nation state hacking

israel-tied-predatory-sparrow-hackers-are-waging-cyberwar-on-iran’s-financial-system

Israel-tied Predatory Sparrow hackers are waging cyberwar on Iran’s financial system

Elliptic also confirmed in its blog post about the attack that crypto tracing shows Nobitex does in fact have links with sanctioned IRGC operatives, Hamas, Yemen’s Houthi rebels, and the Palestinian Islamic Jihad group. “It’s also an act of sabotage, by attacking a financial institution that was pivotal in Iran’s use of cryptocurrency to evade sanctions,” Robinson says.

Predatory Sparrow has long been one of the most aggressive cyberwarfare-focused groups in the world. The hackers, who are widely believed to have links to Israel’s military or intelligence agencies, have for years targeted Iran with an intermittent barrage of carefully planned attacks on the country’s critical infrastructure. The group has targeted Iran’s railways with data-destroying attacks and twice disabled payment systems at thousands of Iranian gas stations, triggering nationwide fuel shortages. In 2022, it carried out perhaps the most physically destructive cyberattack in history, hijacking industrial control systems at the Khouzestan steel mill to cause a massive vat of molten steel to spill onto the floor, setting the plant on fire and nearly burning staff there alive, as shown in the group’s own video of the attack posted to its YouTube account.

Exactly why Predatory Sparrow has now turned its attention to Iran’s financial sector—whether because it sees those financial institutions as the most consequential or merely because its banks and crypto exchanges were vulnerable enough to offer a target of opportunity—remains unclear for now, says John Hultquist, chief analyst on Google’s threat intelligence group and a longtime tracker of Predatory Sparrow’s attacks. Almost any conflict, he notes, now includes cyberattacks from hacktivists or state-sponsored hackers. But the entry of Predatory Sparrow in particular into this war suggests there may yet be more to come, with serious consequences.

“This actor is very serious and very capable, and that’s what separates them from many of the operations that we’ll probably see in the coming weeks or months,” Hultquist says. “A lot of actors are going to make threats. This is one that can follow through on those threats.”

This story originally appeared on wired.com.

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Russia takes unusual route to hack Starlink-connected devices in Ukraine

“Microsoft assesses that Secret Blizzard either used the Amadey malware as a service (MaaS) or accessed the Amadey command-and-control (C2) panels surreptitiously to download a PowerShell dropper on target devices,” Microsoft said. “The PowerShell dropper contained a Base64-encoded Amadey payload appended by code that invoked a request to Secret Blizzard C2 infrastructure.”

The ultimate objective was to install Tavdig, a backdoor Secret Blizzard used to conduct reconnaissance on targets of interest. The Amdey sample Microsoft uncovered collected information from device clipboards and harvested passwords from browsers. It would then go on to install a custom reconnaissance tool that was “selectively deployed to devices of further interest by the threat actor—for example, devices egressing from STARLINK IP addresses, a common signature of Ukrainian front-line military devices.”

When Secret Blizzard assessed a target was of high value, it would then install Tavdig to collect information, including “user info, netstat, and installed patches and to import registry settings into the compromised device.”

Earlier in the year, Microsoft said, company investigators observed Secret Blizzard using tools belonging to Storm-1887 to also target Ukrainian military personnel. Microsoft researchers wrote:

In January 2024, Microsoft observed a military-related device in Ukraine compromised by a Storm-1837 backdoor configured to use the Telegram API to launch a cmdlet with credentials (supplied as parameters) for an account on the file-sharing platform Mega. The cmdlet appeared to have facilitated remote connections to the account at Mega and likely invoked the download of commands or files for launch on the target device. When the Storm-1837 PowerShell backdoor launched, Microsoft noted a PowerShell dropper deployed to the device. The dropper was very similar to the one observed during the use of Amadey bots and contained two base64 encoded files containing the previously referenced Tavdig backdoor payload (rastls.dll) and the Symantec binary (kavp.exe).

As with the Amadey bot attack chain, Secret Blizzard used the Tavdig backdoor loaded into kavp.exe to conduct initial reconnaissance on the device. Secret Blizzard then used Tavdig to import a registry file, which was used to install and provide persistence for the KazuarV2 backdoor, which was subsequently observed launching on the affected device.

Although Microsoft did not directly observe the Storm-1837 PowerShell backdoor downloading the Tavdig loader, based on the temporal proximity between the execution of the Storm-1837 backdoor and the observation of the PowerShell dropper, Microsoft assesses that it is likely that the Storm-1837 backdoor was used by Secret Blizzard to deploy the Tavdig loader.

Wednesday’s post comes a week after both Microsoft and Lumen’s Black Lotus Labs reported that Secret Blizzard co-opted the tools of a Pakistan-based threat group tracked as Storm-0156 to install backdoors and collect intel on targets in South Asia. Microsoft first observed the activity in late 2022. In all, Microsoft said, Secret Blizzard has used the tools and infrastructure of at least six other threat groups in the past seven years.

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