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Threat Actors Hack US Federal Agency Using Telerik Bug to Steal Data


In a joint security advisory on Wednesday, CISA reported that the threat actors have exploited a three-year-old Progress Telerik UI flaw in order to compromise a server at a federal civilian executive branch agency. 

An unidentified federal civilian executive branch (FCEB) agency's Microsoft Internet Information Services (IIS) web server was compromised by a number of threat actors, including an advanced persistent threat (APT). The advisory, which includes in-depth technical information and indicators of the breach, was created by CISA, the FBI, and the Multi-State Information Sharing and Analysis Center (MS-ISAC). 

Apparently, a critical.NET deserialization flaw in the Progress Telerik UI for ASP.NET AJAX component allowed hackers to compromise a Microsoft Internet Information Services (IIS) web server used by a U.S. government agency last year. 

As per the advisory, the threat actors acquired access to the servers between November 2022 and early January 2023 based on indicators of compromise (IOCs) found on the unidentified FCEB agency’s network. To acquire remote code execution, at least two threat actors (among them the Vietnamese XE Group) accessed the unpatched server. 

According to CISA, the central vulnerability was linked with the Telerik UI flaw on the IIS server – CVE-2017-11357 and CVE-2017-11317 – However, the forensic investigation was unable to conclusively verify which of the two was utilized, or even whether they were. 

The agency's instance was version 2013.2.717; the advisory stated that builds prior to version 2020.1.114 are vulnerable to CVE-2019-18935. "Though the agency's vulnerability scanner had the appropriate plugin for CVE-2019-18935, it failed to detect the vulnerability due to the Telerik UI software being installed in a file path it does not typically scan[…]This may be the case for many software installations, as file paths widely vary depending on the organization and installation method," the advisory noted. 

Similar to the 2017 Equifax hack, it was caused in part by a vulnerability assessment for a severe Apache Struts flaw that overlooked an earlier system that was subsequently infiltrated by threat actors. 

CISA, the FBI, and MS-ISAC advised companies to use central log collection and monitoring. Moreover, it has been recommended to implement process monitoring in order to gain "visibility into file system and application process activity." The advisory also included a CISA-developed YARA rule for CVE-2019-18935. 

Progress CISO Richard Barretto wrote in an email to TechTarget Editorial "the security of our customers is one of our highest priorities, and we continue to distribute periodic reminders on the importance of implementing patches and applying software upgrades," he also included a link to Progress' knowledge base's specific article about the problem. 

"As we do with all critical vulnerabilities found in our products, we issued notification and remediation guidance to our customers in 2019 when the vulnerability was discovered[…]Due to the severity of the vulnerability, we provided technical support as needed to all customers regardless of their license status," he added.