A new worm has emerged which is believed to be a more virulent version of Code Red.

Researchers from Kingsoft, the Beijing based Software vendor, first detected the worm and raised the alarm. Like code Red this worm can affect Windows NT and Windows 2000 users. However it is feared this worm may have a deadlier bite than the late Code Red.

Once Code Blue has infected a machine it will create several files, which will be uploaded to the machines directory in attempt to keep the worm hidden. Most of the files created are standard Windows NT/2000. However one particular file named SVCHOST.EXE is installed in the start-up page of Windows. This malicious file will ensure that the worm is activated each time the system is started. A software has been developed by Kingsoft that is able to detect and remove the worm.