast than the old worm.''
 
Machines infected by Code Red I scan 100 other computers at a time looking for vulnerable computers to infect, Levy said.
 
Machines infected with Code Red II running Chinese language versions of the Microsoft software can scan and spread to 600 other computers simultaneously and all other infected computers can spread to 300 other machines simultaneously, Levy said.
 
Code Red II also is able to move quicker than Code Red I because it doesn't wait for connections to time-out when scanning other computers that might be unreachable, Levy said.
 
The new worm also doesn't just scan random numeric Internet protocol (IP) addresses looking for new computers to infect, but selects IP addresses that look like they may be in the same network as the infected computer, to increase the likelihood of finding susceptible victims, Levy added.
 
For instance, digital subscriber line and cable modem users are being heavily scanned by others who use the same network service, experts said.
 
``It will tend to sweep through an entire operation,'' said Paller.
 
There appear to be an estimated 150,000 to 160,000 Web-connected computers infected with one worm or the other, and around 70,000 infected by both worms, Levy said.
 
That is a large number considering that it only takes 200 computers to effectively shut down a Web site by launching a distributed denial of service attack, Paller said. In a denial of service attack a Web site is bombarded with so much traffic that no one else can access the site.
 
Code Red originally was written to launch such an attack on the White House Web site (<http://www.whitehouse.govhttp://www.whitehouse.gov) but the attack was averted by changing the IP address of the Web server in July.
 
The worm was written to go dormant on the 28th of the month, but infected computers with incorrect internal clocks caused the worm to begin spreading again on Aug. 1.
 
More infections are being spread from the U.S., Korea and China than other countries, however experts still don't know the origin of either of the worms, Levy added.
 
Code Red first became a threat in mid-July, hitting an estimated 350,000 machines. Another version of the worm has hit an estimated 540,000 computers since Aug. 1, but many of those likely are reinfections of the same computer.
 
The worm caused no significant impact on overall Internet performance last week, but it did overload some routers and Web sites, forcing them to be taken off-line or to crash.
 
Network Associates' McAfee anti-virus software detects and removes the backdoor that Code Red II installs, but the software patch provided by Microsoft is needed to prevent future infections, experts said.
 
A free software patch with instructions remains available. (http://www.digitalisland.net/codered/). The Mercury Interactive Web is also offering free vulnerability scans for Code Red. (http://atsecurecheck.mercuryinteractive.com/codered)
 

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