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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.

Security Affairs · Aug 16, 2026Threat actor in the wild1

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.

The Hacker News · Aug 15, 2026Threat actor in the wild1

iAuthFlow v2: The $10,000 Phishing Toolkit That Survives Your Password Reset

Abnormal Security details iAuthFlow v2, a $10,000 phishing kit that enrolls attacker-controlled passkeys on Google accounts, persisting through password resets.

Abnormal Security analyzed iAuthFlow v2, a phishing toolkit sold on a Russian-language cybercrime forum for a $10,000 base price with additional capability modules sold separately. Using a browser-in-the-middle relay behind a trycloudflare.com subdomain with valid TLS, it captures Google logins and uses the authenticated session to enroll an attacker-controlled passkey within six seconds of login. Because the passkey persists after password changes and session revocation, operators regain mailbox access even after victims reset credentials. The build examined targets Google, while the seller advertises versions for Microsoft, iCloud, and LinkedIn.

Security Affairs · 23d agoPhishing & fraud1

New Passkey Attacks Can Recover Synced Private Keys or Bypass Phishing

Three research teams showed passkey bypasses: WebAuthn assertion replay in Microsoft Entra ID, synced-passkey key recovery in Google Password Manager, and Windows Hello key reuse.

SpecterOps' Pass-the-Passkey research showed Windows stored past YubiKey signatures in cleartext and chained this with Microsoft Entra ID passkey validation weaknesses to impersonate privileged users despite phishing-resistant MFA; the Windows Event Logging Service issue is tracked as CVE-2026-34348 (CVSS 6.5) and fixed in July 2026 updates. Unit 42's Golden Pass-ta-key attack recovered the 32-byte Security Domain Secret protecting Google Password Manager synced passkeys from Chrome on Windows via pre-existing malware. Dirk-jan Mollema showed in-session malware can use a hardware-bound Windows Hello for Business key without a fresh PIN or biometric check. Microsoft applied Entra-side mitigations for the relay assertion issue; no real-world exploitation has been reported.

The Hacker News · Aug 11, 2026VulnerabilityCVE-2026-34348