It was only a matter of time before someone unleashed malware that exploits the JPEG GDI+ vulnerability. Over the last two weeks various people have released proof of concept code in stages. The first code base that consisted of a corrupted JPG image file that caused an application to crash. The second code based was a JPG image that spawned a local command shell with no remote access. Within hours of the second code base released another person claimed to have made the command shell bind to a port for remote access. 

Now someone has taken matters to a greater extreme by unleashing a JPEG file that causes a buffer overrun where shell code is run on the affected system. The shell code connects to a remote FTP site and downloads approximately 2MB of data, installs a Trojan service, and also installs a copy of radmin.com, which supposedly allows a remote user to interact with a system as if they were sitting at the local console. The Trojan also downloads several other tools, including fport, netcat, peek, rcrypt, and more.
 
According to Easynews, the JPEG exploit first appeared on several Usenet newsgroups that commonly contain erotic images. A possible way of detecting whether a system is infected is to look for a directory called, c:\windows\system32\system\ which might contain files named nvsvc.exe and winrun.exe. The Trojan might also open port 10002.  
Easynews also made packet captures available that were taken as the JPEG infected a Windows XP system.

This is probably only the beginning of several future exploits that might take advantage of the JPEG GDI+ vulnerability. As always, you are advised to be sure you have the latest virus signature updates on your systems, and to be sure that you've loaded the patch if necessary. You can learn more about the patch and tools that can help you identify systems that need the patch in our Security Matters blog and in our related news story, "New Tools Help with JPEG GDI+ Updates".