[iwar] [fc:Pirated.Copies.Of.Windows.XP.Pose.Security.Risk.-.Microsoft]

From: Fred Cohen (fc@all.net)
Date: 2001-10-31 05:07:40


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Subject: [iwar] [fc:Pirated.Copies.Of.Windows.XP.Pose.Security.Risk.-.Microsoft]
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Pirated Copies Of Windows XP Pose Security Risk - Microsoft 
By Steve Gold, Newsbytes, 10/30/2001
<a href="http://www.newsbytes.com/news/01/171651.html">http://www.newsbytes.com/news/01/171651.html>

Microsoft [NYSE:MSFT] has confirmed that pirated copies of its Windows
XP operating system exist on the Web, but warned users of the
potentially serious security risks they run if they download and install
the software. 
Microsoft's warning comes in the wake of IT security firm Bit-Arts'
claims that cracked versions of the commercial edition of WinXP started
appearing on the Net within hours of the new operating system being put
on sale last week. 
Duncan Reid, Microsoft's U.K. and Ireland product licensing manager,
told Newsbytes that the software giant is continuing to monitor
instances where the WinXP product activation system appears to have been
compromised. 
So far, while allegedly cracked editions have appeared on the Web for
download, Reid said that they appear to be "imaged" or similar copies of
a volume license edition.

"When we developed product activation, we designed it for retail
customer applications and not for major commercial customers. So far as
we're aware, the product activation system itself has not been
compromised," he said. 
Reid acknowledged that there are imaged copies of WinXP available on
several Web sites, but warned that, by downloading these pirate
editions, users leave themselves wide open to viruses and other
malicious code if they then install the rogue editions. 
John Safa, chief technology officer of Bit-Arts, who has been monitoring
developments on the WinXP product activation front for some time, told
Newsbytes Usenet postings last week indicated that the anti-piracy
system on WinXP has been thoroughly cracked. 
The problem, Safa said, stems from the Microsoft's choice to ship an
unprotected version of WinXP to major companies, while its small
business and consumer versions have the product activation function. 
"This (product activation feature) stops users installing the operating
system on more than one machine, but crackers have done a byte-by-byte
comparison between the major company and the protected edition. From
there, it's obviously been a simple matter to take the protection code
out of the software," he said. 
Because of Microsoft's claims that its product activation system had not
been compromised, Safa said that his research staff purchased a single
user copy of WinXP from a local store earlier today and installed the
operating system. 
"Our IT team has been running the WinXP cracker utility with the
operating system and we can confirm the product activation system has
been compromised," he said, adding that he was not pleased with
Microsoft's claims the system remains intact. 
"We've told Microsoft of our findings. We've been trying to help them,
and now they're saying the system hasn't been compromised. It has," he
said. 
Safa obtained the cracker utility, which is about 250 kilobytes long, by
running a search on the Web using Morpheus - a file sharing Internet
utility - late yesterday. 
The utility, he said, allows protected versions of WinXP to be fooled
into thinking it is always day zero of the 14-day introductory period
since XP was installed on a users' PC. 
Safa said that Microsoft's use of the product activation system on WinXP
has effectively thrown down a challenge to the software cracking
community. 
That strategy may have backfired on Microsoft, he added, as there are
now pirate versions of XP - and utilities - widely available on the
Internet. 
Bit Arts' Web site is at http://www.bitarts.com 

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