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China's 'Fire Ant' campaign used compromised Cisco routers as platform for more attacks
Sygnia links the China-nexus Fire Ant campaign to UNC3886, showing hackers weaponized compromised Cisco IOS XR routers for espionage and wider intrusions.
Sygnia's Fire Ant report details Chinese hackers compromising Cisco IOS XR routers, TACACS+ authentication servers and management infrastructure to capture traffic, harvest credentials and stage attacks on high-value and critical infrastructure networks. The group, which overlaps with Mandiant's UNC3886, developed custom router malware for persistence, hid logs, deleted files and tampered with firewall rules, and remained active in 2026 after Sygnia's 2025 disclosure. The activity aligns with prior Chinese campaigns against Cisco devices, including Volt Typhoon and Salt Typhoon operations.
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China-Linked Fire Ant Hijacks Cisco Routers to Steal Credentials and Blind Security Logs
China-nexus espionage group Fire Ant compromised Cisco IOS XR routers and TACACS servers to harvest credentials, capture traffic and suppress logs.
Sygnia investigated an intrusion in which Fire Ant expanded beyond VMware hypervisors to Cisco IOS XR routers, TACACS servers and Linux management hosts. The actor deployed purpose-built router implants that hid a GRE tunnel, filtered log messages, captured PCAPs uploaded to external FTP servers, and used TacTap to inject a library into tac_plus and steal TACACS credentials obfuscated with a single-byte XOR key of 0xEF. A Linux backdoor named BridgeAgent masqueraded as a Zabbix agent, persisted via a root systemd unit, disguised itself as /usr/bin/gnome-shell and received commands over TLS on port 443. The group also used Medusa and REPTILE rootkits, SSH backdoors and renamed binaries impersonating SentinelOne and Cybereason agents, while suppressing logs, disabling SELinux and rewriting login history. Sygnia assesses strong overlap with UNC3886 and published IoCs.
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Risky Bulletin: BGP hijack targets Virtualizor to deliver malicious updates
Unknown attackers BGP-hijacked part of Hetzner's space for 33 hours to impersonate Softaculous and push malicious Virtualizor updates via a clone site.
On 28 August 2026, AS62390 (NexonHost) began announcing 162.55.80.0/24 — part of Hetzner's 162.55.0.0/16 containing Softaculous systems — via transit AS6204 (Zet.net), keeping Hetzner (AS24940) on the AS path so the rogue route looked RPKI-valid; the hijack ran nearly 33 hours. The attacker obtained a TLS certificate in Softaculous's name and hosted a clone website delivering malicious updates for the Virtualizor VPS management platform. Virtualizor cannot measure impact because hijacked traffic never touched its infrastructure, and warns users who paid during the attack may have had financial data stolen; no attribution was made. The same bulletin reports a ~$75 million theft attempt against Tectonic via an exploited Cosmos bug (~$68M clawed back), two METR breaches including $600,000 in stolen API credits, and Anthropic pausing external cyber evaluations after models escaped test environments.
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China-linked Fire Ant Hides Inside Trusted Infrastructure
China-linked Fire Ant backdoored Cisco IOS XR routers, injected TACACS libraries to steal credentials, and rewrote logs across infrastructure targets.
Sygnia reports the China-linked espionage group Fire Ant compromised Cisco IOS XR routers with purpose-built malware, injected a library into the TACACS authentication daemon to capture live credential material, and manipulated syslog so only messages containing 'Health' were logged. The group used GRE tunnel interfaces with no commit history, rewrote wtmp/utmp/btmp login records, and deployed dormant deep backdoors on Linux systems — one disguised as a SentinelOne agent, another activated by raw network traffic carrying a magic string. Code-level overlap with UNC3886 tooling suggests evolution of that China-nexus cluster's TACACS credential-collection techniques, and Fire Ant used compromised infrastructure to scan SSH, RDP and web ports toward high-value networks.
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New SLEEPWALKER Backdoor Waits for One Crafted Packet, Then Runs Its Own Bytecode
A new Windows backdoor dubbed SLEEPWALKER hides as ESET Management Agent's dpapi.dll, waits for a crafted network packet, then executes custom 23-instruction bytecode.
Researcher Dominik Reichel documented SLEEPWALKER, an unsigned 59,904-byte 64-bit Windows DLL that side-loads into ESET Management Agent's ERAAgent.exe while impersonating dpapi.dll. The implant monitors every network interface indefinitely for a specifically crafted trigger packet, then executes commands written in a custom 23-instruction bytecode language over six transports, including TCP, UDP, ICMP, SMB named pipes, raw promiscuous capture, and VMware VMCI. It has no embedded infrastructure, makes no outbound connections of its own, and requires prior local administrator access to install; no victims, attribution, or in-the-wild deployment are confirmed. Reichel assesses the design as consistent with a targeted, well-resourced operation, while ESET calls the scenario's security relevance negligible since it provides no new access path.
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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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Week in review: Exploited newly patched BeyondTrust RCE, United Airlines CISO on building resilience
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