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New KATARU IoT Malware Packs Linux Privilege Escalation Exploits and Mirai-Style DDoS Attacks

Nozomi Networks identified KATARU, a new Mirai-style IoT botnet delivered via Telnet brute force that uses Linux privilege-escalation exploits and encrypted C2 for DDoS floods.

Nozomi Networks identified KATARU in August after a Telnet password-guessing attack against a honeypot retrieved an ARM payload. The malware attempts exploits for CVE-2026-46300 (Fragnesia), CVE-2026-43284 (DirtyFrag), and CVE-2026-31431 (Copy Fail), plus a cgroup v1 release_agent escape, and persists via systemd services, cron tasks, rc scripts, OpenWrt hooks, and Android boot locations. Its C2 uses X25519 key exchange with ChaCha20-Poly1305 encryption and supports TCP, UDP, ICMP, HTTP, QUIC, and DNS floods, plus SSH brute forcing and command execution; embedded exploit shellcode in the ARM build targeted x86, suggesting untested copied code.

ToxicPanda 2.0 Gets a Major Upgrade, Expanding Attacks Across 16 Countries

Zimperium documents ToxicPanda 2.0, an Android banking trojan now targeting 349 financial institutions in 16 countries via ADB privilege escalation and overlay credential theft.

Zimperium's zLabs documented ToxicPanda 2.0, an Android banking trojan expanding from 16 targeted apps to 349 financial institutions across 16 countries, with 167 remote commands. It poses as a dropper, abuses VPN permissions to block Google Play Protect while installing a hidden payload, then uses the Accessibility Service for screen monitoring and overlay-based credential theft. It automates enabling Android Wireless Debugging and completes the pairing handshake to gain ADB shell access for privilege escalation, and overlays fake lock screens to steal device PINs. Previously unfinished commands are now operational and samples are served from AWS-hosted storage buckets.

Security Affairs · 25d agoMalware in the wild

New IoT Malware Uses Public Linux Exploits to Gain Root and Launch DDoS Attacks

Nozomi details KATARU, an IoT botnet that brute-forces Telnet, exploits public Linux kernel flaws for root access, and launches multi-protocol DDoS attacks.

KATARU, discovered after honeypot Telnet brute-force activity from a Vietnamese IP, downloads an ARM payload (vlxx.arm) and attempts privilege escalation by editing /etc/passwd or exploiting CVE-2026-46300 (Fragnesia), CVE-2026-43284 (Dirty Frag), and CVE-2026-31431 (Copy Fail). It combines Mirai-style TCP, UDP, ICMP, HTTP, QUIC and DNS floods with application attacks against Minecraft, FiveM, OpenVPN and WireGuard. The malware uses X25519 and ChaCha20-Poly1305 encrypted C2, unusually broad persistence across systemd, cron, init frameworks, and Android hooks, plus anti-debugging and decoy traffic to hinder analysis. Implementers copied x86 shellcode into the ARM binary and reused an RFC 7748 test-vector key, indicating low-quality but rapidly evolving commodity development.

GBHackersupdated · 5d agofirst · 6d agoMalware in the wild 2 sourcesCVE-2026-46300CVE-2026-43284CVE-2026-31431

Rogue ScreenConnect Clients Spread Four-Stage VBScript Chain to Newly Connected Hosts

Huntress says rogue ScreenConnect clients spread a four-stage VBScript chain delivering backdoors, privilege-escalation tools, or an XMRig miner to newly connected hosts.

Huntress identified three unrelated August 2026 incidents using a Quick Assist tech-support scam, a phishing-delivered MSI installer, and a fake Geek Squad refund form to install rogue ScreenConnect clients. Each client repeatedly spawned wscript.exe to run 1.vbs through 4.vbs, which profiled the host, enumerated installed security products, and downloaded stage-specific payloads from Dropbox. Depending on detected state, payloads included a user-level ScreenConnect backdoor, UAC-bypass privilege escalation tooling, or tunneling utilities with an XMRig cryptocurrency miner. Infected clients re-infected newly connected hosts, creating worm-like propagation, and ConnectWise issued an advisory about affected file transfer behavior in ScreenConnect.

The Hacker News · 9d agoMalware in the wild