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Chinese Hackers Exploit SSH Daemon to Maintain Persistent Access in Cyber-Espionage Operations

 

A sophisticated cyber-espionage campaign attributed to the Chinese hacking group Evasive Panda, also known as DaggerFly, has been uncovered, targeting network appliances through a newly identified attack suite. According to cybersecurity researchers at Fortinet’s FortiGuard Labs, the attackers are leveraging a malicious toolkit named ELF/Sshdinjector.A!tr, injecting malware into the SSH daemon (SSHD) to establish long-term access and execute covert operations. 

Active since at least mid-November 2024, this attack method enables unauthorized control over compromised systems. While the initial entry point remains unclear, once infiltrated, a dropper module determines whether the device is already infected and assesses its privilege level. If running under root permissions, the malware deploys multiple binaries, including libssdh.so, which serves as the primary backdoor responsible for command-and-control (C2) communication and data exfiltration. 

Additional components such as “mainpasteheader” and “selfrecoverheader” are used to maintain persistence. The injected SSH library covertly monitors and executes commands received from a remote C2 server, allowing the attackers to conduct system reconnaissance, steal credentials, manipulate files, and execute arbitrary commands. 

The malware supports fifteen different functions, ranging from collecting system details and listing active processes to reading sensitive user data and gaining remote shell access. It can also upload and download files, delete specific records, rename files, and notify the attacker when the malware is active. 

Despite previous detections of similar threats, FortiGuard’s research is the first to provide a detailed analysis of how ELF/Sshdinjector.A!tr operates. The group behind this attack, Evasive Panda, has been active since 2012 and has previously conducted cyber-espionage campaigns, including supply chain attacks via ISPs in Asia and targeted intelligence collection from U.S. organizations. 

The group was also recently linked to deploying a novel macOS backdoor. Notably, Fortinet researchers leveraged AI-assisted tools to aid in the malware’s reverse engineering process. While challenges such as hallucinations, extrapolation errors, and omissions were encountered, the experiment demonstrated AI’s growing potential in cybersecurity research. 

Fortinet assures that its customers are already protected against this threat through its FortiGuard AntiVirus service, which detects the malware as ELF/Sshdinjector.A!tr and Linux/Agent.ACQ!tr. The company has also provided hashes of identified samples on VirusTotal for further investigation by the security community.

FBI Hacks 4,200 Computers to Remove PlugX Malware Linked to Chinese Hackers

 

The FBI has successfully hacked and removed PlugX malware from approximately 4,200 computers across the US in a large-scale cybersecurity operation. The malware, allegedly deployed by the China-based hacking group known as “Mustang Panda” or “Twill Typhoon,” has been used since at least 2012 to steal sensitive information from victims in the US, Asia, and Europe. 

The Department of Justice announced the takedown on Tuesday, highlighting the collaborative efforts with French law enforcement to mitigate the cyber threat and prevent further damage. PlugX malware, which infects Windows computers via USB ports, allows hackers to gain unauthorized access and remotely execute commands on compromised systems. The malware operates stealthily in the background, enabling cybercriminals to exfiltrate data, monitor activity, and take control of infected machines. 

According to the FBI, compromised computers establish a connection with a command-and-control server operated by the attackers, with the malware’s IP address embedded directly into the code. Since September 2023, at least 45,000 US-based IP addresses have communicated with the server, indicating the widespread reach of the cyberattack. To eliminate the malware, the FBI leveraged the same exploit used by the attackers. After gaining access to the command-and-control infrastructure, agents retrieved the IP addresses of affected devices and issued a native command that instructed PlugX to delete itself from compromised systems. 

This command removed all files created by the malware, stopped its operation, and ensured its permanent deletion from the infected machines. The successful execution of this operation marks a significant step in neutralizing the ongoing cyber threat posed by Mustang Panda. This coordinated effort was not the first time the FBI has intervened remotely to remove malicious software from infected systems. 

In 2023, the agency dismantled a network of Quakbot-infected computers by deploying an uninstallation tool to affected devices, effectively neutralizing the botnet. Similarly, in 2021, the FBI took proactive measures to counter the Hafnium hack, which targeted Microsoft Exchange servers, by remotely patching vulnerabilities and securing affected systems. These operations demonstrate the FBI’s evolving approach to addressing cyber threats through direct intervention and international cooperation. 

Despite these successful operations, cybersecurity experts warn that PlugX and similar malware strains continue to pose a significant risk, especially given their ability to spread through USB devices. Organizations and individuals are advised to remain vigilant by implementing strong cybersecurity practices such as regularly updating software, disabling USB autorun features, and using endpoint protection tools to detect and prevent unauthorized access. 

The FBI’s decisive action highlights the persistent threat posed by state-sponsored hacking groups and underscores the importance of international collaboration in combating cybercrime. Moving forward, law enforcement agencies are expected to adopt more aggressive measures to counter cyber threats and protect sensitive information from being exploited by malicious actors.

Japan Attributes Ongoing Cyberattacks to China-Linked MirrorFace Group

 


Japan's National Police Agency (NPA) and the National Centre of Incident Readiness and Strategy for Cybersecurity (NISC) have officially attributed a prolonged cyberattack campaign targeting Japanese organizations and individuals since 2019 to the China-linked threat actor MirrorFace, also known as Earth Kasha.

The cyberattacks were designed to steal sensitive information related to Japan's national security and emerging technologies. MirrorFace is reportedly a subgroup of the Chinese state-sponsored hacking collective APT10, notorious for deploying malware tools such as ANEL, LODEINFO, and NOOPDOOR.

Authorities have identified three distinct phases in MirrorFace's attack operations:
  • December 2019 – July 2023: Spear-phishing emails carrying malware like LODEINFO, LilimRAT, and NOOPDOOR targeted government agencies, think tanks, politicians, and media outlets.
  • February – October 2023: Malware such as Cobalt Strike Beacon, LODEINFO, and NOOPDOOR was deployed through vulnerabilities in network devices to infiltrate sectors like semiconductors, aerospace, and academic institutions.
  • June 2024 – Present: Phishing emails loaded with ANEL malware were sent to think tanks, political figures, and media organizations.

Sophisticated Cyberattack Techniques

MirrorFace utilized advanced methods to evade detection and maintain persistence, including:
  • Windows Sandbox Deployment: Malware was executed within the Windows Sandbox, a virtualized environment that limits malware persistence by erasing data upon system reset.
  • Evasion of Security Tools: This technique allowed malware to operate undetected by antivirus software.

Scale and Impact of the Cyberattacks

The NPA has connected MirrorFace to over 200 cyber incidents spanning five years. The affected sectors include:
  • Government Agencies
  • Defense Organizations
  • Space Research Centers
  • Private Enterprises in Advanced Technologies

Phishing emails often used compelling subjects like "Japan-US alliance" and "Taiwan Strait" to deceive recipients into downloading malicious attachments. Notable attacks linked to similar tactics include:
  • Japan Aerospace Exploration Agency (JAXA): Targeted in a sophisticated cyberattack.
  • Port of Nagoya (2023): Disrupted by a ransomware incident.

In response to these threats, the NPA issued a public warning:

“This alert aims to raise awareness among targeted organizations, businesses, and individuals about the threats they face in cyberspace by publicly disclosing the methods used in the cyber-attacks by ‘MirrorFace.’ It also seeks to encourage the implementation of appropriate security measures to prevent the expansion of damage from cyber-attacks and to avert potential harm.”

The warning underscores the need for heightened cybersecurity practices across sectors to mitigate risks from increasingly sophisticated cyber threats.

Chinese Hackers Target U.S. Treasury Sanctions Office

 


A major cybersecurity breach has been reported against the U.S. Treasury Department, specifically its Office of Foreign Assets Control (OFAC). OFAC, which oversees trade and economic sanctions, was accessed by Chinese state-backed hackers in what officials have described as a "major incident."  

How the Attack Happened

The breach was through a vulnerability in BeyondTrust, a remote support software used by the Treasury. Hackers exploited this platform to gain unauthorized access to sensitive government systems. OFAC was their primary focus, likely because of its role in managing sanctions against foreign entities, including Chinese individuals and organizations.

OFAC was originally created in 1950 in the Korean War to block assets from China and North Korea. Today, it remains a very central part of U.S. sanctions enforcement. This makes OFAC a high-value target for espionage. 

Impact of the Breach

According to the reports, in addition to OFAC, the hackers accessed the Treasury's Office of Financial Research. Officials have so far confirmed that the compromised systems have been secured, and the hackers do not have access any longer. The extent of data stolen or misused is yet to be determined.  

The same hacking crew, which identified itself as the "Salt Typhoon," also has been identified with earlier incidents of hacking other major U.S. telecom firms, including Verizon and AT&T, whose breaches enabled illicit access to customers' communications-affecting contents such as sent text messages or calls, among others-as well as wiretaps conducted by police.

Salt Typhoon is not limited to the United States, as there have been reports of similar breaches in telecommunications networks of several countries. This has shown weaknesses in crucial communication infrastructure. 

In response to these incursions, U.S. officials have called for more stringent cybersecurity measures. CISA has suggested using encrypted messaging apps such as Signal to secure communications. Moreover, lawmakers are thinking of banning China Telecom's remaining operations in the U.S.

Senator Ron Wyden also introduced new legislation to ensure the US telecom system's security. All these steps are taken to avoid such breaches in the future and to prevent the sensitive data pertaining to the government and private institutions, which would have been accessed by the state-funded cyberattacks. This was a highly sophisticated cyber-espionage campaign, thus proving the explicit necessity for security measures.



Salt Typhoon Hack: A Grave Threat to U.S. Telecommunications

 


The Chinese state-sponsored hacking group Salt Typhoon has been implicated in one of the most severe breaches in U.S. telecommunications history. Sensitive information, including call logs, timestamps, phone numbers, and location data, was compromised across the networks of at least eight major telecom carriers, including AT&T and Verizon. Despite the scale of the intrusion, many affected consumers remain uninformed about the breach.

Scope and Impact of the Breach

According to reports, Salt Typhoon’s hacking campaign has targeted high-value intelligence figures, including presidential candidates Donald Trump and Kamala Harris, as well as Senator Chuck Schumer's office. The FBI estimates that millions of users’ metadata, particularly in the Washington, D.C., area, were accessed. Yet, most affected individuals have not been notified, raising serious privacy concerns.

AT&T and Verizon, the most severely impacted companies, have faced backlash for their limited response to the breach. Privacy groups have criticized the telecom giants for failing to comply with the Federal Communications Commission (FCC) mandate requiring companies to inform customers of breaches that could cause significant harm, such as identity theft or financial loss.

Telecom Industry’s Response

While high-value targets were promptly alerted, the majority of users whose data was compromised were not informed. In an interview with NBC, Alan Butler, executive director of the Electronic Privacy Information Center, condemned the carriers’ "deficient practices." He emphasized the need for transparency, urging companies to notify all affected customers, regardless of whether their metadata or the actual content of their communications was accessed.

Charter Communications, a midsize internet service provider, has taken a relatively open approach, acknowledging infiltration by Salt Typhoon. According to Chief Security Officer Jeff Simon, access by the hackers has since been cut off, and no customer information was reportedly accessed. In contrast, other companies like Lumen, another internet service provider, have downplayed or refused to disclose the extent of the breach.

Ongoing Threats and Legislative Action

Cybersecurity experts warn that Salt Typhoon continues to target U.S. telecom networks and IT infrastructure. Government agencies are closely monitoring the situation to mitigate further risks. Lawmakers are now considering stricter cybersecurity regulations to compel telecom companies to adopt robust practices and provide detailed breach notifications to consumers.

However, some companies targeted by Salt Typhoon claim the hackers did not gain substantial information. For example, Lumen stated that federal partners found no evidence of ongoing activity in its networks.

Consumer Awareness and Future Outlook

While telecom companies have yet to adequately address these breaches, consumers must stay informed about security risks by following news updates on data breaches. Public pressure is likely to drive industry-wide changes, prompting carriers like AT&T and Verizon to adopt comprehensive notification systems for all affected users.

The Salt Typhoon breach serves as a wake-up call for the telecommunications industry to prioritize data security. Enhanced transparency, stricter cybersecurity regulations, and informed decision-making will be crucial to safeguarding sensitive information in an increasingly digital world.

CISA Issues Mobile Security Guidelines Amid Cyber Espionage Threats

 


The US Cybersecurity and Infrastructure Security Agency (CISA) released a comprehensive guide on Wednesday to help individuals in highly targeted positions protect their mobile communications from malicious actors. This move follows a series of sophisticated telecom hacks that impacted major US wireless carriers, including Verizon, AT&T, Lumen Technologies, and T-Mobile. The attacks were linked to Salt Typhoon, a China-backed cyber espionage group.

Earlier this month, the US government emphasized strengthening communications infrastructure security, with specific focus on risks tied to Cisco devices, a prime target for state-sponsored hackers. In line with this, CISA unveiled its Mobile Communications Best Practice guide, aimed at mitigating risks posed by foreign threat actors, especially Chinese cyber espionage groups.

Who Needs This Guide?

CISA’s guidelines are tailored for individuals in senior government and political roles, who are more likely to possess information of interest to sophisticated threat actors. The agency warned, “Highly targeted individuals should assume that all communications between mobile devices—including government and personal devices—and internet services are at risk of interception or manipulation.”

Key Recommendations

  • Use Encrypted Messaging Apps: CISA recommends apps like Signal, which provide end-to-end encryption and features like vanishing messages for enhanced privacy.
  • Enable Phishing-Resistant MFA: Implement Fast Identity Online (FIDO) multi-factor authentication and avoid SMS-based MFA for improved account security.
  • Adopt Additional Security Practices:
    • Use password managers and telco PINs or passcodes for mobile accounts.
    • Regularly update operating systems and applications.
    • Opt for the latest phone models from manufacturers with strong security records.
    • Avoid private virtual private networks (VPNs) due to potential vulnerabilities.

Special Recommendations for Android Users

Android device users are advised to:

  • Enable end-to-end encryption in Rich Communication Services (RCS).
  • Protect DNS queries and use secure connections in Chrome.
  • Activate Enhanced Protection in Safe Browsing and Google Play Protect.
  • Limit unnecessary app permissions to reduce exposure to vulnerabilities.

As cyber threats grow in complexity, CISA’s proactive guidelines serve as a critical resource for mitigating risks and securing sensitive communications. For the complete document, visit the CISA website.

NCSC Unveils “Pigmy Goat” Malware Targeting Sophos Firewalls in Advanced Chinese Cyberattack

 

The National Cyber Security Centre (NCSC) recently disclosed the presence of a Linux malware, “Pigmy Goat,” specifically designed to breach Sophos XG firewall devices. This malware, allegedly developed by Chinese cyber actors, represents a significant evolution in network infiltration tactics due to its complexity and advanced evasion methods. 

This revelation follows Sophos’ recent “Pacific Rim” reports, which detail a five-year campaign involving Chinese threat actors targeting network devices at an unprecedented scale. Among the identified tools, “Pigmy Goat” stands out as a rootkit crafted to resemble legitimate Sophos product files, making it challenging to detect. This strategy is known to use stealth by masking its identity within commonly named system files to evade basic detection protocols. “Pigmy Goat” enables threat actors to establish persistent, unauthorized access to the target’s network. Using the LD_PRELOAD environment variable, it embeds itself in the SSH daemon (sshd), allowing it to intercept and alter incoming connections. 

The malware seeks specific sequences called “magic bytes” to identify backdoor sessions, which it redirects through a Unix socket, thereby concealing its presence from standard security monitoring. Once a connection is established, it communicates with command and control (C2) servers over TLS. The malware cleverly mimics Fortinet’s FortiGate certificate, blending into networks where Fortinet devices are prevalent, to avoid suspicion. This backdoor offers threat actors multiple capabilities to monitor, control, and manipulate the network environment. Through commands from the C2, attackers can remotely open shell access, track network activity, adjust scheduled tasks, or even set up a SOCKS5 proxy, which helps them remain undetected while maintaining control over the network. These actions could allow unauthorized data access or further exploitation, posing significant threats to organizational cybersecurity. 

The NCSC report aligns “Pigmy Goat” with tactics used in “Castletap” malware, which cybersecurity firm Mandiant has linked to Chinese nation-state actors. The report’s insights reinforce concerns over the evolving sophistication in state-sponsored cyber tools aimed at infiltrating critical network infrastructure worldwide. Detection and prevention of “Pigmy Goat” are crucial to mitigating its impact. The NCSC report provides tools for identifying infection, including file hashes, YARA rules, and Snort rules, which can detect specific sequences and fake SSH handshakes associated with the malware. 

Additionally, monitoring for unusual files and behaviours, such as encrypted payloads in ICMP packets or the use of ‘LD_PRELOAD’ within the sshd process, can be effective. These insights empower network defenders to recognize early signs of compromise and respond swiftly, reinforcing defences against this sophisticated threat.

Chinese Hackers Breach US Telco Networks to Access US Court Wiretap Systems

 

A Wall Street Journal report claims that Chinese hackers gained access to systems used for court-authorized wiretaps by breaking into the networks of major US telecommunications companies. 

The breach, which targeted companies such as Verizon Communications, AT&T, and Lumen Technologies, may have allowed the attackers to go unnoticed for months while gathering critical details regarding government requests for communications data. 

The hackers, who are believed to be affiliated with a state-sponsored Chinese group, were able to breach the system that telecom firms use to handle wiretaps authorised by the government. This breach may have given the perpetrators access to sensitive US internet traffic, allowing them to monitor communications under surveillance orders. 

The attack was recently identified, and it is believed that the hackers may have had long-term access to these networks, gathering intelligence. US investigators have dubbed the group responsible for the breach "Salt Typhoon" The incident is part of a larger pattern of cyber espionage actions attributed to Chinese hackers. 

Earlier this year, US law enforcement shut down another significant Chinese hacking campaign known as "Flax Typhoon," a group suspected of widespread cyber-espionage. These operations are believed to be aimed at gathering intelligence for the Chinese government. 

China's denial

The Chinese foreign ministry responded to the charges by rejecting any involvement in the cyber operation. In a statement, they claimed they were unaware of the attack mentioned in the report and accused the US of fabricating a "false narrative" to blame China. 

The ministry also criticised the US for impeding global cybersecurity cooperation and communication, describing the charges as a roadblock to international efforts to confront cybersecurity concerns. Beijing has always refuted all allegations of state-sponsored hacking, including those made by the US government.

In this instance, China's foreign ministry mentioned details provided by their own cybersecurity agency, claiming that "Volt Typhoon," another supposed Beijing-linked gang, was actually the work of a global ransomware organisation.