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Coreflood, more Microsoft-Yahoo, iPhone plans

By Nancy Weil , IDG News Service , 07/03/2008
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A Trojan horse program that has been around for about six years is now being used to steal system-administrator passwords, including those at banking and brokerage houses, according to security researchers. And it could be that six years from now we'll still be talking about Microsoft's aim to buy Yahoo's search business, which could involve obtaining the entire company and breaking it apart. Meanwhile, early adopters will undoubtedly be out in force on July 11 to be among the first to buy the new iPhone 3G.

1. Trojan lurks, waiting to steal admin passwords : The Coreflood Trojan horse program lurks until a system administrator logs on to an infected computer and then steals the password, using a Microsoft administration tool to spread malware on the network. The malware is being used to swipe banking- and brokerage-account usernames and passwords. So far, criminals have infected hundreds of thousands of computers with Coreflood, including more than 14,000 in one global hotel chain.

2. Update: Report says Microsoft readying new try for Yahoo: Bill Gates said on his way out of his full-time gig at Microsoft that he thought a deal for his company to buy Yahoo was unlikely, but a couple of days later the Wall Street Journal reported that Microsoft is looking for partners -- Time Warner and News Corp. were named -- to help it obtain Yahoo's search business. So, to quote baseball legend Yogi Berra, "it ain't over 'til it's over." And this one clearly ain't over yet.

3. iPhone 3G set for 8 a.m. debut on July 11 and AT&T dishes on iPhone rate plans: AT&T announced prices for iPhone 3G service, which are, of course, more costly than plans for earlier iPhones. The carrier also announced that the new iPhones will be on sale at 8 in the morning, local time, on July 11. That's earlier than Apple retail stores open, though someone who answered the phone at the flagship San Francisco Apple Store wouldn't say if the opening will be moved up two hours and suggested that a reporter ring back later. (There has to be some element of the launch that maintains an air of secrecy, eh?)

4. Microsoft eases hardware terms for XP on low-cost PCs: Although June 30 marked the end of Microsoft offering most licenses for its Windows XP operating system, the company is still pushing the OS for use in low-cost PCs and it has eased hardware restrictions. Low-cost PCs with touchscreens, larger screen sizes and bigger hard drives now are eligible to use XP.

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