The dropper sample analyzed here was picked up from a colleague in the forums. It’s identified as Trojan Winlock, Calelk.C, and other various names. It has also been known to partner up with the TDSS rootkit, although this sample did not drop that component of the infection.
Analysis
On the date of analysis less than half of the scanners at VT identified this sample as Malware, but I’m sure this will improve as time passes and the engines play catch up in the never ending game of cat and mouse.
Virus Total Results
Neither ThreatExpert or the Norman Sandbox picked up any malicious activity on this sample.
True dynamic analysis was impossible to do with my preferred tools (Regshot, InstallWatch, ProcessExplorer) because immediately after execution of the sample the entire system was locked and displayed the following screen.

Nothing would work, other than clicking on the link which would open up a porn page in IE. No program would run, Task Manager would not run, and the system had to be physically shut off. Safe Mode unfortunately proved to give the same results, making this pretty much impossible to remove when the OS is loaded. We see where they got the name Winlock for this one.
I cannot decipher what most of the message in the window is saying, but there does appear to be a phone number to contact the hacker and get your PC unlocked, for a small price I’m sure. So the goal of this infection is to “kidnap” your computer and demand a ransom. Obviously it is not advised to make any contact with them or give them any money.
Removal and Recovery
With this infection we need to resort to some type of boot CD which will allow us to work from outside the operating system. There are several of these Windows based PE disks such as BartPE and UBCD4 for Windows. I would also suppose you could use a Linux based disk to copy/backup files to another disk, or run some Anti-Malware tools to try and clean it. My favorite tool for this type of work is a tool designed by one of the developers in the Anti-Malware forums, OldTimer. It’s based on the Reatogo PE disk and includes OldTimer’s OTL (formerly OTListIt), which is similar to HijackThis but provides a much more thorough system analysis. Although there are some questions around the legality of downloading and preparing such a disk and potential copyright infringements, this tool can be easily made by users with some simple instructions from a forum helper and with a little guidance can aid in the removal of the infection. My feeling is that if the user has a legal copy of Windows, then why can’t they create a disk to aid in repairing it?
Now with that out of the way, we can load the PE environment onto the infected PC and run OTL. Here we can see how this infection loads right when the PC starts. The following registry entry is created:
020-HKLM Winlogon: UserInit-(C:\DOCUME~1\Dave\LOCALS~1\Temp\bldjad.exe)
Which equates to this in our registry:
HKEY_LOCAL_MACHINE\Software\Microsoft\Windows NT\CurrentVersion\Winlogon
Userinit=C:\WINDOWS\system32\userinit.exe,
C:\Documents and Settings\Dave\Local Settings\Temp\bldjad.exe
The data in red (our Malware) is loaded along with the legitimate userinit value. Userinit.exe is used on boot-up to manage the different start up sequences needed, such as establishing network connection and starting up the Windows shell.
The following file is created in the temp directory should also be deleted:
C:\Documents and Settings\Dave\Local Settings\Temp\bldjad.exe
Summary
Variations of this Malware have been around for a few years now. It is mainly seen in Russia as described in this article. Do not give the attackers any information, money, or even try to call/SMS them. As I end with most every article, seek help in one of the ASAP approved forums, or if you’re not comfortable with these types of issues bring it to a shop so they can at least recover your data before wiping the OS clean. Note that most shops will wipe the OS clean rather than trying to clean the PC, whereas in the forums we will typically do our best to clean it, within reason.