SIGHTINGS


 
MCI Hit By Fierce Computer
Virus - 'First Big Cyber-
Terrorist Event'
From CNNfn Correspondent Bruce Francis
12-21-98
 
NEW YORK (CNNfn) - Employees at MCI WorldCom were confronted with a science fiction scenario made cold fact on Monday when a computer virus struck the company's sprawling network, encrypting and destroying files.
 
To make things worse, virus consultants Network Associates say that the virus -- called "Remote Explorer" -- is unlike any other and may be the smartest, most dangerous computer bug to date. "We've never seen a virus of this type that has the capabilities, the sophistication and the potential to do such widespread damage so quickly across computer networks," said Peter Watkins, general manager at Network Associates.
 
MCI called in Network Associates' network security experts when an employee couldn't get to certain computer files. Soon after, the consultants discovered the subversive hand of Remote Explorer at work. The complexity of the virus alarmed Network Associates, which alerted all its customers worldwide to the threat. Network Associates still doesn't know how Remote Explorer infected MCI. Perhaps the contagion began with a downloaded file, or through a malicious installation from an employee.
 
How the virus spreads
 
Once the virus infects a network server running Microsoft's Windows NT, it quickly hijacks the server, replicating across the network. Remote Explorer ends up on an individual PC, sometimes masquerading as another piece of software. Then the dirty work begins, as the virus selects folders on the computer and randomly encrypts them, making them unreadable.
 
Network Associates is now working to unscramble some of MCI's files, but is finding that Remote Explorer is unusually complex -- hundreds of times larger than typical viruses, which can be as small as a few lines of code. "It was written by a very competent and very sophisticated computer scientist or group of computer scientists who really know what they're doing," Watkins said.
 
Analysts say that as computer networks become more common, viruses will evolve in step in order to exploit their complex computing environments. "This is the type of threat network admins are going to have to deal with into the future," said Jim Bladterston, an analyst at Zona Research. "I bet in a year we may be talking about the next generation of virus that does something even more horrendous than this one."
 
Network Associates spokespeople said MCI was lucky because Remote Explorer was detected before spreading too far. Another week -- easy to imagine during the hectic holiday season -- and the damage could have been costly and extraordinarily difficult to repair. As it turns out, MCI said the virus is no longer spreading and no customers were affected, but the company refused to give any further details.
 
Network Associates stock soared 6-3/8 to 60-3/8 on the news, cracking a new 52-week high.
 
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Self-replicating virus attacks MCI Network attacked by code that mimics human administrator By Jim Kerstetter, PC Week Online 12-22-98
 
Dec. 21 - The computer network of MCI Worldcom was broadly attacked last week by a new virus that one official called "the first legitimate incident of cyber-terrorism" he had ever seen. The virus, called Remote Explorer, pretends to be a network administrator and can spread without human help. That makes it more dangerous than traditional viruses requiring infected e-mail or a floppy disk for transmission. "I don't think it's hyperbole to call this an information time bomb," Hodges said.
 
Security Experts From Network Associates, Inc. described it as a "new era in the virus field ... an entirely new kind of virus."
 
Once in place, Remote Explorer wreaks havoc by encrypting files on users machines - from programs to text files. These were not destroyed, however, and Network Associates says it will soon have a fix on its Web site which can restore the encrypted files.
 
The "smart virus" attacks Windows NT-based networks and propagates over the local network, said Gene Hodges, a general manager at Network Associates in Santa Clara, Calif. Remote Explorer goes by the file name IE403r.sys and utilizes NT's remote management tools to act like a human network administrator. It then orders copies of itself around the network. Once on a workstation, it loads a process into Task Manager.
 
"To someone not suspecting this, you wouldn't notice Remote Explorer just sitting as a service," said Vincent Gullotto of Network Associates. "If you do discover it, you can't close it down." The virus had been running for at least a week before detection, the company said.
 
It was unclear whether the virus was downloaded from the Internet or planted on a server internally. Because part of the source code of the virus was encrypted, it will be difficult to determine the motivation of its author. Files encrypted by the virus were apparently chosen at random.
 
But a spokesman for Computer Associates said the program was too sophisticated to be the work of indiscriminate pranksters. "These guys were very smart," Hodges said. The company estimates the program took 200 hours to write. "They had a good enough idea of where to put it in order to make it spread very quickly."
 
The virus compresses the executable files of servers and workstations that it encounters, rendering them unusable. It also encrypts .DOC or .XLF files with a cipher that researchers still have not identified, making it impossible to gain access to those files, Hodges said.
 
The virus compresses the executable files of servers and workstations that it encounters, rendering them unusable. It also encrypts .DOC or .XLF files.
 
"Clearly, we don't know who developed this virus," he said. "But it's clear as to how it was first planted and how it spreads and that this person was very knowledgeable of network administration features and planned for this virus to cause serious damage."
 
The virus itself, which is written in C and also partly encrypted, is a savvy piece of programming, Hodges said. It logs itself in through domain administrative controls and then copies itself over the network, attacking other servers and even workstations that access those servers. It can use any link that can identify NT resources. It cannot propagate in a Unix on NetWare-based network.
 
It is also huge by virus standards at 120KB. Discovered Thursday, it was operating on a timing mechanism so that it propagated faster between 3 p.m. and 6 a.m. - hours when network administration staffing is typically lower at the infected company. The company severed its WAN connections in order to isolate the problem. "It's clear that the virus writer has a good Unix and NT background," Hodges said.
 
Researchers at Network Associates say they have broken the compression algorithm and will post a fixing technique that is specific to Network Associates software by early this afternoon. Peter Watkins, general manager, Network Security Division, said the virus did not destroy any data - the fix will be able to restore infected, encrypted files.
 
A detector for the "smart virus" has already been posted. Hodges said the company is working with Microsoft Corp., has also been in touch with other anti-virus groups and is developing a formal warning. "I don't think it's hyperbole to call this an information time bomb," Hodges said.
 
MSNBC's Bob Sullivan contributed to this report.





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