Microsoft finds malware hidden in new computers in China

Nitol infections are primarily in China, according to this map from the Microsoft study.

(Credit: Microsoft)

Microsoft has found malware on new computers its employees purchased in various cities in China as part of an investigation into the security of the supply chain. That finding led researchers to a botnet called Nitol and a court order giving the company permission to take technical measures to disrupt the botnet.

The effort, dubbed Operation b70, began in August 2011 when it decided to see if there was any merit to claims that counterfeit software and malware were being installed on computers by suppliers before they hit the retail shelves in China. So, the company had employees go into stores and buy 10 laptops and 10 desktop computers.

"We went into what they call 'PC Malls.' We wanted to get a sampling of what an average consumer in China would get," Richard Boscovich, assistant general counsel for Microsoft's Digital Crimes Unit, told CNET in an interview today. "We were surprised how quickly we were able to find something to back up the suspicion."

The researchers discovered that four of the 20 computers came pre-loaded with malware, including some that was capable of spreading through USB flash drives. One was infected with the Nitol virus, which installs a backdoor on computers so they can be used as part of a botnet to send spam or attack Web sites. Another computer... [Read more]