Microsoft Security Bulletin MS01-019

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Title:      Passwords for Compressed Folders are Recoverable
Date:       28 March 2001
Software:   Plus! 98 and Windows Me
Impact:     Data compression passwords can be recovered. 
Bulletin:   MS01-019

Microsoft encourages customers to review the Security Bulletin at: 
http://www.microsoft.com/technet/security/bulletin/MS01-019.asp.
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Issue:
======
Plus! 98, an optional package that extends Windows 98 and Windows 98 
Second Edition, introduced a data compression feature called 
Compressed Folders that was also included in Windows Me. For 
interoperability with leading third-party compression tools, it 
provides a password protection option for folders that have been 
compressed. However, due to a flaw in the package's implementation, 
the passwords used to protect the folders are recorded in a file on 
the user's system. If an attacker gained access to an affected
machine 
on which password-protected folders were stored, she could learn the 
passwords and access the files. 

It is important to understand that, although this flaw does
constitute 
a security vulnerability, the password protection feature is not 
intended to provide strong security. It was included in the products 
to enable interoperability with password-protection features in other
third-party data compression products, and is only intended to
provide 
protection against casual inspection. Customers who need strong 
protection for files should use Windows(r) 2000. 

The patch will prevent passwords from being written to the user's 
system in the future. However, as discussed in the FAQ, after
applying 
the patch, it is important to also delete c:\windows\dynazip.log, in 
order to ensure that all previously-recorded passwords are deleted. 

Mitigating Factors:
====================
 - The password at issue here is not related in any way to the 
   user's network logon password. It is used solely for 
   password-protecting compressed folders. 
 - An attacker would require physical access to an affected system
   in order to recover the password, or the owner of the machine 
   would need to have deliberately shared out the c:\windows folder. 

Patch Availability:
===================
 - A patch is available to fix this vulnerability. Please read the 
   Security Bulletin
   http://www.microsoft.com/technet/security/bulletin/ms01-019.asp
   for information on obtaining this patch.


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