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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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CSE Malware ZLab - Double Process Hollowing -The stealth process injection of the new Ursnif malware
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New Phishing Attack Creates Malicious Pages Inside the Victim’s Browser
Barracuda details a phishing campaign that renders pages in-browser via blob URLs, routed through Microsoft Teams and cdn.bloom[.]io to evade detection.
Barracuda researchers analyzed a phishing campaign that generates a blob URL to render the phishing page entirely inside the victim's browser, leaving no static page for scanners to inspect. The chain begins with a Docusign-themed email containing a calendar invite, followed by a crafted redirect through Microsoft Teams to a resource on cdn.bloom[.]io that the browser converts into the blob URL. Service workers, iframes, and a hidden command-and-control configuration indicate the page is part of a centrally managed phishing platform that can be updated and steered across victims. Researchers recommend inspecting blob URL activity, monitoring OAuth authorization flows, and analyzing the full click path in email security controls.
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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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TuxBot v3: Inside an IoT Botnet Framework With LLM
Unit 42 uncovers TuxBot v3, an LLM-assisted IoT botnet framework with 17-architecture builds, Telnet brute-forcing, and DDoS capabilities.
Palo Alto Unit 42 identified TuxBot v3 Evolution, a modular IoT botnet framework derived from AISURU, Wuhan-lineage botnets, and MHDDoS. The C-based bot brute-forces Telnet with 1,496 credential pairs, targets over 30 IoT device families, and communicates with a Go-based C2 over encrypted TCP with multiple fallback mechanisms including DGA, P2P, and DNS TXT. LLM-assisted development left hallucinated crypto implementations and broken exploit modules in the analyzed samples, though roughly 70% of core functionality works. Researchers warn polished production builds likely exist, raising the threat potential.
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