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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

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 wild