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xHunt Campaign: New PowerShell Backdoor Blocked Through DNS Tunnel Detection

xHunt's new CASHY200 PowerShell backdoor used DNS tunneling for C2; DNS security blocked beaconing at a Kuwait organization in September 2019.

Unit 42 describes CASHY200, a new PowerShell-based backdoor tied to the xHunt campaign that communicates with its C2 server windows64x[.]com via DNS tunneling, parsing commands from DNS answers. In September 2019, a Kuwait-based organization's DNS security service blocked the beaconing minutes after detection, cutting off adversary access. Samples dating to May and June 2018 and open source collection suggest the tool was used against Kuwait government organizations from spring 2018 through 2019, with malicious Word documents observed installing CASHY200 payloads configured with C2 domains such as firewallsupports[.]com and winx64-microsoft[.]com. The tool's name derives from identifiers stored under the registry key HKCU\Software\Microsoft\Cashe and the command value 200.

Palo Alto Unit 42 · Aug 17, 2026Threat actor

xHunt Campaign: Attacks on Kuwait Shipping and Transportation Organizations

xHunt deployed custom backdoors Hisoka, Killua, Gon, and EYE against Kuwait shipping and transportation organizations, using DNS tunneling and email-draft C2 channels.

Unit 42 observed the xHunt campaign targeting Kuwait transportation and shipping organizations between May and June 2019, installing backdoors named after characters from the anime Hunter x Hunter, including Hisoka, Killua, Sakabota, and Netero. The tools use HTTP and DNS tunneling for C2, and Hisoka v0.9 added an unusual email-based C2 channel that abuses Exchange Web Services with stolen credentials to exchange email drafts. The Gon tool provides port scanning, file transfer, screenshots, remote command execution, and RDP session creation, while EYE acts as a cleanup failsafe if a legitimate user logs in. Related activity targeting Kuwait between July and December 2018 was reported by IBM X-Force IRIS, suggesting the campaigns are likely related.

Palo Alto Unit 42 · Aug 17, 2026Threat actor1

Passkey-themed social engineering leads to identity and cloud compromise

Microsoft tracks ongoing cloud intrusions where passkey-themed helpdesk lures enable AiTM credential theft, MFA persistence, and SharePoint data theft.

Microsoft Security Research is tracking active cloud-based intrusions, observed since May 2026, that begin with helpdesk impersonation calls and SMS lures urging urgent passkey, MFA, or SSO updates. The lures lead to adversary-in-the-middle phishing or device-code authentication flows that capture credentials and session tokens or grant actor access, after which the actors add authentication methods, conduct Microsoft Graph reconnaissance, and download SharePoint and OneDrive content via REST APIs. Phishing domains embed victim organization names as subdomains (e.g., contoso.add-passkey[.]com), are often registered with Nicenic, and go operational within hours. Microsoft advises revoking sessions and removing unauthorized authentication methods for confirmed compromises.

Microsoft Security Blog · 7d agoThreat actor in the wild2

Threat Brief: 3CXDesktopApp Supply Chain Attack (Updated)

Trojanized 3CXDesktopApp installers for Windows and macOS loaded RC4-encrypted shellcode delivering a backdoor to hundreds of thousands of 3CX users.

Threat actors compromised the 3CXDesktopApp build process, adding malicious libraries (ffmpeg.dll, d3dcompiler_47.dll) to installers downloaded from the developer's website. The Windows MSI loader decrypts embedded shellcode with RC4, sleeps for a random 1-4 weeks, then beacons to C2 hidden in icon files on GitHub. Unit 42 fingerprinted 247,277 IPs across 199 countries using 3CX applications and blocked shellcode execution at 127 Cortex XDR customers between March 9-30, 2023.

Palo Alto Unit 42 · Aug 17, 2026Threat actor in the wild1

Stately Taurus Activity in Southeast Asia Links to Bookworm Malware

Unit 42 links Stately Taurus APT activity in ASEAN region and Myanmar to the decade-old Bookworm malware family via infrastructure overlaps.

Unit 42 connected Stately Taurus (aka Mustang Panda) espionage activity targeting ASEAN-affiliated organizations and Myanmar to the Bookworm malware family, first published in 2015. Earlier attacks delivered the PubLoad stager via DLL sideloading, with a PubLoad variant communicating with C2 at 123.253.32[.]15 while mimicking Windows Update URLs. Three previously unreported loader samples from 2021-2022 used UUID-decoded shellcode loaded via heap allocation and API callbacks, ultimately decrypting and loading Bookworm DLLs. A ToneShell backdoor variant shared debug paths with Bookworm loaders, and the January 2024 CSIRT CTI post corroborated the Myanmar attacks.

Palo Alto Unit 42 · Aug 17, 2026Threat actor in the wild1

Counterfeit installers to system compromise: Tracking a deceptive software download campaign

Microsoft tracks a counterfeit software-installer campaign compromising multinationals' China operations, moderately linked to the Silver Fox (Yinhu) actor.

Microsoft Defender Experts is tracking an active campaign using spoofed software download sites for brands such as Razer, Kaspersky, Microsoft Edge, Calibre, and Baidu Netdisk on .com.cn and .hl.cn domains, delivering installer archives whose hashes change per download, indicating server-side payload generation. The implants establish persistence, weaken security protections, and communicate with attacker-controlled infrastructure, with confirmed compromises across healthcare, manufacturing, gaming, technology, logistics, government, and education. Microsoft assesses with moderate confidence that the activity matches the publicly reported Silver Fox (Yinhu) fake software campaign; it has not attributed it to a nation-state actor.

Microsoft Security Blog · 15d agoThreat actor in the wild1

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.

Palo Alto Unit 42 · Aug 17, 2026Threat actor in the wild1

Afraidgate: Major Exploit Kit Campaign Swaps Locky Ransomware for CryptXXX

Unit 42 reports the Afraidgate campaign switched from Nuclear EK delivering Locky to Angler EK delivering CryptXXX via the Bedep downloader.

Unit 42 reported that the Afraidgate campaign, which uses gates registered through FreeDNS at afraid.org, switched in mid-April 2016 from Nuclear EK distributing Locky ransomware to Angler EK distributing CryptXXX. The Angler/Bedep/CryptXXX combination also spread from the pseudo-Darkleech campaign, with Bedep acting as a fileless, memory-resident downloader that also installs click-fraud malware. Recent Bedep updates detect virtual machines and alter behavior, complicating analyst investigation. Unit 42 published gate, EK, and post-infection indicators including gate IP 185.118.164.42 and associated domains.

Palo Alto Unit 42 · Aug 17, 2026Threat actor in the wild

“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.

Palo Alto Unit 42 · Aug 17, 2026Threat actor in the wild1

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.

The Hacker News · 9d agoThreat actor in the wild1

Multiple ArtraDownloader Variants Used by BITTER to Target Pakistan

BITTER used three ArtraDownloader variants since 2015 to target Pakistan, China, and Saudi Arabia, deploying BitterRAT and exploiting CVE-2017-11882 in one wave.

Palo Alto Unit 42 documents ArtraDownloader, a previously unreported downloader family used by the suspected South Asian group BITTER, with three variants and roughly 80 unique samples dating back to February 2015. Between September 2018 and January 2019, BITTER used spearphishing documents hosted on compromised Pakistani websites to target Pakistan and, for the first time, Saudi Arabia; one RTF sample exploited the EQNEDT vulnerability CVE-2017-11882. The downloader retrieves BitterRAT over HTTP, uses simple registry keys for persistence, and byte-level string obfuscation. Infrastructure overlap with the previously reported MY24 InPage-exploit payload was also observed.

Palo Alto Unit 42 · Aug 17, 2026Threat actor in the wildCVE-2017-11882

New Python-Based Payload MechaFlounder Used by Chafer

Unit 42 identified MechaFlounder, a new Python backdoor used by the Chafer group to target a Turkish government entity via HTTP-based C2.

Unit 42 reports that in November 2018 the Chafer group targeted a Turkish government entity, reusing the win10-update[.]com infrastructure reported earlier in 2018 by ClearSky. The new secondary payload, tracked as MechaFlounder, is Python compiled with PyInstaller and acts as a backdoor supporting file upload/download and command execution. It beacons over HTTP using anomalous GET requests containing the username and hostname, suggesting a custom C2 server rather than a standard web server. Code overlap with OilRig's Clayside VBScript was noted, but Chafer and OilRig remain tracked as separate groups.

Palo Alto Unit 42 · Aug 17, 2026Threat actor