Hacker Leaves Message for Microsoft in Trojan Code

Here's a new way to get Microsoft to pay attention to you: Slip a brief message into the malicious Trojan horse program you just wrote.

That's what an unnamed Russian hacker did recently with a variation of Win32/Zlob, a Trojan program victims are being tricked into installing on their computers.

The message is surprisingly cordial, given that Microsoft's security researchers spend their days trying to put people like Zlob's author out of business. "Just want to say 'Hello' from Russia. You are really good guys. It was a surprise for me that Microsoft can respond on threats so fast," the hacker wrote, adding, "Happy New Year, guys, and good luck!"

Zlob is one of the most common types of Trojan programs used to attack Windows these days. In a typical Zlob scam, the victim is sent a link to what looks like an interesting video. When the link is clicked, the user is told to install a multimedia codec file in order to watch the video. That file is actually malicious software.

This isn't the first time this particular hacker has sent a note to Microsoft's security group. Last October he wrote a slightly creepy message, saying, "I want to see your eyes the man from Windows Defender's team."

Unlike the October message, this latest note wasn't caught by Microsoft. It was found Friday by a French security researcher using the hacker handle S!Ri.

According to this latest message, it may be the Zlob hacker's last note to Microsoft. "We are closing soon," he wrote. "So, you will not see some of my great ;) ideas in that family of software."

"It warms my heart that they're 'closing soon,'" wrote Microsoft spokesman Tareq Saade in a blog post Friday.

All things considered, hiding messages in source code may not be the most effective way of reaching the Windows Defender team. "Considering the enormous amount of malware we go through every day, it can be difficult to track follow up samples like this," Saade wrote.

The hacker also claimed that Microsoft had once offered him a job to help improve Windows Vista's security. Microsoft hired a large number of outside security consultants to test Vista's code before it was released in late 2006. "It's not interesting for me," the hacker concluded. "Just a life's irony."

Microsoft's Official Fix for Failing Zunes

Zune owners now have a fix for their failing devices thanks to Microsoft that has posted instructions on how to start the new year off with a working digital music player. Yesterday 30-gigabyte Zunes suffered a crippling glitch causing the digital music players to lock up, reboot themselves, and freeze. Zune users are calling Micorosoft screw-up "Zune 2K9," a reference to the Y2K bug. The problem was caused by the Zune's internal clock and its inability to handle leap years, according to Microsoft.
The Zune fix (outlined below) will work at 7am ET January 1, 2009. Microsoft says it will also issue a fix for the device so that this problem won't re-occur the next leap year, in 2012.

To Fix Your Zune Follow These Steps:

1. Disconnect your Zune from USB and AC power sources.

2. Because the player is frozen, its battery will drain-this is good. Wait until the battery is empty and the screen goes black. If the battery was fully charged, this might take a couple of hours.

3. Wait until after noon GMT on January 1, 2009 (that's 7 a.m. Eastern or 4 a.m. Pacific time).

4. Connect your Zune to either a USB port on the back or your computer or to AC power using the Zune AC Adapter and let it charge.

Once the battery has sufficient power, the player should start normally. No other action is required-you can go back to using your Zune!

Google, Apple, Microsoft Sued Over File Preview

A small Indiana company has sued tech heavyweights Microsoft, Apple, and Google, claiming that it holds the patent on a common file preview feature used by browsers and operating systems to show users small snapshots of the files before they are opened.

Cygnus Systems sued the three companies on Wednesday saying that they infringed on its patent with products such as Windows Vista, Internet Explorer 8 and Google Chrome, which allow users to view preview images of documents on the computer. Mac OS X, the iPhone and Safari also infringe, the company said in court filings. Apple uses this technology in its Finder and Cover Flow Mac OS X features, the filings state.

While Cygnus has sued three very high profile companies, there may not be the only vendors in Cygnus's sites. "They were a logical starting place for us," said Matt McAndrews, a partner with the Niro, Scavone, Haller & Niro, law firm, which is representing Cygnus. "We've identified many other potentially infringing products that we're investigating," he added.

Cygnus's owner and president Gregory Swartz developed the technology laid out in the patent while working on IT consulting projects, McAndrews said. The company is looking for "a reasonable royalty" as well as a court injunction preventing further infringement, he said.

The lawsuit was filed in federal court in Arizona, where Swartz resides, McAndrews said.

Google, Microsoft and Apple did not return messages seeking comment on the lawsuit.

Cygnus applied for its patent (# 7346850) in 2001. It covers a "System and method for iconic software environment management" and was granted by the U.S. Patent and Trademark Office in March of this year.

Microsoft Wages War Against Fake Security Software

In the second month of a campaign against fake security software, Microsoft has booted the rogue application "Antivirus 2009" from almost 400,000 PCs, the company recently claimed.

December's version of the Malicious Software Removal Tool (MSRT), a free utility that Microsoft pushes to Windows users as part of Patch Tuesday, targeted one of the most popular phony security app, Antivirus 2009. According to Microsoft, the MSRT erased the fake from over 394,000 PCs in the first nine days after it released this month's edition on Dec. 9.

Last month, Microsoft trumpeted a similar cleaning operation against another family of bogus security software that it said had purged nearly a million machines of programs like "Advanced Antivirus," "Ultimate Antivirus 2008" and "XPert Antivirus."

December's campaign targeted a different family -- dubbed "W32/FakeXPA" by Microsoft -- that includes fake security software going by names such as "Antivirus XP," "AntivirusXP 2008" and "Antivirus 2009."

Windows users increasingly have been plagued with worthless security software as criminals bundle the money makers with other malware or seed significant users with waves of spam touting the programs. According to one researcher, cybercrooks can pull in as much as $5 million a year by installing the rogue programs on PCs, then dunning users with infection claims and constant pop-ups until the victims pay $40 or $50 to purchase the useless applications.

Windows users can download the MSRT manually from Microsoft's Web site or via the Windows Update service.

Microsoft Extends XP Shipments Until May

Microsoft is giving system builders several more months to get Windows XP for their custom PCs, ensuring XP will be out in the marketplace until almost the scheduled release of Windows 7 in early 2010.

Microsoft confirmed Monday that it is offering a "flexible inventory program" that allows distributors and system builders to place their final orders for XP by the end of January, but have those orders delivered until May 30, 2009.

The company stressed in an e-mailed statement that the move is not "an extension of sales." Still, it gives system builders and distributors the ability to sell PCs with Windows XP preinstalled for a bit longer than they currently have.

The move marks yet another extension Microsoft has had to made to keep XP in the marketplace, which customers have demanded because of lackluster reception for Windows Vista, XP's successor, released to businesses in November 2006 and to consumers in January 2007.

If Windows 7 is released in early 2010 as planned, it means that there will only be about a six- or seven-month gap between when the last XP machines will be for sale and when Windows 7 hits the market. And some feel that Microsoft may even get Windows 7 to businesses by the end of 2009 because the company recognizes it needs to repair the Vista damage.

Can Microsoft Juggle Three Operating Systems?

Microsoft's tricky balancing act in 2009 will be to phase out Windows XP while boosting demand for Windows Vista and building anticipation for Windows 7.

Compounding this challenge is that Vista has been Microsoft's most embattled operating system, and though recent reports say that Vista has improved over the past year, there are also reports of a growing indifference from users. Many are sticking with Windows XP for now (or even requesting to "downgrade" to XP with new computer purchases) with the hope that Windows 7 will be more nimble and efficient than Vista.

Recent market share numbers from Net Applications Inc. show that Microsoft's market share is slipping with both Windows and the Internet Explorer browser, while companies like Apple and Mozilla keep making incremental gains. A silver lining in the Net Applications report is that Vista grew its market share in November and cracked the 20 percent mark for the fist time as Windows XP fell 1.81 percent.

With the definite release of Internet Explorer 8 and the possible release of Windows 7 happening in 2009, plus Microsoft's aggressive push into cloud computing with the Windows Azure operating system, the coming year looks to be a pivotal one for the software giant.

Keeping the Windows 7 Hype Machine on Low

So far, the hype surrounding Windows 7 has been kept to a minimum by Microsoft, likely an effort not to repeat the over-hyping that hurt Vista's release. Playing it cool with Windows 7 will also give Vista some breathing room as Windows XP slowly becomes less prevalent.

Windows 7 Release: Sooner Is Better

Microsoft has not given an official release date for Windows 7, but has said publicly that it expects to ship it within three years of the January 2007 consumer release of Windows Vista.

Gartner Research has predicted that Microsoft will ship Windows 7 in time for the 2009 holiday season, which would require shipment to take place around August 2009.

Gartner analyst Michael Silver expects that Microsoft will try to differentiate Windows 7 from Vista by keeping ship date hype to a minimum and then delivering earlier than anticipated.

Microsoft Study Supports ‘Cyberchondria’

Could the Internet make you sicker? That’s what a study by Ryen White and Eric Horvitz from Microsoft Research says.White and Horvitz studied the Web browsing of 515 Internet users and found that eight in 10 American adults have searched for healthcare information on the Internet, reports NewsOXY.com. The authors found: The Web has the potential […]

Microsoft Search Searching for a New Name

Microsoft plans to relaunch its Windows Live Search next year, if you believe the buzz in the blogosphere, and its new name might be Kumo, reports LiveSide.

It was one of the possible names ZDNet’s Mary Jo Foley reported in August that were floating around. LiveSide’s reporting that Microsoft has taken control of that domain name, a Japanese word that means “cloud” or “spider.” Access has been restricted to the site since LiveSide pointed readers there.

According to an unnamed source on TechCrunch, a final decision on the name has not been made.

But along with hiring search talent from Yahoo, it’s further evidence that Microsoft is beefing up its search offerings even without the acquisition.

Automatic Windows Updates Vulnerable to Exploitation, Boldewin Says

Virus writers have found a way to exploit the automatic Windows updates pushed by Microsoft to smuggle viruses onto computers, according to the BBC.

The Beeb cites a report by security expert Frank Boldewin, who wrote on his Web site reconstructer.org that he had noticed an e-mailed trojan that had exploited the Windows automatic update program to get around a user’s firewall. Last week, according to The Washington Post, Boldewin published a proof of concept program that demonstrated how that worked.

Symantec reported the conversations with Boldewin, and called the approach a clever trick. “At the moment there is no immediate workaround,” Symantec advised.

Steve Ballmer maintains Yahoo acquisition deal is over

Microsoft chief executive Steve Ballmer has said the company will not look to buy Yahoo but would still consider a search deal.Speaking at the internet company's annual general meeting Ballmer said, "We are done with all acquisition discussions with Yahoo".Yahoo first rejected Microsoft's $47.5bn (£32bn) takeover bid in February and also turned down an offer for the search engine alone.Ballmer's comments come after speculation this week that Microsoft may re-enter talks with Yahoo following the resignation of co-founder Jerry Yang as CEO.Earlier this month Google abandoned its paid search advertising deal with Yahoo after the US Justice Department said it would seek to block the partnership.Yahoo shares dropped to $9.14 (£6.15) - its lowest in more than five years - following Ballmer's comments.

Bill Gates Opens New Company

Friday, October 24, 2008: If you are a Bill Gates, you can't sit at home after an early retirement. You will do something; Bill Gates is doing a lot more. After stepping down from his position at Microsoft and handing over the helm to Steve Ballmer, Gates is reportedly setting up a new company. The new company, called bgc3 (the website is still under construction, check out http://www.bgc3.com/), is reported to deal with broad range of topics such as 'scientific and technological services', 'industrial analysis and research' and 'design and development of computer hardware and software'.