• Data Held Hostage Using MS04-023 Hole in IE

    WebSense Security Labs reports that a particularly enterprising cretin has discovered a way to exploit an old, patched hole in Internet Explorer. Seems that IE can be tricked into running any program, thinking that it’s working with a formatted Help file. Don’t worry. If you’ve installed Windows XP Service Pack 2 (you have, haven’t you?) the hole is already plugged.

    The exploit involves an aberrant Compiled Help Module (CHM) file, and the way IE can run CHM files without your knowledge or permission. You go to a Web site and WHAM you get hit, no clicking required.

    In this case, the cretin came up with a program that reaches out to another Web site, downloads a Trojan (one that’s very similar to Trojan.Pgpcoder), and runs the Trojan. The Trojan then merrily scans your hard drive(s) and your network drives, looks for any of fifteen different file types (including .doc, .xls, .jpg, .zip and .txt), encrypts the files, deletes the originals and – here’s the kicker – leaves a note behind in each folder that contained a scrambled file, demanding $200 for the key to unlock the file.