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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.
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xHunt Campaign: New Watering Hole Identified for Credential Harvesting
Unit 42 tied the xHunt campaign to a watering hole on a Kuwait government website used to passively harvest visitors' NTLM credential hashes.
Palo Alto Unit 42 identified a Kuwait government organization's webpage injected with hidden HTML referencing image paths on domains (microsofte-update.com, learn-service.com) tied to xHunt/Hisoka C2 infrastructure. When visitors loaded the page, Windows would attempt SMB/NetBIOS authentication to the remote share, allowing the operators to capture NTLM hashes that could be cracked or relayed. Related DNS redirect activity on xHunt infrastructure in 2019 pointed to additional credential-harvesting interest against Kuwaiti government email servers.
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“Tick” Group Continues Attacks
Unit 42 tracks the Tick espionage group attacking Korean and Japanese defense and high-tech targets with Daserf, Minzen, 9002, Invader, and custom Gh0st RAT variants.
The Tick group has conducted long-running espionage attacks against organizations in the Republic of Korea and Japan, focusing on defense and high-tech companies holding intellectual property, and repeatedly attacked one high-profile Japanese target for three years. Unit 42 links the Daserf backdoor, the 9002 RAT, and the Invader backdoor through shared C2 infrastructure used between July 2012 and April 2013. Minzen samples install a "NamelessHdoor" backdoor derived from publicly available code over a decade old, modified with ReflectiveDLLLoader DLL injection, and the group also uses custom Gh0st RAT variants. Tick has shifted from privacy-protected domain registration to compromised websites for C2 infrastructure.
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Hackers Use Autonomous AI Agents to Launch Mass Credential Theft Attacks in Under 6 Hours
Google Cloud reports attackers used autonomous AI agents to steal thousands of credentials including 23,800 secrets in a sub-six-hour campaign.
Google Cloud threat intelligence observed financially motivated attackers compromising cloud infrastructure and using AI coding agents guided by written playbook files to scan, harvest and rotate credentials within six hours. An exposed C2 dashboard for a framework called Recon organized and validated more than 23,800 stolen secrets, including API keys for cloud and AI services. Related activity includes UNC6780 publishing the trojanized tiktoken_mcp package on PyPI to target CI/CD tokens and the DUSTMAKER stealer hiding in .claude, .vscode and .cursor workspace directories.
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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.
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Hackers Spend Nearly $7 Million on Expired Domains to Redirect Traffic to Scams and Malware
Infoblox reports Sable Squirrel spent nearly $7 million on expired domains to redirect traffic to illegal sports streaming, gambling, and malware infrastructure.
Infoblox tracked 50,400 dropcatch domains re-registered daily in gTLDs during H1 2026, nearly 20% of all registrations, with .net and .xyz leading. The threat actor Sable Squirrel has acquired more than 10,000 expired domains supporting Asian sports piracy brands such as Xoilac, Cakhia, 90phut, Socolive, and MiTom while promoting betting services like VSBet, ColaScore, and 8xbet. The operation, assessed as Vietnam-based and overlapping the dismantled Xoi Lac TV streaming network, targets users in Vietnam, South Korea, Japan, Taiwan, Singapore, and Australia via a traffic distribution system, publishes Android apps through suspected compromised Google Play developer accounts, and deployed over 31,000 malware samples including Quasar RAT, AsyncRAT, DCRat, NanoCore, Remcos RAT, and njRAT.
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Crooks Are Buying Your Expired Domains and Using Them to Deliver Malware
Infoblox finds dropcatch expired domains fuel malware delivery and C2, with actor Sable Squirrel spending ~$7M on 10,000+ domains.
Infoblox Threat Intel reports that in H1 2026 dropcatch (re-registered expired) domains made up nearly 20% of all new registrations, about 65,000 per day, inheriting reputation and traffic that attackers exploit. Threat actor Sable Squirrel spent nearly $7 million on 10,000+ expired domains, running Vietnamese, Korean, Japanese and Australian streaming platforms (Xoilac, Cakhia, 90phut) that double as C2 servers for Quasar RAT, AsyncRAT, DCRat and Remcos RAT. Scavenger actors like Shady Squirrel acquire previously compromised domains and feed inherited traffic to SocGholish and tech support scam networks.
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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.
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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.
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