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Week in review: AiTM phishing kit used to hijack AWS accounts, year-long malware campaign targets HR
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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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PAPERMILL Malware Campaign Abuses Signed Notepad++ to Deliver VenomRAT to Windows Users
JUMPSEC tracks PAPERMILL, a China-nexus phishing campaign using a signed Notepad++ binary, libcurl.dll sideloading, and Donut loaders to deploy VenomRAT against Indian tax-audit targets.
PAPERMILL delivers ISO disk images via tax-audit phishing emails that passed SPF, DKIM, and DMARC, containing a renamed Authenticode-signed Notepad++ executable and a malicious libcurl.dll that proxies curl functions while executing loader logic in DllMain. The chain uses Mark-of-the-Web bypasses, anti-sandbox sleeps, UAC elevation prompts, Registry persistence, and a Donut shellcode loader to reflectively load .NET VenomRAT v6.0.3 with HVNC and credential-stealing capability, with C2 at 154.36.188.201:4449. JUMPSEC assesses the campaign as China-nexus, financially motivated, and Silver Fox-adjacent rather than definitively Silver Fox-operated.
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Hackers Deploy New SloppyRAT via ClickFix to Enable Ransomware Lateral Movement
Zscaler ThreatLabz reports SloppyRAT, a new Windows RAT delivered via ClickFix lures that supports reconnaissance, reverse SOCKS proxying, and lateral movement for ransomware affiliates.
Zscaler ThreatLabz first observed SloppyRAT in June 2026, delivered through multi-stage ClickFix chains that abuse finger.exe, a renamed curl.exe, and IronPython to load a reflective Python payload. The C++ implant implements 47 PowerShell-like commands via native APIs and direct syscalls, modifies Microsoft Defender settings, and establishes a reverse SOCKS proxy that lets operators pivot into internal networks. It is linked to CastleLoader and CastleRAT components and uses certificate-pinned HTTPS C2 with an EtherHiding fallback via Polygon JSON-RPC. Zscaler assesses it as an intrusion-enablement tool for ransomware operations, though flawed persistence logic suggests the family is still under development.
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Shai-Hulud's Reach Just Grew to 469 Credential Locations. Here's What That Means
GitGuardian found the Shai-Hulud infostealer worm now scans 469 credential locations, including CI/CD and AI tool configs, expanding supply-chain risk.
GitGuardian researchers found that a recent Shai-Hulud worm variant scans for credentials across 469 locations in developer environments, CI/CD tooling, cloud configurations, and AI tool configs, up from 189 paths in earlier variants. The worm reuses stolen credentials to pivot from developer workstations to source code, cloud infrastructure, and package publishing channels, turning credential theft into forward-propagating supply chain attacks. The analysis urges defenders to prioritize removing long-lived package publishing tokens in favor of short-lived OIDC-based trusted publishing, citing recent Docker and GitHub Actions improvements.
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