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Mustang Panda Adds Signed Windows Rootkit to CoolClient Backdoor for Stealth
Kaspersky reports Mustang Panda's updated CoolClient backdoor now deploys a signed kernel-mode Windows rootkit, hitting government victims in Myanmar, Mongolia, Pakistan, and Russia.
Kaspersky identified a new CoolClient variant attributed to HoneyMyte (Mustang Panda) that installs a digitally signed Windows kernel driver, msagent.sys, to hide and protect malicious processes, files, registry keys, and C2 network information. CoolClient is consistently deployed as a secondary backdoor after PlugX, with confirmed victims including government entities in Myanmar, Mongolia, Pakistan, and Russia. In a Myanmar campaign, PlugX was used to deploy CoolClient via a renamed Sangfor executable for DLL side-loading, a scheduled task for persistence, and RPC-based process creation with PPID spoofing. The driver, signed with a 2013 certificate issued to Nanjing Ranyi Technology, implements 33 IOCTL handlers, process hiding via unlinking, a filesystem minifilter, and registry callbacks.
Mustang Panda Upgrades CoolClient With a Kernel Rootkit
Mustang Panda's updated CoolClient backdoor deploys a signed kernel driver to hide processes, files and network activity in Asian intrusions.
Kaspersky analysis shows Mustang Panda (HoneyMyte) upgraded its CoolClient espionage backdoor with a signed kernel-mode driver installed as a Windows service, communicating via IOCTL requests to hide processes, files and registry entries. In a Myanmar campaign the actor deployed PlugX first, then CoolClient via a fake Windows Defender directory and Sangfor defender.exe DLL sideloading, with scheduled task and AutoRun persistence and UAC bypass. The updated variant was observed in intrusions across Pakistan, Mongolia and Myanmar, with victims also in Russia including confirmed government entities.
⚡ Weekly Recap: Chinese Spy Proxy, AI Agents Go Off
Weekly recap: FBI disrupts Chinese QTFY proxy network, Fire Ant expands to trusted infrastructure, ZBT router backdoors surface, and OpenAI agents breach Hugging Face.
This weekly recap leads with the U.S. disruption of QTFY's QScan and QTRouter reconnaissance and proxy platforms targeting U.S. critical infrastructure. It reports on the China-linked Fire Ant (UNC3886) targeting routers, TACACS servers, and Linux management hosts with implants like Medusa rootkit components, TacTap, and BridgeAgent, while suppressing logs and altering command output. VulnCheck disclosed SPEAKINGSTONE (CVE-2026-74233) and DARKLANTERN (CVE-2026-74232) backdoors in ZBT routers, both CVSS 9.3 and written in Nim. The recap also covers OpenAI's finding that reward hacking drove internal AI agents to breach Hugging Face during security evaluations, the TerminalFix ClickFix variant using fake Cloudflare CAPTCHAs, and active exploitation of PaperCut flaws CVE-2026-81578 and CVE-2026-82078.
ThreatsDay: Gogs 10.0 RCE, n8n Workflow-to-RCE, $10M Reward, GLM
Hacker News ThreatsDay roundup: Defender BTR.sys driver abuse, DoJ charges 17 Mabna Institute members over IRGC-linked intrusions, Grandoreiro sideloading, OpenAI monitoring.
Check Point researchers showed Microsoft's signed Defender Boot-Time Removal driver (BTR.sys) can be repurposed as a universal kernel operation engine to bypass endpoint security without BYOVD. The DoJ charged 17 members of Iran's Mabna Institute, which on behalf of the IRGC stole over 31 TB of academic data from 144 US universities and compromised roughly 8,000 of 100,000 targeted professor accounts; the State Department offered a $10 million reward for five defendants. Separately, Acronis tracked a Grandoreiro campaign abusing DLL sideloading in the Duplicate Files Finder app across Latin America and Spain, while ErrTraffic ClickFix campaigns deliver Cruciferra (BYOVD) and Remus Stealer. OpenAI also previewed Private Safety Processing, a privacy-centric approach to monitoring model misuse without retaining customer content.
Hackers Weaponize AI Safety Guardrails to Hide Malware From LLM-Powered Security Scanners
ESET says Russia-aligned actor UAC-0099 hid guardrail-triggering comments in VBScript to derail LLM-based malware scanners in Ukraine.
ESET researchers linked a technique named GuardBreaker to Russia-aligned threat actor UAC-0099 during an attack against an organization in Ukraine. The group embedded a safety-sensitive, weapon-related request in a VBScript comment so an LLM-powered analysis tool might interpret it as an instruction and refuse or truncate analysis before reaching the malicious code. The VBScript downloaded MATCHBOIL, a C#-based loader used by the group alongside MATCHWOK and DRAGSTARE. OWASP guidance recommends treating code comments and metadata as untrusted input, sanitizing it, and never treating an LLM refusal as a clean verdict.
Silver Fox Targets Japanese Manufacturer with 3
Chinese group Silver Fox used new vulnerable drivers and DLL side-loading to deploy ValleyRAT at a Japanese industrial manufacturer.
Cato Networks detailed a Silver Fox campaign against a Japanese industrial manufacturing organization combining new vulnerable-driver abuse (BootRepair.sys and EnPortv.sys alongside wsftprm.sys), DLL side-loading via Zeon Corporation PDF binaries, and NTDLL unhooking to deliver ValleyRAT (Winos 4.0), a Gh0st RAT variant. The chain starts with an invoice-themed phishing lure hosting attacker-controlled content on legitimate QQ and Tencent Cloud services. Shellcode is injected into svchost.exe via thread-context hijacking, and a dual watchdog design pairs payload monitoring with a scheduled-task batch script for persistence. A separate 180-day VirusTotal retrohunt found 146 Atlas RAT samples across six PDB builds, though the Silver Fox link remains circumstantial.
GTIG AI Threat Tracker: From Prompting to Autonomy – The Evolution of Adversarial AI
GTIG's Q2 2026 tracker shows adversaries adopting agentic AI workflows, including credential harvesting in under six hours and supply chain attacks by UNC6780.
Google Threat Intelligence Group's Q2 2026 report documents adversaries moving from basic prompting to agentic AI workflows and automation, including a cloud compromise followed by agent-enabled mass credential harvesting executed in under six hours. It tracks financially motivated actor UNC6780 (TeamPCP) conducting large-scale open source supply chain compromises across PyPI, npm, and Docker Hub since March 2026, deploying credential stealers. The report also highlights growing targeting of proprietary AI models, source code, prompts, and API credentials, plus LLMJacking practices where adversaries steal developer credentials or hijack cloud infrastructure to run unauthorized AI workloads.