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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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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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Prolific Microsoft 0-day hunter drops CrowdStrike Falcon exploit PoC
Researcher Nightmare Eclipse released a PoC for FalconFlank, a privilege escalation zero-day in CrowdStrike Falcon's Office macro remediation feature.
Researcher Nightmare Eclipse published a zero-day PoC dubbed FalconFlank targeting CrowdStrike Falcon's Microsoft Office malicious macro removal feature, achieving privilege escalation on fully updated Windows 11 25H2 and Windows Server 2025 with Optimal Protection and macro removal enabled. Kevin Beaumont independently confirmed the exploit works. The same researcher also released HardBreacher, an elevation-of-privilege bug in Kaspersky Endpoint (since fixed via update), PrettyPrague, an Avast Sandbox flaw that dumps the SAM database for a SYSTEM shell (Gen Digital is developing a patch), and GreenSection, an Nvidia memory corruption bug that crashes systems. CrowdStrike advises customers to disable the Suspicious Macro Removal Windows policy while it investigates.
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Inside Knight Office, a New M365 AiTM Phishing Kit
Huntress details Knight Office, a new AiTM phishing kit stealing Microsoft 365 session tokens and registering attacker-controlled devices.
Huntress investigated an August 18, 2026 adversary-in-the-middle attack using the Knight Office phishing kit, which captured Microsoft 365 session tokens via a DocuSign-style lure routed through a Monday.com tracking link and a compromised Joomla site. After token capture, the actor enrolled an unauthorized host in Microsoft Entra ID and bound a Windows Hello for Business key credential to the account. The kit's operator console, found at IP 104.37.188.94, is built on Python Flask and hosts at least 25 .vu phishing domains. Telemetry links the kit to at least nine token-replay logins in two weeks and roughly 700 reported lure emails since April.
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Analysis of Smoke Loader in New Tsunami Campaign
Fake Japanese Meteorological Agency tsunami warning emails delivered Smoke Loader and AzoRult malware to steal credentials from targets in Japan.
A fake tsunami warning email impersonating Japan's Meteorological Agency asked recipients to click a link on a registered fake agency domain, delivering the commodity loader Smoke Loader to targets in Japan. Smoke Loader, active since 2011, is modular, and its payloads have included banking trojans, ransomware, cryptominers, password stealers, and PoS malware; the campaign later also deployed AzoRult. New samples add junk-jump obfuscation, encrypted network traffic and payload files, a unique machine ID used for tracking and encryption, and PROPagate injection into explorer.exe, with persistence via a Startup folder shortcut and RC4-encrypted C2 communication.
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