ESET discovered both SpellBinder and WizardNet, tools used by Chinese hackers. A China-based APT group, “The Wizards,” has been linked to a lateral movement tool, Spellbinder, which allows adversary-in-the-middle (AitM) attacks. It does so via IPv6 stateless address autoconfiguration (SLAAC) spoofing, to roam laterally in the compromised network, blocking packets and redirecting the traffic of legal Chinese software to download malicious updates from a server controlled by threat actors, ESET researchers said to The Hacker News.
The attack creates a path for a malicious downloader which is delivered by hacking the software update mechanism linked with Sogou Pinyin. Later, the downloader imitates a conduit to deploy a modular backdoor called WizardNet.
In the past, Chinese hackers have abused Sogou Pinyin’s software update process to install malware. Last year, ESET reported a hacking group called Blackwood that delivered an implant called NSPX30 by abusing the update process of the Chinese input method software app.
This year, the Slovak cybersecurity company found another threat actor called PlushDaemon that exploited the same process to deploy a custom downloader called LittleDaemon.
The Wizards APT has targeted both individuals and the gambling industry in Hong Kong, Mainland China, Cambodia, the United Arab Emirates, and the Phillippines.
Findings highlight that the Spellbinder IPv6 AitM tool has been active since 2022. A successful attack is followed by the delivery of a ZIP archive which includes four separate files.
After this, the threat actors install “wincap.exe” and perform "AVGApplicationFrameHost.exe," to sideload the DLL. The DLL file then reads shellcode from “log.dat” and runs it in memory, resulting in the launch of Spellbinder.
In a 2024 attack incident, the hackers utilized this technique to hack the software update process for Tencent QQ at the DNS level to help a trojanized version deploy WizardNet; a modular backdoor that can receive and run .NET payloads on the victim host. Spellbinder does this by blocking the DNS query for the software update domain ("update.browser.qq[.]com") and releasing a DNS response
“The list of targeted domains belongs to several popular Chinese platforms, such as Tencent, Baidu, Xunlei, Youku, iQIYI, Kingsoft, Mango TV, Funshion, Yuodao, Xiaomi and Xioami's Miui, PPLive, Meitu, Quihoo 360, and Baofeng,” reports The Hacker News.
The ransomware strain Qilin has surfaced as a new danger to computers using VMware ESXi, which is a recent development in the cryptocurrency space. Concerned observers have expressed concern over the fact that this Qilin Linux version exhibits a targeted and advanced strategy that particularly targets virtualized systems.
The notification, released on Thursday, lists several contributing causes, including rising LNG exports from the United States, shifts in the global crude oil supply chain favoring the United States, continued Western pressure on Russia's energy supply, and China's reliance on imported oil.
The alert, however, did not mention any particular advanced persistent threat (APT) group linked with China or Russia, nor did it cite any cybersecurity incident targeting critical infrastructure. Instead, it makes general mention of how appealing U.S. networks are to foreign hackers and cautions recipients that Chinese and Russian hackers are always looking to examine important systems and improve their capabilities to exploit vulnerabilities they find.
According to Brian Harrell, former assistant secretary for infrastructure protection at the Department of Homeland Security and now an energy sector executive, “Utilities see probing and low-level attempted attacks every day by the Russians and PRC.”
These low-profile attacks help hackers to get an insight into the important aspects of specific systems like where a target has open ports or determine potential firewall restrictions. “China doesn’t make a lot of noise, but the small localized intrusions are helping build their network attack capabilities, likely for future use[…]There’s no doubt that the energy sector is on the front lines of malicious cyber-activity right now as China preps the battlefield,” Harrell added.
As the notification suggests, Chinese hackers have exploited certain US entities by conducting “post-exploitation activity with generic reconnaissance commands using ‘live off the land’ tools.”
“Living off the land,” certainly means an attacker is exploiting tools or features that are already present in the target environment. For instance, sneaky varieties of ransomware like WannaCry and LockBit have covered their tracks and survived inside a network by using a default Windows binary, an existing piece of operating system code.
The warning states that state-backed Chinese hackers have been targeting common vulnerabilities since 2020, in order to, “target US and allied networks and software/hardware companies to steal intellectual property and develop access into sensitive networks to include critical infrastructure, defense industrial base sectors, and private sector organizations.”
However, the FBI declined to comment on the notification.
The notification further highlights how the Russian invasion of Ukraine altered the world's energy supply chain, citing Western sanctions as a "significant driver" of recent changes in the LNG supply chain. According to the notification, the modification will probably lead to an increase in Russian hackers' targeting of the American energy sector.
In 2022, 74% of Europe’s LNG imports originated in the U.S. the notification said, noting that the US was able to meet European LNG demand.
It also added that since 2016, Russian hackers have targeted state agencies and several US-based critical infrastructure sectors by, “staging targets networks as pivot points and malware repositories when targeting their final intended victims.”
Security researchers have identified a new wave of attacks using the XWorm malware that exploits the Follina vulnerability. XWorm is a remote access trojan (RAT) that has been previously linked to state-sponsored Chinese hacking groups. The Follina vulnerability is a critical vulnerability in Microsoft Windows systems that was first disclosed in 2022.
The Chinese government has recently launched a crackdown on deepfakes, a type of synthetic media that involves manipulating images, videos, or audio to make them appear to be real. Despite these efforts, however, several Chinese apps that utilize deepfakes are finding a large audience in the country.
Deepfakes have become a significant concern in recent years due to their potential to spread misinformation and manipulate public opinion. Cybersecurity experts warn that deepfakes can be used for nefarious purposes such as identity theft, fraud, and even political propaganda.
China's new laws aim to prevent the spread of false information and improve cybersecurity. However, the government's efforts have not deterred developers from creating deepfake apps that remain popular among Chinese consumers. These apps allow users to create deepfake videos and images with ease, making it possible to manipulate content in ways that were previously impossible.
While these apps are designed to be entertaining and harmless, they can pose significant risks to personal privacy and security. Deepfake technology is becoming increasingly advanced, and it is becoming more difficult to distinguish between real and fake content.
To protect themselves, users should exercise caution when using deepfake apps and be aware of the potential risks. They should also ensure that they are downloading apps from reputable sources and regularly update their devices to the latest software version to mitigate any vulnerabilities.
The proliferation of deepfake apps highlights the importance of continued vigilance in the fight against cyber threats. Governments, organizations, and individuals must work together to stay ahead of evolving threats and take steps to mitigate risks.
China's crackdown on deepfakes has not stopped the popularity of deepfake apps in the country. Cybersecurity experts warn that these apps can pose significant risks to personal privacy and security, and users should exercise caution when using them. The continued proliferation of deepfakes emphasizes the importance of continued vigilance in the fight against cyber threats.