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⚡ Weekly Recap: iPhone Spyware, Microsoft 0-Day, TokenBreak Hack, AI Data Leaks and More
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ThreatsDay: 296K IoT Botnet, 100+ Water Systems Targeted, SharePoint RCE Chain + 27 New Stories
Weekly ThreatsDay bulletin details a ShinyHunters-style social engineering hit on ReliaQuest, the 296,000-device Dysphoria IoT botnet, and several new malware families.
ReliaQuest confirmed a social engineering attack on August 22, 2026, in which an attacker used a fake SSO page and MFA push approval to gain brief view-only access to an identity dashboard, with tactics matching ShinyHunters, which has since listed the firm on its leak portal. The Shadowserver Foundation reported the Dysphoria botnet has compromised nearly 296,000 IoT devices for DDoS attacks and recently added residential proxy capability. Cisco Talos documented JWR, an operator-driven phishing-as-a-service framework linked to The Outsider that harvests credentials, identity documents, and 2FA codes over an encrypted WebSocket. New malware coverage includes the Octagon Android fraud bot ($1,400/month), the C2Looper Rust backdoor delivered via ClickFix, and the Aeternum loader that moved C2 to the Polygon blockchain.
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14 Trojanized npm Packages Drop RedC2 4.0 Linux Backdoor With AI
Trend Micro found 14 trojanized npm calendar utilities delivering RedC2 4.0, an AI-powered cross-platform backdoor sold for $99.99.
Trend Micro's TrendAI identified 14 functional but trojanized npm packages (streak-*, kit-map-vim, map-streak-kit) that load a bundled Linux implant, the RedShell beacon of RedC2 4.0, without requiring install hooks. RedC2 4.0, sold by Red Offsec for $99.99 and advertised on Hack Forums by actor MarlboroMan in June 2026, offers shell access, credential theft, SOCKS5 proxying, in-memory execution, and an LLM-driven component called Red Agent for natural-language post-exploitation. The framework has evolved from version 2.0 in August 2025 through 4.0, with the Linux beacon introduced in the latest release.
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LiteLLM Supply-Chain Attack - Technology, Banking and Healthcare the Most Affected
TeamPCP planted the SANDCLOCK credential stealer in LiteLLM PyPI releases, exposing credentials across 2,038 repositories at 898 organizations including Microsoft and NVIDIA.
Threat actor TeamPCP compromised LiteLLM maintainer credentials and published malicious versions 1.82.7 and 1.82.8 to PyPI around March 2026, creating an exposure window of several months. The SANDCLOCK credential stealer exposed full credential sets across 898 GitHub owners and 2,038 repositories, including Microsoft, Azure, IBM, NVIDIA, PayPal, Deloitte, Bosch, and S&P Global. Stolen material includes GitHub CI/CD identities, AWS/GCP/Firebase credentials, SSH keys, Kubernetes secrets, and OpenAI and Anthropic API keys; Resecurity acquired a 150GB archive with 2,146 credential records. Technology, banking/finance, and healthcare organizations are the most affected sectors, and victims must rotate all exposed credentials.
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Week in review: Actively exploited Windows SMB flaw, trusted OAuth apps turned into cloud backdoors
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Old Wine in the New Bottle: Mirai Variant Targets Multiple IoT Devices
Unit 42 analyzed the Mirai IZ1H9 botnet variant exploiting Tenda, LB-Link, DCN and Zyxel flaws to build DDoS-capable IoT botnets.
Unit 42 observed the Mirai IZ1H9 variant on April 10, 2023, using a shell script downloader lb.sh from 163.123.143.126 to infect exposed Linux servers and networking devices. Campaigns running since November 2021 share infrastructure, near-identical bot functions and the XOR key 0xBAADF00D. The malware exploits CVE-2023-27076 (Tenda G103), CVE-2023-26801 (LB-Link), CVE-2023-26802 (DCN DCBI-Netlog-LAB) and a Zyxel RCE flaw. Compromised devices join a botnet used for DDoS attacks, and the downloader deletes logs and modifies iptables to block SSH, Telnet and HTTP recovery.
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