FrostyGoop’s Zoom-In: A Closer Look into the Malware Artifacts, Behaviors and Network Communications
Unit 42 dissects FrostyGoop OT malware, which sent Modbus TCP commands to disrupt heating for 600+ apartment buildings in Ukraine.
Palo Alto Unit 42 analyzed new FrostyGoop/BUSTLEBERM samples, the ninth known ICS-centric malware, first used against a Ukrainian municipal energy company by sending Modbus TCP commands to ENCO control devices. The attack caused a two-day heating outage affecting over 600 apartment buildings during sub-zero temperatures. The Go-compiled malware accepts Modbus register operations and timing parameters via command-line arguments or a JSON configuration file, uses an obscure open-source Modbus library, and checks the Windows BeingDebugged flag to evade debuggers. Unit 42 telemetry recorded over 1 million Modbus TCP devices exposed to the internet between September and October 2024.
Scam Attacks Taking Advantage of the Popularity of the Generative AI Wave
Unit 42 finds about 225 generative AI-themed domains registered daily since ChatGPT's launch, with nearly 29 percent suspicious, fueling scams and PUP delivery.
Palo Alto Networks analyzed new domain registrations containing generative AI keywords such as chatgpt, prompt, and sora since ChatGPT's November 2022 launch, observing around 225 GenAI-related registrations per day. About 28.75 percent of these domains are suspicious, a rate 22 times higher than for general new domains, with registration spikes aligning with milestones like Bing ChatGPT integration, the GPT-4 release, new GPTs, and OpenAI's Sora announcement. Over 72 percent of the domains use gpt or chatgpt keywords, and gpt domains show a 76 percent suspicious rate. Case studies cover PUP delivery, spam distribution, and monetized domain parking, with 35 percent of traffic to these domains directed at suspicious ones.
Network Abuses Leveraging High-Profile Events: Suspicious Domain Registrations and Other Scams
Unit 42 found scammers surge deceptive domain registrations around major events like the 2024 Paris Olympics to run phishing and counterfeit merchandise scams.
Unit 42 analyzed newly registered domains (over 200,000 detected daily from zone files, WHOIS, and passive DNS) containing event-specific keywords, using the 2024 Paris Summer Olympics as a case study. Threat actors register lookalike domains to sell counterfeit merchandise, push fraudulent services, and run phishing, as previously seen with COVID-19-themed and fake ChatGPT tool scams. The article recommends monitoring domain registrations, DNS and URL traffic trends, textual patterns, and verdict change requests to catch event-themed abuse early.
The Smishing Deluge: China-Based Campaign Flooding Global Text Messages
Unit 42 attributes a global smishing campaign with 194,000+ phishing domains impersonating tolls, banks, and couriers to the Smishing Triad.
Palo Alto Unit 42 attributes ongoing smishing texts about toll violations and package misdelivery to the Smishing Triad, targeting U.S. residents since April 2024. Researchers identified 194,345 FQDNs across 136,933 root domains registered since January 2024, mostly via Hong Kong registrar Dominet (HK) Limited with Chinese nameservers and hosting concentrated on U.S. cloud services. The decentralized campaign impersonates banking, cryptocurrency, e-commerce, healthcare, law enforcement, and social media services, and its scale points to a large phishing-as-a-service operation. Phishing pages harvest national ID numbers such as Social Security numbers, home addresses, payment details, and login credentials.
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.
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.
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.
Attackers Use Passkey Phishing to Hijack Microsoft Cloud Accounts and Exfiltrate Data
Microsoft details two campaigns: million-email CEO impersonation ACH fraud and passkey-themed vishing that hijacks Microsoft cloud accounts for data theft and extortion.
Microsoft disclosed a campaign that sent over one million CEO-impersonation scam emails between August 3-5, 2026, targeting U.S. accounts payable departments with fake ServiceNow subscription invoices to induce ACH transfers, using generative AI to tailor templates. A second campaign detected since May 2026 uses passkey/MFA-themed voice phishing posing as the IT help desk, redirecting victims via SMS to counterfeit Microsoft sign-in pages and adversary-in-the-middle or device-code flows to hijack accounts. Post-compromise activity includes adding attacker-controlled authentication methods, high-volume Microsoft Graph activity, SharePoint and OneDrive downloads, and mailbox collection via REST APIs. Microsoft attributes initial access to Storm-3121 (linked to ShinyHunters and Falcon extortion) and Storm-3032 (UNC6671, a BlackFile splinter operating the Helix extortion brand).
Passkey-themed phishing attacks lead to Microsoft 365 data theft
Microsoft links ShinyHunters- and Helix-affiliated actors to passkey-themed vishing and device-code phishing that compromises Microsoft 365 accounts and steals cloud data.
Microsoft attributes passkey- and SSO-themed social engineering activity, observed since May 2026, to Storm-3121 (linked to ShinyHunters and Falcon) and Storm-3032 (tied to BlackFile members now operating as Helix). Attackers impersonate corporate IT help desks by phone or SMS, urging fake passkey, MFA, or SSO updates and directing victims to adversary-in-the-middle phishing pages or device-code authentication flows that yield credentials, session tokens, and OAuth tokens. Post-compromise behavior includes Microsoft Graph enumeration of users, SharePoint, and OAuth grants, plus persistence via attacker-controlled MFA methods. Google Threat Intelligence tracks related activity as UNC6671, linked to the BlackFile, Helix, Falcon, Pink, and Redact extortion gangs.
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.
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.
Operation RapidRust: APT36 Deploys RUSTYSHADE, RUSTYMOVE, PSNATCH, and BASHNATCH
Zscaler details Operation RapidRust: APT36 deploys four new tools including RUSTYSHADE, a Rust backdoor using private GitHub repos for encrypted C2.
Zscaler ThreatLabz documents Operation RapidRust, a campaign by Pakistan-aligned APT36 deploying four new tools: RUSTYSHADE, a 64-bit Rust Windows backdoor that uses attacker-controlled private GitHub repositories with a hardcoded PAT and AES-256-GCM-encrypted messages for C2; RUSTYMOVE; PSNATCH, a PowerShell file stealer that scans Office documents, archives, media, and databases modified in the last 120 days and exfiltrates up to 5 GB per run to per-machine GitHub repositories; and BASHNATCH. The backdoor was dropped via PowerShell from attacker-controlled Backblaze B2 storage and supports screenshots, webcam capture, file listing, downloads, and shell command execution.
GhostCode Abuses Microsoft Entra Device Enrollment to Maintain Access After Token Revocation
eSentire exposes GhostCode, a device-code phishing kit that abuses Microsoft Entra device enrollment to persist even after stolen tokens are revoked.
eSentire's Threat Response Unit observed GhostCode campaigns in late August 2026, using BEC-style social engineering that impersonated procurement staff, including BJ's Wholesale Club, via Salesforce contact forms. Victims received password-protected HTML lures disguised as a FlipBook document portal, with junk-data padding, HTML comment injection, and AES-256-GCM encrypted redirects gated by anti-bot checks. The kit exploits the OAuth 2.0 device authorization grant, prompting victims to approve real Microsoft device-code sign-ins with MFA. Within 78 seconds of approval, attackers registered three Entra devices and obtained a Primary Refresh Token, so rogue device registrations persist even after session token revocation.
The extension you never installed: KREMLIN forges Chrome's own integrity checks to steal banking sessions
Elastic details KREMLIN, a Brazilian banking malware whose malicious Chrome/Edge extension forges Chromium integrity checks to steal sessions.
Elastic Security Labs tracked operation REF9334 and its KREMLIN toolkit, a Brazilian banking malware campaign impersonating twelve banks across seven campaigns since May 2025. The infection chain uses multi-stage obfuscated JavaScript loaders with sandbox checks (file and process counting), scheduled-task persistence, and an Ethereum smart contract acting as a dead-drop resolver for C2 and payload URLs, abusing Archive.org for hosting. The malicious browser extension bypasses Chromium integrity mechanisms by manipulating Secure Preferences and regenerating required HMACs and App-Bound encrypted hashes. Threat Command disrupted over 1,500 infections by registering the kill-switch canary domain.
DPRK APTs: Ted backdoor and curlRAT target South Korean media and automotive sectors
Rapid7 uncovered a DPRK-linked Linux toolkit using a HAProxy-embedded ted backdoor, SSH keylogger, and curlRAT against South Korean media and automotive firms.
Rapid7 Labs identified a previously undocumented framework attributed with medium confidence to DPRK actors, targeting South Korean automotive and media organizations likely since early 2025. The toolkit embeds a backdoor compiled into HAProxy 2.8.12 using its filter API, plus trojanized crond, agetty, atd, sshd, and polkitd, an SSH keylogger storing credentials under /var/lib/sshd/, and a curl-based RAT with a watchdog thread. It enables remote command execution, malicious script injection into served webpages (a watering-hole loop), credential harvesting, and long-term surveillance. Hardcoded C2s are associated with APT37 via ThreatFox, and exposed groupware portals and mail servers align with Kimsuky tradecraft; the initial access vector and any CVE remain unconfirmed.
ThreatsDay: CEO Phishing Kits, 5K Dropbox Account Hacks, OAuth Traps + 17 More Stories
Microsoft warns of Teams IT-impersonation intrusions deploying Node.js implants; Spring Ring vishing hit 150+ employees across 10 companies; The Gentlemen ransomware claims 683 victims.
Microsoft warned of a human-operated campaign abusing Teams external collaboration to impersonate IT help desk staff, deploy malicious MSI packages staging Node.js runtimes and obfuscated JavaScript implants, then pivot to domain controllers over WinRM. Unit 42 documented the Spring Ring vishing operation targeting over 150 employees across at least 10 companies using 26 attacker identities, including an NTLM relay variant against domain controllers. Sophos reported The Gentlemen ransomware (Gold Sherwood) reached 683 total victims by end of July 2026, adding 169 in July, with a playbook using BYOVD-based EDR killers and backup tampering. Group-IB found the Outsider phishing-as-a-service platform created 700+ new phishing pages within a month despite law enforcement takedowns.
Critical Gitea RCE Actively Exploited as Reported Attack Drops Miner
CISA added actively exploited Gitea RCE CVE-2026-60004 (CVSS 9.8) to the KEV catalog as attackers deploy a cryptojacking dropper.
CVE-2026-60004 is a critical remote code execution flaw affecting Gitea versions 1.17 through 1.27.0, abused via the diffpatch endpoint to install a Git hook and execute shell commands as the Gitea OS user. Default open registration lets unauthenticated attackers obtain the required repository write access. CISA added the flaw to its Known Exploited Vulnerabilities catalog, giving federal agencies until August 28, 2026 to patch; version 1.27.1 fixes it. A developer reported their HOSTKEY-hosted VPS was exploited to run a miner-like dropper, driving CPU usage above 70% and killing competing processes.
ApateWeb: An Evasive Large-Scale Scareware and PUP Delivery Campaign
Unit 42 uncovers ApateWeb, a campaign using over 130,000 domains and multilayered redirects to deliver scareware, adware and PUPs to millions of users.
Unit 42 discovered ApateWeb, a large-scale campaign using a network of more than 130,000 domains to deliver scareware, potentially unwanted programs, adware including a rogue browser and browser extensions, and scam pages. The campaign uses a three-layer structure with deceptive emails as the entry point, centralized victim tracking via UUIDs, intermediate adware or anti-bot redirections, and evasion tactics such as cloaking, bot detection error pages, and wildcard DNS abuse. Activity spiked since August 2022, with several hundred attacker-controlled sites remaining in Tranco's top 1 million rankings and millions of monthly hits; Unit 42 blocked an estimated 3.5 million sessions across 74,711 devices in November 2023.