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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

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.

Security Affairs · 15d agoMalware in the wild

⚡ 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.

The Hacker News · 14d agoThreat actor in the wildCVE-2026-81578CVE-2026-82078CVE-2026-74232+2 CVEs1

APT group HoneyMyte upgrades CoolClient: the backdoor gets a kernel-level Windows rootkit

Kaspersky reports APT group HoneyMyte upgraded its CoolClient backdoor with a kernel-mode Windows rootkit hiding processes, files, and network connections.

Kaspersky researchers discovered a new variant of the HoneyMyte CoolClient backdoor equipped with a kernel-mode Windows rootkit driver. The rootkit hides malicious processes, files, and network connections from security tools and threat analysts, significantly increasing the backdoor's stealth. The report documents an upgrade to the APT group's backdoor tooling with a kernel-level implant.

Kaspersky Securelist · Aug 14, 2026Threat actor in the wild

Hackers Abuse Google CAPTCHA, WebDAV and BNB Smart Chain to Deploy Credential-Stealing Malware

Cisco Talos details ClickFix campaigns abusing fake Google CAPTCHA prompts, WebDAV and BNB Smart Chain to deploy the Amatera infostealer.

Cisco Talos identified a multi-stage campaign, first observed in April 2026 when a Ukrainian government organization executed a disguised DLL named verification.google from a WebDAV path. The chain combines ClearFake JavaScript injected via malicious Cloudflare Workers, EtherHiding payloads stored in BNB Smart Chain contracts, ClickFix social engineering, and WebDAV-hosted DLL loaders to deliver the Amatera (ACR Stealer) infostealer. The Amatera configuration contained over 400 collection entries targeting browsers, messengers, crypto wallets, password managers, FTP and VPN tools, hunting for .kdbx, .p12, .pfx and .pem files. The pf.ch branch deploys ZigCryptoStealer, an EDR-terminating vulnerable driver and Go-based reverse TCP proxies, while the verification.google branch installs NetSupport Manager, supporting moderate-confidence attribution of the UAT-10820 activity to a Russian actor.

GBHackersupdated · 4d agofirst · 6d agoMalware in the wild 4 sources

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.

The Hacker News · 19d agoThreat actor in the wild

UAT-10147 Uses AI to Scale Server Attacks, Deploys SPECTRE With EDR Bypass and Linux Rootkit

Cisco Talos exposes UAT-10147, a Chinese-speaking group using AI tools to automate intrusions, deploy SPECTRE, BadIIS, and rootkits against web servers worldwide.

Cisco Talos detailed UAT-10147, a Chinese-speaking cybercrime group conducting SEO fraud and data theft against Windows and Linux web servers in education, media, technology, and gaming sectors, with most victims in Brazil, Bolivia, China, Canada, and Vietnam. The actor exploits publicly disclosed vulnerabilities for initial access, including Zimbra (CVE-2022-27925) and Alibaba Nacos (CVE-2021-29441), and abuses Linux LPE flaws like CVE-2022-0847 and CVE-2021-3156 for root. Its toolset includes AI-assisted frameworks DeepAudit and PentestGPT, plus implants such as SPECTRE, BadIIS, Quasar RAT, Gh0stCringe, and Noodle RAT. An exposed directory contained a target list of roughly 170,000 URLs, with the US, India, UK, Germany, and Netherlands as top destinations.

The Hacker News · 19d agoThreat actor in the wildCVE-2022-0995CVE-2021-3156CVE-2015-5287+8 CVEs

ThreatsDay: 296K IoT Botnet, 100+ Water Systems Targeted, SharePoint RCE Chain + 27 New Stories

Weekly ThreatsDay bulletin details a ShinyHunters-style social engineering hit on ReliaQuest, the 296,000-device Dysphoria IoT botnet, and several new malware families.

ReliaQuest confirmed a social engineering attack on August 22, 2026, in which an attacker used a fake SSO page and MFA push approval to gain brief view-only access to an identity dashboard, with tactics matching ShinyHunters, which has since listed the firm on its leak portal. The Shadowserver Foundation reported the Dysphoria botnet has compromised nearly 296,000 IoT devices for DDoS attacks and recently added residential proxy capability. Cisco Talos documented JWR, an operator-driven phishing-as-a-service framework linked to The Outsider that harvests credentials, identity documents, and 2FA codes over an encrypted WebSocket. New malware coverage includes the Octagon Android fraud bot ($1,400/month), the C2Looper Rust backdoor delivered via ClickFix, and the Aeternum loader that moved C2 to the Polygon blockchain.

The Hacker News · 14d agoMalware in the wild