Lactus Technology

Conficker, which takes advantage of a vulnerability in Microsoft's software, has infected at least 3 million PCs and possibly as many as 12 million, making it into a huge botnet and one of the most severe computer security problems in recent years.

Botnets can be used to send spam and attack other Web sites, but they need to be able to receive new instructions. Conficker can do this two ways: it can either try to visit a Web site and pick up instructions or it can receive a file over its custom-built encrypted P-to-P (Peer-to-Peer) network.

Over the last day or so, researchers with Websense and Trend Micro said some PCs infected with Conficker received a binary file over P-to-P. Conficker's controllers have been hampered by efforts of the security community to get directions via a Web site, so they are now using the P-to-P function, said Rik Ferguson, senior security advisor for the vendor Trend Micro.

The new binary tells Conficker to start scanning for other computers that haven't patched the Microsoft vulnerability, Ferguson said. A previous update turned that capability off, which hinted that Conficker's controllers maybe thought the botnet had grown too large.

But now, "it certainly indicates they [Conficker's authors] are seeking to control more machines," Ferguson said.

The new update also tells Conficker to contact MySpace.com, MSN.com, Ebay.com, CNN.com and AOL.com apparently to confirm that the infected machine is connected to the Internet, Ferguson said. It also blocks infected PCs from visiting some Web sites. Previous Conficker versions wouldn't let people browse to the Web sites of security companies.

In another twist, the binary appears to be programmed to stop running on May 3, which will shut off the new functions, he said.

It's not the first time Conficker has been coded with time-based instructions. Computer security experts were bracing for catastrophe on April 1, when Conficker was scheduled to try to visit 500 of some 50,000 random Web sites generated by an internal algorithm in order to get new instructions, but the day passed without incident.

Also worrying is that the new update tells Conficker to contact a domain that is known to be affiliated with another botnet called Waledec, Ferguson said. The Waledec botnet grew in a fashion that was similar to the Storm worm, another large botnet that has now faded but was used to send spam. It means that perhaps the same group could be linked to all three botnets, Ferguson said.

Even though Conficker doesn't appear to have been used yet for malicious purposes, it still remains a threat, said Carl Leonard, a threat research manager for Websense in Europe. The P-to-P functionality indicates a level of sophistication, he said.

"It is evident they've put a lot of effort into gathering this suite of machines," Leonard said. "They want to protect their environment and launch these updates in a way they can best capitalize on them."

Not all computers infected with Conficker will necessarily get updated quickly. To use the P-to-P update functionality, a Conficker-infected PC must search for other infected PCs, a process that isn't immediate, Ferguson.

Given that security experts differ vastly over how many computers may be infected with Conficker, it's difficult to say what percentage have the new update.

Trend Micro and Websense both cautioned their findings are preliminary, as the binary update is still being analyzed.

Although Microsoft issued an emergency software patch last October, Conficker has continued to take advantage of those PCs which haven't been patched. In fact, some variants of the Conficker will actually patch the vulnerability after the machine is infected so no other malware can take advantage of it.