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Last year, there was discussion of Google Code, a site which allows developers to host their projects, being used to spread malware. zScaler research found yet another case where Google Code is being used to spread malware. According to Google Code site,
"Project Hosting on Google Code provides a free collaborative development environment for open source projects. Each project comes with its own member controls, Subversion/Mercurial repository, issue tracker, wiki pages, and downloads section. Our project hosting service is simple, fast, reliable, and scalable, so that you can focus on your own open source development".
The malicious project in question has about 50+ executable stored in the download section of the project.
Most of the files are executable files along with zipped ".rar" files. The time stamps show that the files have been uploaded over the course of the last month. This suggests that an attacker is actively using this free service to spread malware. Virustotal results for the first file, show that only 8 antivirus vendors out of 43 flagged the file as malicious. The detection ratio for second file is slightly better than that of the first file.Analysis of all files shows that they are all malicious threats including Trojans horses, backdoors, password stealing Keyloggers for online games such as "World of Warcraft" etc. Analysis of the file resources from ThreatExpert report indicates the possible country of origin is China. Interestingly, Google Code FAQ page says they will take down the whole project if they find malware being hosted on the project.

Google has immediately taken down the project and URL to that project is no longer accessible.
Source: zScaler Research

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