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Internet Security Systems Security Alert
July 30, 2001

X-Force Response to Concern About the "Code Red" Worm

Synopsis:

The Internet has recently been faced with the threat of a worm, dubbed
"Code Red". The worm exploits a vulnerability in unpatched versions of
Microsoft IIS (Internet Information Server). This vulnerability was 
previously discussed in an ISS Security Alert dated June 19, 2001
(http://xforce.iss.net/alerts/advise79.php). IIS Web servers without 
the patch for the Index Server ISAPI Extension buffer overflow can be
compromised by the worm, and then used to attack other vulnerable Web
servers. The worm may pose a threat as a denial of service attack
against the Internet as a whole, caused by the extra traffic generated
as the worm spreads.

The worm has already been cleared from a large number of infected Web
servers, and the vulnerability has been patched. On servers that are
still infected, the worm is in a pre-programmed "sleep" mode. There are
concerns that these infected servers will awake from this sleep mode
and begin propagating again on August 1, 2001. While these reports are
largely inaccurate, there is a definite threat that the Code Red worm,
or a variant of the worm, will be launched and begin spreading on or
after August 1st.

Description:

The Code Red worm is a malicious worm that attacks Microsoft IIS Web
servers that are missing an important security patch. The worm was first
discovered on July 13, 2001, although the full impact of the worm was
not felt until July 19th, when it spread to thousands of computer
systems in a period of several hours. The outbreak of the Code Red worm
in the last two weeks was initiated by the original version of the
worm. Since then, two variants have been discovered, which were likely
responsible for the rapid spread of the worm on July 19th. The new
variants include changes to the code that make them more efficient at
propagating, and therefore, they pose a much greater threat to the
Internet. The two variants, versions 2a and 2b, include many changes
from the original version, although the variants are very similar to
each other.

All three versions of the Code Red worm reside only in memory -- there
is no file associated with the worm. As a result, the worm can be
removed from a Web server simply by rebooting the system. To protect
the server against future infection, however, the IIS vulnerability
must be patched on the server. The three known versions of the worm
also share a characteristic schedule. Based on the system clock on the
infected computer, the worm behaves differently according to the day of
the month (as described below). 

1st - 19th: Scanning/Propagating Phase
The worm propagates by scanning IP addresses on the Internet and
attempting to connect to the HTTP port (TCP port 80). When the IP
address of a vulnerable IIS Web server is found, the worm infects the
system. The newly infected system begins to scan IP addresses, and the
other system continues searching for additional servers to infect. 

20th - 27th: Flooding (DDoS) Phase
The worm initiates a distributed denial of service attack by flooding a
pre-configured IP address with large amounts of traffic. The IP address
configured in the all known versions of the worm is an IP address that
previously belonged to www.whitehouse.gov. To counteract the attack,
the White House Web site was moved to a different IP address, so the
flooding portion of the first wave of the Code Red worm was
unsuccessful. Future variants of the worm, however, could be configured
with different addresses or Web sites to flood.

Beginning on the 28th: "Sleep" Phase
The worm goes into an infinite sleep phase. While the worm will remain
in the computer's memory until the system is rebooted, the worm will not
attempt to propagate or initiate any packet flooding attacks once it
enters the sleep phase.


In the initial version of the worm, infected Web sites would appear to
be defaced for a period of ten (10) hours after infection. The worm
would cause IIS to respond to requests with a Web page that displayed
the following message:
     Welcome to http://www.worm.com!
     Hacked by Chinese!
At the same time, the worm used up all the remaining threads on the
system, scanning for other vulnerable IIS Web severs. It would start by
scanning a pseudo-random list of IP addresses in the same order. This
allowed individuals with IP addresses in the beginning of that list to
track how many systems were infected. It also prevented the first
version of the worm from spreading very quickly, because the newly
infected systems were scanning addresses that had already been scanned
by previously infected servers.

The new variants of the Code Red worm include updated propagation
methods that could potentially make them far more dangerous than the
initial version. Each infected system chooses random IP addresses to
scan, instead of initially scanning a predictable set of systems as the
initial version did. The traffic caused by the increased propagation of
the newer variants could be enough to degrade Internet speeds to home
users, businesses, and government agencies. Some users may experience
very slow connections to the Internet, and others may experience
intermittent outages during the propagation and flooding phase of the
worm. 

The newer variants also do not deface the infected Web servers, as the
initial version did. As a result, system administrators may not notice
infected servers immediately, because the Web site will not be defaced.
This allows the worm to propagate for longer periods before the infected
system is detected and the worm is removed. For these reasons, the
propagation of the new variants may spread more quickly and affect more
servers in a short period of time. 

Frequently Asked Questions:

Q: How many systems has the worm already infected?
A: Several published reports indicate that over 300,000 systems were
   infected in a very short time since it was first discovered on 
   July 13, 2001. Many reports indicate that over 250,000 systems were
   infected in less than 24 hours at its peak level of propagation.
   However, it is extremely difficult to determine the exact number of
   infected systems, because the worm is designed only to scan and
   reinfect systems, and not to report which systems were infected to
   any outside source. The changes that were made in the new variants
   make it even more difficult to estimate the total number of
   infected systems.


Q: What is the significance of August 1st? Will the currently infected
   systems begin propagating the worm again?
A: Various teams of security and virus experts, including the ISS
   X-Force, have independently captured and disassembled the Code Red
   worm to analyze the worm's functionality.  The worm goes through
   three phases: propagation, flooding, and finally sleep. The sleep
   phase is infinite.  Once the worm has entered this phase on a system,
   it sleeps forever and does not "wake up" to scan and infect new
   targets.

   However, the worm can be re-initiated between the 1st and 20th of
   any month by any malicious attacker who has a copy of the initial
   worm or any of its variants. Even if the worm is launched again on
   August 1st, it is unknown at what point it will reach critical mass
   and begin affecting Internet speeds. As system administrators apply
   the patch to more and more IIS Web servers, the threat of the Code
   Red worm or any future variants of it will be reduced, because there
   will be fewer and fewer vulnerable targets.


Q: What is the concern about systems with their dates set incorrectly?
   How does this affect the behavior of the Code Red worm?
A: The worm is triggered by the date on the system clock of the
   infected computer, not from any external source.  For systems that
   have their clocks set incorrectly, the worm may be in a different
   phase than the actual date would indicate. As a result, the worm
   could continue propagating by systems outside what should be the
   normal propagating period. For example, after the 28th of the month,
   when the worm should be in the sleep phase, a worm on a system that
   had the date set as the 15th would still be in the propagating phase. 

   However, most Web servers have the system clock set to the correct
   date, so only a small percentage of systems should continue
   propagating outside the normal scanning phase. The impact caused by
   a limited number of infected systems attempting to propagate is much
   less than during the normal propagation phase, when a large number of
   infected hosts are scanning for other vulnerable servers.


Q: How fast does this worm spread?
A: The worm's strength is that it is small, and it can infect vulnerable
   servers very easily. However, the scanning logic is not the most
   efficient for maximum propagation, even in the new variants of the
   worm, which include improved scanning logic. The updated code allows
   the new variants to scan almost the entire Internet address space,
   which includes around 4 billion IP addresses, but there is still a
   delay in the scanning portion of the code that limits the worm's
   propagation speed. The scanning engine within the worm will attempt
   to query a random address to see if it is vulnerable.  If that
   address is not valid, or inaccessible, there is a 21 second timeout
   before the worm attempts to scan another IP address. In worm's 
   worst-case scenario, each infected system can scan 17,100 IP 
   addresses hour, or 411,408 IP addresses per day. (This is based on
   calculations if every attempt times out.) 

   Many of the attempts will time out, because they will be made to
   invalid IP addresses. Of those attempts that reach valid IP addresses,
   only a small number of will have IIS installed on the server, and
   even fewer will be vulnerable to the ISAPI Extension buffer overflow.
   When the worm is launched, propagation begins very slowly at first,
   as only a few systems are scanning for other vulnerable servers. As
   more and more systems are infected, the worm begins to spread more
   and more quickly, because the scanning power is increased
   exponentially as the worm propagates.


Q: Can a malicious attacker manually restart the worm at any time?
A: The Code Red worm will remain a threat to vulnerable machines across
   the Internet until all vulnerable IIS Web servers are patched,
   although the cycle will be stopped on the 20th of every month, when
   the worm stops propagating.  However, future variants of the worm
   could be written that do not include this sleep phase. As fewer and
   fewer vulnerable systems exist, there will be fewer targets for the
   worm to infect, and thus fewer infected machines to continue scanning
   for new systems. As a result, the threat from the Code Red worm will
   be reduced as more systems are patched.


Q: What is the threat to Web servers on my internal network?
A: It is possible that the Code Red worm could infect Web servers on
   internal, corporate networks, even if the Web server was not
   connected to the Internet. This risk can be minimized if certain
   security precautions have been taken. First, ensure that all
   externally facing IIS Web servers on the network have been patched.
   In addition, verify that network traffic from externally facing Web
   servers are prevented from reaching any internal address.


Q: What will the worm look like if it attempts to attack my server?
A: The Code Red worm will send the following GET request to scanned Web
   servers: 
   GET /default.ida?NNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNN
   NNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNN
   NNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNN
   NNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNN%u9090%u6858%ucbd3%u7801%u9090%
   u6858%ucbd3%u7801%u9090%u6858%ucbd3%u7801%u9090%u9090%u8190%u00c3%u0
   003%u8b00%u531b%u53ff%u0078%u0000%u00=a
 
Affected Versions:

Microsoft Internet Information Server 4.0 and 5.0 without the patch for
the "Unchecked Buffer in Index Server ISAPI Extension" vulnerability

Cisco products that run affected versions of Microsoft IIS

Recommendations:

Due to the continued threat of this worm, ISS X-Force strongly urges all
administrators to download and apply the following patches made
available by Microsoft. 

For Microsoft Windows NT version 4.0:
http://www.microsoft.com/Downloads/Release.asp?ReleaseID=30833

For Microsoft Windows 2000 Professional, Server and Advanced Server:
http://www.microsoft.com/Downloads/Release.asp?ReleaseID=30800

For Microsoft Windows 2000 Datacenter Server:
Patches for Windows 2000 Datacenter Server are hardware-specific and
available from the original equipment manufacturer.

For information on the IIS ISAPI Extension buffer overflow, please refer
to the Microsoft Security Bulletin at:
http://www.microsoft.com/technet/security/bulletin/MS01-033.asp

For information on how Cisco products are affected by the Code Red worm,
please refer to the Cisco Security Advisory at:
http://www.cisco.com/warp/public/707/cisco-code-red-worm-pub.shtml

ISS Internet Scanner X-Press Update version 4.10 provides assessment
capability for the ISAPI extension vulnerability. The check included
in XPU 4.10 requires the user running Internet Scanner to have
administrative rights on the systems being scanned to properly detect
this vulnerability. To supplement the existing check, Internet Scanner
users who do not have administrator rights may use the following Flex
Check to detect vulnerable IIS installations. The Flex Check will be
available at the following URL:

https://www.iss.net/cgi-bin/download/customer/download_product.cgi

ISS RealSecure intrusion detection customers may use the following 
user-defined signature to detect access attempts by the Code Red worm.
Follow the instructions below to apply the user-defined signature to
your policy.  

>From the Sensor window:
1. Right-click on the sensor and select 'Properties'.
2. Choose a policy you want to use, and click 'Customize'.
3. Select the 'User Defined Events' tab.
4. Click 'Add' on the right hand side of the dialog box.
5. Create a User Defined Event.
6. Type in a name of the event, such as 'Code Red access attempt'.
7. In the 'Context' field for each event, select 'URL_Data'. 
   In the 'String' field, type the following string:
        default\.ida$  
8. Click 'Save', and then 'Close'.
9. Click 'Apply to Sensor' or 'Apply to Engine', depending on the
   version of RealSecure you are using.

The next X-Press Update for ISS RealSecure Network Sensor will contain a
signature to detect this vulnerability.

NetworkICE provides an update for BlackICE products to detect the ISAPI
Extension Overflow vulnerability (issue ID 2002608). Refer to the
following URL for information regarding the detection and auto-blocking
capabilities for this attack: 
http://www.networkice.com/downloads/agent_detection_update.html


______

About Internet Security Systems (ISS) 
Internet Security Systems is a leading global provider of security 
management solutions for the Internet, protecting digital assets and
ensuring safe and uninterrupted e-business.  With its industry-leading
intrusion detection and vulnerability assessment, remote managed
security services, and strategic consulting and education offerings, ISS
is a trusted security provider to more than 8,000 customers worldwide
including 21 of the 25 largest U.S. commercial banks and the top 10 U.S. 
telecommunications companies.  Founded in 1994, ISS is headquartered in
Atlanta, GA, with additional offices throughout North America and
international operations in Asia, Australia, Europe, Latin America and
the Middle East.  For more information, visit the Internet Security
Systems web site at www.iss.net or call 888-901-7477.


Copyright (c) 2001 Internet Security Systems, Inc.

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Disclaimer

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information constitutes acceptance for use in an AS IS condition. There
are NO warranties with regard to this information. In no event shall the
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