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Italian Spyware Firm SIO Linked to Malicious Android Apps Targeting WhatsApp Users

 

SIO, an Italian spyware company known for selling surveillance tools to government agencies, has been linked to a series of malicious Android apps designed to mimic WhatsApp and other popular services while secretly stealing private data, TechCrunch has revealed. Late last year, a security researcher provided TechCrunch with three Android apps, alleging they were government spyware used in Italy. 

Upon investigation, Google and cybersecurity firm Lookout confirmed that these apps were indeed spyware. This discovery highlights the expanding landscape of government surveillance, with numerous companies employing varied methods to target individuals. Italy is already embroiled in a separate spyware scandal involving Israeli firm Paragon, whose sophisticated surveillance tool allegedly targeted journalists and NGO founders. 

In contrast, the SIO-linked spyware campaign relied on a more straightforward approach—disguising malicious Android apps as well-known communication and customer service applications. Lookout researchers identified the malware as Spyrtacus, a spyware capable of stealing text messages, chats from WhatsApp, Signal, and Facebook Messenger, recording calls, capturing ambient audio and camera images, and extracting contact information. 

Their analysis confirmed that SIO was responsible for creating and distributing Spyrtacus, with samples dating back to 2019. Some variants impersonated apps from Italian telecom providers TIM, Vodafone, and WINDTRE. Google stated that none of the infected apps were available on the Play Store, asserting that Android security measures have protected users from this malware since 2022. 

However, a 2024 Kaspersky report suggested that earlier versions of Spyrtacus were distributed via Google Play in 2018 before shifting to fake websites mimicking major Italian internet providers. Italy has a long history of government spyware development, with companies such as Hacking Team, Cy4Gate, and RCS Lab selling surveillance tools to international law enforcement agencies. Spyrtacus is the latest example of this trend, with Lookout identifying command-and-control servers registered to ASIGINT, an SIO subsidiary specializing in wiretapping software. 

The SIO, Italian government and the Ministry of Justice have reportedly declined to comment. Lookout has also discovered references to Naples in the malware’s source code, suggesting a possible connection to developers from the region. 

Massive Mobile Malware Campaign Targets Indian Banks, Steals Financial Data

 

Zimperium's zLabs research team has uncovered a significant mobile malware campaign that targets Indian banks. First reported on February 5, 2025, this threat was orchestrated by a threat actor called FatBoyPanel. Nearly 900 malware samples are used in the campaign, which is distributed via WhatsApp and uses malicious apps that impersonate banking or government apps to steal private and sensitive financial data from unsuspecting users.  

Once installed, the malicious apps steal the users data, such as credit and debit card information, ATM PINs, Aadhaar card details, PAN card numbers, and mobile banking information. Additionally, the malware uses sophisticated stealth techniques to conceal itself and avoid detection or removal by intercepting SMS messages that contain OTPs. 

By using the reputation and legitimacy of Indian banks and government agencies to trick users into thinking the apps are authentic, this cyberattack is a clear illustration of how threat actors have advanced to a new level. These cybercriminals are deceiving users into downloading malicious apps intended to drain accounts and compromise sensitive data by posing as trustworthy organizations. 

Upon closer examination, the malware can be divided into three different types: hybrid, firebase-exfiltration, and SMS forwarding. Different exfiltration techniques are used by each variant to steal confidential information. By employing live phone numbers to intercept and reroute SMS messages in real time, these Trojan Bankers go beyond standard attacks. By hiding its icon, the malware makes itself even more difficult to remove. 

According to a Zimperium report, more than 1,000 malicious applications were created with the intention of stealing banking credentials. An estimated 50,000 victims were impacted by the campaign, which revealed 2.5GB of financial and personal data kept in 222 unprotected Firebase buckets. Attackers have been able to trick users into divulging extremely sensitive information by using phony government and banking apps that are distributed via WhatsApp. 

This breach has serious repercussions, including the possibility of identity theft, financial loss, and privacy violations for impacted users. In order to assist authorities in locating the cybercriminals responsible for FatBoyPanel, Zimperium has shared the gathered data with them. Users should use security software to identify and eliminate malware, update their devices frequently, and refrain from downloading apps from unidentified sources in order to protect themselves. 

On Thursday, Feb. 20, Zimperium, the global leader in mobile security, will release new research highlighting the evolving landscape of mobile phishing attacks.

As organizations increasingly rely on mobile devices for business operations including BYOD, multi-factor authentication, cloud applications, and mobile-first workflows, mobile phishing is becoming one of the most severe threats to enterprise security. Adversaries are exploiting security gaps in mobile and cloud-based business applications, expanding the attack surface and increasing exposure to credential theft and data compromise.

Zimperium’s latest research provides a data-driven look at how attackers are evolving their tactics to evade detection and why businesses must rethink their security strategies to stay ahead. 

Key findings from the report include: Mishing surge: Activity peaked in August 2024, with over 1,000 daily attack records. Smishing (SMS/text based phishing) attacks dominate globally with 37% in India, 16% in the U.S., and 9% in Brazil. Quishing (QR code phishing) is gaining traction, with notable activity in Japan (17%), the U.S. (15%), and India (11%). Stealthy phishing techniques: 3% of phishing sites use device-specific detection to display harmless content on desktops while delivering malicious phishing payloads exclusively to mobile users. Zimperium’s research emphasizes that traditional anti-phishing solutions designed for desktops are proving inadequate against this shift, making mobile threat defense a critical necessity for organizations worldwide.

The FatBoyPanel campaign emphasizes the need for increased vigilance in an increasingly digital world and the increasing sophistication of cyber threats. Keeping up with online security best practices is crucial to reducing risks and protecting financial and personal information as cybercriminals improve their tactics.

FBI Warning: Avoid Installing Malicious Apps to Safeguard Your Financial Data

 

FBI Warns Smartphone Users About Malicious Apps

Smartphone users are being urged to exercise caution when downloading apps as some may be designed to steal personal data and send it to fraudsters, leading to potential scams. This alert applies to both Android and iPhone users. Malicious apps often disguise themselves as legitimate but, once installed, request permissions that grant access to sensitive information, making users vulnerable to cybercrimes.

On January 18, the FBI issued a public warning, highlighting that these apps have already compromised numerous bank accounts. Despite ongoing efforts by Google and Apple to strengthen app regulations, scammers continue to exploit vulnerabilities. The FBI has labeled this threat as the "Phantom Hacker," underscoring the sophisticated techniques fraudsters use to infiltrate devices through deceptive applications.

Once malicious apps gain access to customer data, scammers often pose as bank officials, warning users of a fake security breach on their accounts. In the panic that follows, users may be coerced into transferring funds to a so-called "secure" account, falling prey to the scam. Additionally, fraudsters sometimes impersonate technical support representatives, tricking users into revealing even more personal information.

To protect yourself, always verify the authenticity of an app before downloading it. Research the developer thoroughly, read customer reviews, and scrutinize app ratings. For banking and financial apps, ensure you download only from official sources, such as scanning the QR code provided on your financial institution's website. Scammers frequently submit counterfeit apps to the Google Play Store and Apple App Store, which unsuspecting users might download, unknowingly exposing private data to hackers.

Cybersecurity experts emphasize the importance of vigilance when interacting with unfamiliar apps or unsolicited communications. Being aware of potential risks and taking proactive steps can help smartphone users avoid falling victim to these increasingly sophisticated scams.

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.

Beware of Malicious YouTube Channels Propagating Lumma Stealer

 

Attackers have been propagating a Lumma Stealer variant via YouTube channels that post videos about cracking into popular applications. They prevent detection by Web filters by spreading the malware over open source platforms like MediaFire and GitHub rather than proprietary malicious servers. 

The effort, according to FortiGuard researchers, is reminiscent of an attack that was uncovered in March of last year and employed artificial intelligence (AI) to disseminate step-by-step installation manuals for programmes like Photoshop, Autodesk 3ds Max, AutoCAD, and others without a licence. 

"These YouTube videos typically feature content related to cracked applications, presenting users with similar installation guides and incorporating malicious URLs often shortened using services like TinyURL and Cuttly," Cara Lin, Fortinet senior analyst, wrote in a blog post. 

Modus operandi 

The attack begins with a hacker infiltrating a YouTube account and publishing videos pretending to offer cracked software tips, along with video descriptions carrying malicious URLs. The descriptions also lure users to download a.ZIP file containing malicious content. 

The videos identified by Fortinet were uploaded earlier this year; however, the files on the file-sharing site are regularly updated, and the number of downloads continues to rise, suggesting that the campaign is reaching victims. "This indicates that the ZIP file is always new and that this method effectively spreads malware," Lin stated in a blog post. 

The .ZIP file contains an.LNK file that instructs PowerShell to download a.NET execution file from John1323456's GitHub project "New". The other two repositories, "LNK" and "LNK-Ex," both contain .NET loaders and use Lumma as the final payload.

"The crafted installation .ZIP file serves as an effective bait to deliver the payload, exploiting the user's intention to install the application and prompting them to click the installation file without hesitation," Lin wrote.

The .NET loader is disguised with SmartAssembly, a valid obfuscation technique. The loader then acquires the system's environment value and, after the number of data is correct, loads the PowerShell script. Otherwise, the procedure will depart the programme.

YouTube malware evasion and caution

The malware is designed to prevent detection. The ProcessStartInfo object starts the PowerShell process, which eventually calls a DLL file for the following stage of the attack, which analyses the environment using various methods to avoid detection. The technique entails looking for debuggers, security appliances or sandboxes, virtual machines, and other services or files that could impede a malicious process. 

"After completing all environment checks, the program decrypts the resource data and invokes the 'SuspendThread; function," Lin added. "This function is employed to transition the thread into a 'suspended' state, a crucial step in the process of payload injection.” 

Once launched, Lumma communicates with the command-and-control server (C2) and establishes a connection to transfer compressed stolen data back to the attackers. Lin observed that the variation employed in the campaign is version 4.0, but its exfiltration has been upgraded to use HTTPS to better elude detection. 

On the other hand, infection is trackable. In the publication, Fortinet provided users with a list of indications of compromise (IoCs) and cautionary advice regarding "unclear application sources." According to Fortinet, users should make sure that any applications they download from YouTube or any other platform are from reliable and safe sources.

Thousands of Malicious Android Apps are Employing Covert APKs to Bypass Security

 

To avoid malware detection, threat actors are employing Android Package (APK) files with unknown or unsupported compression algorithms.

That's according to findings from Zimperium, which discovered 3,300 artefacts using such compression algorithms in the wild. 71 of the discovered samples can be successfully loaded into the operating system. 

There is no evidence that the apps were ever available on the Google Play Store, implying that they were disseminated through alternative channels, most likely through untrustworthy app stores or social engineering to fool users into sideloading them. 

The APK files employ "a technique that limits the possibility of decompiling the application for a large number of tools, reducing the possibilities of being analysed," security researcher Fernando Ortega explained. "In order to do that, the APK (which is in essence a ZIP file), is using an unsupported decompression method." 

The benefit of this approach is that it can withstand decompilation tools while still being installed on Android devices with operating systems older than Android 9 Pie. 

The Texas-based cybersecurity company claimed that after reading Joe Security's post on X (formerly Twitter) in June 2023 about an APK file that had this behaviour, it began its own investigation. 

There are two ways that Android packages can use the ZIP format: one without compression and the other with the DEFLATE algorithm. The key finding in this study is that APKs compressed using unsupported techniques cannot be installed on devices running Android versions lower than 9, while they may be used without issue on subsequent versions. 

Zimperium also found that malware developers intentionally corrupt APK files by giving them filenames longer than 256 characters and creating corrupt AndroidManifest.xml files to trigger analysis tools to crash. 

The revelation comes just after Google revealed how threat actors were using a method known as versioning to get around the Play Store's malware detections and target Android users. 

Safety measures 

Thankfully, there are several procedures you can take to safeguard your phone from malicious Android apps. The first and most significant piece of advice is to stay away from sideloading apps unless it is unavoidable. There are a few peculiar situations in which you might need to sideload an app for work or to make a certain product work, but other than that, you shouldn't install any apps from unknown sources. 

As a general guideline, you should only download apps from the Play Store or other authorised app shops like the Samsung Galaxy Store or Amazon Appstore. Sometimes malicious software does manage to slip through the gaps, which is why it pays to do your research before installing any new app by reading reviews and looking into the app's developers.

Over 60K Adware Apps Target Android Devices

Over 60,000 adware apps disguised as cracked versions of popular apps have been discovered, posing a significant threat to Android device users. These malicious apps have been circulating for the past six months, secretly installing adware and compromising user privacy.

The discovery was made by cybersecurity researchers who found that the adware apps were cleverly designed to imitate cracked versions of popular applications, tempting users with promises of free access to premium features. Once installed, these apps exploit their access to the device, displaying intrusive advertisements, redirecting users to potentially harmful websites, and collecting personal information without user consent.

The impact of these adware apps goes beyond annoying ads and pop-ups. They can significantly compromise user privacy and security, as they often have access to sensitive information such as contact lists, location data, and browsing history. Additionally, these apps can drain device resources and slow down performance, causing frustration for users.

The adware apps were distributed through various unofficial app stores and online forums, taking advantage of users' desire to access premium features without paying. Due to their deceptive nature, they managed to evade security measures and make their way onto unsuspecting users' devices.

To protect themselves from these threats, Android device users are advised to follow best practices for app installation. It is crucial to download apps only from official sources such as the Google Play Store, where apps undergo thorough security checks. Users should also be cautious of downloading cracked versions of apps from unauthorized websites or third-party app stores, as these are often breeding grounds for malware.

Furthermore, keeping devices up to date with the latest security patches and regularly scanning for malware using reputable mobile security solutions can help detect and remove any adware apps that may have infiltrated the system.

This incident serves as a reminder of the persistent threats faced by Android users and the need for heightened vigilance when downloading and installing applications. Users must remain cautious, exercise due diligence, and rely on trusted sources for their app needs.


Upsurge in UPI Fraud Cases: How can you Guard Against These Scams

 

India is going digital as more and more individuals use the internet to shop, order food, and complete other activities.

According to a Times of India (TOI) report, in March 2023, Unified Payment Interface (UPI) transactions reached a record high of 865 crores, with a record value of Rs 14.07 lakh crore. The number of transactions totaled 728 crores, which was 18% greater than in February 2023.

However, as UPI transactions have increased, so have instances of online fraud and frauds. More than 95,000 fraud cases using UPI transactions were reported in 2022–2023, up from 84,000 cases in 2021–2022 according to the Union Ministry of Finance. 

Let's focus on UPI frauds in more detail, along with certain precautions you might take.

UPI PIN request 

With the promise of sending money, fraudsters occasionally seduce their victims. To receive the money, they then request that their target enter their UPI PIN. The scammer can easily utilise the victim's UPI PIN to withdraw money if they comply and enter it. Let’s take a look at how UPI scams take place and what you can do to protect yourself. 

“For receiving money, no PIN is required. Anyone asking you for a PIN is a scammer,” Prashant Gautam, DCP of the Intelligence Fusion and Strategic Operations (IFSO) unit of Delhi stated.
 
Customer care fraud 

Fraudsters who pose as customer service representatives are also taken in by the public. A government teacher was recently tricked after calling the number that appeared to be the top search result on Google, thinking it was the Google Pay customer service number. 

The con artist promised to assist the teacher when he complained about inaccurate transactions on the Google Pay app and requested his personal banking information. Following the teacher's disclosure of the information, the fraudster withdrew Rs 2.50 lakh from his bank account.

Cybercriminals will occasionally threaten customers with the blocking of their e-wallet if they do not complete KYC or update their Aadhaar or PAN information under the guise of customer service representatives. Later, "under the guise of verification, they ask the victims to download third-party access apps," the police officer continued, "through which they get remote access to the digital wallets." 

Money sent by 'error' 

Scammers typically send money to their potential targets via UPI apps like Paytm, Google Pay, PhonePe, etc., according to a Delhi Police official, and then contact them to claim that they made a mistake. The cybercriminal then sends the victim a URL and requests that they use it to repay the money. If a person clicks on the link, they lose control of their bank account and digital wallet, which the scammer can then access. 

Prevention tip

Here are three strategies you should learn to use as self-defense against such frauds.

Avoid engaging with fraudsters: Please don't continue if the caller's identity or the source of the information they are sharing are unclear to you or if you are unfamiliar with the number. Especially for food and beverage establishments, be aware of phone numbers listed on public websites as they might not be legitimate. Always confirm someone's identity by checking again. Never forget that your bank will never phone or text you asking for any type of private information. 

Be mindful of the golden rule while receiving payment: No PIN is needed in order to receive money. The 'request money' feature of payment apps is frequently abused by scammers. They will pretend to be interested in purchasing a product you may have posted for sale online. You will NEVER be asked for a PIN if money needs to be debited to your bank account, so keep that in mind at all times. 

Watch out for fake apps: Many fraudulent or malicious apps try to trick you by appearing to be something else. The software will have a similar appearance to the original bank app and be simple to download. Your personal information will be shared with scammers if you unintentionally download and install the bogus app, giving them access to your account and enabling them to steal money. Beware of fake banking apps like Modi Bhim, BHIM Payment-UPI Guide, Bhim Modi App, and BHIM Banking Guide that have been accused of obtaining consumer personal information under the guise of offering a useful service.