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Home>Genuine Advantage is Microsoft spyware

Windows Secrets Newsletter • Issue 77 • 2006-06-15 • Circulation: over 400,000


Table of contents 
  • Top Story: Genuine Advantage is Microsoft spyware
  • Patch Watch: Just say no to one patch this month
  • Woody's Windows: User Account Control: Vista cries, ‘Wolf!’
  • Perimeter Scan: MS updates and a new USB threat
  • Over the Horizon: IE patches are close but not complete

 
Top Story

Genuine Advantage is Microsoft spyware

By Brian Livingston

Windows Genuine Advantage — the controversial program Microsoft auto-installed as a "critical security update" on many PCs starting on Apr. 25 — not only causes problems for many users but has now been proven to send personally identifiable information back to Redmond every 24 hours.

This behavior clearly fits any plausible definition of "spyware." Some tech writers have said categorizing WGA as spyware is arguable. But I have no hesitation in calling the program a security nightmare that Microsoft should never have distributed in its present form.

In my May 25 newsletter, I called Microsoft’s WGA download a "severe blunder." It causes serious problems for some legitimate Windows users and was sprung on customers with no notice other than a press release the day before.

No PC-using company that values security and reliability can allow a program like WGA to send data to a distant server, download additional software, morph its behavior, or remotely change the functionality of Windows (as I describe below). I don’t believe individuals should put up with this, either.

Today, I’ll explain the problems and let you know what you can do to fix them.

If the spyware label fits, wear it

In a statement released on June 8, Microsoft officially denies that WGA is spyware. Let’s settle this question right off the bat so we can quickly move on to more important things.

Microsoft’s denial is based on its own definition of spyware:
  • “Broadly speaking, spyware is deceptive software that is installed on a user’s computer without the user’s consent and has some malicious purpose. WGA is installed with the consent of the user and seeks only to notify the user if a proper license is not in place. WGA is not spyware.”
This is patently absurd. Many spyware programs, such as peer-to-peer file sharing applications, are knowingly installed with the user’s consent. The user downloads the software to get music, a screen saver, or whatever other benefit is promised.

What makes a program spyware, among other things, is that it operates in ways that aren’t clearly disclosed before installation and it reports data back to a central server. Furthermore, this activity needn’t be malicious. Many spyware programs do nothing more than serving up targeted advertising or tracking anonymous marketing behavior. If a user wants such tracking functions, they might be fine. But if the user wasn’t clearly made aware of this, whether or not such software has a malicious purpose, it’s still spyware.

The majority of published definitions of spyware focus the fact on that a program quietly gathers and transmits data. For example, here’s an excerpt from the first definition returned by Google when define spyware is entered:
  • “Any software that covertly gathers user information through the user’s Internet connection without his or her knowledge, usually for advertising purposes.”
To help you understand the latest revelations about Windows Genuine Advantage’s behaviors, let’s walk through the latest facts that have been discovered about WGA.

What Genuine Advantage actually does

What we’ve found about WGA fits neatly into four behaviors that are typical of all spyware:

1. Lack of disclosure before installation. Windows users in the affected countries (U.S., U.K., Australia, etc.) who had Automatic Updates set to "auto-install" received WGA without user action, as though it was a critical security update — which it clearly was not. Even those users who ran Windows Update or Microsoft Update manually, however, were misinformed about what WGA would do. In 17 pages of screen shots, ZDNet blogger David Berlind demonstrates this, concluding:
  • “I was not asked for consent when the WGA Validation Tool — the one that, like spyware, phones home — installed itself. In fact, as can be seen from this screenshot which immediately preceded the automatic download and installation of the WGA Validation Tool, I could easily argue that I was misled into thinking I was going to download and install something else when in fact, I was downloading and installing, without my consent, software that apparently phones home.”
A separate WGA Notification Tool is also downloaded. This program does not contact Microsoft’s server, but merely displays warnings on a user’s PC if a Genuine Advantage test is failed for whatever reason. After clicking several links in the manual download process, Berlind found only a vague explanation of WGA through what he calls a “circuitous route.”

2. Transmits data to a central computer. The WGA Validation Tool contacts a Microsoft server every time a PC is booted up and every 24 hours after that. (Some of the earliest alarms about this were sounded by Lauren Weinstein, a co-founder of People for Internet Responsibility, in postings June 5 through 13.) WGA’s "phone home" events, like all Internet packets, contain the IP address of the affected PC and the date and time, indicating when it booted up or had run for 24 hours. In addition, Microsoft’s WGA director, David Lazar, told the Associated Press in a June 7 interview that the program also:
  • “…gathers information such as the computer’s manufacturer and the language and locale it is set for.”
This is enough data to easily identify individual PCs. And, of course, WGA can be modified remotely to collect additional information (as explained in point 3).

3. Downloads other software and morphs itself. WGA’s daily contact with Microsoft’s servers is specifically designed to allow the company to download new instructions. According to Microsoft’s June 8 statement and Lazar’s interview, this includes:

• Changing how often WGA contacts Microsoft’s servers;
• Disabling features of WGA or disabling the WGA software entirely;
• Adding to the license keys that WGA treats as invalid; etc.

4. Cannot easily be uninstalled. No entry appears in the Add/Remove Software control panel for patches 892130 or 905474 — the Validation Tool and the Notification Tool. If you manually delete WGA’s executable file, Windows regenerates it. (I’ll discuss remedies for this below.)

Perhaps most shocking is a trait of WGA that most other spyware doesn’t suffer from. WGA is beta software that even Microsoft doesn’t consider ready for release.

Section 4 of the WGA Validation Tool EULA (End User License Agreement) states:
  • “4. PRE-RELEASE SOFTWARE. This software is a pre-release version. It may not work the way a final version of the software will. We may change it for the final, commercial version. We also may not release a commercial version.”
Microsoft’s June 8 statement confirms this by repeatedly calling the WGA rollout a “pilot program” or a “pilot version.” Of course, “pre-release software” and “pilot version” mean exactly the same thing — beta.

At least that explains some of the many problems that Windows users are having with WGA.

Problems with WGA — and some solutions

It’s important to remember that Windows Genuine Advantage is not an omnipotent, do-everything program. Its stated goals are simple. If an instance of Windows doesn’t seem to have a valid license, (1) display notices to the user and (2) prevent any updates being downloaded from Microsoft.com except security upgrades that are rated “Critical.”

Despite these limited tasks, WGA seems to cause a wide variety of headaches. Since my May 25 article appeared, I’ve collected reports from the field and from readers describing the following categories of issues:

1. False positives of legitimate copies of Windows. Numerous users report that WGA refuses to validate licensed copies of Windows that are unquestionably genuine. At Microsoft’s official online forum called WGA Validation Problems, many people report problems even with packaged copies of Windows that were purchased directly from Microsoft.

2. No updates at all unless WGA is accepted. Although a WGA failure is supposed to only prevent affected users from downloading nonsecurity updates, many Windows Secrets readers report that legitimate copies of Windows refuse to display any updates except the WGA download — until the Validation and Notification Tools are installed. Phillip "Skip" Lehrfeld writes:
  • “I chose to download the Windows Genuine Advantage Validation Tool (KB 892130) on March 6, 2006. I followed this with Windows Genuine Advantage Notification (KB 905474) on May 4, 2006.

    “On June 2, 2006, I was checking the Update site as I was informed that there was a new Critical update to be downloaded. I checked the site and it told me I could not get my update as I was missing a critical tool. I checked it out and it told me I was missing the Windows Genuine Advantage Validation Tool. I checked my history and sure enough I had installed it on March 6.

    “OK, I will bite, and I downloaded it again. Yes, the number was KB 892130, the same as before. Then it wanted me to install the second one again. I installed Windows Genuine Advantage Notification, KB 905474, for the second time. Having installed the two for the second time, there were no new updates to install. Those were the updates to be installed. …

    “After the reinstallation, I checked the history section of the site and now I have the two updates installed twice successfully.

    “I have an authorized copy of Windows XP and had no problems with the above events; but it leaves me to wonder what is going on and are they now doing something else to my system without revealing what is going on.”
The redundant WGA install messages are probably caused by changed code that Microsoft wished to download to defeat some workarounds that disabled WGA.

Numerous other readers say that Microsoft’s update site also reported to them that there were no patches except WGA, although important updates were, in fact, available.

3. “Notify only” options disabled. We have some reports that the "notify only" options in Automatic Updates are greyed out and can’t be selected. G. Allen Taylor, M.D., writes:
  • “With regard to the OS updates, which I have so faithfully and obediently installed, I now suspect that one of them has ‘grayed out’ the Options menu in Windows Update on both my computers. “While formerly I could choose to automatically or manually download and/or install the periodic updates, I now have no choice on either of my computers. Whether I want them or not, all updates are downloaded when I’m online and installed then or the next time I reboot.”
Dr. Taylor offers a fix, which involves the fact that a Group Policy was somehow enabled that prevents any option other than auto-updates.

The solution requires a change to Group Policy or the Registry. The procedures are described at the Windows XP MVPs site.

4. Reinstalls from valid CDs fail the Genuine Advantage test. By far the most serious side-effect of WGA is that it doesn’t validate instances of Windows that are reinstalled, even when a genuine CD-ROM from a major computer maker is used. Lauren Weinstein writes:
  • “It appears that it is exceedingly common for repair operations to reinstall based on “cloned” or otherwise duplicated copies of the Microsoft OS, rather than try to restore or reauthenticate based on the original users’ OS serial numbers or authentication codes. Original restore disks and key information cards/labels are frequently missing, making it difficult to duplicate the original authentication environment.”
I’ve seen reports of this on Microsoft’s own forum involving such cases as Best Buy’s Geek Squad reinstalling Windows with the user’s original, licensed Dell CD-ROM.

Despite all of the reported problems, Microsoft officials aren’t very forthcoming on the subject of WGA. On June 9, I asked to interview David Lazar in Redmond and submitted a few questions in writing. Five days later, a spokesman replied, "Unfortunately, we will not be able to participate in this opportunity."

Many Windows users seem to be in denial that WGA could be spyware, because Microsoft is such a big, well-known company. Unfortunately, that was what people thought of the Sony BMG recording label before it started distributing music CDs last year with rootkit software that infected PCs.

I don’t feel that Microsoft or Sony BMG are evil incarnate. But we must recognize that Microsoft is now just one more spyware distributor among the many we have to watch out for.

How to make sure WGA doesn’t bite you

It’s important not to panic about Windows Genuine Advantage. At this point, its worst side-effect is interfering with the normal patch process — but far more common is that it merely displays annoying warning messages for no apparent reason.

If you’ve already allowed WGA to install, I can’t recommend that you try to uninstall it. That’s because Microsoft has made a passing grade on Genuine Advantage a requirement for almost every kind of download you might want from Redmond. Without passing a Genuine Advantage checkup, most Windows users now can’t get Internet Explorer beta 7, for example, although you might not care. But you just might have a good reason to install a newer, more secure version of Windows Media Player or any of dozens of other official updates.

If you insist on trying to uninstall WGA, the My Digital Life site has posted no fewer than 15 proposed hacks that attempt to circumvent Microsoft’s anti-uninstall measures. Most of these methods no longer work, due to recent Microsoft code changes. Even if you did disable the app, it’s pointless to have done so if you ever need to download any Microsoft widget some day that requires WGA. Again, I don’t recommend that you bother trying to remove WGA if it’s installed.

Instead, I strongly advise that you simply suppress WGA’s negative side-effects:

Step 1. Stop the misleading installation of possibly unwanted programs. If you really don’t need to download anything from Microsoft for a while, set the Automatic Updates control panel to Notify but don’t download or install. When you’re notified of new security updates, first read the free and paid versions of the Windows Secrets Newsletter for our reviews. Then manually run Microsoft Update and select only the patches that have no reported conflicts.

If Microsoft Update subsequently refuses to download patches you need, go ahead and accept the WGA installs, then take steps 2 and 3. Be aware that some programs, such as Microsoft’s Windows Defender (formerly MS Antispyware Beta), won’t update themselves unless Windows’ auto-update is on. (Thanks to reader Raymond Combs for his research into this.)

Step 2. Disable WGA’s incessant notifications. If WGA guesses, correctly or incorrectly, that your copy of Windows is unlicensed, it displays a warning at least once a day for 14 days, then once an hour after that. Fortunately, Microsoft has made it easy to disable all such warnings. Right-click the WGA logo in the system tray, then select Change notification settings. Turn off the display of notifications, click Save Settings, select I understand, and finally click Yes I’m Sure. Reboot the PC. The WGA logo will remain in the tray but notifications will no longer appear. The notices will come back, however, if you happen to install a future version of WGA from Microsoft.

Step 3. Prevent WGA from phoning home to Microsoft servers. The WGA process that calls out to its remote masters can be blocked by 2-way software firewalls such as ZoneAlarm and McAfee. To do so, simply deny the connection when your firewall pops up an alert about Windows Genuine Advantage trying to use the Internet. Alternately, hard-code a denial via the firewall’s user interface. No ill effects of preventing WGA from establishing a connection have been reported.

This story has legs

I’m afraid I’ll have more tales to tell in future weeks as the fallout expands. Microsoft executives seem totally oblivious to how much public trust they’ve squandered by installing WGA in a sneaky way. Microsoft has repeatedly assured users that Automatic Updates would only be used to download critical security fixes. "Delivering security updates right to your computer automatically," they said.

Abusing PC users’ need for security patches is a betrayal that Microsoft can ill afford. Whoever the marketing geniuses are who’ve seized Microsoft’s security infrastructure to push out spyware, they need to be fired.

I’m not holding my breath waiting for that. Instead, I’m researching a totally independent way for Windows users to keep their PCs tuned without depending on Microsoft Update at all. Stay tuned.

To send us more information about WGA, or to send us a tip on any other subject, visit WindowsSecrets.com/contact. You’ll receive a gift certificate for a book, CD, or DVD of your choice if you send us a comment that we print.

Brian Livingston is editor of the Windows Secrets Newsletter and the coauthor of Windows 2000 Secrets, Windows Me Secrets, and eight other books.
 

 
Patch Watch

Just say no to one patch this month

Susan bradley I believe in patching, sometimes even if things get broken — because it points out that the software that broke was probably written poorly in the first place.

But this time, there’s one patch I want you to make sure you select not to install this month.

(905474)
The WGA so-called critical patch

Before all the other patches you need to worry about this week, I want you to ensure that you’ve adjusted your Microsoft Update settings so MU is not performing Automatic Updates.

Instead, I want you to change to the setting that downloads patches and then notifies you that the patches are ready to install.

Now that you’ve done that, I need you to ensure that you always select "Custom Install" (not "Express Install") when you install patches. I want you to not install a patch, KB 905474, because I don’t deem it to be one that is critical for your machine.

In this patch, Microsoft is offering up a beta of its latest Windows Genuine Advantage software. This is designed to confirm that you’re running legitimate, licensed software. The issue is that we’ve seen it causing problems on some machines. If you’ve installed it, and you’re not seeing issues, you may wish to leave it alone. But if you haven’t installed it, don’t do so.

I do not run beta software on production machines, and I’m not too pleased that this WGA beta was offered up as it was without a full disclosure of what the WGA update does. Currently,

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Woody's Windows

User Account Control: Vista cries, ‘Wolf!’

Woody leonhard Windows Vista Beta 2 may be the most-downloaded program in history — but heaven help ya if you use it for real work.

Bugs and lock-ups come with the territory — it’s beta software, after all, and you’d be crazy to run Vista Beta 2 on a production machine. (Or go crazy trying.) Having spent months struggling with various incarnations of the Vista beast, I’m worried about something more fundamental than bugs. More insidious. One Vista feature, User Account Control, just keeps getting in the way.

UAC raises its head

If you’ve used Vista Beta 2 for more than 15 seconds, you’ve bumped into UAC. Or, more correctly, it’s bumped into you. UAC raises its ugly head by blackening your entire screen, and presenting you with a dialog box that says either "A program needs your permission to continue" or "An unidentified program wants access to your computer."

What you do next depends on whether you’re running as a Standard user or as an Administrator. If you have a Standard account, you must provide a user name and password for an Administrator account to make it past the challenge screen. If you are already using an Administrator account, you need only click Continue. If you pass muster, Vista allows you to keep going.

If you happen to have Vista running on a machine, click the time in the lower-right corner, click Date and Time Settings, then click Change Date and Time. UAC, ever the Cerberus, snarls and demands that you validate your existence. If you can answer its questions correctly, Vista lets you change your computer’s time. Much ado about not much.

I dislike intrusive security prompts as much as the next guy. I realize that there’s a crying need for more control over sneaky programs. (Don’t get me started on Windows Genuine Spyware, er, Advantage.) But I don’t think Microsoft burned enough gray cells getting UAC right. And I believe that the fixes Microsoft has promised before Vista gets shoved out the door aren’t good enough.

The genesis of UAC

User Access Control acts as an antidote to a fundamental design decision made by Windows’ originators two decades ago. Since the earliest days of Windows — I still have my Windows/286 floppy! — Windows was designed to let programs pull each others’ strings. For instance, you might click Start, Control Panel, User Accounts. In a startlingly similar way, a program can "click" Start, Control Panel, User Accounts. If you have the ability to, say, reformat your hard drive, a program that you accidentally start inherits the same ability to reformat your hard drive. Once upon a time, that was very cool. Now it’s very dangerous.

Windows XP tried to limit the obvious downside of that design by supporting two different kinds of accounts: so-called Limited accounts and Administrator accounts. As you no doubt know, XP’s Limited accounts are so limited that nobody uses them, in spite of Microsoft’s continuing exhortations. You can bet that almost every ‘Softie who ever wrote the phrase, "Use a Limited account for everyday work," was, in fact, using an Administrator account at the time.

Vista goes one step beyond XP (or is it one step beneath?) by forcing everybody to use a Limited account, all the time. The names have changed a bit — in Vista it’s called a Standard account — and some of the old restrictions have been lifted. But by and large, if you have an Administrator account, everything you do in Vista takes place at a Standard security level.

That’s good. It means that any program you start, whether intentionally or unintentionally, only gets Standard security clearance. At the same time, it’s bad, because every time you want to perform an Administrator-style action, like change the time on the clock, you have to click-click-click over UAC’s challenges.

The user’s perspective

I don’t think I’m overstating the case when I say, "Everybody hates UAC."

It could be worse. Earlier test versions of Vista had far more hurdles to clear. Microsoft has made good progress on trimming the number of challenges, and the UAC development team promises that the number will be reduced even more.

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Perimeter Scan

MS updates and a new USB threat

Ryan russell With the large number of Microsoft patches this week, I don’t want you to forget about the third-party programs that you and probably all of your users have. These apps need updates too, and there are some security updates that need to be installed.

I’ve also taken note of what I think is a novel "attack" based on USB Flash drives. I thought I was too smart to fall for this one, but I was wrong.

Firefox 1.5.0.4 is released

It was only my column before last in which I advised you all to make sure Firefox 1.5.0.3 was installed. Since then, Firefox 1.5.0.4 has been released and you need to upgrade to that one now, too.

I’d give you a download link, but you’re better off letting Firefox update itself. It will download just the small update patch rather than the whole package and will keep the right language settings. (I use the U.S. English version of Firefox, but maybe you don’t.)

This new rev of Firefox is a good thing. This means the Mozilla team continues to take bug reports seriously and releases patches in a timely manner.

To update, run Firefox and select Help, Check for Updates. That is, if you haven’t already been prompted by Firefox itself to do so, which you probably have.

If you’d like the details about what was fixed, you can find them on the Mozilla Known Vulnerabilities page. According to the Mozilla severity scheme, Firefox 1.5.0.4 fixes 5 critical, 3 high, and 3 moderate vulnerabilities, plus 1 low vulnerability.

A p

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Over the Horizon

IE patches are close but not complete

Chris mosby If you’re like me and the other writers of this newsletter, you were probably overwhelmed by the number of patches Microsoft released on Patch Tuesday. Microsoft released yet another cumulative rollup for IE, which fixed eight open holes — but once again, there are plenty left open to talk about.

I wrote about the last IE patch in my Apr. 13th column. Comparing that column to what was patched in Tuesday’s release shows that only 1 out of the 3 flaws I talked about then have been patched in the latest IE rollup.

IE frames can still be injected

I reported on the IE "frame injection" flaw in my Apr. 13th column, and on several other occasions in the past. It still remains unfixed. Frame injection has affected other browsers that have since been patched. IE 6, however, is still vulnerable to this flaw, which has a history going back almost 8 years. It was fixed in 1998 for IE 3 and 4 but was reintroduced in later versions of IE.

To see how serious this flaw is, check out Secunia’s browser test page. An infected site you visit can insert its own content into a frame of a trusted site that you browse some time later. For example, you might visit an apparently harmless site, which is in reality hacked. If you then visit your bank Web site, you might sooner or later see a window that appears to be from your bank. That window, however, is controlled by someone who wants your bank account information.

When Firefox 1.0.3 was released, there was a lot of press coverage about this frame-injection vulnerability reappearing. IE supporters crowed about this at the time. Meanwhile, the same vulnerability has gone unpatched in IE since the problem was first discovered almost two years ago.

The Firefox hole was closed back up a few weeks later in Firefox version 1.0.5, according to Secunia. The problem doesn’t exist at all in version 1.5. Meanwhile, frame injection is still a flaw that remains in IE after all this time.

What to do: Secunia’s advisory for this flaw suggests disabling IE’s Navigate sub-frames across different domains setting.  If you’re still using IE and you’ve followed Brian’s "Protect IE without SP2" article from the Nov. 18, 2004, newsletter, then you’ve already taken care of this.

Multiple browsers have data disclosure flaw

Another flaw does happen to occur in both in IE and in Firefox — the most recent versions included. This involves the ability of a hacker to filter the keystrokes entered in a form. The input is "bounced" over to a file input box, then back again to the previous text entry, while it appears to the user that nothing out of the ordinary has happened.

This could allow hackers to upload sensitive data from a PC without any user intervention and without a user’s knowledge.

What to do: For IE, Secunia suggests disabling Active Scripting support. If you’re using Brian’s IE lockdown recommendations from the Nov. 18, 2004, newsletter, then you’ve already done that. For Firefox, Secunia suggests disabling JavaScript support. Personally I prefer to use the NoScript add-on. This plug-in lets you pick and choose which Web sites are allowed to run JavaScript.

IE still has unpatched XML flaw

Secunia reported an XMLHTTPRequest vulnerability in Internet Explorer back in September 2005. This is another flaw that also still hasn’t been patched. The flaw is suspected to be one of the things that let the cross-site scripting worm that hit MySpace work so well in October of that year.

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Trademarks: Microsoft and Windows are registered trademarks of Microsoft Corporation. The Windows Secrets series of books is published by Wiley Publishing Inc. The Windows Secrets Newsletter, WindowsSecrets.com, WinFind, Windows Gizmos, Security Baseline, Patch Watch, Perimeter Scan, Wacky Web Week, the Logo Design (W, S or road, and Star), and the slogan Everything Microsoft Forgot to Mention all are trademarks and service marks of iNET Interactive. All other marks are the trademarks or service marks of their respective owners.
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