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ESET Security Tool Vulnerability Facilitates TCESB Malware Deployment



The threat actor "ToddyCat," a Chinese-linked threat actor, is being observed exploiting a vulnerability in ESET security software to spread a newly discovered malware strain known as TCESB, a new strain that has recently been discovered.

In a recent study by cybersecurity company Kaspersky, the group's evolving tactics and expanding arsenal were highlighted in an analysis released by the company. The TCESB software, which consists of a novel addition to ToddyCat's toolkit, has been designed specifically to be able to stealthily execute malicious payloads without being detected by existing monitoring and protection software installed on compromised computers, according to Kaspersky.

The malware's ability to bypass security measures illustrates its sophistication and the calculated approach adopted by its operators. In recent years, TeddyCat has actively participated in several cyber-espionage campaigns primarily targeting Asian organizations, primarily targeting organisations. In at least December 2020, the group began to conduct attacks against high-value entities in the region, and it has gained notoriety for a number of these attacks, including sustained attacks on high-value entities throughout the region. 

The intrusions are believed to be intended to gather intelligence, often by compromising targeted environments for a long time. In a comprehensive report released last year, Kaspersky detailed ToddyCat's extensive use of custom and off-the-shelf tools to establish persistent access within victim networks. As part of the report, the group is also described as exfiltrating large volumes of sensitive information on an industrial scale, from a wide variety of organisations in Asia-Pacific. As part of its operations, the group is also able to exfiltrate large amounts of sensitive information. 

It was ToddyCat's tactic, technique, and procedure (TTPS) that was significantly evolved by exploitation of a security flaw in ESET software to deliver TCESB. There is an increasing trend among advanced persistent threat (APT) actors to exploit software supply chain vulnerabilities and trusted security tools as a way of infiltration by utilising these vectors. It has recently been reported by cybersecurity researchers that a group of advanced persistent threats (APT) known as ToddyCat, which has been attributed to cyber-espionage operations originating in China, has been involved in a disturbing development. 

According to an analysis published by Kaspersky, the threat actor has been exploiting a vulnerability in ESET security software to distribute a newly discovered and previously unknown malware strain dubbed TCESB by exploiting a vulnerability in ESET security software. During this malware, the group has demonstrated significant advances in their offensive capability, and the evolution of its offensive toolkit has been continuous. 

The TCESB malware is notable for its stealthy design, allowing it to execute malicious payloads without being detected by endpoint protection or monitoring software, thus demonstrating how it can accomplish its goals. By deploying it through a legitimate security solution, such as ESET, it underscores how sophisticated and strategically planned its actors are. As well as facilitating deeper penetration into targeted systems, the technique also complicates detection and response efforts by blending malicious activity with otherwise trusted processes, which is one of the most important advantages of this technique. 

ToddyCat has been active since December 2020 and has conducted a variety of targeted intrusions across a wide range of sectors within Asia. According to Kaspersky, the organisation's operations are mostly intelligence-driven, with a particular focus on maintaining access to high-value targets for data exfiltration. Previous reports have demonstrated that the group maintains persistence within compromised environments by using both custom-built and widely available tools. It is important to note that, during their campaigns, they have been perpetrating large-scale data theft, which has been described by researchers as industrial-scale harvesting, primarily from Asian entities.

As ToddyCat's operations have recently changed, it illustrates the broader trend among nation-state threat actors to weaponise trusted software platforms as a method of delivering TCESB, and marks a tactical shift in ToddyCat's operations. As a result of this incident, concerns have been raised regarding vulnerabilities in the software supply chain, as well as the increasingly sophisticated evasion techniques employed by APT actors to maintain access and achieve long-term strategic goals. Following a responsible disclosure procedure, ESET corrected the identified security vulnerability in January 2025. To mitigate the vulnerability that was exploited by ToddyCat to deploy the TCESB malware, the company released a patch to mitigate it. 

The latest security updates for ESET's widely used endpoint protection software are highly recommended for organisations using the system, as they strongly recommend implementing these updates as soon as possible. It remains critical to maintain an effective patch management process to avoid exposure to emerging threats and reduce the risk of compromise by addressing known vulnerabilities. In addition to updating their systems, organisations are advised to implement enhanced monitoring procedures to detect suspicious activity linked to the use of similar tools to detect suspicious activity. 

It is Kaspersky's belief that effective detection depends upon monitoring the events that are associated with the installation of drivers that are known to contain vulnerabilities. Furthermore, organizations should be cautious for instances involving Windows kernel debug symbols being loaded onto endpoints, particularly on endpoints where kernel debugging is not a routine or expected process. An anomaly of this kind could be indicative of a compromise and, therefore, requires immediate investigation to prevent further intrusions or data exfiltration. 

It has been determined that the TCESB malware is based on an open-source tool called EDRSandBlast, a modified variant of the malware. This adaptation incorporates advanced functionalities that are specifically intended to manipulate kernel structures, which are an integral part of the Windows operating system. It is capable of deactivating notification routines, also called callbacks, as part of its primary capabilities.

It is crucial for security and monitoring tools to work properly that these routines allow drivers to be alerted about specific system events, such as the creation of new processes or the modification of registry keys, to the extent that they will be able to be notified about these events. By enabling these callbacks, TCESB effectively makes security solutions unaware of the presence and activity of the compromised system by disabling them. Using the Bring Your Vulnerable Driver (BYOVD) technique, TCESB can achieve this degree of control.

In this particular instance, the malware can install a legitimate but vulnerable Dell driver by using the Windows Device Manager interface – DBUtilDrv2.sys. There is a security vulnerability affecting the driver known as CVE-2021-36276 that could allow attackers to execute code with elevated privileges by granting access to the driver. There has been a precedent of Dell drivers being exploited for malicious purposes for years. 

For example, in 2022, a group of North Korean advanced persistent threat actors, known as the Lazarus Group, exploited another Dell driver vulnerability (CVE-2021-21551 in dbutil_2_3.sys) in a similar BYOVD attack to disable security defences and maintain persistence against malware. When the susceptible driver has been successfully deployed to the operating system, TCESB initiates a continuous monitoring loop in which two-second intervals are checked to see if a payload file with a specific name is present in the current working directory. 

Andrey Gunkin, a researcher at Kaspersky, has pointed out that the malware is designed to operate when there is no payload at launch, and that when the malware detects the payload, it deploys an algorithm to decrypt and execute it. While the payload samples themselves were not available during the analysis period, forensic investigation revealed that the payload samples are encrypted with AES-128 and are immediately decoded and executed as soon as they are identified in the specified location, once the AES-128 algorithm has been used. 

Cybersecurity experts recommend vigilant system monitoring practices because the TCESB is so stealthy and technically sophisticated. Organizations need to monitor events related to the installation of drivers that may contain security flaws, as well as the loading of kernel debug symbols by Windows in environments where kernel-level debugging is not commonly used. It is important to investigate and investigate these behaviors immediately as they may indicate that advanced threats are trying to undermine the integrity of the system.

Rise in EDR Killers Signals Growing Threat to Ransomware Detection Systems

 

EDR killers are becoming an increasingly favored tool among ransomware-as-a-service (RaaS) affiliates, with EDRKillShifter emerging as a notable threat. According to a recent report by ESET malware researchers Jakub Souček and Jan Holman, the tool is not alone—there has been a noticeable rise in the variety of EDR killers being used by attackers.

“However, it is not the only EDR killer out there; in fact, ESET researchers have observed an increase in the variety of EDR killers used by ransomware affiliates,” Souček and Holman wrote in the report.

These tools are designed to bypass endpoint detection and response (EDR) solutions that can typically recognize and block encryption payloads used in ransomware attacks. To remain undetected, affiliates rely on EDR killers, which presents a major hurdle for both cybersecurity vendors and internal IT security teams.

ESET’s defense approach includes flagging vulnerable drivers exploited by these tools as potentially unsafe, preventing their activation. The researchers urged organizations to implement similar protective measures.

They referenced the Living Off The Land Drivers (LOLD) project, which tracks over 1,700 vulnerable drivers. However, only a small subset of these are exploited for EDR killer activity, and that number has remained largely consistent.

Identifying and neutralizing these drivers remains a technical challenge. ESET’s analysis highlights how many EDR killers use obfuscated code to dodge early-stage detection. In particular, RansomHub’s EDRKillShifter conceals its shellcode using a 64-character password.

“Without the password, security researchers can neither retrieve the list of targeted process names nor the abused vulnerable driver,” they wrote in the report.

Due to its effectiveness, EDRKillShifter has been adopted by a growing number of affiliates associated with rival ransomware groups since it was released as a service on the dark web.

ESET researchers said they saw a “steep increase” in activity following the release.

Embargo Ransomware Uses Custom Rust-Based Tools for Advanced Defense Evasion

 


Researchers at ESET claim that Embargo ransomware is using custom Rust-based tools to overcome cybersecurity defences built by vendors such as Microsoft and IBM. An instance of this new toolkit was observed during a ransomware incident targeting US companies in July 2024 and was composed of a loader and an EDR killer, namely MDeployer and MS4Killer, respectively, and was observed during a ransomware attack targeting US companies. 

Unlike other viruses, MS4Killer was customized for each victim's environment, excluding only selected security solutions. This makes it particularly dangerous to those who are unaware of its existence. It appears that the tools were created together and that some of the functionality in the tools overlaps. This report has revealed that the ransomware payloads of MDeployer, MS4Killer and Embargo were all made in Rust, which indicates that this language is the programming language that the group favours. 

During the summer of 2024, the first identification of the Embargo gang took place. This company appears to have a good amount of resources, being able to develop custom tools as well as set up its own infrastructure to help communicate with those affected. A double extortion method is used by the group - as well as encrypting the victims' data and extorting data from them, they threaten to publish those data on a leak site, demonstrating their intention to leak their data. 

Moreover, ESET considers Embargo to be a provider of ransomware-as-a-service (RaaS) that provides threats to users. The group is also able to adjust quickly during attacks. “The main purpose of the Embargo toolkit is to secure successful deployment of the ransomware payload by disabling the security solution in the victim’s infrastructure. Embargo puts a lot of effort into that, replicating the same functionality at different stages of the attack,” the researchers wrote. 

“We have also observed the attackers’ ability to adjust their tools on the fly, during an active intrusion, for a particular security solution,” they added. MDeployer is the main malicious loader Embargo attempts to deploy on victims’ machines in the compromised network. Its purpose is to facilitate ransomware execution and file encryption. It executes two payloads, MS4Killer and Embargo ransomware, and decrypts two encrypted files a.cache and b.cache that were dropped by an unknown previous stage. 

When the ransomware finishes encrypting the system, MDeployer terminates the MS4Killer process, deletes the decrypted payloads and a driver file dropped by MS4Killer, and finally reboots the system. Another feature of MDeployer is when it is executed with admin privileges as a DLL file, it attempts to reboot the victim’s system into Safe Mode to disable selected security solutions. As most cybersecurity defenses are not in effect in Safe Mode, it helps threat actors avoid detection. 

MS4Killer is a defense evasion tool that terminates security product processes using a technique known as bring your own vulnerable driver (BYOVD). MS4Killer terminates security products from the kernel by installing and abusing a vulnerable driver that is stored in a global variable. The process identifier of the process to terminate is passed to s4killer as a program argument. 

Embargo has extended the tool’s functionality with features such as running in an endless loop to constantly scan for running processes and hardcoding the list of process names to kill in the binary. After disabling the security tooling, Embargo affiliates can run the ransomware payload without worrying whether their payload gets detected. During attacks, the group can also adjust to the environment quickly, which is another advantage.

Basically, what Embargo toolkit does is that it offers a method of ensuring the successful deployment of the ransomware payload and prevents the security solution from being enabled in the victim's infrastructure on the day of deployment. This is something that Embargo invests a lot of time and effort into, replicating the same functionality at different stages of the attack process," wrote the researchers. They added that the attackers also showed a capability to modify their tools on the fly, during an active intrusion, by adjusting the settings on different security solutions on the fly. 

As part of Embargo's campaign against victims in the compromised network, MDeployer is one of the main malicious loaders that it attempts to deploy on victims' machines. With the use of this tool, ransomware can be executed and files can be encrypted easily. During the execution process, two payloads are executed, MS4Killer and Embargo ransomware, which decrypt two encrypted files a.cache and b.cache that have been left over from an unknown earlier stage onto the system.

After its encryption process, the MDeployer program systematically terminates the MS4Killer process, erases any decrypted payloads, and removes a driver previously introduced by MS4Killer. Upon completing these actions, the MDeployer initiates a system reboot. This process helps ensure that no remnants of the decryption or defence-evasion components persist on the system, potentially aiding threat actors in maintaining operational security. In scenarios where MDeployer is executed as a DLL file with administrative privileges, it has an additional capability: rebooting the compromised system into Safe Mode. 

This mode restricts numerous core functionalities, which is often leveraged by threat actors to minimize the effectiveness of cybersecurity defences and enhance stealth. Since most security tools do not operate in Safe Mode, this functionality enables attackers to evade detection more effectively and hinder any active defences, making detection and response significantly more challenging. The MS4Killer utility functions as a defense-evasion mechanism that specifically targets security product processes for termination. This is achieved using a technique referred to as "bring your own vulnerable driver" (BYOVD), wherein threat actors exploit a known vulnerable driver. 

By installing and leveraging this driver, which is maintained within a global variable, MS4Killer is able to terminate security processes from the kernel level, bypassing higher-level protections. The identifier for the targeted process is supplied as an argument to the MS4Killer program. To further enhance MS4Killer’s effectiveness, Embargo has incorporated additional capabilities, such as enabling the tool to run continuously in a loop. This looping function allows it to monitor for active processes that match a predefined list, which is hardcoded within the binary, and terminate them as they appear. 

By persistently disabling security tools, Embargo affiliates can then deploy ransomware payloads with minimal risk of detection or interference, creating an environment highly conducive to successful exploitation.

Security Defenses Crippled by Embargo Ransomware

 


There is a new gang known as Embargo ransomware that specializes in ransomware-as-a-service (RaaS). According to a study by ESET researchers published Wednesday, the Embargo ransomware group is a relatively young and undeveloped ransomware gang. It uses a custom Rust-based toolkit, with one variant utilizing the Windows Safe Mode feature to disable security processes.

ESET researchers say that the Embargo ransomware group is developing custom Rust-based tools to defeat the cybersecurity defenses put in place by companies and governments. There is a new toolkit that was discovered in July 2024 during an attack on US companies by ransomware and is made up of a loader and an EDR killer, MDeployer, and MS4Killer, respectively, which can also be accessed and downloaded online. There are several ways in which MS4Killer can be utilized. 

For instance, it can be compiled according to each victim's environment, targeting only specific security solutions. As it appears that both tools were developed together, there is some overlap in functionality between them. Several of the programs that were developed as part of the group, including MDeployer, MS4Killer, and Embargo's ransomware payload, are written in Rust, thus suggesting that the language is one that the developers use most often. It is claimed that the group has committed ten acts of cybercrime on its dark web leak site, including a non-bank lender from Australia, a police department from South Carolina, and a community hospital from Idaho. 

An interview conducted in June with a self-proclaimed representative of Embargo said that the group specializes in ransomware-as-a-service, with affiliates taking an extortion payment of up to 80%. It is believed that the toolkit discovered by Eset consists of two primary components: MDeployer, which is designed to deploy Embargo's ransomware and other malicious payloads, and MS4Killer, which is built to exploit vulnerable drivers to disable endpoint detection and response systems. 

In both MDeployment and MS4Killer, Rust is used as the programming language. Because of its memory protection features as well as its low-level capabilities, it can be used to create malware that is both effective and resilient. A study conducted by Eset reported that Embargo can target both Windows and Linux systems with Rust. It was in May 2024, one month after the first observation of Embargo in the ESET telemetry in June 2024 that Embargo was publicly observed for the first time. There are several reasons why the group has drawn attention besides the fact that it successfully breached high-profile targets as well as the language it used for its ransomware payload that piqued people's curiosity. 

As part of its development, Embargo chose Rust, which is a cross-platform programming language that provided the potential to develop ransomware that targets both Windows and Linux platforms. The Embargo group follows in the footsteps of BlackCat and Hive as yet another group developing ransomware payloads using Rust programming language. It is clear from Embargo's mode of operation that it is a well-resourced group considering its modus operandi. This system also allows victims to communicate with it via Tox, which results in the communication being managed by the system itself. It is a group that uses double extortion to force victims to pay him and then publishes the stolen information on its leaked website too. 

It is the MDeployer that Embargo uses mainly to install malicious loads on victims' computers within the compromised network to destroy them. An application for this purpose is designed to make it easier to execute ransomware and encrypt files. Two payloads are executed, MS4Killer and Embargo ransomware. Additionally, two encrypted files, a.cache, and b.cache, which were dropped by an unknown stage in the previous step, are decrypted and delivered to the victim. 

If the ransomware finishes encrypting the system, the MDeployer terminates the MS4Killer process, deletes all the decrypted payload files and the driver file dropped by MS4Killer, and finally restarts the computer. Besides the fact that MDeployer can run as a DLL file with administrative privileges, it has also the ability to reboot the victim's system into a Safe Mode if it is executed with administrator access. This is because major cybersecurity defenses aren't switched on in Safe Mode, which allows threat actors to continue operating undetected. The initial intrusion vector is unknown, however, once MDeployer has installed itself on the victim machine, it decrypts MS4Killer from the encrypted file "b.cache" and drops the file "praxisbackup.exe" into the system. 

In every single case observed by ESET, the MDeployer used the same hardcoded RC4 key to decrypt both files from "a.cache" and dropped and executed them as "pay.exe." MDeployer decrypted both files using the same hardcoded RC4 key. It has been reported that MS4Killer allegedly builds upon the S4Killer proof-of-concept tool available on GitHub and drops the vulnerable mini-filter drive problem.sys version 3.0.0.4 as part of what is known as the "Bring Your Own Vulnerable Driver" idea (BYOVD), which is a technique developed to deal with driver vulnerabilities in general. The researchers wrote in their paper that MS4Killer exploits this vulnerability to obtain kernel-level code execution and interacts with security software to carry out its malicious purposes. 

The Embargo's version of MS4Killer differs from the original MS4Killer in that Embargo has hardcoded a list of the processes to be killed into its binary. It has also encrypted the embedded driver blob which is an RC4 hash. Using cloud-based techniques, ESET researchers describe how MS4Killer runs in an endless loop and constantly seeks out processes that need to be terminated.   

MDeployer, a component of the Embargo ransomware attack chain, meticulously logs any errors encountered during its operations in a file named “fail.txt.” Upon completion of the attack — whether by successful ransomware deployment or an error in loader execution halting the attack — the MDeployer initiates a cleanup routine. This process includes terminating the MS4Killer loop and deleting specific files such as praxisbackup.exe, pay.exe, and a vulnerable driver. 

Additionally, it generates a control file named “stop.exe,” which certain MDeployer versions reference to prevent re-execution and, consequently, double encryption. Embargo, developed in Rust, appends each encrypted file with a unique, randomly generated six-character extension combining letters and numbers, such as “.b58eeb.” It also drops a ransom note titled “HOW_TO_RECOVER_FILES.txt” in each affected directory. The group has established its secure infrastructure for covert communication with victims but provides the option to negotiate through Tox chat as well. 

Although still developing, Embargo shows signs of ambition, borrowing techniques from established ransomware-as-a-service (RaaS) groups. These include implementing the "bring your vulnerable driver" (BYOVD) strategy, exploiting Safe Mode, and leveraging the adaptable Rust programming language. ESET's analysis highlights Embargo’s indicators of compromise (IoCs) and its tactics, techniques, and procedures (TTPs), offering guidance to help organizations defend against this emerging threat.

CosmicBeetle Exploits Vulnerabilities in Small Businesses Globally

 

CosmicBeetle is a cybercriminal group exploiting vulnerabilities in software commonly used by small and medium-sized businesses (SMBs) across Turkey, Spain, India, and South Africa. Their main tool, a custom ransomware called ScRansom, is still under development, leading to various issues in the encryption process. This sometimes leaves victims unable to recover their data, making the ransomware not only dangerous but also unpredictable. 

Based on analysis by Slovakian cybersecurity firm ESET, CosmicBeetle’s skills as malware developers are relatively immature. This inexperience has led to chaotic encryption schemes, with one victim’s machines being encrypted multiple times. Such issues complicate the decryption process, making it unreliable for victims to restore their data, even if they comply with ransom demands. Unlike well-established ransomware groups that focus on making the decryption process smoother to encourage payment, CosmicBeetle’s flawed approach undermines its effectiveness, leaving victims in a state of uncertainty. 

Interestingly, the group has attempted to boost its reputation by implying ties to the infamous LockBit group, a well-known and more sophisticated ransomware operation. However, these claims seem to be a tactic to appear more credible to their victims. CosmicBeetle has also joined the RansomHub affiliate program, which allows them to distribute third-party ransomware, likely as an attempt to strengthen their attack strategies. The group primarily targets outdated and unpatched software, especially in SMBs with limited cybersecurity infrastructure. They exploit known vulnerabilities in Veeam Backup & Replication and Microsoft Active Directory. 

While CosmicBeetle doesn’t specifically focus on SMBs, their choice of software vulnerabilities makes smaller organizations, which often lack robust patch management, easy targets. According to ESET, businesses in sectors such as manufacturing, pharmaceuticals, education, healthcare, and legal industries are particularly vulnerable. CosmicBeetle’s attacks are opportunistic, scanning for weak spots in various sectors where companies might not have stringent security measures in place. Turkey, in particular, has seen a high concentration of CosmicBeetle’s attacks, suggesting that the group may be operating from within the region. 

However, organizations in Spain, India, and South Africa have also been affected, illustrating the group’s global reach. CosmicBeetle’s focus on exploiting older vulnerabilities demonstrates the need for businesses to prioritize patching and updating their systems regularly. One key issue with CosmicBeetle’s operations is the immaturity of their ransomware development. Unlike more experienced cybercriminals, CosmicBeetle’s encryption tool is in a constant state of flux, making it unreliable for victims. While ESET has been able to verify that the decryption tool technically works, its rapid and frequent updates leave victims uncertain whether they can fully recover their data. To reduce the risk of falling victim to such attacks, SMBs must prioritize several cybersecurity measures. 

First and foremost, regular software updates and patch management are essential. Vulnerabilities in widely used platforms like Veeam Backup and Microsoft Active Directory must be addressed promptly. Businesses should also invest in employee cybersecurity training, emphasizing the importance of recognizing phishing attacks and suspicious links. In addition to these basic cybersecurity practices, companies should back up their data regularly and have robust incident response plans. Having a reliable backup strategy can mitigate the damage in the event of a ransomware attack, ensuring that data can be restored without paying the ransom. Companies should also invest in cybersecurity solutions that monitor for unusual network activity, providing early warning signs of potential breaches.

EvilVideo Exploit: Telegram Zero-Day Vulnerability Allows Disguised APK Attacks

 

A recent zero-day vulnerability in Telegram for Android, dubbed ‘EvilVideo,’ has been exploited by attackers to send malicious Android APK payloads disguised as video files. This significant security flaw was first brought to light when a threat actor named ‘Ancryno’ started selling the exploit on June 6, 2024, on the Russian-speaking XSS hacking forum. 

The vulnerability affected Telegram versions 10.14.4 and older. ESET researchers discovered the flaw after a proof-of-concept demonstration was shared on a public Telegram channel, allowing them to analyze the malicious payload. They confirmed that the exploit worked on Telegram v10.14.4 and older, naming it ‘EvilVideo.’ The vulnerability was responsibly disclosed to Telegram by ESET researcher Lukas Stefanko on June 26 and again on July 4, 2024. Telegram responded on July 4, indicating that they were investigating the report. 

Subsequently, they patched the vulnerability in version 10.14.5, released on July 11, 2024. This timeline suggests that threat actors had at least five weeks to exploit the zero-day vulnerability before it was patched. While it remains unclear if the flaw was actively exploited in attacks, ESET shared a command and control server (C2) used by the payloads at ‘infinityhackscharan.ddns[.]net.’ BleepingComputer identified two malicious APK files using that C2 on VirusTotal that masqueraded as Avast Antivirus and an ‘xHamster Premium Mod.’ 

The EvilVideo zero-day exploit specifically targeted Telegram for Android. It allowed attackers to create specially crafted APK files that, when sent to other users on Telegram, appeared as embedded videos. ESET believes the exploit used the Telegram API to programmatically create a message showing a 30-second video preview. The channel participants received the payload on their devices once they opened the conversation. 

For users who had disabled the auto-download feature, a single tap on the video preview was enough to initiate the file download. When users attempted to play the fake video, Telegram suggested using an external player, which could lead recipients to tap the “Open” button, executing the payload. Despite the threat actor’s claim that the exploit was “one-click,” the multiple clicks, steps, and specific settings required for a successful attack significantly reduced the risk. ESET tested the exploit on Telegram’s web client and Telegram Desktop and found that it didn’t work on these platforms, as the payload was treated as an MP4 video file. 

Telegram’s fix in version 10.14.5 now correctly displays the APK file in the preview, preventing recipients from being deceived by files masquerading as videos. Users who recently received video files requesting an external app to play via Telegram are advised to perform a filesystem scan using a mobile security suite to locate and remove any malicious payloads.

Defending Digital Frontiers: Strategies for Organizations in an Unstable World

Global Stability Issues Alter Cyber Threat Landscape

An overview

  • Geopolitical Tensions: Regional stability issues, such as political conflicts and economic tensions, have a direct impact on cyber threats. As geopolitical events unfold, threat actors adapt their strategies to exploit vulnerabilities.
  • Attack Trends: While no groundbreaking attack methods have emerged, existing techniques continue to evolve. Advanced Persistent Threat (APT) groups remain active, targeting government entities, critical infrastructure, and private organizations.
  • Leading Actors: ESET’s research identifies Russia-aligned APT groups as the most prolific attackers. Their sophisticated campaigns target various sectors, including energy, finance, and defense. China-aligned actors follow closely, focusing on espionage and intellectual property theft.

The current landscape

A recent analysis from threat intelligence analysts ESET claims that threat actors are increasing their attacks worldwide, with geographic events determining which locations are most heavily targeted. The principal author of the research recommends that CISOs to intensify their protection plans in light of the activity, even if he claims that no new attack techniques have been discovered.

The director of threat research at ESET, Jean-Ian Boutin said  that current attack methods "still work well." Thus, attackers don't always need to use innovative vectors. According to Boutin, CISOs are defending against these attacks properly; they only need to fortify themselves even more.

Impact on regional stability

The researchers claim that because the primary worldwide assault trends that ESET has identified have been directly impacted by regional stability difficulties, these challenges are also affecting the cyber sphere. The report focuses on activities of specific advanced persistent threat (APT) groups from October 2023 to March 2024, the experts said in the report.

Researchers from ESET also observed that organizations connected with Russia were concentrating on espionage activities throughout the European Union in addition to assaults against Ukraine.

Along with operations against Ukraine, ESET researchers also saw that entities connected with Russia were concentrating on espionage across the European Union. However, the researchers noted that several threat actors with ties to China took use of flaws in software and public-facing hardware, including firewalls and VPNs, as well as Confluence and Microsoft Exchange Server, to gain first access to targets across a variety of sectors.

Analysis of attacks

Using emotions to keep the assault from being disclosed is one of the more recent strategies ESET is witnessing in North Korea; this will probably increase the tactic's usefulness and duration. According to Boutin, the method has been used for years, but North Korean APT organizations are making a small adjustment.

Under the guise of a job application, the hack targets programmers and other technical talent at numerous significant US corporations. The victim is exposed to the malware and the trap is set when the attacker poses as a recruiter for such companies and requests that the victims complete an online test to demonstrate their technical proficiency.

Implications for CISOs

  • Defense Strategies: Organizations must strengthen their defense mechanisms. Proactive threat intelligence, robust network security, and employee training are essential. Zero-day vulnerabilities and supply chain attacks require constant vigilance.
  • Threat Attribution: Understanding threat actors’ motivations and affiliations is crucial. Attribution helps tailor defenses and prioritize resources effectively. Collaboration among security professionals and law enforcement agencies is vital.
  • Risk Assessment: Organizations should assess their risk exposure based on geopolitical events. Consider the impact of regional instability on critical assets and operations. Regular risk assessments inform decision-making.

XDSpy Hackers Target Russian Military Industrial Companies

XDSpy hackers attack military-industrial companies in Russia

XDSpy attcks Russian industries

A cyberespionage group called XDSpy has recently attacked Russian military-industrial enterprises, as per new research. 

XDSpy is said to be a state-controlled hacker, in the game since 2011, that mainly targets counties across Eastern Europe and the Balkans. In its recent November campaign, attackers tried to get entry into the Russian metallurgical enterprise systems and a research organization involved in the production and development of guided missile weapons, as per Russian cybersecurity form F.A.C.C.T.

F.A.C.C.T. — an offshoot of Singapore-based cybersecurity firm Group IB — reported earlier this week that hackers sent phishing emails to their victims, posing as a research organization dealing in nuclear weapon design.

Similiar tacticts used from previous attacks

The group's tactics were similar to those used in their earlier attack on Russian companies, which included a well-known scientific facility in July. During that event, the hackers pretended to be Russia's Ministry of Emergency Situations and sent phishing emails with malicious PDF files. Researchers did not say whether attackers could break into the victims' systems and steal data.

According to F.A.C.C.T., Russia is the major target of XDSpy hackers. According to analysts, the gang used to target the country's government, military, financial institutions, and energy, research, and mining firms.

Even though the group has been active for years, there is no proof of its strikes on Russia, particularly since many foreign cybersecurity companies fled the country following the Russian takeover of Ukraine.

Spearphishing attacks used in attacks

ESET, a cybersecurity firm based in Slovakia, has been monitoring XDSpy's behavior since 2020, and researcher Matthieu Faou said that the group has constantly undertaken spearphishing efforts aimed mostly at important companies in Eastern Europe.

ESET lost first-hand visibility of cyberattacks occurring in Russia and Belarus after leaving these countries, both targets of XDSpy. However, the business announced last week that it had spotted the group's attack on a Ukrainian aerospace company.

Hackers utilized a breach chain nearly identical to the one described by F.A.C.C.T. in this attempt, which was not officially reported by Ukrainian security services and was likely unsuccessful. "We do agree with their analysis and also attribute this to XDSpy," stated Faou.

Despite the group's extensive history, analysts have not been able to pinpoint the country that is funding it. XDSpy may not have an exceptionally sophisticated toolbox, but "they have very good operative defense," according to Faou. "So far, we haven't found any errors that could point toward a specific country."

Russia: Victim of Cyberattack

Because many Western corporations have little access to computer systems in the region, reports about cyberattacks against Russia are rare.

This week, on the other hand, has been jam-packed with reports from Russian cybersecurity organizations. In addition to the XDSpy attack, F.A.C.C.T. recorded a DarkWatchman malware-based strike on Russian banks, telecom providers, logistics organizations, and IT firms. A phishing email was disguised as a newsletter from a Russian courier delivery firm by the hackers. The outcome of these strikes is uncertain.

According to the Russian cybersecurity firm Positive Technologies, which has been sanctioned by the US, another cyberattack was carried out by a new hacker gang called Hellhounds. Hellhounds has already infiltrated at least 20 Russian businesses, including government institutions, technology firms, and space and energy industries.

Rare Wolf hackers were also recorded by the cybersecurity firm BI.ZONE. According to researchers, the gang has targeted approximately 400 Russian companies since 2019.

These assessments do not reveal which countries are responsible for the attacks against Russia. However, analysts at the cybersecurity firm Solar stated in a November report that the majority of state-sponsored attacks against Russia come from North Korea and China, with a primary focus on data theft.