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Chances are that you've seen the Microsoft Security Advisory, but in case you haven't here's the "tl;dr" version:
The vulnerability is based on a cryptographic oracle. When talking amongst the crypto crowd, an “oracle” refers to a system that gives away hints if you ask it the right questions.
Within ASP.NET, there’s a vulnerability that acts like a “padding oracle”. An attacker can send ciphertext to the web server and learn if it was decrypted properly by looking at the error code returned by the server. Make lots of requests like that while keeping track of the error codes returned, and you can learn enough to decrypt the ciphertext.
The vulnerability works because of the different error codes returned by the server. The workaround is to change the error handling withing ASP.NET so that it always sends the same error each time, regardless of the error, thereby cancelling the “oracular” behaviour.
More specifically, this involves enabling the <customErrors> feature of ASP.NET and mapping all errors to return the same error page.
<customErrors>
Scott Guthrie’s blog has the step-by-step instructions for:
If you’ve got an ASP.NET-based application, make sure you’ve set up the workaround!
This article also appears in Global Nerdy.
There is also a post by Security Research & Defense Blog which goes into details with scripts on how to detect if action is required: blogs.technet.com/.../understanding-the-asp-net-vulnerability.aspx
Don't forget SharePoint...
blogs.msdn.com/.../security-advisory-2416728-vulnerability-in-asp-net-and-sharepoint.aspx