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Internet Threats
Trend Report


October 2011
October 2011 Threat Report


           The following is a condensed version
            of the October 2011 Commtouch
              Internet Threats Trend Report

 You can download the complete report at
www.commtouch.com/threat-report-Oct2011


Copyright© 2011 Commtouch Software Ltd. Recurrent Pattern Detection, RPD, Zero-Hour and GlobalView are trademarks, and
Commtouch, Authentium, Command Antivirus and Command Anti-malware are registered trademarks, of Commtouch. U.S. Patent
No. 6,330,590 is owned by Commtouch.
October 2011 Threat Report


1 Key Highlights

               What is behind the huge return
 2 Feature     of email malware?

                Malware, Spam, Web Security,
  3   Trends    Compromised Websites and
                Zombies
Key Highlights for Q3 2011
Key Security Highlights


  Average daily spam/phishing
          emails sent
         93 billion


Average daily spam continues to decline

      Lowest levels in years
Key Security Highlights


            Spam Zombie daily turnover

                   336,000 Zombies


  Q3 saw a slight decline from the 377,000 in Q2


(Zombie turnover is the number of zombies turned off and on daily)
Key Security Highlights


         Most popular blog topic on
         user generated content sites
                 Streaming media/
                 downloads (24%)

 Streaming media & downloads increased its
    share to nearly one quarter of all UGC

Includes sites with MP3 files or music related sites such as fan
  pages (these might also be categorized as entertainment)
Key Security Highlights



     Most popular spam topic
           Pharmacy Ads
               (29%)

After decreasing for 6 consecutive quarters,
     Pharmacy Ads increased 5% in Q3
Key Security Highlights


Country with the
 most Zombies
  India (18%)


India continues to top the
      list again in Q3
Key Security Highlights


       Website category most likely to
       be compromised with malware

            Parked Domains


   “Pornographic and sexually explicit sites”
(1st in Q2) was pushed into 3rd spot by “Parked
             Domains” and “Portals”
Feature…




  What is behind the huge
  return of email malware?
Q3 Malware Trends

• In August, Commtouch Labs registered major
  malware email outbreaks
• The following Chart shows the scale of these attacks

Malware email levels – June to Sept 2011
Q3 Malware Trends
       Analysis of August 2011 Outbreaks
• Campaigns have been successful
• Infection rate generally linear
    • More malware emailed = more infections
• Range of malware families detected in outbreaks
    • Variants of Sasfis, SpyEye, Zeus, fake antivirus,
      and others
• In most cases the malware contacts external servers
  and downloads additional malware files to run on
  the infected machine
Q3 Malware Trends
                        Analysis cont…
At present, no clear reason for the build-up in bots
   1. No increase in spam
        • A common result of large malware outbreaks
   2. Most of the malware seen generally associated
      with specific attacks (e.g., Zeus – banking fraud)
        • So far, no increase in these attacks
Possible reasons for new bot network
   •   Large scale banking fraud
   •   Facebook/Gmail/Yahoo account theft
   •   Distributed denial of service (DDOS)
   •   Other criminal activity
Q3 Malware Trends

                Top 10 Malware of Q3 2011

Rank   Malware name                Rank Malware name
 1     W32/Oficla.FO                6    W32/Patched.G

 2     W32/RAHack.A.gen!Eldorado    7    W32/Damaged_File.B.gen!Eldorado

 3     W32/Adware.PAP               8    W32/Bredolab.AP.gen!Eldorado

 4     W32/Sality.gen2              9    W32/MalwareF.AFPRH

 5     JS/Pdfka.BG                  10   W32/Heuristic-210!Eldorado

                                                         Source: Commtouch
Q3 Malware Trends




 For a complete analysis of Malware in Q3 and the
specific attacks employed, download the complete
   October 2011 Internet Threats Trend Report
   www.commtouch.com/threat-report-Oct2011
Trends in Q3 2011…




  Spam Trends
Q3 Spam Trends
 • Spam levels remain at their lowest in years
   following the Rustock botnet takedown in March
 • Aug and Sept attacks had no effect on spam levels
 • Q3 average spam levels near 93 billion email
   messages/day




Mar    Apr   May      Jun    Jul    Aug    Sep
Q3 Spam Trends

• Spam averaged 76% of all emails sent during Q3
  (excluding emails with malware attachments)




 Mar   Apr     May     Jun    Jul     Aug   Sep
Q3 Spam Trends
Top Faked (Spoofed) Spam Sending Domains*
                                 • Gmail.com once again the
                                   most spoofed domain
                                 • 14th place again held by
                                   ups.com due to the very
                                   large numbers of fake UPS
                                   notification emails sent as
                                   part of the Q3 outbreaks




                                 * The domains that are used by spammers
             Source: Commtouch     in the “from” field of the spam emails.
Compromised Accounts

• In addition to spoofed emails (shown above), a
  percentage of emails from Gmail, Hotmail and
  Yahoo come from genuine accounts – compromised
  accounts (though some are accounts specifically
  created by spammers for spamming)
• In the Q2 2011 Trend Report, Commtouch revealed
  an increased use of compromised accounts to
  spread spam
  (Compromised accounts offer several advantages, including
  the fact that they are difficult to block using IP reputation
  implemented by many anti-spam solutions)
Compromised Accounts
Analysis of spam “from” Gmail & Hotmail – Q2/Q3 2011
 • Hotmail: 28-35% of the spam from Hotmail actually comes
            from compromised or spammer Hotmail accounts
 • Gmail: Most Gmail Spam (96-97%) comes from zombies
            that simply forge Gmail addresses
 • Q3 saw growth in use of Hotmail & Gmail compromised
   accounts in comparison to Q2




                                              Source: Commtouch
Compromised Accounts
       Compromised Accounts Analysis

• Having observed greater use of compromised
  accounts, Commtouch undertook primary
  research into the use of these accounts for
  sending spam
• The research included the surveying of people
  whose accounts had been compromised
• Results confirm Commtouch observations with
  regard to the increased use of compromised
  accounts for sending spam
Compromised Accounts
    What Compromised Accounts Used For

• Mort than half of the
  accounts were used to send
  spam or scams
• 23% of respondents not
  sure what their accounts
  were used for
• Compromised Facebook
  accounts generally used to
  further the spread of
  malware or post links to
  marketing scam websites
Compromised Accounts
           Compromised Accounts Survey
Review the full survey report and find out…

  1.   Which accounts were affected
  2.   How accounts were compromised
  3.   Activity account was used for – e.g., spam, scam, etc.
  4.   How account owners found out
  5.   Action owners took to regain control of their account


    Full results of the survey can be found at
http://www.commtouch.com/hacked-accounts-
                  report-Oct2011
Q3 Spam Trends
                     Spam Topics
• Top topic “pharmacy spam” stopped its downward slide of
  the past six quarters, adding 5% to reach 29% of all spam
• “Enhancers” added 5 points, accounting for > 17% of spam




                                               Source: Commtouch
Q3 Spam Trends




 Find out more about Spam Trends in Q3 by
  downloading the complete October2011
       Internet Threats Trend Report
www.commtouch.com/threat-report-Oct2011
Trends in Q3 2011…




  Web Security
Q3 Facebook Threats



           Exploits in Q3 2011

Facebook continues to draw the attention
of malware authors
Q3 Facebook Threats
 August 2011 “Friend” malware
• A range of “friend request” emails were sent to draw
  recipients to download a banking Trojan
Q3 Facebook Threats
 September 2011 “Like” Scams
                         How scams worked

The Trap: Offers to get “free” merchandise
   “The First 50.000 participants Get an iPhone 4 for free”
   “The first 25,000 that signup get a free pair of Beats by Dre headphones”
   “The first 1,000 participants Will Get An Facebook Phone for Free”
   “The First 25,000 Participants Will Get A Free Facebook Hoodie”

What Facebook users had to do:
   Like several pages, provide their shipping addresses and forward the invite
   on to 100 or so friends (thus ensuring the spread of the scam)

Result:
   Pages liked by hundreds of thousands of users
Q3 Facebook Threats
Example of “Like” scam
Q3 Facebook Threats
            How the Scammers Benefitted
Improved visibility/promotion of the scammer page:
• Like appears on the Liker’s Wall and may appear in News Feeds
• Liker displayed on the Page that was liked and ads about Page
• Liked Facebook Pages can post updates to the Liker’s News Feed
  or send them messages
• Liker’s connection to the page may also be shared with apps on
  the Facebook Platform

Also…
• Scammers got people’s shipping addresses (helpful in ID theft)
• “Facebook Hoodie” offer linked to external site with further
  links to marketing scams brining the scammer per-click
  revenues
Q3 Web Security Threats

Learn more about other Web Security Threats
in Q3:

  • PHP Thumbs exploit
  • Others


   Download the complete October 2011 Internet
      Threats Trend Report for more details
   www.commtouch.com/threat-report-Oct2011
Q3 Compromised Websites
     Website categories infected with malware
• Pornographic and sexually explicit sites were pushed down to
  the 3rd spot by parked domains and portals
  (As noted in previous reports, the hosting of malware may well be the
  intention of the owners of the parked domains and pornography sites)

Rank             Category                 Rank              Category
 1      Parked Domains                     6     Business
 2      Portals                            7     Computers & Technology
 3      Pornography/Sexually Explicit       8    Health & Medicine
 4      Education                           9    Shopping
 5      Entertainment                      10    Travel
                                                               Source: Commtouch
     Portals category includes sites offering free homepages, which are
     abused to host phishing and malware content or redirects to other
     sites with this content
Q3 Compromised Websites
      Website categories infected with phishing
• This is an analysis of which categories of legitimate Web sites
  were most likely to be hiding phishing pages (usually without
  the knowledge of the site owner)
• Games retained ranking as highest, similar to last Q2 2011
   Rank              Category               Rank              Category
  1       Games                         6          Sports
  2       Portals                       7          Leisure & Recreation
  3       Shopping                      8          Business
  4       Fashion & Beauty              9          Health & Medicine
  5       Education                     10         Entertainment
                                                              Source: Commtouch

   Portals category includes sites offering free homepages, which are
   abused to host phishing and malware content.
Trends in Q3 2011…




  Zombie Trends
Q3 Zombie Trends
            Daily Turnover of Zombies in Q3

• Q3 saw an average turnover of 336,000 zombies each day
  that were newly activated for sending spam
• Slight decrease compared to the 377,000 from Q2




                                                Source: Commtouch
Q3 Zombie Trends
    Worldwide Zombie Distribution in Q2




                                                        Source: Commtouch
• India once again claimed the top zombie producer title, increasing
  its share to over 18%
• Brazil dropped to 3rd position by decreasing its share of global
  zombie population by nearly 3%
• The US and Iran joined top 15, displacing Poland and Italy
Trends in Q3 2011…




  Web 2.0 Trends
Q3 Web 2.0 Trends
                                Web 2.0 Trends
     • “Streaming media and downloads” was again the most
       popular blog or page topic in Q3 (up to 24% of all UGC)
Rank             Category        Percentage   Rank          Category        Percentage
       Streaming Media &
 1                                  24%         8    Arts                       5%
       Downloads
 2     Entertainment                9%          9    Sports                     4%
 3     Computers & Technology       8%         10    Education                  4%
       Pornography/Sexually
 4                                  6%         11    Leisure & Recreation       3%
       Explicit
 5     Fashion & Beauty             5%         12    Health & Medicine          3%
 6     Religion                     5%         13    Games                      3%
 7     Restaurants & Dining         5%         14    Sex Education              2%
                                                                       Source: Commtouch

     The streaming media & downloads category includes sites with MP3 files or
     music related sites such as fan pages (these might also be categorized as
     entertainment).
Review of Q3 2011
Review of Q3 2011

                           July                          August                          September

                                Android                          25 billion                          Gap
        Spam ratio           malware added    Email-             malware          Facebook          Athleta
      reaches low of          to extended    malware             emails in          “like”        fake order
           74%                   Wildlist    outbreaks           one day           scams           malware
                                               start




                                                                                           “map of
 Most spam               Twitter                                                         love” email
per day: 120           notifications   PHP Thumbs                         Facebook         malware
   billion               lead to       Web explot        Right-to-Left      friend                       Lowest
                          spam                             override      notifications                  spam per
                                                            used in         led to                       day: 64
                                                           malware        malware                         billion

                                                                                                               Source: Commtouch
Download the complete October 2011
      Internet Threats Trend Report
                    at
www.commtouch.com/threat-report-Oct2011
For more information contact:
      info@commtouch.com
    650 864 2000 (Americas)
 +972 9 863 6895 (International)

   Web: www.commtouch.com
Blog: http://blog.commtouch.com

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Oct 2011 Threats Trend Report

  • 2. October 2011 Threat Report The following is a condensed version of the October 2011 Commtouch Internet Threats Trend Report You can download the complete report at www.commtouch.com/threat-report-Oct2011 Copyright© 2011 Commtouch Software Ltd. Recurrent Pattern Detection, RPD, Zero-Hour and GlobalView are trademarks, and Commtouch, Authentium, Command Antivirus and Command Anti-malware are registered trademarks, of Commtouch. U.S. Patent No. 6,330,590 is owned by Commtouch.
  • 3. October 2011 Threat Report 1 Key Highlights What is behind the huge return 2 Feature of email malware? Malware, Spam, Web Security, 3 Trends Compromised Websites and Zombies
  • 5. Key Security Highlights Average daily spam/phishing emails sent 93 billion Average daily spam continues to decline Lowest levels in years
  • 6. Key Security Highlights Spam Zombie daily turnover 336,000 Zombies Q3 saw a slight decline from the 377,000 in Q2 (Zombie turnover is the number of zombies turned off and on daily)
  • 7. Key Security Highlights Most popular blog topic on user generated content sites Streaming media/ downloads (24%) Streaming media & downloads increased its share to nearly one quarter of all UGC Includes sites with MP3 files or music related sites such as fan pages (these might also be categorized as entertainment)
  • 8. Key Security Highlights Most popular spam topic Pharmacy Ads (29%) After decreasing for 6 consecutive quarters, Pharmacy Ads increased 5% in Q3
  • 9. Key Security Highlights Country with the most Zombies India (18%) India continues to top the list again in Q3
  • 10. Key Security Highlights Website category most likely to be compromised with malware Parked Domains “Pornographic and sexually explicit sites” (1st in Q2) was pushed into 3rd spot by “Parked Domains” and “Portals”
  • 11. Feature… What is behind the huge return of email malware?
  • 12. Q3 Malware Trends • In August, Commtouch Labs registered major malware email outbreaks • The following Chart shows the scale of these attacks Malware email levels – June to Sept 2011
  • 13. Q3 Malware Trends Analysis of August 2011 Outbreaks • Campaigns have been successful • Infection rate generally linear • More malware emailed = more infections • Range of malware families detected in outbreaks • Variants of Sasfis, SpyEye, Zeus, fake antivirus, and others • In most cases the malware contacts external servers and downloads additional malware files to run on the infected machine
  • 14. Q3 Malware Trends Analysis cont… At present, no clear reason for the build-up in bots 1. No increase in spam • A common result of large malware outbreaks 2. Most of the malware seen generally associated with specific attacks (e.g., Zeus – banking fraud) • So far, no increase in these attacks Possible reasons for new bot network • Large scale banking fraud • Facebook/Gmail/Yahoo account theft • Distributed denial of service (DDOS) • Other criminal activity
  • 15. Q3 Malware Trends Top 10 Malware of Q3 2011 Rank Malware name Rank Malware name 1 W32/Oficla.FO 6 W32/Patched.G 2 W32/RAHack.A.gen!Eldorado 7 W32/Damaged_File.B.gen!Eldorado 3 W32/Adware.PAP 8 W32/Bredolab.AP.gen!Eldorado 4 W32/Sality.gen2 9 W32/MalwareF.AFPRH 5 JS/Pdfka.BG 10 W32/Heuristic-210!Eldorado Source: Commtouch
  • 16. Q3 Malware Trends For a complete analysis of Malware in Q3 and the specific attacks employed, download the complete October 2011 Internet Threats Trend Report www.commtouch.com/threat-report-Oct2011
  • 17. Trends in Q3 2011… Spam Trends
  • 18. Q3 Spam Trends • Spam levels remain at their lowest in years following the Rustock botnet takedown in March • Aug and Sept attacks had no effect on spam levels • Q3 average spam levels near 93 billion email messages/day Mar Apr May Jun Jul Aug Sep
  • 19. Q3 Spam Trends • Spam averaged 76% of all emails sent during Q3 (excluding emails with malware attachments) Mar Apr May Jun Jul Aug Sep
  • 20. Q3 Spam Trends Top Faked (Spoofed) Spam Sending Domains* • Gmail.com once again the most spoofed domain • 14th place again held by ups.com due to the very large numbers of fake UPS notification emails sent as part of the Q3 outbreaks * The domains that are used by spammers Source: Commtouch in the “from” field of the spam emails.
  • 21. Compromised Accounts • In addition to spoofed emails (shown above), a percentage of emails from Gmail, Hotmail and Yahoo come from genuine accounts – compromised accounts (though some are accounts specifically created by spammers for spamming) • In the Q2 2011 Trend Report, Commtouch revealed an increased use of compromised accounts to spread spam (Compromised accounts offer several advantages, including the fact that they are difficult to block using IP reputation implemented by many anti-spam solutions)
  • 22. Compromised Accounts Analysis of spam “from” Gmail & Hotmail – Q2/Q3 2011 • Hotmail: 28-35% of the spam from Hotmail actually comes from compromised or spammer Hotmail accounts • Gmail: Most Gmail Spam (96-97%) comes from zombies that simply forge Gmail addresses • Q3 saw growth in use of Hotmail & Gmail compromised accounts in comparison to Q2 Source: Commtouch
  • 23. Compromised Accounts Compromised Accounts Analysis • Having observed greater use of compromised accounts, Commtouch undertook primary research into the use of these accounts for sending spam • The research included the surveying of people whose accounts had been compromised • Results confirm Commtouch observations with regard to the increased use of compromised accounts for sending spam
  • 24. Compromised Accounts What Compromised Accounts Used For • Mort than half of the accounts were used to send spam or scams • 23% of respondents not sure what their accounts were used for • Compromised Facebook accounts generally used to further the spread of malware or post links to marketing scam websites
  • 25. Compromised Accounts Compromised Accounts Survey Review the full survey report and find out… 1. Which accounts were affected 2. How accounts were compromised 3. Activity account was used for – e.g., spam, scam, etc. 4. How account owners found out 5. Action owners took to regain control of their account Full results of the survey can be found at http://www.commtouch.com/hacked-accounts- report-Oct2011
  • 26. Q3 Spam Trends Spam Topics • Top topic “pharmacy spam” stopped its downward slide of the past six quarters, adding 5% to reach 29% of all spam • “Enhancers” added 5 points, accounting for > 17% of spam Source: Commtouch
  • 27. Q3 Spam Trends Find out more about Spam Trends in Q3 by downloading the complete October2011 Internet Threats Trend Report www.commtouch.com/threat-report-Oct2011
  • 28. Trends in Q3 2011… Web Security
  • 29. Q3 Facebook Threats Exploits in Q3 2011 Facebook continues to draw the attention of malware authors
  • 30. Q3 Facebook Threats August 2011 “Friend” malware • A range of “friend request” emails were sent to draw recipients to download a banking Trojan
  • 31. Q3 Facebook Threats September 2011 “Like” Scams How scams worked The Trap: Offers to get “free” merchandise “The First 50.000 participants Get an iPhone 4 for free” “The first 25,000 that signup get a free pair of Beats by Dre headphones” “The first 1,000 participants Will Get An Facebook Phone for Free” “The First 25,000 Participants Will Get A Free Facebook Hoodie” What Facebook users had to do: Like several pages, provide their shipping addresses and forward the invite on to 100 or so friends (thus ensuring the spread of the scam) Result: Pages liked by hundreds of thousands of users
  • 32. Q3 Facebook Threats Example of “Like” scam
  • 33. Q3 Facebook Threats How the Scammers Benefitted Improved visibility/promotion of the scammer page: • Like appears on the Liker’s Wall and may appear in News Feeds • Liker displayed on the Page that was liked and ads about Page • Liked Facebook Pages can post updates to the Liker’s News Feed or send them messages • Liker’s connection to the page may also be shared with apps on the Facebook Platform Also… • Scammers got people’s shipping addresses (helpful in ID theft) • “Facebook Hoodie” offer linked to external site with further links to marketing scams brining the scammer per-click revenues
  • 34. Q3 Web Security Threats Learn more about other Web Security Threats in Q3: • PHP Thumbs exploit • Others Download the complete October 2011 Internet Threats Trend Report for more details www.commtouch.com/threat-report-Oct2011
  • 35. Q3 Compromised Websites Website categories infected with malware • Pornographic and sexually explicit sites were pushed down to the 3rd spot by parked domains and portals (As noted in previous reports, the hosting of malware may well be the intention of the owners of the parked domains and pornography sites) Rank Category Rank Category 1 Parked Domains 6 Business 2 Portals 7 Computers & Technology 3 Pornography/Sexually Explicit 8 Health & Medicine 4 Education 9 Shopping 5 Entertainment 10 Travel Source: Commtouch Portals category includes sites offering free homepages, which are abused to host phishing and malware content or redirects to other sites with this content
  • 36. Q3 Compromised Websites Website categories infected with phishing • This is an analysis of which categories of legitimate Web sites were most likely to be hiding phishing pages (usually without the knowledge of the site owner) • Games retained ranking as highest, similar to last Q2 2011 Rank Category Rank Category 1 Games 6 Sports 2 Portals 7 Leisure & Recreation 3 Shopping 8 Business 4 Fashion & Beauty 9 Health & Medicine 5 Education 10 Entertainment Source: Commtouch Portals category includes sites offering free homepages, which are abused to host phishing and malware content.
  • 37. Trends in Q3 2011… Zombie Trends
  • 38. Q3 Zombie Trends Daily Turnover of Zombies in Q3 • Q3 saw an average turnover of 336,000 zombies each day that were newly activated for sending spam • Slight decrease compared to the 377,000 from Q2 Source: Commtouch
  • 39. Q3 Zombie Trends Worldwide Zombie Distribution in Q2 Source: Commtouch • India once again claimed the top zombie producer title, increasing its share to over 18% • Brazil dropped to 3rd position by decreasing its share of global zombie population by nearly 3% • The US and Iran joined top 15, displacing Poland and Italy
  • 40. Trends in Q3 2011… Web 2.0 Trends
  • 41. Q3 Web 2.0 Trends Web 2.0 Trends • “Streaming media and downloads” was again the most popular blog or page topic in Q3 (up to 24% of all UGC) Rank Category Percentage Rank Category Percentage Streaming Media & 1 24% 8 Arts 5% Downloads 2 Entertainment 9% 9 Sports 4% 3 Computers & Technology 8% 10 Education 4% Pornography/Sexually 4 6% 11 Leisure & Recreation 3% Explicit 5 Fashion & Beauty 5% 12 Health & Medicine 3% 6 Religion 5% 13 Games 3% 7 Restaurants & Dining 5% 14 Sex Education 2% Source: Commtouch The streaming media & downloads category includes sites with MP3 files or music related sites such as fan pages (these might also be categorized as entertainment).
  • 42. Review of Q3 2011
  • 43. Review of Q3 2011 July August September Android 25 billion Gap Spam ratio malware added Email- malware Facebook Athleta reaches low of to extended malware emails in “like” fake order 74% Wildlist outbreaks one day scams malware start “map of Most spam Twitter love” email per day: 120 notifications PHP Thumbs Facebook malware billion lead to Web explot Right-to-Left friend Lowest spam override notifications spam per used in led to day: 64 malware malware billion Source: Commtouch
  • 44. Download the complete October 2011 Internet Threats Trend Report at www.commtouch.com/threat-report-Oct2011
  • 45. For more information contact: info@commtouch.com 650 864 2000 (Americas) +972 9 863 6895 (International) Web: www.commtouch.com Blog: http://blog.commtouch.com