Secunia

Two weaknesses have been discovered in Internet Explorer, which can be exploited by malicious people to trick users into disclosing sensitive information and performing certain actions on local resources.

1) The application allows network shares to be displayed in an iframe and can be exploited to trick a user into performing certain actions on local folders and files via e.g. an iframe referencing "\\127.0.0.1\c$\".

Successful exploitation allows e.g. deleting local folders, storing images to local folders, or renaming local files and folders, but requires the user to perform certain keyboard or mouse actions.

2) An error when handling cookie files within an iframe can be exploited to trick users into disclosing a cookie when the user visits a specially crafted web page.

The weaknesses are confirmed in Internet Explorer 6, 7, and 8 on a fully patched Windows XP SP3.

Solution
Apply patches to fix vulnerability #2. Do not perform suspicious actions on untrusted web sites.
Further details available in Customer Area

Provided and/or discovered by
1) cyber flash
2) Rosario Valotta

Changelog
Further details available in Customer Area

Original Advisory
MS11-057 (KB2559049):
http://www.microsoft.com/technet/security/bulletin/MS11-057.mspx

Rosario Valotta:
http://archives.neohapsis.com/archives/fulldisclosure/2011-05/0475.html

Deep Links
Links available in Customer Area