The Hydra banking trojan has resurfaced to target European e-banking platform users, especially Commerzbank customers, Germany's second-largest financial institution. 

MalwareHunterTeam discovered the two-year-old virus in a fresh dissemination operation that targets German users with a malicious APK called 'Commerzbank Security' with a lookalike icon to the legitimate application. 

This grabbed the attention of Cyble researchers, who sampled the file for a more in-depth study, revealing a sophisticated phishing tool with broad rights access. 

According to Cyble experts, Hydra is still evolving; the variations used in the latest campaign include TeamViewer features, similar to the S.O.V.A. Android banking Trojan, and utilize various encryption methods to avoid detection, as well as Tor for communication. 

The latest version additionally allows to turn off the Play Protect Android security function. The virus demands two very hazardous permissions, BIND_ACCESSIBILITY_PERMISSION and BIND_DEVICE_ADMIN, according to the experts. 

The Accessibility Service is a background service that assists users with disabilities, and the BIND_ACCESSIBILITY_SERVICE permission permits the app to access it. 

The analysis published by Cyble states, “Malware authors abuse this service to intercept and monitor all activities happening on the device’s screen. For example, using Accessibility Service, malware authors can intercept the credentials entered on another app.” 

“BIND_DEVICE_ADMIN is a permission that allows fake apps to get admin privileges on the infected device. Hydra can abuse this permission to lock the device, modify or reset the screen lock PIN, etc.” 

Other rights are requested by the malware to carry out harmful activities such as accessing SMS content, sending SMSs, making calls, modifying device settings, spying on user activity, and sending bulk SMSs to the victim's contacts: 

The code analysis shows that many classes are missing from the APK file. To avoid signature-based detection, the malicious code uses a custom packer. 

Cyble concluded, “We have also observed that the malware authors of Hydra are incorporating new technology to steal information and money from its victims. Alongside these features, the recent trojans have incorporated sophisticated features. We observed the new variants have TeamViewer or VNC functionality and TOR for communication, which shows that TAs are enhancing their TTPs.” 

“Based on this pattern that we have observed, malware authors are constantly adding new features to the banking trojans to evade detection by security software and to entice cybercriminals to buy the malware. To protect themselves from these threats, users should only install applications from the official Google Play Store.” 

Commerzbank has 13 million German clients and another 5 million in Central and Eastern Europe. This amounts to a total of 18 million potential targets, which is always an important factor for malware distributors. 

Typically, threat actors utilise SMS, social media, and forum postings to direct potential victims to malicious landing pages that install the APK on German devices. 

If anyone believes they have already fallen into Hydra's trap, it is suggested that they clean their device with a trustworthy vendor's security tool and then do a factory reset.