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Showing posts with label Supply Chain Attack. Show all posts

eScan Antivirus Faces Scrutiny After Compromised Update Distribution


MicroWorld Technologies has acknowledged that there was a breach of its update distribution infrastructure due to a compromise of a server that is used to deliver eScan antivirus updates to end users, which was then used to send an unauthorized file to end users. 

It was reported that the incident took place within a narrow two-hour window on January 20, 2026, in a regional update cluster. It affected only a small fraction of customers who had downloaded updates during that period, and was confined to that cluster. 

Following the analysis of the file, it was confirmed that it was malicious, and this demonstrates how even tightly controlled security ecosystems can be compromised when trust mechanisms are attacked. 

Despite MicroWorld reporting that the affected systems were swiftly isolated, rebuilt from clean baselines, and secured through credential rotation and customer remediation within hours of the incident, the episode took place against the backdrop of escalating cyber risks that are continually expanding. 

An unprecedented convergence of high-impact events took place in January 2026, beginning with a major supply chain breach involving a global antivirus vendor, followed by a technical assault against a European power grid, and the revelation of fresh vulnerabilities in artificial intelligence-driven systems in the first few weeks of January 2026. 

There are a number of developments which have led to industry concerns that the traditional division between defensive software and offensive attack surfaces is eroding, forcing organizations to revisit long-standing assumptions about where trust begins and ends in their security architectures as a result. 

According to further technical analysis, eScan's compromised update channel was directly used to deliver the previously unknown malware, effectively weaponizing a trusted distribution channel that had been trusted. 

A report indicated that multiple security platforms detected and blocked attempted attacks associated with the malicious file the day of its distribution, prompting a quick external scrutiny to take place. It was MicroWorld Technologies who indicated to me that the incident was identified internally on January 20 through a combination of monitoring alerts and customer reports, with the affected infrastructure isolated within an hour of being identified. 

The company issued a security advisory the following day, January 21, as soon as the attack was under control and the situation had been stabilised. In spite of the fact that cybersecurity firm Morphisec later revealed that it had alerted eScan during its own investigation, MicroWorld maintains that containment efforts were already underway when the communication took place. 

The company disputes any suggestion that customers were not informed of the changes, claiming proactive notifications and direct outreach as part of the remediation process to address any concerns. 

A malicious update was launched by a file called Reload.exe, which set off a multi-stage infection sequence on the affected systems through the use of a file called Reload.exe. 

The researchers that conducted the initial analysis reported that the executable modified the local HOSTS file to prevent the delivery of corrective updates from eScan update servers and that this led to a number of client machines experiencing update service errors. 

As part of its persistence strategy, the malware created scheduled tasks, such as CorelDefrag, and maintained communication with external command-and-control infrastructure to retrieve additional payloads, in addition to disrupting operations. 

During the infection process, there was also a secondary malicious component called consctlx.exe written to the operating system, which further embedding the threat within the system. A further detail provided by Morphisec, an endpoint security company, provided a deeper technical insight into the underlying mechanism and intent of the malicious update distributed through the trusted infrastructure of eScan. 

As Morphisec stated in its security bulletin, the compromised update package contained a modified version of the eScan update component Reload.exe that was distributed both to enterprise environments and consumer environments via legitimate update channels. 

Despite the binary's appearance of being signed with eScan's code signing certificate, validation checks conducted by Windows and independent analysis platforms revealed that the signature was not valid. Morphisec's analysis revealed that the altered Reload.exe functions as a loader for a malware framework that consists of several stages. This raises concerns about certificate integrity and abuse of trusted signing processes. 

When the component is executed, it establishes persistence on infected machines, executes arbitrary commands, and alters the Windows HOSTS file to prevent access to eScan's update servers, preventing eScan from releasing updates by using routine update mechanisms.

Additionally, the malware started communicating outwards with a distributed command-and-control infrastructure, thus allowing it to download additional payloads from a variety of different domains and IP addresses in order to increase its reach.

According to Morphisec, the final stage of the attack chain involved the deployment of a second executable, CONSCTLX.exe. This secondary executable acted as both a backdoor and a persistent downloader.

A malicious component that was designed to maintain long-term access created scheduled tasks with benign-sounding names like CorelDefrag that were designed to avoid casual inspection while ensuring that the task would execute across restarts as well. 

The company MicroWorld Technologies developed a remediation utility in response to the incident that is specifically intended to identify and reverse unauthorized changes introduced by the malicious update. Using this tool, the company claims that normal update functionality is restored, a successful cleanup has been verified, and the process only requires a standard reboot of the computer to complete. 

Several companies, including eScan and Morphisec, have advised customers to take additional network-level security measures to protect themselves from further malicious communications during the recovery phase of the campaign by blocking the command-and-control endpoints associated with it. 

In addition, the incident has raised concerns about the recurring exploitation of antivirus update mechanisms, which have caused an increase in industry concern. There was an incident of North Korean threat actors exploiting eScan’s update process in 2024 to install backdoors inside corporate networks, illustrating again how security infrastructure remains one of the most attractive targets for state-sponsored attacks, particularly those aiming for high volumes of information. 

As this breach unfolds, it is part of a wider pattern of consequential supply chain incidents that have taken place in early 2026. These incidents range from destructive malware targeting European energy systems to large-scale intellectual property theft coupled with soon-to-appear AI-driven assault tactics. 

The events highlighted by these events also point to a persistent strategic reality in that organizations are increasingly dependent on trusted vendors and automated updates pipelines. If trust is compromised across the digital ecosystem, defensive technologies can become vectors of systemic risk as a result of a compromise in trust. 

In an industry context, the incident is notable for the unusual method of delivery used by the perpetrators. In spite of the fact that software supply chain compromises have been a growing problem over the past few years, malware is still uncommonly deployed through the security product’s own update channel. 

An analysis of the implants involved indicates that a significant amount of preparation has been performed and that the target environment is well known. A successful operation would have required attackers to have acquired access to eScan’s update infrastructure, reverse engineering aspects of its update workflow, and developing custom malware components designed specifically to function within that ecosystem in order to be successful.

Such prerequisites suggest a deliberate, resource-intensive effort rather than a purely opportunistic one. In addition, a technical examination of the implanted components revealed resilience features that were designed to ensure that attacker access would not be impeded under adverse conditions. 

There were multiple fallback execution paths implemented in the malware, so that continuity would be maintained even if individual persistence mechanisms were disrupted. In one instance, the removal of a scheduled task used to launch a PowerShell payload was not sufficient to neutralize the infection, since the CONSCTLX.exe component would also be able to invoke the same functionality. 

Furthermore, blocking the command-and-control infrastructure associated with the PowerShell stage did not completely eliminate an attacker's capabilities, as CONSCTLX.exe retained the ability to deliver shellcode directly to affected systems, as these design choices highlight the importance of operational redundancy, which is one of the hallmarks of well-planned intrusion campaigns. 

In spite of the sophistication evident in the attack's preparation, the attack's impact was mitigated by its relatively short duration and the techniques used in order to prevent the attack from becoming too effective. 

Modern operating systems have an elevated level of trust when it comes to security software, which means that attackers have theoretically the possibility to exploit more intrusive methods, including kernel-mode implants, which provide attackers with an opportunity to carry out more invasive attacks. 

In this case, however, the attackers relied on user-mode components and commonly observed persistence mechanisms, such as scheduled tasks, which constrained the operation's stealth and contributed to its relatively quick detection and containment, according to analysts. 

It is noteworthy that the behavioral indicators included in eScan's advisory closely correspond with those found by Morphisec independently. Both parties deemed the incident to have a medium-to-high impact on the enterprise environments in question. Additionally, this episode has revealed tensions between the disclosures made by vendors and researchers. 

As reported by Bloomberg News, MicroWorld Technologies has publicly challenged parts of Morphisec's public reporting, claiming some of it was inaccurate. It is understood that they are seeking legal advice in response to these claims. 

It was advised by eScan to conduct targeted checks to determine whether the systems were affected from an operational perspective, including reviewing schedule tasks for anomalous entries, inspecting the system HOSTS file for blocked eScan domains, and reviewing update logs from January 20 for irregularities. 

A remediation utility has been released by the company and is available through its technical support channels. This utility is designed to remove malicious components, reverse unauthorized changes, and restore normal update functionality. 

Consequently, customers are advised to block known command-and-control addresses associated with this campaign as a precaution, reinforcing the lesson of the incident: even highly trusted security infrastructure must continually be examined as potential attack surfaces in a rapidly changing threat environment.

Credit Monitoring Provider Discloses Breach Impacting 5.6 Million Users


A data breach usually does not lend itself to straightforward comparisons, as each occurrence is characterized by distinctive circumstances and carries different consequences for those involved. It is common for headlines to emphasize the scale of an attack, the prominence of the organization that was affected, or the attack method used by the attacker, but in reality, the real significance of a breach lies in the sensitivity of the compromised data, along with the actions that are taken to correct it. 

It was apparent from a disclosure issued by 700Credit, a U.S.-based company that provides consumer information, preliminary credit checks, identity verifications, fraud detections, and compliance solutions for auto, recreational, powersport, and marine dealerships. As a result of a third-party supply-chain attack that occurred late in October 2025, the company confirmed that personally identifiable information had been accessed by unauthorized people through the use of a third-party supply chain. 

It has been revealed that the exposed data includes names, residential addresses, dates of birth, and Social Security numbers, all collected between May and October of the year. Based on the information provided by the agency, approximately 5.6 million people are expected to have been affected by the incident, making it one of the most substantial credit-related data breaches of the year, emphasizing the risks associated with retaining data for a long period of time and relying on external service providers. 

A 700Credit representative confirmed that the compromised information was the result of a breach of a database provided by auto dealerships between May and October 2025 as a result of regular credit verification and identity verification processes. 

Despite acknowledging that the precise technical details of how the intrusion was conducted have not yet been fully determined, the company has attributed the incident to an unidentified threat actor. Although there is no official word on who is affected, it has been revealed that those individuals whose personal data was processed by 700Credit for dealership clients have been brought into focus as data-handling risks arise across the entire automotive retail ecosystem. 

There are broader concerns raised about supply-chain exposures and the downstream impact of such events on consumer confidence, particularly when it comes to sensitive financial and identity-related information that has been disclosed. 

A Michigan Attorney General said that recipients of breach notification letters should not dismiss the letters in response to the disclosure, stressing that taking swift protective measures, such as freezing the credit history and enrolling in credit monitoring services, was critical to reducing the risk of identity theft and fraud that can result from the exposure to the breach. 

However, despite moving quickly to disable the exposed application programming interface (API), 700Credit acknowledged that, in spite of taking steps to prevent threats from accessing consumer records, threat actors were able to extract a significant percentage of them. The company estimates that approximately 20 percent of the affected datasets were accessed, which comprised extremely sensitive data such as names, addresses, birthdates, and Social Security numbers. 

In spite of the fact that 700Credit confirmed that its internal systems, payment platforms, and login credentials were unhacked, cybersecurity experts noted that the stolen data, in both quantity and nature, could still be utilized by phishing and social engineering companies to conduct highly convincing scams. 

Because of this, consumers and dealership clients have been advised to be vigilant when receiving unsolicited communications, especially those that appear to be from 700Credit or its partners, as well as any messages purported to have originated with the company. In addition to the details reported by CBTNews, it is clear that the breach is the result of a compromised integrated partner not alerting 700Credit in a timely manner after they became aware of the breach. 

Researchers have determined that attackers exploited vulnerabilities in the API validation process, which allowed malicious requests to be masked as legitimate partner traffic by exploiting vulnerabilities in the API validation process. An independent forensic analysis confirmed that the intrusion did not extend into 700Credit's internal network or core operational infrastructure, but rather was confined to the application layer through third-party API integration. 

Furthermore, experts concluded that attackers had been able to carry out the majority of the damage without compromising internal systems, underscoring the persistency of security gaps in API-driven architectures, particularly in modern times. 

According to 700Credit, in response, its API inspection controls have been strengthened, the validation framework is now more secure, the insurance coverage for cybersecurity has been expanded, and external cybersecurity firms have been engaged to assess residual risks and mitigate them, all while maintaining uninterrupted service to dealership clients throughout the investigation. 

Additionally to the technical remediation, 700Credit began a coordinated regulatory notification and response involving multiple authorities as well. For compliance with federal Safeguards Rule requirements, the company reported the incident to the Federal Bureau of Investigation and the Federal Trade Commission and also notified the FTC a consolidated breach notification on behalf of the affected dealer clients. 

Upon receiving written notifications of a breach of the Federal Safeguards Rule beginning December 22, 2025, impacted individuals were offered a 12-month free credit monitoring program from TransUnion and identity restoration services as part of the offer. Moreover, as part of the ongoing efforts to resolve consumer and dealer concerns, the company has also been in touch with the National Automobile Dealers Association and has notified state attorneys general throughout the country. 

A dedicated hotline was also established to address the concerns of consumers and dealers. In addition, the Michigan Attorney General issued a public consumer alert after an estimated 160,000 Michigan residents were identified as being affected by the fraud. They advised recipients to not ignore notification letters and to take immediate precautionary measures, such as putting a credit freeze on their credit report, signing up to a monitoring service, updating their passwords and enabling multifactor authentication, as soon as possible. 

Earlier this month, Michigan Attorney General Dana Nessel sent a consumer advisory explaining why people should not shrug off correspondence from 700Credit, emphasizing that taking prompt action can significantly reduce the risk of downstream fraud occurring as a result of this situation. 

According to her, victims should consider placing a credit freeze on their credit cards or registering for credit monitoring services, as these can serve as effective first-line defenses against identity theft, so that they may be able to protect themselves effectively. 

Moreover, Nessel emphasized the importance of being alert to potential phishing attempts, strengthening or changing passwords, removing unnecessary data stored on devices and enabling multi-factor authentication across all online services and devices. To be able to identify any suspicious activity as soon as possible, she also advised regularly reviewing credit reports from TransUnion as well as Equifax and Experian. 

As security expert Hill pointed out, the investigation revealed that the automotive retail sector was not adequately prepared in terms of cybersecurity, as highlighted by several industry perspectives. It has been discovered that several large dealerships have well-established security frameworks in place, including continuous monitoring and internal "red team" exercises which test defenses. However, smaller and mid-sized businesses lack the resources necessary to implement the same level of security measures. 

The author warned that these gaps can result in systemic risks within shared data networks, and advised dealerships to increase security awareness, better understand emerging threats, and evaluate the cybersecurity posture of third party partners that may have access to consumer information in a more detailed manner. 

As a whole, the 700Credit breach indicates how cyber risk is distributed across multiple interconnected industries, where vulnerabilities in one partner can ripple outward so that millions of individuals and hundreds of businesses are affected. 

As investigations and notifications continue, it will probably prompt an increased focus on third-party risk management, particularly in sectors which are heavily dependent on the sharing of data and the integration of real-time data. It is important for consumers to maintain vigilance, even after taking initial measures to prevent identity-based fraud, as identity-based fraud often emerges well after the original attack has been made. 

For dealerships and service providers, the breach serves as an alarming example of the need for cybersecurity governance to extend beyond internal systems to include vendors, integrations, and data lifecycle controls, in addition to internal systems. 

In addition to proactive investments in security assessments, employee training, and transparency, analysts note that proactive investments can help minimize both technical exposure and reputational damage in the automotive industry.

It is ultimately up to whether the lessons learned from the incident translate into stronger safeguards and more resilient data practices in the credit monitoring industry as well as automotive retail to determine the long-term impact of the incident.

Shai-Hulud 2.0 Breach Exposes 400,000 Secrets After Massive NPM Supply-Chain Attack

 

The second wave of the Shai-Hulud malware attack last week led to the exposure of nearly 400,000 raw secrets after compromising hundreds of NPM (Node Package Manager) packages and leaking stolen data across more than 30,000 GitHub repositories.

While only around 10,000 of those secrets were confirmed as valid using the TruffleHog open-source scanning tool, cloud security company Wiz reports that over 60% of the NPM tokens leaked in this incident were still active as of December 1st.

Shai-Hulud first surfaced in mid-September, infecting 187 NPM packages with a worm-like payload. The malware scanned systems for account tokens using TruffleHog, injected a harmful script into the targeted packages, and then automatically republished them.
In the latest attack, the threat escalated—impacting more than 800 packages (including all affected versions) and adding a destructive feature capable of wiping a victim’s home directory under specific conditions.

During their review of the secrets spilled by Shai-Hulud 2.0 into over 30,000 GitHub repositories, Wiz researchers found several types of sensitive files exposed:

  • About 70% of repositories contained a contents.json file with GitHub usernames, tokens, and file snapshots

  • Around 50% stored truffleSecrets.json with TruffleHog scan results

  • Nearly 80% included environment.json, which revealed OS details, CI/CD metadata, npm package information, and GitHub credentials

  • 400 repositories had actionsSecrets.json, exposing GitHub Actions workflow secrets

Wiz notes that the malware used TruffleHog without the --only-verified flag, meaning the full set of 400,000 leaked secrets only matched valid formats—they weren’t necessarily functional. Even so, the dataset still contained active credentials.

While the secret data is extremely noisy and requires heavy deduplication efforts, it still contains hundreds of valid secrets, including cloud, NPM tokens, and VCS credentials,” Wiz explained.

To date, these credentials pose an active risk of further supply chain attacks. For example, we observe that over 60% of leaked NPM tokens are still valid.

From the 24,000 environment.json files analyzed, nearly half were unique. About 23% originated from developer machines, with the remainder linked to CI/CD systems or similar automated environments.

The investigation also showed that 87% of compromised machines were running Linux, and 76% of infections occurred within containerized environments. Among CI/CD services, GitHub Actions was the most affected, followed by Jenkins, GitLab CI, and AWS CodeBuild.

When examining which packages were hit hardest, Wiz identified @postman/tunnel-agent@0.6.7 and @asyncapi/specs@6.8.3 as the most impacted—together accounting for over 60% of all infections. Researchers believe the overall damage could have been significantly reduced if these key packages had been flagged and taken down early.

The infection pattern also revealed that 99% of attacks triggered during the preinstall event, specifically through the node setup_bun.js script. The few anomalies observed were likely test runs.

Wiz warns that the operators behind Shai-Hulud are likely to continue refining their methods. The team expects more waves of supply-chain attacks powered by the extensive trove of leaked credentials gathered so far.

GlassWorm Malware Exploits Invisible Unicode to Infect VS Code Extensions

 

A major and ongoing supply-chain attack is currently targeting developers through the OpenVSX and Microsoft Visual Studio Code (VS Code) extension marketplaces via a self-spreading malware dubbed "GlassWorm" that has triggered an estimated 35,800 installations to date. 

The campaign leverages novel techniques, such as embedding malicious code within invisible Unicode characters, enabling it to bypass detection and make the threats literally invisible in code editors. GlassWorm not only infects extensions, but also uses compromised accounts to further propagate itself, posing an accelerating risk through the dependency and update mechanisms of these platforms.

The malware focuses on stealing credentials for GitHub, npm, and OpenVSX accounts, as well as harvesting cryptocurrency wallet information from 49 different extensions. It then escalates the compromise by deploying a SOCKS proxy on infected machines, facilitating covert malicious traffic, and by installing HVNC (Hidden Virtual Network Computing) clients for undetectable remote access. 

GlassWorm leverages a hardcoded Solana blockchain wallet that participates in transactions used to distribute base64-encoded links pointing to its next-stage payload, referred to by researchers as the obfuscated "ZOMBI" module. Once installed, ZOMBI transforms the workstation into a node of a decentralized criminal infrastructure, enabling persistent and stealthy cybercriminal operations.

Unique for its resilience, GlassWorm's operators use the Solana blockchain as the primary command-and-control channel, making takedown efforts extremely challenging due to the blockchain’s decentralized, persistent, and anonymous nature. Secondary methods for controlling infected hosts include embedding payload links in Google Calendar event titles and directly contacting specific IP addresses (e.g., 217.69.3[.]218). To ensure redundancy and robust communication, the malware also incorporates BitTorrent’s Distributed Hash Table (DHT).

Researchers at Koi Security have identified at least eleven infected extensions on OpenVSX, with some still available for download as of reporting, and one on Microsoft’s VS Code Marketplace. Notably, the auto-update feature in VS Code means users can become infected without any interaction—the malicious version of extensions is silently pushed to all endpoints. Microsoft quickly removed the compromised extension following the alert, while some extension publishers have issued security updates.

These attacks follow a wider trend, echoing last month’s Shai-Hulud worm attack that affected 187 npm packages. Koi Security warns that the sophistication, propagation methods, and resilience of GlassWorm represent a significant escalation in the threat landscape, underscoring the urgent need for enhanced supply-chain security and vigilant monitoring.

Shai-Hulud Worm Strikes: Self-Replicating Malware Infects Hundreds of NPM Packages

 

A highly dangerous self-replicating malware called “Shai-Hulud” has recently swept through the global software supply chain, becoming one of the largest incidents of its kind ever documented. 

Named after the sandworms in the Dune series, this worm has infected hundreds of open-source packages available on the Node Package Manager (NPM) platform, which is widely used by JavaScript developers and organizations worldwide. 

Shai-Hulud distinguishes itself from previous supply chain attacks by being fully automated: it propagates by stealing authentication tokens from infected systems and using them to compromise additional software packages, thus fueling a rapid, worm-like proliferation.

The attack vector starts when a developer or system installs a poisoned NPM package. The worm then scans the environment for NPM credentials, specifically targeting authentication tokens, which grant publishing rights. Upon finding such tokens, it not only corrupts the compromised package but also infects up to twenty of the most popular packages accessible to that credential, automatically publishing malicious versions to the NPM repository. 

This creates a domino effect—each newly infected package targets additional developers, whose credentials are then used to expand the worm’s grip, further cascading the spread across the global development community.

Researchers from various security firms, including CrowdStrike and Aikido, were among those affected, though CrowdStrike quickly removed impacted packages and rotated its credentials. Estimates of the scale vary: some report at least 180 packages infected, while others cite figures above 700, underscoring the scope and severity of the outbreak. 

Major tools used by the worm, such as TruffleHog, enabled it to scan compromised systems for a broad array of secrets, including API and SSH keys, as well as cloud tokens for AWS, Azure, and Google Cloud, making its impact particularly far-reaching.

Response to the attack involved urgent removals of poisoned software, rotations of compromised credentials, and investigations by platform maintainers. Security experts argued for immediate industry reforms, recommending that package managers like NPM require explicit human approval and use robust, phishing-resistant two-factor authentication on all publishing operations. 

The attack also exposed the vulnerabilities inherent in modern open-source ecosystems, where a single compromised credential or package can threaten countless downstream systems and organizations. This incident highlights the evolving tactics of cyber attackers and the critical need for improved security measures throughout the global software supply chain.

WordPress Plugin Breach: Hackers Gain Control Through Manual Downloads

 



A serious cyberattack recently targeted Gravity Forms, a widely used plugin for WordPress websites. This incident, believed to be part of a supply chain compromise, resulted in infected versions of the plugin being distributed through manual installation methods.

What is Gravity Forms and Who Uses It?

Gravity Forms is a paid plugin that helps website owners create online forms for tasks like registrations, contact submissions, and payments. According to the developer, it powers around a million websites, including those of well-known global companies and organizations.

What Went Wrong?

Cybersecurity researchers from a security firm reported suspicious activity tied to the plugin’s installation files downloaded from the developer’s website. Upon inspection, they discovered that the file named common.php had been tampered with. Instead of functioning as expected, the file secretly sent a request to an unfamiliar domain, gravityapi.org/sites.

Further investigation showed that the altered plugin version quietly collected sensitive data from the infected websites. This included website URLs, admin login paths, installed plugins, themes, and details about the PHP and WordPress versions in use. All this information was then sent to the attackers’ server.

The attack didn’t stop there. The malicious file also downloaded more harmful code disguised as a legitimate WordPress file, storing it in a folder used by the platform’s core features. This hidden code allowed hackers to run commands on the server without needing to log in, essentially giving them full access to the website.

How Did This Affect Site Owners?

The threat mainly impacted those who manually downloaded Gravity Forms versions 2.9.11.1 and 2.9.12 between July 10 and July 11. Developers confirmed that websites which installed the plugin using automated updates from within WordPress were not affected.

In the infected versions, the malware not only blocked future update attempts but also communicated with a remote server to bring in more malicious code. In some cases, the attack even created a secret admin account giving the hackers complete control over the website.

What Should Website Admins Do Now?

The plugin's developer has released a statement acknowledging the issue and has provided instructions to help website owners detect and remove any signs of infection. Users who downloaded the plugin manually during the affected timeframe are strongly advised to reinstall a clean version and scan their websites thoroughly.

Cybersecurity experts also recommend checking for suspicious files and unknown administrator accounts. The domains used in this attack were registered on July 8, suggesting that this breach was carefully planned.

This incident highlights the growing risk of supply chain attacks in the digital world. It serves as a reminder for website administrators to rely on trusted update channels and monitor their sites regularly for any unusual activity.

IPany VPN Compromised in Supply Chain Attack Deploying Custom Malware

 

South Korean VPN provider IPany fell victim to a supply chain attack orchestrated by the China-aligned hacking group "PlushDaemon." The attackers compromised IPany's VPN installer, embedding a custom malware named 'SlowStepper' into the installer file, affecting customers upon installation.

ESET researchers discovered that the attackers infiltrated IPany's development platform and modified the installer file ('IPanyVPNsetup.exe') to include the SlowStepper backdoor. Customers downloading the VPN's ZIP installer ('IPanyVPNsetup.zip') from the company's official website between November 2023 and May 2024 were impacted. Victims include a South Korean semiconductor firm and a software development company, with the first signs of infections reported in Japan.

When executed, the installer deploys the legitimate VPN alongside malicious files like 'svcghost.exe,' which ensures persistence by creating a Registry Run key. The SlowStepper payload is concealed within an image file ('winlogin.gif') and loaded through a malicious DLL ('lregdll.dll') into the 'PerfWatson.exe' process. The executable monitors this process to keep it operational.

ESET reports that the Lite version 0.2.10 of SlowStepper was used in this attack, designed for stealth with a smaller footprint while maintaining powerful spyware capabilities. The malware, developed in Python and Go, supports a range of espionage commands:

  • System Details Collection: Gathers system data like CPU information, HDD serials, public IP, webcam/microphone status, and more.
  • Payload Deployment: Fetches and executes files from a command-and-control server.
  • File Enumeration: Lists files and directories on compromised systems.
  • Spyware Execution: Runs Python-based tools for browser data theft, keylogging, and credential harvesting.
  • Interactive Control: Enables shell-mode for system commands.
  • Trace Removal: Deletes files or directories to erase evidence.
  • Spyware Modules: Loads specific Python modules to steal browser data, chat logs, and capture screens or webcam footage.
ESET explained, "Both the full and Lite versions make use of an array of tools programmed in Python and Go, which include capabilities for extensive collection of data, and spying through recording of audio and videos."

They promptly notified IPany, leading to the removal of the compromised installer from its website. However, previously infected users must clean their systems to eliminate the malware. 

Notably, the download page lacked geo-fencing, leaving users across the globe potentially vulnerable.The complete list of the indicators of compromise (IoCs) associated with this campaign can be found here

OpenWrt Urges Users to Update Images to Avoid Potential Supply Chain Attacks

OpenWrt, the open-source Wi-Fi router project, has urged users to upgrade their images to the same version to mitigate a potential supply chain attack. The issue, discovered last week, stems from vulnerabilities in the project’s attended sysupgrade server (ASU). 

Details of the Vulnerability 

Paul Spooren, an OpenWrt developer, alerted users via email about a security flaw in the ASU service. The issue was first reported by Ry0taK, a security researcher from Flatt Security, two days prior. Spooren explained: "Due to the combination of the command injection in the 'openwrt/imagebuilder' image and the truncated SHA-256 hash included in the build request hash, an attacker can pollute the legitimate image by providing a package list that causes the hash collision."

Key Vulnerabilities
  • Command Injection: A flaw in Imagebuilder caused by improper sanitization of user-supplied package names allows attackers to create malicious firmware signed with legitimate keys.
  • Weak Hash Vulnerability (CWE-328): Tracked as CVE-2024-54143 with a 9.3 CVSS severity rating, the truncation of the SHA-256 hash to 12 characters enables attackers to generate hash collisions.
Spooren warned, "By exploiting this, a previously built malicious image can be served in place of a legitimate one, allowing the attacker to 'poison' the artifact cache and deliver compromised images to unsuspecting users."

Impact and Mitigation 

The vulnerabilities compromise the ASU service, which helps users upgrade firmware while preserving settings and packages. However, sensitive resources like SSH keys and signing certificates remained secure, as ASU instances operate separately from Buildbot. OpenWrt assured users that:
  • Official images and custom images from version 24.10.0-rc2 onward were unaffected.
  • Build logs for older custom images were reviewed, though logs older than seven days were excluded due to cleanup policies.
To address the issue, Spooren recommended: "Although the possibility of compromised images is near 0, it is suggested to the user to make an in-place upgrade to the same version to eliminate any possibility of being affected. If you run a public, self-hosted instance of ASU, please update it immediately."

Alternatively, users can apply two specific commits listed in OpenWrt’s advisory. Coinciding with the announcement, OpenWrt unveiled its first hardware platform, OpenWrt One, developed with the Software Freedom Conservancy (SFC). The device is described as "unbrickable," featuring a switch that separates NOR and NAND flashing. This milestone supports the right-to-repair movement, emphasizing user control and sustainability.