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FBI Shuts Down Chinese Linked Botnet Campaign in a Joint Operation

FBI Joint Operation 

The FBI has cracked down on a vast botnet operation linked to a Chinese hacking group, the attackers targeted government agencies, universities, and other entities in the US. 

The Five Eyes intelligence alliance issued a joint report alerting organizations to take safety measures after finding the botnet was used to deploy DDoS attacks and compromise organizations in the US.

Flax Typhoon Involved

Talking about the threat at the Aspen Cyber Summit, Chris Wray, FBI director, said the operation was launched by the Flax Typhoon group, the attackers deployed malware on more than 200,000 customer devices. In a joint operation, the FBI and US Department of Justice were able to take hold of botnet’s infrastructure, 50% of the compromised devices were found in the US.

The hijacked devices- cameras, internet routers, and video recorders, made a large botnet to steal crucial data. The attacks were similar to another botnet campaign operated by the Volt Typhoon group, it also used web-connected devices to make a botnet that hijacked systems and stole sensitive data. 

But Flax Typhoon’s botnet also compromised a larger range of devices, compared to the router-based network by Volt Typhoon.

Flax Typhoon group disguises itself as an information security company but has a long history of working with close links to the Chinese government, says Wray.

“They represent themselves as an information security company—the Integrity Technology Group. But their chairman has publicly admitted that for years his company has collected intelligence and performed reconnaissance for Chinese government security agencies.”

Rise in State-sponsored Attacks

Although the operation was a success, says Wray, he warns that threats of state-sponsored attacks from China still exist.  Wray warned that although this operation was a success, the wider ecosystem of state-affiliated cyber attacks out of China was still alive and well.

“This was another successful disruption, but make no mistake — it’s just one round in a much longer fight. The Chinese government is going to continue to target your organizations and our critical infrastructure, either by their own hand or concealed through their proxies, and we’ll continue to work with our partners to identify their malicious activity, disrupt their hacking campaigns, and bring them to light,” Wray said.

According to a Microsoft report from 2023, Flax Typhoon has been in the game since 2021. Other reports suggest the group has been active since 2020. In the initial years, the Flax Typhoon attacked government agencies, critical manufacturing, the education sector, and IT firms in Taiwan.

China Linked APT: Raptor Train Botnet Attacks IoT Devices

China Linked APT: Raptor Train Botnet Attacks IoT Devices China Linked APT: Raptor Train Botnet Attacks IoT Devices

A new cyber threat has caught the attention of experts, Lumen’s Black Lotus Labs found a new botnet called Raptor Train, made of IOT and small office/home office (SOHO) devices. Experts believe that Raptor Train has links to China-based APT group Flax Typhoon (aka RedJuliett or Ethereal Panda). The blog talks about the threat, its technique, and the solutions.

About Raptor Train Botnet

The Raptor Train Botnet aims to launch coordinated cyber-attacks, including data theft, espionage, and DDoS attacks. Experts believe the Botnet to be active from May 2020, reaching its highest with 60,000 compromised devices in June 2023. 

After May 2020, more than 200,000 devices- NVR/DVR devices, NAS servers, IP cameras, and SOHO routers have been compromised and added to the Raptor Train, becoming the largest China-linked IoT botnets founded. A C2 domain from a recent campaign was listed in the Cisco and Cloud fare Radar Umbrella “top 1 million” lists, suggesting large-scale device exploitation. Experts believe more than 100000 devices have been compromised because of Raptor Train Botnet.

Flax Typhoon: The APT Behind Botnet

Flax Typhoon is infamous for its cyber-espionage attacks, it has a past of attacking different industries- telecommunications companies, government agencies, and defense contractors. Flax Typhoon is known for its stealth and dedication, use of sophisticated malware to gain access and steal crucial data. 

Raptor Train Mechanism

“The botnet operators manage this large and varied network through a series of distributed payload and C2 servers, a centralized Node.js backend, and a cross-platform Electron application,” reads the Lumen report. The Raptor Train Botnet exploits bugs in IoT devices, when a bug is compromised, it joins the botnet and gets instructions from C2 servers. It is then used for various malicious activities:

  • Espionage, tracking, and stealing data from organizations. 
  • DDoS attacks, crowd the target network with traffic to make it inaccessible. 
  • Data theft, getting sensitive data from the victim's devices.

Raptor Train Network Breakdown

The experts categorized the Raptor Train network into 3 tiers

Tier 1: It includes SOHO/IoT devices.

Tier 2: It includes exploitation servers, Payload servers, and C2 servers 

Tier 3: The last level consists of management nodes and “Sparrow” nodes

“A major concern of the Raptor Train botnet is the DDoS capability that we have not yet observed actively deployed, but we suspect is being maintained for future use,” the report concludes.