
The Dell SonicWALL Research team received an interesting malware. After the initial install the malware has no disk presence and uses an unique method to stay resident on the system using only registry keys. Along with its ability to hide the malicious registry keys, this malware is highly resistant towards antivirus detection.
On execution the malware unpacks itself in memory, creates a registry key and copies its binary image onto the value of the key.

The malware then copies its image into another process address space and executes from there, this technique is called Process hallowing or Dynamic Forking. In order to this, it starts svchost.exe in suspended mode:

After this it directly calls SYSENTER with the appropriate system call number to avoid monitoring by security software. The sequence followed to achieve Process Hallowing.

Now running in the process space of svchost.exe, it deletes the original installer. It sets inline hooks on the below mentioned API's in order to conceal its presence on the machine

AutoStart registry key created by the malware to stay resident:

This key contains a script to read another registry key created by the malware using the following code: ('WScript.Shell').RegRead('HKCU\Software\ xsw\loader'))

Contains two value keys:
The malware also adds itself in the compatible applications list of Terminal Server:
It makes DNS queries for :
Conects to the site:
SonicWALL Gateway AntiVirus provides protection against this threat via the following signature:
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