A weakness has been discovered in Internet Explorer 7, which can be exploited by malicious people to conduct spoofing attacks.
The problem is caused due to an unintended result of the IDN (International Domain Name) implementation in the HTTP Basic Authentication dialog. This can be exploited to spoof a server in the authentication dialog using international characters in domain names when a user visits a malicious web page.
The weakness is confirmed in Internet Explorer 7 on a fully patched Windows XP. Other versions may also be affected.
Solution: Do not provide user credential to suspicious authentication dialogs.
Provided and/or discovered by: Alex
Original Advisory: http://www.bitsploit.de/archives/428-Cross-Domain-Basic-Auth-Phishing-Tactics.html
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Subject: Microsoft Internet Explorer 7 HTTP Basic Authentication IDN Spoofing
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