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.