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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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Manic: The Android Malware That Exfiltrates Data Even When the Phone Is Offline
ThreatFabric identifies Manic, an Android banking fraud and spyware platform targeting Ukraine with offline Bluetooth/Wi-Fi Direct mesh exfiltration and device takeover.
ThreatFabric's Mobile Threat Intelligence team identified Manic, an Android malware active in the wild since at least February 2026 that combines banking fraud with surveillance and device-control capabilities. It monitors 169 Android apps including Ukrainian banks, government and eID services, messaging apps, crypto exchanges, and 2FA tools, using the Accessibility service as a classified UI keylogger and WebRTC for live screen viewing and remote control. A distinctive store-and-forward relay exfiltrates AES-GCM-encrypted data through nearby infected devices over Wi-Fi Direct, Bluetooth RFCOMM, or BLE GATT, supporting chains of up to four hops when direct C2 is unavailable. A July update added stronger anti-analysis, in-memory DEX loading, lock-secret phishing to extract device PINs, and hiding from the app launcher.
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Gigabud Uses Android App Cloning to Evade Fraud Detection
Group-IB reports the Gigabud Android banking trojan clones bank apps into isolated work profiles via the Vwork tool to evade fraud detection, with roughly $960,000 in losses in Indonesia.
Group-IB found Gigabud now ships dedicated code to work with Vwork, a weaponized fork of the open-source Android cloning app Shelter it attributes to GoldFactory, exposing cloning functions so any installed app can call them. After installing via phishing sites and messengers posing as airline, tax and government apps, operators request accessibility and overlay permissions, then clone the victim's banking app into a new work profile where it is invisible to signature-based detection in the personal profile. Fake login screens and overlays capture credentials while cloned-app transactions appear to banks as coming from an unrecognized, malware-free device. Between February and July 2026 in Indonesia, Group-IB observed about 1,469 compromised devices, 1,281 potentially compromised logins and estimated losses of roughly $960,939, with Vwork-enabled samples targeting 11 countries including Brazil, Mexico, Egypt and Thailand.
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Hackers Target Claude, Cursor and Codex AI Agents to Steal Tokens and Prompt Histories
Gen Digital found infostealers like Amatera and Remus stealing AI coding agent tokens, prompt histories, and MCP configs from infected Windows and macOS machines.
Gen Digital analysts observed Amatera and Remus detections among tens of thousands of protected Windows users over three months, with Amatera targeting Cline and Continue data and Remus targeting Claude, Cursor, and OpenCode. CallbackBeaver added Cursor and Claude to its collection scope with more than 5,000 samples in 30 days, while macOS-focused Djinn Stealer has been associated with Claude, Codex, Gemini, Cline, OpenCode, and Kilo. The stealers harvest access and refresh tokens, prompt histories, and MCP configuration files that can expose source control, ticketing, databases, cloud resources, and sensitive project context for follow-on fraud. Many stealers add targets via remotely managed rules, meaning this is an adaptation of existing infostealers rather than a new vulnerability in the AI tools themselves.
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Hackers Clone Banking Apps Into Hidden Android Work Profiles to Evade Fraud Detection
GoldFactory-linked Gigabud and Vwork malware clone banking apps into hidden Android work profiles to evade fraud detection across 11+ countries.
Group-IB links Vwork, a modified version of the open-source Shelter app cloner, to the GoldFactory group and its Gigabud Android RAT, which clones victim banking apps into an isolated work profile so fraud sessions look clean to banks. From February through July 2026, researchers observed about 1,469 compromised devices and 1,281 potentially compromised logins in Indonesia, with estimated losses near $960,939. Targets span Brazil, Colombia, Egypt, Indonesia, Mexico, Morocco, the Philippines, Thailand, Türkiye, Laos, and a GCC state; delivery uses fake airline, tax, government, and banking apps pushed via phishing sites, messaging apps, and social media.
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Manic Android Malware Exfiltrates Data From Offline Phones via Nearby Infected Devices
ThreatFabric identified Manic, an Android banking malware and spyware targeting Ukrainian and European financial apps with novel offline Wi-Fi mesh data exfiltration via nearby infected devices.
ThreatFabric reported a new Android malware family called Manic combining banking fraud and surveillance capabilities, targeting 169 package IDs across Ukrainian banks, government and identity services, messaging apps, and Russian and European financial institutions. The malware uses phishing sites and dropper apps impersonating utilities for distribution and relies on accessibility services and notification permissions for keylogging, overlays, and remote control. It introduces a store-and-forward relay mechanism that stages encrypted data locally and relays it through nearby infected devices via Wi-Fi Direct, Bluetooth RFCOMM, or BLE GATT, supporting up to four hops when the primary device lacks internet access. Activity dates back to February 2026, with active development through late July.
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⚡ Weekly Recap: iPhone Spyware, Microsoft 0-Day, TokenBreak Hack, AI Data Leaks and More
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Apple warned hundreds of users of mercenary spyware attacks
Apple sent threat notifications to users in 110 countries warning of targeted mercenary spyware attacks and recommending Lockdown Mode.
Apple sent a new round of threat notifications warning users in 110 countries they may have been individually targeted by mercenary spyware, adding to alerts issued in more than 150 countries since the program began in 2021. The company says such attacks are vastly more sophisticated than criminal activity, cost millions of dollars, and typically target journalists, activists, politicians, diplomats, and lawyers. Apple recommends verifying notices directly at account.apple.com, enabling Lockdown Mode, keeping devices updated, and seeking expert help such as Access Now's Digital Security Helpline. Citizen Lab researchers note the alerts can reveal that entire communities are under targeted surveillance.
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ClearFake Deploys Crypto Stealer That Uses Vulnerable Driver to Kill EDR Security Tools
Cisco Talos details ClearFake's fake-CAPTCHA chain deploying ZigCryptoStealer with a BYOVD attack that kills EDR processes, observed at a Ukrainian government organization in April 2026.
ClearFake compromises websites, injects JavaScript via a malicious Cloudflare Worker, retrieves instructions from BNB Smart Chain contracts (EtherHiding), and presents a fake Google CAPTCHA that tricks Windows users into pasting a command that loads a remote library over WebDAV via rundll32. The crypto-stealer branch uses DLL side-loading with a signed Chrome component to launch ZigCryptoStealer, which hijacks clipboard cryptocurrency addresses, alongside a signed but vulnerable Windows driver used in a BYOVD attack to terminate EDR processes. A parallel branch delivers Amatera secondary payloads that install a hidden remote-access client providing operator desktop control, with Cisco Talos tracking the remote-loader activity as UAT-10820. Talos observed unusual remote library execution at a Ukrainian government organization in April 2026 and assesses the attacks are part of a broader theft operation rather than a single targeted campaign.
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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.
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