Over a week ago, a series of flaws was found in MS IE (essentially all versions). The discoverers thought they understood the flaw, and how to block it, but it is really multiple issues.
Deal is: you simply go to a "bad" (infected) web page, and it loads anything it wants on your machine.
But at the same time, hackers had a way to inject such code into many "good" web pages. At the peak, thousands of "good" websites had an infection, and were infecting many innocent surfers.
http://www.pcworld.com/printable/article/id,155190/printable.htmlhttp://www.msisac.org/advisories/2008/2008-044b.cfm"...unspecified buffer overflow ... an HTML element with a 'src' attribute in the 'TransferFromSrc()' function can be used to corrupt memory. Exploitation can occur if a user visits a maliciously crafted webpage or html file. This vulnerability would allow the attacker to take control..."
We have not had a situation this dangerous in a long time. I was chewing nails, because I could not even tell my users what NOT to do. (While this one was MS IE specific, that was not clear at first.)
Within an hour of MS releasing the patch, I'd tested it on my PC and run over to the main offices to get it installed on everybody's PC.
Well, I missed Mark, and today he called and said the browser kept closing, and Trend was finding infected files. Yup, he caught an infection, though like many such rush-jobs the virus was buggy. In particular, it upset Windows Update, so I could not quickly install this week's patch. Running patches manually, Windows Malicious Software Tool -found- something and removed it. Then the urgent patch would "take", and then I ran all updates and scanned the system.
This incident, the virus/trojan was stealing passwords and, as ISO says, smuggling them out. I was not too worried; Mark doesn't know any good passwords, and my school's firewall blocks ICMP to/from strangers.
This was related to a root-kit from 2 years back. That one could do anything it wanted, including hide itself from the user. It would phone home, it would check IRC channels, it could be ordered to download more software to do... whatever.