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Thursday, February 27, 2025

Multi-Vector Malware Exploiting Outlook API, DNS & ICMP Tunneling for C2


A newly recognized malware, dubbed “Squidoor,” has emerged as a classy menace focusing on authorities, protection, telecommunications, schooling, and aviation sectors in Southeast Asia and South America.

Attributed to a suspected Chinese language menace actor below the exercise cluster CL-STA-0049, Squidoor employs superior methods to infiltrate networks, preserve persistence, and exfiltrate delicate information.

This modular backdoor is designed for stealth and adaptableness, making it a formidable software for cyber espionage.

Multi-Protocol Command-and-Management (C2) Strategies

Squidoor leverages a number of covert communication strategies to work together with its command-and-control (C2) servers.

Key amongst these are the Outlook API, DNS tunneling, and ICMP tunneling.

The Home windows variant of Squidoor helps ten distinct C2 communication strategies, whereas its Linux counterpart affords 9.

These strategies embrace HTTP-based communication, reverse TCP/UDP connections, named pipes for inner communication, and even masquerading as an Outlook mail consumer utilizing the Microsoft Graph API.

The Outlook-based communication is especially insidious.

SquidoorSquidoor
 Circulate of the communication mechanism through Outlook API for Squidoor.

Squidoor makes use of hard-coded refresh tokens to authenticate with Microsoft’s id platform and interacts with the Outlook REST API to ship and retrieve instructions disguised as e-mail drafts.

This method blends malicious visitors with respectable community exercise, making detection difficult.

Preliminary Entry and Lateral Motion

The attackers achieve preliminary entry by exploiting vulnerabilities in Web Info Companies (IIS) servers and deploying net shells resembling OutlookDC.aspx and TimeoutAPI.aspx.

In keeping with Palo Alto Networks Report, these net shells function persistent entry factors for executing instructions on compromised programs.

As soon as inside, the malware spreads laterally throughout networks utilizing instruments like curl and Impacket, typically disguising payloads as respectable recordsdata.

Persistence By way of LOLBAS Strategies

Squidoor employs a hardly ever noticed Residing-Off-the-Land Binary-and-Script (LOLBAS) approach utilizing Microsoft’s Console Debugger (cdb.exe).

Renamed as fontdrvhost.exe, this binary is used to load shellcode immediately into reminiscence, bypassing conventional antivirus detection.

Persistence is maintained through scheduled duties that execute Squidoor’s payloads upon system startup.

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The execution circulation of loading Squidoor.

The malware’s modular structure allows a variety of capabilities, together with host reconnaissance, arbitrary command execution, file exfiltration, payload supply, and lateral communication between contaminated endpoints.

Squidoor additionally helps code injection into processes like mspaint.exe or conhost.exe, additional evading detection by safety instruments.

Further modules permit attackers to execute PowerShell scripts with out invoking the PowerShell binary or carry out pass-the-hash assaults.

Squidoor represents a major evolution in malware design, combining stealthy communication channels with modular performance to focus on high-value organizations.

Its multi-platform compatibility and talent to mix into respectable community visitors underscore the rising sophistication of state-sponsored cyber threats.

Safety professionals are urged to implement sturdy detection measures and leverage superior menace prevention instruments to counteract such threats successfully.

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