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ValleyRAT Backdoor Hides in Signed Adware That Users Add to Antivirus Exclusions
Silver Fox distributes ValleyRAT via signed QN Wallpaper adware, sideloading a malicious libcef.dll into a trusted process to evade defenses.
Kaspersky reports the Silver Fox threat actor disguising the ValleyRAT backdoor (Winos 4.0) inside a modified, signed copy of the QN Wallpaper adware tool, using DLL sideloading to run within a trusted process. The installer disables Windows Defender via the DisableAntiSpyware registry key, adds autorun entries, and elevates via runas when needed; ValleyRAT steals keystrokes, clipboard data, and screenshots and can mark its process critical to trigger BSOD if killed. Kaspersky recorded more than 100,000 ValleyRAT detections affecting over 1,500 unique users in 2026, mostly in China and India, with prior campaigns against Japan, India, and Russia.
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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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BambooToken: The Malware That Speaks MQTT to Stay Under the Radar
Lumen's Black Lotus Labs uncovered BambooToken, a Windows and Linux malware family using MQTT broker-based C2 and DLL sideloading across Asia since February 2023.
Lumen Black Lotus Labs identified BambooToken, a multiplatform malware family that exchanges commands through MQTT brokers so infected hosts never contact the C2 server directly, active from at least February 2023 through July 2026. The Windows variant sideloads via Tendyron's OnKey hardware-token software used in Chinese banking and government, or impersonates Kingsoft Office, without either vendor's signing certificate being compromised; a Linux build appeared by December 2025 with shell, file transfer, and system information commands. Victims include MikroTik and DrayTek routers in Singapore, Cambodia, and Vietnam reached after internet-wide SNMP scanning, and Lumen cannot attribute the family to any known actor.
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New Android malware encrypts files, steals data, and harasses victims
Zimperium details Mantax Otax, an Android malware combining ransomware, spyware, and harassment, spread via phishing APKs to Indonesian users.
Zimperium researchers report Mantax Otax is distributed through malicious APKs hosted outside Google Play via phishing and social engineering, then abuses Accessibility permissions for broad device control. It encrypts files with a C2-provided AES key on Android 9 and older, adds '.enc' extensions, and hosts ransom chats on Firebase; researchers exposed attacker chats via a Firebase misconfiguration. The malware steals lock-screen PINs, SMS one-time codes, contacts, WhatsApp and Telegram chats, and captures screens via MediaProjection, while version 2 adds jumpscare overlays and text-to-speech harassment. Google Play Protect already detects and blocks it on up-to-date devices via the App Defense Alliance.
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BraZetsu Malware Turns Compromised Windows Hosts Into Criminal Marketplace Inventory
Group-IB details BraZetsu, a modular Python Windows malware that monetizes compromised-host access through the Infected Marketplace for initial access brokers.
Group-IB attributes BraZetsu to the Exilware threat actor, believed to be native Portuguese speakers targeting Iberian and Latin American e-commerce, financial, industrial, and law enforcement victims. The framework, first observed in early May 2026, uses generative AI for data triage and target prioritization, steals browser histories and digital certificates, and hunts Brazilian CNAB financial remittance files. Access to compromised hosts is sold on the Infected Marketplace from roughly $5.80, letting buyers remotely deploy secondary payloads over WebSocket-linked infrastructure. Some samples evaded detection on VirusTotal; delivery likely uses VBS loaders from a domain also used to distribute the Ousaban banking trojan.
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Meta Ads Push StreamRat Android Trojan That Can Gain Near-Complete Device Control
ThreatFabric details StreamRat, a new Android banking trojan spread via Meta malvertising in Spain that reached about 571,000 EU accounts.
ThreatFabric reported that a fake TV-streaming malvertising campaign on Meta promoted StreamRat, a technically sophisticated Android banking trojan, targeting Spanish-speaking users; the ads reached an estimated 570,950 Meta accounts in the EU between June 11 and July 3, 2026. Once installed via sideloaded APKs, the trojan abuses Accessibility to log keystrokes, show credential-stealing overlays, capture screens, and remotely control devices, and was also promoted through TikTok. Its dropper requests default Home app and VPN permissions and was hosted via GitHub releases, closely resembling one used in the earlier Mirax campaign. C2 infrastructure includes IPs 45.147.28.59 and 193.32.2.245, and no named threat actor was attributed.
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MantaxOtax Android Malware Combines Ransomware With Spyware
Zimperium analyzed MantaxOtax Android malware combining AES file encryption with extensive spying, linked to Indonesian actors and distributed via sideloading.
Zimperium's zLabs published a technical analysis of MantaxOtax, an Android malware family that combines ransomware-style file encryption with comprehensive spyware, linked to Indonesian threat actors and distributed via sideloaded APKs on a third-party file-sharing service. The malware requests device administrator, SMS, contacts, storage and Accessibility permissions, resolves its C2 domain dynamically from a GitHub repository, and encrypts files with AES using per-device keys derived from the Android ID on Android 9 and earlier. It steals WhatsApp messages, Telegram credentials, OTPs and other data, and uses MediaProjection for screenshots and screen recording staged on Catbox; a second variant adds WebSocket C2 with persistent screen locking and app blocking.
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TWINLOOT Abuses SharePoint and Teams to Steal Credentials and Move Across Networks
Ontinue disclosed TWINLOOT, a Python implant hiding C2 in SharePoint dead drops and Teams TURN relays, harvesting credentials and pivoting via reverse SOCKS5.
Ontinue's Cyber Defense Center identified TWINLOOT during a July 2026 campaign investigation: a modular, PyArmor-hardened Python implant (a 39 MB bootstrap-fat.pyc loader) whose entire C2 infrastructure lives inside trusted Microsoft services. Tasking flows through SharePoint Online file dead drops polled every 15 seconds via the Microsoft Graph API, while interactive operator access uses WebRTC DataChannels relayed by Microsoft Teams TURN servers; Graph traffic is driven by the victim's own headless Edge browser. The implant harvests Windows credentials with fake lock screens, offers a reverse SOCKS5 pivot for lateral movement to SMB, RDP, WinRM, and MSSQL, executes commands, and persists on hosts. Initial access is assessed to be Teams social engineering masquerading as IT support, prompting a PowerShell command to download the payload.
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