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http://www.exploit-db.com/exploits/8055/ says:

The telnet protocol allows to pass environment variables inside the telnet traffic and assign them to the other side of the tcp connection. The telnet daemon of FreeBSD 7.0-RELEASE does not check for LD_* (like LD_PRELOAD) environment variables prior to executing /bin/login. So passing an environment variable with the identifier LD_PRELOAD and the value of a precompiled library that is on the filesystem of the victims box that includes malicious code is possible. When /bin/login is executed with the user id and group id 0 ('root') it preloads the library that was set by remote connection through a telnet environment definition and executes it. It is unlikely that this bug can be exploited remotely but is not impossible. An attacker could f.e. upload a malicious library using ftp (including anonymous ftp users), nfs, smb or any other (file) transfer protocol. One scenario to exploit the bug remotely would be a ftp server running beside the telnet daemon serving also anoynmous users with write access. Then the attacker would upload the malicious library and defines the LD_PRELOAD variable to something similar to /var/ftp/mallib.so to gain remote root access.

So, if I create a new telnet and inetd under a non-super user, is this exploit not working? It seems so as /bin/login must be executed with the user id of root, but I am not sure if /bin/login is always executed as the user id of root...

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I would question why run telnet at all? Why not SSH? And /bin/login will have SUID bit set usually. –  ewanm89 Sep 22 '12 at 16:06
    
@ewanm89 but the exploit I mentioned was about telnet... And I am just testing my machine.. to learn penetration testing. Or are you saying that the exploit can be changed into SSH exploit? –  AAAAAAA Sep 23 '12 at 0:16
    
Ah okay, makes more sense, just don't expect telnet to be a common target. If you so much as find it, it should probably be reported as bad to start with. –  ewanm89 Sep 23 '12 at 11:12
    
@ewanm89 So, what I am doing is, there is telnet running, but suppose that I restrict myself to a non-privileged user. The user can upload files into /tmp only, and using this directory, the user installs a new inetd server and a new telnet server, owned by the user. Then, from another machine, I connect to the machine that runs telnet server, launches an exploit that passes unchecked environment variables and executes /bin/login. The question is, would this way even be able to execute /bin/login? Also, if it does, would this pass unchecked environment variables successfully? –  AAAAAAA Sep 23 '12 at 11:18
    
Or, you can suppose that telnet was originally not running - it does not matter anyway. –  AAAAAAA Sep 23 '12 at 11:19
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1 Answer

No. I think the described vulnerability existed because the target telnet daemon ran with root privileges and allowed the client to define LD_PRELOAD= value that would be used when running /bin/login as root.

Setting LD_PRELOAD environment variable for a root process allowed the attacker to point to a specific library (arbitrary code) that would be executed as the root user.

The host operating system knows that LD_PRELOAD must be ignored if a setuid() binary is called .

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