Hackers Deploy New SloppyRAT via ClickFix to Enable Ransomware Lateral Movement
Zscaler discovered SloppyRAT, a ClickFix-delivered RAT that gives ransomware operators reconnaissance, remote execution, and SOCKS proxy pivoting for lateral movement.
Zscaler identified SloppyRAT in June 2026, linked to a ransomware-related threat actor. The infection chain starts with a ClickFix lure abusing finger.exe over TCP port 79, then uses curl.exe, IronPython, CastleLoader, and CastleRAT before reflectively loading SloppyRAT as a DLL in memory. The RAT supports HTTPS command-and-control, system inventory, file operations, Defender tampering, and a reverse SOCKS proxy, with evasion features including runtime code encryption, indirect syscalls, certificate pinning, and a possible EtherHiding blockchain fallback. Its persistence code is buggy and the malware appears under development, but the pre-encryption foothold gives defenders a window to stop intrusions.
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.
C2Looper: A New Backdoor Likely Tied To Ransomware With GitHub C2
Zscaler ThreatLabz identified C2Looper, a new Rust-based backdoor likely tied to ransomware actors and delivered via ClickFix chains, using GitHub for C2.
In July 2026, Zscaler ThreatLabz identified C2Looper, a new Rust-based backdoor family. The malware supports arbitrary command execution, reconnaissance, and deployment of second-stage payloads, and uses GitHub as its command-and-control channel. ThreatLabz assesses with low-to-medium confidence that it is delivered through multi-stage ClickFix infection chains and is likely leveraged by a ransomware-related threat actor. The analysis covers multiple C2Looper variants, their network protocols, and capabilities.
Operation RapidRust: APT36 Deploys RUSTYSHADE, RUSTYMOVE, PSNATCH, and BASHNATCHnew
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.
CaptiveCrunch: Midnight Blizzard Weaponizes Hotel Wi-Fi Captive Portals to Steal Microsoft 365 Credentials
Zscaler details CaptiveCrunch: Midnight Blizzard's Storm-2945 compromises hotel Wi-Fi captive portals to redirect guests and harvest Microsoft 365 credentials via device code phishing.
Zscaler ThreatLabz analyzed the CaptiveCrunch credential theft campaign first reported by Microsoft on July 31. Microsoft attributes the activity to Storm-2945, a sub-cluster of Russia-linked Midnight Blizzard (APT29, Cozy Bear, NOBELIUM, BlueBravo). The actor manipulates DNS and HTTP traffic on captive portal networks at hotels and conference centers, redirecting victims to attacker-controlled infrastructure for Microsoft 365 credential harvesting, device code phishing, and malware delivery. Evidence indicates shared captive portal services were compromised rather than each venue being breached individually.
Attackers Turn Trusted Node.js Runtime Into Malware Delivery Tool in Targeted Attacks
Symantec reports multiple threat actors, including KongTuke, abusing the trusted signed Node.js runtime and blockchain C2 (EtherHiding) to deliver backdoors in targeted attacks.
Symantec's Threat Hunter Team (Broadcom) reports that since February 2026 attackers have used the legitimate signed node.exe binary and interpreted scripts to deliver implants while evading signature-based detection, hitting government departments, technology companies, and hotels. One intrusion at an Asian technology firm (March 23–July 25, 2026) used ClickFix social engineering, the official Node.js installer, and EtherHiding to fetch commands via the Ethereum blockchain after AdaptixC2 and Cobalt Strike attempts were blocked. Related chains involve KongTuke (Woodgnat) using ModeloRAT, Mistic, NexShield, and GateKeeper, plus C2Looper, AsukaStealer, and EtherRAT; GuidePoint Security separately linked a fake-CAPTCHA ClickFix campaign to at least 31 compromised organizations using the Polygon blockchain as a dynamic C2 address book.
⚡ 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.
Suspected Russian Hackers Abuse Google OAuth and WhatsApp Linking to Hijack Accounts
Google tracked three suspected Russian espionage clusters abusing OAuth flows, app passwords, and WhatsApp linking to hijack accounts of diplomats and defense targets.
Google Threat Intelligence Group detailed three suspected Russian espionage clusters, UNC6293, UNC7005 (Storm-2945), and UNC5976, targeting academia, aerospace, defense, governments, and think tanks in Europe, the US, Ukraine, and Armenia. UNC6293, assessed as a sub-cluster of APT29/Ice Relic, conducted OAuth and application-specific password phishing while impersonating State Department officials. UNC5976 registered file-sharing-themed domains hosting fake OAuth login pages and deployed a malicious Excel plugin codenamed HEADRUSH, while UNC7005 abused WhatsApp device linking to hijack accounts and record victims' audio and video.
Risky Bulletin: Slovakia finds Russian backdoor in traffic speed cameras
Slovakia's NBU found an SMS-triggered backdoor in Russian-made NERO R-ONE traffic cameras, pausing a 279-unit deployment.
Slovakia's national security service NBU issued an alert against NERO R-ONE high-speed traffic cameras after finding a backdoor that grants shell and network access via SMS from hardcoded Russian phone numbers. The cameras are a rebranded version of the Russian CORDON PRO.M model by St. Petersburg firm Semicon, purchased via a Cyprus shell company under a €30 million EU-funded project. The report also found SecureBoot disabled, vulnerable web management, and unauthenticated live streams; the Interior Ministry paused deployment of 279 cameras pending independent assessment.
Cortex XDR™ Detects New Phishing Campaign Installing NetSupport Manager RAT
Cortex XDR threat hunters uncovered a phishing campaign delivering the NetSupport Manager RAT via a fake password-protected NortonLifelock Word document.
Unit 42 identified a January 2020 phishing campaign using a Microsoft Word document disguised as a password-protected NortonLifelock file. Enabling macros triggered an obfuscated command that built alpaca.bat in the temp directory, which used msiexec to download an MSI payload from quickwaysignstx.com, filtered on the Windows Installer user-agent string. The payload installed a PowerShell script and the campaign, which has delivered NetSupport Manager RAT since at least 2018, showed related activity dating back to early November 2019.