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DNS tunneling is a non standard solution to exchange data using the DNS protocol. It can be used to extract data silently or to establish a communication channel with an external malicious server in the case of a Command and Control (C&C) exchange.
The DNS protocol is transactional and bi-dirctional, a client asks for a resolution and an answer is provided by one of the elements of the DNS hierarchy (recursive or authoritative server). Since this protocol is part of the network infrastructure it is not supervised in the same manner as an application transport protocol like HTTP for web browsing or SMTP for mail transfer. Therefore cybercriminals are able to use this transactional protocol to exchange application data rather than to simply resolve name (FQDN) in IP address.
DNS tunneling uses standard DNS transactions (e.g. getting the IP address associated with an FQDN) to exchange information with a malicious server acting as the DNS authoritative server for the specific DNS zone. A typical simplified flow would be the following:
DNS tunneling can be used by a single user willing to establish a 2-way communication with the outside of the trusted zone, using his server to act as a DNS server on one side (outside) and a specific DNS-modified client on the other side (inside). DNS tunneling is also mainly used by command and control servers to pilot the next action for multiple instances of their malware installed on infected devices, for example to perform a distributed denial of service attack against a web site.
Many implementations are available to build simple dns tunnels, both for the server side and the client side. Here is a small subset:
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