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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.
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ValleyRAT: When Legitimate Software Becomes a Malware Delivery Tool
Kaspersky details ValleyRAT delivered via trojanized QN Wallpaper using DLL sideloading, tied to Silver Fox and hitting 1,500+ users in China and India.
Kaspersky found a malicious installer abusing a modified version of the legitimate QN Wallpaper adware application to deliver the ValleyRAT backdoor via DLL sideloading of libcef.dll. The installer masquerades as DingTalk, Chrome or Tencent Meeting software, creates persistence, disables Windows Defender via the DisableAntiSpyware registry key, and loads AES-encrypted payloads. ValleyRAT collects keystrokes, clipboard contents and screenshots plus system details, can download additional modules, and resists removal by injecting into svchost.exe or marking its process critical. The campaign was detected over 100,000 times in 2026, affecting more than 1,500 users mainly in China and India, and is attributed to Silver Fox with both espionage and financial motives.
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ValleyRAT Backdoor Hides in Signed Adware That Users Add to Antivirus Exclusions
Silver Fox distributes ValleyRAT via signed QN Wallpaper adware, sideloading a malicious libcef.dll into a trusted process to evade defenses.
Kaspersky reports the Silver Fox threat actor disguising the ValleyRAT backdoor (Winos 4.0) inside a modified, signed copy of the QN Wallpaper adware tool, using DLL sideloading to run within a trusted process. The installer disables Windows Defender via the DisableAntiSpyware registry key, adds autorun entries, and elevates via runas when needed; ValleyRAT steals keystrokes, clipboard data, and screenshots and can mark its process critical to trigger BSOD if killed. Kaspersky recorded more than 100,000 ValleyRAT detections affecting over 1,500 unique users in 2026, mostly in China and India, with prior campaigns against Japan, India, and Russia.
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Fake Software Installers Disable Windows Update and Weaken Microsoft Defender
Fake software-download sites distribute installers that disable Windows Update and weaken Defender, attributed to China-linked cluster Silver Fox.
Microsoft says an active campaign uses counterfeit vendor websites on .com.cn and .hl.cn infrastructure with Chinese-language lures to deliver server-side generated installers that establish scheduled-task persistence, add Defender exclusions, delete shadow copies, and stop services including wuauserv, UsoSvc, uhssvc and WaaSMedicSvc. Victims span healthcare, manufacturing, gaming, technology, logistics, government and education, primarily China-based operations of multinationals and Chinese-speaking users. Microsoft assesses with moderate confidence the activity matches the Silver Fox (Yinhu) cluster, historically tied to Gh0st RAT and ValleyRAT, with C2 over non-standard ports like 5090 and 7088-7090 via domains iualef[.]net and oijfwe[.]net. Kaspersky separately detailed a QN Wallpaper DLL-sideloading chain delivering ValleyRAT.
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Spark RAT Targets Cambodia, Abuses Vulnerable OPSWAT Driver to Disable Security Tools
Acronis details a Spark RAT campaign against Cambodia abusing the vulnerable OPSWAT ardrv.sys driver (CVE-2026-36425) to disable Microsoft Defender and other security tools.
Acronis TRU analyzed a multi-stage Spark RAT campaign targeting Cambodian individuals and organizations with lures spanning government notices, public health materials, and real estate documents. Attack chains use phishing emails with Inno Setup archives, DLL side-loading via a signed Tencent executable, and BYOVD abuse of the vulnerable OPSWAT ardrv.sys driver (CVE-2026-36425) to terminate security software. Shellcode hidden in PNG files patches AMSI and ETW, establishes scheduled task and service persistence, and injects into vssvc.exe and ctfmon.exe to run the open-source Go-based Spark RAT. Tactics resemble the Silver Fox actor, but Acronis tracks the cluster as unattributed with low confidence.
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PAPERMILL Malware Campaign Abuses Signed Notepad++ to Deliver VenomRAT to Windows Users
JUMPSEC tracks PAPERMILL, a China-nexus phishing campaign using a signed Notepad++ binary, libcurl.dll sideloading, and Donut loaders to deploy VenomRAT against Indian tax-audit targets.
PAPERMILL delivers ISO disk images via tax-audit phishing emails that passed SPF, DKIM, and DMARC, containing a renamed Authenticode-signed Notepad++ executable and a malicious libcurl.dll that proxies curl functions while executing loader logic in DllMain. The chain uses Mark-of-the-Web bypasses, anti-sandbox sleeps, UAC elevation prompts, Registry persistence, and a Donut shellcode loader to reflectively load .NET VenomRAT v6.0.3 with HVNC and credential-stealing capability, with C2 at 154.36.188.201:4449. JUMPSEC assesses the campaign as China-nexus, financially motivated, and Silver Fox-adjacent rather than definitively Silver Fox-operated.
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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.
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HVNC Backdoor Targets LATAM Organizations with Fake Tax and DocuSign Lures
A custom HVNC backdoor is targeting Latin American financial organizations via fake DocuSign and NFe tax-document lures, giving attackers hidden persistent remote access.
ANY.RUN researchers analyzed a multi-stage phishing campaign delivering a custom HVNC backdoor to banking and financial organizations in Latin America. The chain starts with fake DocuSign and NFe tax-document pages that serve per-visitor ZIP archives, followed by an LNK dropper, an NSIS loader, and a 64-bit backdoor masquerading as Windows Update Assistant. The implant provides hidden remote desktop control, keystroke monitoring, Firefox data theft, Startup-folder persistence, and EDR-aware behavior, communicating over TCP/27015.
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Counterfeit installers turn routine software downloads into enterprise breaches
Microsoft warns of a multi-sector campaign using counterfeit download sites for Edge, Kaspersky and Razer to deliver trojanized installers with persistent implants.
Microsoft Defender Experts tracked a campaign breaching organizations in healthcare, manufacturing, gaming, technology, logistics, government, and education via spoofed vendor download pages, often using .com.cn and .hl.cn domains. Installers keep the same filename while their hash changes on every download, indicating server-side payload generation that defeats file-based detection. The chain abuses msiexec.exe and scheduled tasks for persistence, adds Defender exclusions, deletes shadow copies, and disables Windows Update, with some hands-on-keyboard activity. The activity is consistent with the publicly reported Silver Fox (Yinhu) campaign, though Microsoft has not attributed it to a nation-state actor.
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⚡ 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.
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New Chaos Variant Targets Misconfigured Cloud Deployments, Adds SOCKS Proxy
Darktrace says the Chaos botnet now targets misconfigured cloud deployments like Hadoop and added a SOCKS proxy for traffic relaying.
Darktrace identified a new 64-bit ELF variant of the Chaos botnet targeting misconfigured cloud deployments, expanding beyond the malware's traditional focus on routers and edge devices. Captured in a deliberately misconfigured Hadoop honeypot instance, the intrusion began with an HTTP request creating an application that ran embedded shell commands to fetch the Chaos agent binary from pan.tenire[.]com, set chmod 777 permissions, execute it, and delete the artifact to reduce forensic traces. The restructured variant adds a SOCKS proxy feature letting compromised systems ferry attacker traffic, while removing SSH-based spread and router-exploit functions, suggesting monetization beyond crypto mining and DDoS-for-hire. Possible Chinese origin is suggested by language artifacts and infrastructure; the delivery domain was previously used in Silver Fox's Operation Silk Lure phishing campaign delivering ValleyRAT.
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⚡ Weekly Recap: Instagram Account Hacks, Android Zero
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