Pressure mounts for Microsoft to patch IE flaw

Hackers are intensifying their attacks on Internet Explorer users, increasing the chances that Microsoft Corp. will patch a critical flaw in the software ahead of its regularly scheduled Oct. 10 security update.

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On Sunday, hackers released sample code showing how to exploit the IE flaw on a fully patched version of Windows XP, a move that security experts believe will step up the attacks. Criminals have been taking advantage of a previously unknown vulnerability in cPanel Inc. software, widely used by Web hosting providers, to install the IE malware on Web servers.

The Microsoft bug has to do with the way IE processes Web-based graphics code written in the Vector Markup Language (VML). It was first reported Monday Sept. 18 by researchers at Sunbelt Software Inc., who found that attackers were exploiting this vulnerability on a number of pornographic Web sites.

Late last week, attackers started spreading their attack code by taking advantage of a second flaw in cPanel's Web hosting administration software. This product is used by Web hosting providers to give their customers an easy way to administer their Web sites.

Hackers were able to exploit this problem to gain access to servers at hosting provider HostGator.com LLC and began adding malicious VML exploit code to the Web pages of HostGator's clients, starting late Thursday.

In fact, the attackers had used the cPanel flaw to gain control of HostGator's servers weeks before the VML vulnerability was disclosed, according to Brent Oxley, CEO of HostGator.com, based in Boca Raton, Florida.

"They took control of as many servers as they could and they were building an army." Oxley said."They waited idly for a month and when the Microsoft exploit came out that's when they launched the attack."

HostGator servers are used to host about 500,000 Web sites, but not all were compromised. Oxley estimated that "thousands" were, however, and said that a number of other hosting providers have also fallen victim to the cPanel attack.

The cPanel flaw has now been patched and HostGator.com customers are no longer serving up the VML exploits, but security experts wonder how widespread the cPanel compromise has been.

"It's a little worrisome that these hackers appeared to be targeting that piece of software," said Rich Miller, an analyst with Netcraft Inc. "It's very common among large hosting companies."

Whether or not these latest developments are worrisome to Microsoft is unclear. The company declined to comment on the matter Monday, referring reporters to a Friday blog posting by Microsoft Security Response Center Operations Manager Scott Deacon in which he said that his company was increasingly confident on its ability to release an early patch. 

"There’s been some confusion about that, that somehow attacks are dramatic and widespread," Deacon wrote Friday. "We’re just not seeing that from our data, and our Microsoft Security Response Alliance partners aren’t seeing that at all either," he said.

"Of course, that could change at any moment," Deacon added.

Sunbelt Software agreed that the VML bug has not yet been widely exploited, but Sunbelt Vice President of Research and Development Eric Sites predicted that Microsoft would release an early patch. "I think this week will be a lot more active because of the new proof-of-concept codes coming out," he said.

On Monday, security researchers reported that attackers were staring to send out spam in hopes of luring victims to malicious Web sites.

One attack tells victims that they've received a "Yahoo! Greeting Card," and invites them to click on a link. The link takes the victim to a Web site that installs code that collects information on the victim's online activity. More information on this attack can be found here.

As a temporary workaround, Microsoft's has advised users to unregister the dll used to render VML images. Information on how to do this, along with other possible workarounds for the problem can be found here.

Although it is not recommended by Microsoft, a patch for the bug was released by a group of security researchers on Friday.