ESET discovered both SpellBinder and WizardNet, tools used by Chinese hackers. A China-based APT group, “The Wizards,” has been linked to a lateral movement tool, Spellbinder, which allows adversary-in-the-middle (AitM) attacks. It does so via IPv6 stateless address autoconfiguration (SLAAC) spoofing, to roam laterally in the compromised network, blocking packets and redirecting the traffic of legal Chinese software to download malicious updates from a server controlled by threat actors, ESET researchers said to The Hacker News.
The attack creates a path for a malicious downloader which is delivered by hacking the software update mechanism linked with Sogou Pinyin. Later, the downloader imitates a conduit to deploy a modular backdoor called WizardNet.
In the past, Chinese hackers have abused Sogou Pinyin’s software update process to install malware. Last year, ESET reported a hacking group called Blackwood that delivered an implant called NSPX30 by abusing the update process of the Chinese input method software app.
This year, the Slovak cybersecurity company found another threat actor called PlushDaemon that exploited the same process to deploy a custom downloader called LittleDaemon.
The Wizards APT has targeted both individuals and the gambling industry in Hong Kong, Mainland China, Cambodia, the United Arab Emirates, and the Phillippines.
Findings highlight that the Spellbinder IPv6 AitM tool has been active since 2022. A successful attack is followed by the delivery of a ZIP archive which includes four separate files.
After this, the threat actors install “wincap.exe” and perform "AVGApplicationFrameHost.exe," to sideload the DLL. The DLL file then reads shellcode from “log.dat” and runs it in memory, resulting in the launch of Spellbinder.
In a 2024 attack incident, the hackers utilized this technique to hack the software update process for Tencent QQ at the DNS level to help a trojanized version deploy WizardNet; a modular backdoor that can receive and run .NET payloads on the victim host. Spellbinder does this by blocking the DNS query for the software update domain ("update.browser.qq[.]com") and releasing a DNS response
“The list of targeted domains belongs to several popular Chinese platforms, such as Tencent, Baidu, Xunlei, Youku, iQIYI, Kingsoft, Mango TV, Funshion, Yuodao, Xiaomi and Xioami's Miui, PPLive, Meitu, Quihoo 360, and Baofeng,” reports The Hacker News.
In the world of cybercrime, criminals usually fall into two groups. Some target individuals, tricking them for money. Others go after important organizations like hospitals and companies, hoping for bigger payouts. Although attacks on healthcare are less common, they cause major harm when they happen. Incidents like the New York Blood Center hack, where hackers stole a million patient records, show how serious the risk is. Now, a new report warns about Chinese cybercriminals, known as Ghost, who are attacking government offices, power companies, banks, factories, and hospitals. Most of their attacks have affected North America and the United Kingdom.
Ghost Hackers Active in Over 70 Countries
According to research shared by Rebecca Harpur from Blackfog, the Ghost hacking group is based in China and acts on its own without links to the government. Their main goal is to make money, not to steal secrets. Over time, this group has changed its identity multiple times, previously using names like Cring, Crypt3r, Hello, and Phantom. By rebranding, they make it harder for law enforcement agencies to track them as one single group.
Despite their tricks, agencies like the FBI and the Cybersecurity and Infrastructure Security Agency (CISA) have raised alarms about the damage Ghost can cause. The Blackfog report explains that victims usually receive a message demanding money, threatening to either destroy stolen information or release it publicly if they refuse to pay.
How Ghost Carries Out Its Attacks
The way Ghost hackers break into systems usually follows the same pattern:
• They first find and exploit weaknesses in systems that are open to the internet, such as VPN devices, websites, and email servers.
• After getting inside, they install secret programs like Cobalt Strike and web shells to stay hidden. They often create fake accounts and disable security software once they have high-level access.
• With these privileges, they move across the network quietly and transfer sensitive data to their own servers.
• Once enough data is stolen, they release ransomware programs (often named Ghost.exe or Cring.exe) across the network. This encrypts files, destroys backup copies, and leaves a ransom note demanding payment.
Tips to Stay Protected
Although the FBI has provided detailed steps to defend against these attacks, Blackfog suggests a few important actions:
1. Keep backups of all important data and store them separately from your main network.
2. Always install the latest updates for your operating systems, applications, and firmware.
3. Use multi-factor authentication to add an extra layer of security to user accounts.
4. Divide your network into smaller parts to make it harder for hackers to move around freely if they break in.
The Ghost hacking group is not interested in spying — their focus is on making money. Organizations need to stay alert, strengthen their defenses, and act fast to prevent serious damage from these ongoing threats.
A major cybersecurity breach has been reported against the U.S. Treasury Department, specifically its Office of Foreign Assets Control (OFAC). OFAC, which oversees trade and economic sanctions, was accessed by Chinese state-backed hackers in what officials have described as a "major incident."
How the Attack Happened
The breach was through a vulnerability in BeyondTrust, a remote support software used by the Treasury. Hackers exploited this platform to gain unauthorized access to sensitive government systems. OFAC was their primary focus, likely because of its role in managing sanctions against foreign entities, including Chinese individuals and organizations.
OFAC was originally created in 1950 in the Korean War to block assets from China and North Korea. Today, it remains a very central part of U.S. sanctions enforcement. This makes OFAC a high-value target for espionage.
Impact of the Breach
According to the reports, in addition to OFAC, the hackers accessed the Treasury's Office of Financial Research. Officials have so far confirmed that the compromised systems have been secured, and the hackers do not have access any longer. The extent of data stolen or misused is yet to be determined.
The same hacking crew, which identified itself as the "Salt Typhoon," also has been identified with earlier incidents of hacking other major U.S. telecom firms, including Verizon and AT&T, whose breaches enabled illicit access to customers' communications-affecting contents such as sent text messages or calls, among others-as well as wiretaps conducted by police.
Salt Typhoon is not limited to the United States, as there have been reports of similar breaches in telecommunications networks of several countries. This has shown weaknesses in crucial communication infrastructure.
In response to these incursions, U.S. officials have called for more stringent cybersecurity measures. CISA has suggested using encrypted messaging apps such as Signal to secure communications. Moreover, lawmakers are thinking of banning China Telecom's remaining operations in the U.S.
Senator Ron Wyden also introduced new legislation to ensure the US telecom system's security. All these steps are taken to avoid such breaches in the future and to prevent the sensitive data pertaining to the government and private institutions, which would have been accessed by the state-funded cyberattacks. This was a highly sophisticated cyber-espionage campaign, thus proving the explicit necessity for security measures.
The Chinese state-sponsored hacking group Salt Typhoon has been implicated in one of the most severe breaches in U.S. telecommunications history. Sensitive information, including call logs, timestamps, phone numbers, and location data, was compromised across the networks of at least eight major telecom carriers, including AT&T and Verizon. Despite the scale of the intrusion, many affected consumers remain uninformed about the breach.
According to reports, Salt Typhoon’s hacking campaign has targeted high-value intelligence figures, including presidential candidates Donald Trump and Kamala Harris, as well as Senator Chuck Schumer's office. The FBI estimates that millions of users’ metadata, particularly in the Washington, D.C., area, were accessed. Yet, most affected individuals have not been notified, raising serious privacy concerns.
AT&T and Verizon, the most severely impacted companies, have faced backlash for their limited response to the breach. Privacy groups have criticized the telecom giants for failing to comply with the Federal Communications Commission (FCC) mandate requiring companies to inform customers of breaches that could cause significant harm, such as identity theft or financial loss.
While high-value targets were promptly alerted, the majority of users whose data was compromised were not informed. In an interview with NBC, Alan Butler, executive director of the Electronic Privacy Information Center, condemned the carriers’ "deficient practices." He emphasized the need for transparency, urging companies to notify all affected customers, regardless of whether their metadata or the actual content of their communications was accessed.
Charter Communications, a midsize internet service provider, has taken a relatively open approach, acknowledging infiltration by Salt Typhoon. According to Chief Security Officer Jeff Simon, access by the hackers has since been cut off, and no customer information was reportedly accessed. In contrast, other companies like Lumen, another internet service provider, have downplayed or refused to disclose the extent of the breach.
Cybersecurity experts warn that Salt Typhoon continues to target U.S. telecom networks and IT infrastructure. Government agencies are closely monitoring the situation to mitigate further risks. Lawmakers are now considering stricter cybersecurity regulations to compel telecom companies to adopt robust practices and provide detailed breach notifications to consumers.
However, some companies targeted by Salt Typhoon claim the hackers did not gain substantial information. For example, Lumen stated that federal partners found no evidence of ongoing activity in its networks.
While telecom companies have yet to adequately address these breaches, consumers must stay informed about security risks by following news updates on data breaches. Public pressure is likely to drive industry-wide changes, prompting carriers like AT&T and Verizon to adopt comprehensive notification systems for all affected users.
The Salt Typhoon breach serves as a wake-up call for the telecommunications industry to prioritize data security. Enhanced transparency, stricter cybersecurity regulations, and informed decision-making will be crucial to safeguarding sensitive information in an increasingly digital world.
The US Cybersecurity and Infrastructure Security Agency (CISA) released a comprehensive guide on Wednesday to help individuals in highly targeted positions protect their mobile communications from malicious actors. This move follows a series of sophisticated telecom hacks that impacted major US wireless carriers, including Verizon, AT&T, Lumen Technologies, and T-Mobile. The attacks were linked to Salt Typhoon, a China-backed cyber espionage group.
Earlier this month, the US government emphasized strengthening communications infrastructure security, with specific focus on risks tied to Cisco devices, a prime target for state-sponsored hackers. In line with this, CISA unveiled its Mobile Communications Best Practice guide, aimed at mitigating risks posed by foreign threat actors, especially Chinese cyber espionage groups.
CISA’s guidelines are tailored for individuals in senior government and political roles, who are more likely to possess information of interest to sophisticated threat actors. The agency warned, “Highly targeted individuals should assume that all communications between mobile devices—including government and personal devices—and internet services are at risk of interception or manipulation.”
Android device users are advised to:
As cyber threats grow in complexity, CISA’s proactive guidelines serve as a critical resource for mitigating risks and securing sensitive communications. For the complete document, visit the CISA website.
A Chinese cyber-espionage group, known as Volt Typhoon, has been exploiting a newly discovered security flaw in Versa Networks' SD-WAN Director servers. This zero-day vulnerability, identified as CVE-2024-39717, has already been used to infiltrate several organizations. Given the seriousness of this issue, the U.S. Cybersecurity and Infrastructure Security Agency (CISA) has listed it among known exploited vulnerabilities, urging immediate corrective actions.
The CVE-2024-39717 vulnerability impacts all versions of Versa Director released before version 22.1.4. The issue originates from a feature in the system's graphical user interface (GUI) that allows for customisation. Versa Director is a crucial part of Versa Networks' software-defined wide area networking (SD-WAN) solutions, which are used by ISPs, MSPs, and large corporations to manage network devices, route traffic, and enforce security policies. Unfortunately, this vulnerability enables attackers to steal user credentials, potentially leading to further attacks.
Dan Maier, Versa's Chief Marketing Officer, noted that this flaw could allow attackers to escalate privileges without authorization. Attackers can initially access Versa Director through high-availability management ports 4566 and 4570, particularly if these ports are left open to the internet. Once inside, they can gain administrator-level credentials, giving them complete control over the system. Maier emphasised that Versa has long advised customers to limit access to these critical ports to prevent such security breaches.
The vulnerability was first discovered by researchers at Lumen Technologies' Black Lotus Labs. They found that Volt Typhoon had been exploiting this flaw since at least June 2024. The attackers used small office/home office (SOHO) devices, a common tactic for this group, to infiltrate vulnerable Versa Director systems via the exposed management ports. After gaining access, the attackers deployed a custom web shell named "VersaMem" to capture plaintext user credentials and monitor the Apache Tomcat web server's incoming traffic.
On June 21, Lumen researchers informed Versa about the vulnerability, shortly after they believed Volt Typhoon started exploiting it. Versa responded by issuing advisories on July 26 and August 8, outlining steps to reduce the risk. By August 26, they had published a detailed security bulletin describing the flaw and providing guidance for customers to protect their systems.
At least five organisations, including four based in the United States, have been compromised due to this vulnerability. These organisations are primarily from the managed service provider, internet service provider, and IT sectors. Given the seriousness of the situation, CISA has mandated that federal agencies apply the necessary mitigations by September 13 or cease using the vulnerable technology until it is secured.
Although the vulnerability was rated as moderately severe with a CVSS score of 6.6 out of 10, Versa has highlighted the significant risks associated with it. While the vulnerability is complex to exploit and requires high-level privileges, it becomes much easier to exploit if the management ports are exposed. In such cases, attackers can upload unauthorized files and execute code via the VersaMem web shell, leading to severe security breaches.
Versa has strongly advised its customers to update their systems to the latest versions, which include security enhancements that make the software more resistant to attacks. They have also recommended following their system hardening and firewall guidelines to reduce the likelihood of exploitation.
The Volt Typhoon group’s exploitation of the CVE-2024-39717 vulnerability highlights the ongoing threat posed by state-backed cyber actors. Although Versa has patched the vulnerability, organizations using Versa Director must act quickly to secure their systems and prevent further breaches. This incident serves as a reminder of the importance of keeping software updated and securing all network entry points to defend against sophisticated cyber threats.