Why is Conficker/DOWNAD still a persistent threat?

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Windows 2000 Service Pack 4 Install Instructions To start the download, click the Download button and then do one of the following, or select another language from Change Language and then click Change. Click Run to start the installation immediately. The first variant of Conficker, discovered in early November 2008, propagated through the Internet by exploiting a vulnerability in a network service (MS08-067) on Windows 2000, Windows XP, Windows Vista, Windows Server 2003, Windows Server 2008, and Windows Server 2008 R2 Beta. Patch Release. Microsoft released an out-of-band patch to defend against the Conficker worm on 15th October, 2008. However, the patch only applies to Windows 2000 SP4, XP SP2 & 3 and Windows Vista.

Conficker/DOWNAD became a huge threat back in its heyday because it explored a Windows vulnerability and of its various proliferation techniques. This is scary in that each year, the vulnerability landscape becomes increasingly threatening. Though the number of vulnerabilities in 2010 dwindled, they can never be completely eliminated due to the complexity of modern programs. The fact that Windows is still the most widely used OS to date does not help either. Trend Micro senior security researcher Abhishek Bhuyan, in fact, believed that even at the close of 2010, the Conficker/DOWNAD threat still existed.
Based on October–December 2010 Trend Micro™ Smart Protection Network™ data, almost 30,000 systems worldwide were infected by various Conficker/DOWNAD variants. The top 3 Conficker/DOWNAD-stricken countries were the United States with 5,401 infected systems, India with 4,557 systems, and Brazil with 2,953 systems.
In 2011, Trend Micro security experts believe that the exploitation of vulnerabilities can only get worse, as cybercriminals will not only target systems that use the most popular OSs, applications, and Web browsers but also those that use their alternatives. This just reiterates the importance of patching software that can go a long way in protecting users' systems and networks from threats like Conficker/DOWNAD.

What is Conficker/DOWNAD?

Conficker/DOWNADfirst reared its ugly head in the threat landscape in November 2008. The worm then took advantage of the Server Service aka MS08-067 Vulnerability that could, when exploited, lead to remote code execution. It affected systems running Windows 2000, XP, Server 2003, Vista, and Server 2008 via a specially crafted Remote Procedure Call (RPC) request.

Barely four months after its inception, Conficker/DOWNAD was reported to have infected hundreds of thousands of systems worldwide in seconds. This gave the worm the reputation of being one of the most notorious malware to ever set foot in the threat landscape. In fact, more than two years after its rise to infamy, its variants continue to infect thousands of unpatched systems worldwide.

The most notable Conficker/DOWNAD variants that Trend Micro has come across and that continue to plague users even now include the following:

WORM_DOWNAD.A
WORM_DOWNAD.AD
WORM_DOWNAD.KK
WORM_DOWNAD.E

WORM_DOWNAD.A

WORM_DOWNAD.A was the first iteration of this threat. This worm exploited the Server Service Vulnerability in various Windows OS versions in order to propagate via network shares. A WORM_DOWNAD.A infection was characterized by high port 445 traffic upon the successful exploitation of the said vulnerability. Once installed, the worm connected to a certain IP address to download an updated copy of itself.

WORM_DOWNAD.AD

WORM_DOWNAD.AD was notable because of its propagation technique, which was a three-pronged attack designed to exploit weak company security policies. It first sent exploit packets for the vulnerability to every system on the network and to several randomly selected targets over the Internet. It then dropped a copy of itself into the Recycle Bin of all the systems connected to an infected machine’s available removable and network drives. Afterward, it created an obfuscated AUTORUN.INF file on the drives so it could execute whenever a user browses an infected network folder or removable drive. It then enumerated the available servers on a network then, using this information, it gathered a list of user accounts on connected systems. Finally, it ran a dictionary attack against accounts using a predefined password list. If successful, it dropped a copy of itself onto systems and used a scheduled task to execute.

WORM_DOWNAD.KK

WORM_DOWNAD.KK became known for its algorithm that could supposedly allow it to generate a list of 50,000 different domains. Five hundred of these domains would then be randomly selected so they could be contacted by infected systems beginning April 1, 2009 to receive updated copies, new malware components, or additional functional instructions. The much-anticipated Conficker/DOWNAD attack, however, set for April 1, 2009, did not push through, most probably due to the efforts exerted by the Conficker Working Group with the aid of security researchers, ISPs, domain name registers, and members of the academe.

WORM_DOWNAD.E

WORM_DOWNAD.Epiqued the security industry’s interest because of an untrigger date—May 3, 2009—on which it would supposedly stop running. The worm made use of random file and service names, deleted the copies and components it dropped afterward, propagated via the Server Service Vulnerability to external IPs if Internet access was available but used local IP addresses if Internet access was not available, opened random ports and served as an HTTP server by broadcasting via SSDP requests, and connected to myspace.com, msn.com, ebay.com, cnn.com, and aol.com. It did not leave any trace of itself on the host system. It also tried to access a known WALEDAC domain aka goodnewsdigital.com to download yet another encrypted file named print.exe, which was verified to be a WALEDAC binary.

How does this threat affect users’ systems?

The Conficker/DOWNAD worm makes use of a domain generation algorithm (DGA) to download other malware onto infected systems. It prevents user access to antivirus-related sites and propagates via removable drives, network shares, and peer-to-peer (P2P) networks. To continue spreading, it drops an AUTORUN.INF file to automatically execute dropped copies whenever the infected drives are accessed.

How can users prevent Conficker/DOWNAD system infection?

To prevent Conficker/DOWNAD infection, users are advised to do the following:

Immediately install security patches as soon as vendors release them.
Disable the Autorun feature on USB drives, particularly in WORM_DOWNAD.AD’s case.

Since Conficker/DOWNAD variants propagate via network shares, it would do system administrators well to do the following:

Require users to use complex passwords on their workstations to prevent brute-force password attacks via scheduled tasks.
Limit user access to network shares.

System administrators may also find the information on the following Microsoft Support pages useful:

How can users tell if their systems have been infected?

The telltale signs of a Conficker/DOWNAD infection include the following:

High port 445 traffic
Presence of randomly named entries for netsvcs in HKLMSoftwareMicrosoftWindows NTCurrentVersionSvchost
Subsequent connection to various URLs
Existence of an AUTORUN.INF file on drives
Existence of a file named x in the system directory
Existence of an unknown scheduled task

Does the threat put affected users’ credentials at risk?

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Though there has been no evidence that Conficker/DOWNAD variants sent any kind of sensitive information to any site, the files these down

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