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xHunt Campaign: New PowerShell Backdoor Blocked Through DNS Tunnel Detection

xHunt's new CASHY200 PowerShell backdoor used DNS tunneling for C2; DNS security blocked beaconing at a Kuwait organization in September 2019.

Unit 42 describes CASHY200, a new PowerShell-based backdoor tied to the xHunt campaign that communicates with its C2 server windows64x[.]com via DNS tunneling, parsing commands from DNS answers. In September 2019, a Kuwait-based organization's DNS security service blocked the beaconing minutes after detection, cutting off adversary access. Samples dating to May and June 2018 and open source collection suggest the tool was used against Kuwait government organizations from spring 2018 through 2019, with malicious Word documents observed installing CASHY200 payloads configured with C2 domains such as firewallsupports[.]com and winx64-microsoft[.]com. The tool's name derives from identifiers stored under the registry key HKCU\Software\Microsoft\Cashe and the command value 200.

Palo Alto Unit 42 · Aug 17, 2026Threat actor

The Fractured Block Campaign: CARROTBAT Used to Deliver Malware Targeting Southeast Asia

Unit 42 uncovers the Fractured Block campaign using the CARROTBAT dropper to deliver SYSCON and OceanSalt malware in cryptocurrency-themed attacks across Southeast Asia.

Unit 42 identified 29 CARROTBAT dropper samples used in the Fractured Block campaign, delivering decoy documents on cryptocurrencies, exchanges, and Korean political topics. Early samples delivered the SYSCON RAT, which uses FTP for command and control, while later ones dropped the previously reported OceanSalt malware. CARROTBAT supports 11 decoy file formats and uses certutil to download and execute payloads. Initial discovery stemmed from a December 2017 spear phishing attack on a British government agency, with infrastructure overlap tying the campaign to KONNI activity.

Palo Alto Unit 42 · Aug 17, 2026Malware

ASCII smuggling crosses over from AI prompt injection to phishing evasion

Microsoft details high-volume phishing campaign using ASCII smuggling (Unicode tag chars) for filter evasion, peaking at 2.3M messages.

Microsoft researchers observed a high-volume finance-themed phishing campaign using invisible Unicode tag characters (U+E0000–U+E007F), a technique known from AI prompt injection research as ASCII smuggling, to split lure words like 'funding' and evade email filters. Telemetry from Microsoft Defender for Office 365 showed signature hits jump from roughly 21,000 messages on February 8, 2026 to more than 1.3 million on February 9, peaking above 2.3 million on February 11, with elevated weekday activity lasting approximately three months. The discovery emerged from prompt injection protection research, showing AI-era evasion techniques crossing into traditional phishing. Most messages were flagged by layered Defender protections rather than a single Unicode-specific signal.

Microsoft Security Blog · 13d agoPhishing & fraud in the wild1

Getting a stranger’s phone kicked off the cellular network costs a few dollars

Researchers show attackers can remotely block strangers' phones and alarm gateways on US cellular networks by abusing lost/stolen IMEI reporting for $2.50-$4 per device.

Researchers from Michigan State University and three partner schools found six weaknesses in the lost/stolen device reporting ecosystem spanning devices, carrier systems, and cross-carrier block-list sharing. They demonstrated blocking unopened Samsung Galaxy Z Fold 7 phones and home alarm gateways on three major US carriers, with each block costing $2.50-$4 and taking roughly 20-80 seconds. The attacks exploit thin identity and ownership checks in prepaid accounts, IMEI leakage from vulnerable cellular chipsets used by two vendors with over 40% global market share, and pre-release IMEI databases purchasable for $600. Victims receive no notification, and restoring service requires proving device ownership to the carrier.

Help Net Security · 5d agoResearch

Almost Half of Malware Samples Communicate Direct to IP

Unit 42 analysis of 4 million malware reports finds 45% of C2-active samples connect directly to hard-coded IPs, bypassing DNS defenses.

Palo Alto Unit 42 analyzed over 4 million Advanced WildFire dynamic analysis reports and found that 45.32% of malware samples with C2 activity made at least one direct-to-IP connection, accounting for 23.17% of all C2 connection attempts. The firm proposes zero trust IP (ZT-IP), an enforcement approach that verifies whether outbound destinations were ever sanctioned by a DNS response. ZT-IP analysis surfaced Phorpiex ransomware droppers fetching payloads directly from C2 IPs, a persistent data exfiltration campaign using an obfuscated \GET protocol, and Mozi P2P botnet payloads delivered to IoT devices without DNS. Only 1% of benign samples connected directly to untrusted IP addresses.

Palo Alto Unit 42 · Aug 17, 2026Research