US, UK, and Dutch government agencies published a report detailing the malware, and the FBI described the abuse of Telegram for C&C.
The post US, UK, Dutch Agencies Expose Iranian ‘Chosen Brick’ Surveillance Malware appeared first on SecurityWeek.
Anthropic reveals how criminal groups are increasingly targeting AI vendors' own infrastructure, including to steal a pre-release Claude model.
The post Anthropic Says Russian Hackers Used Claude AI to Automate Malware Evasion appeared first on SecurityWeek.
Artificial intelligence has removed the skill advantage that once set state-sponsored hackers apart from lone criminals, according to a threat report Anthropic published Thursday that documents misuse of its Claude models across seven areas of harm.
The report, which details activity observed between December 2025 and August 2026, covers cyber operations, influence operations, surveillance, scams and fraud, biological misuse, conventional weapons development and distillation. Anthropic said it disrupted each operation, strengthened safeguards and shared intelligence with authorities and industry partners where appropriate.
“The cases we share here aren’t typical misuse, but rather examples of the most notable and novel threat activity we’ve identified to date,” the report reads. “We’re publishing this work because we believe we have a responsibility to disclose malicious misuse of our services. As models become increasingly capable, their risks will increase, unless AI developers and society’s defenders act to make them safer.”
The cyber operations the company detailed were a Russian-aligned espionage campaign that hit more than 20 government and defense organizations across Ukraine and Europe, two Chinese undergraduates who ran an automated exploit foundry that produced more than a dozen potential zero-days in a single month, affiliates of the ShinyHunters crime collective who dumped 2,100 cloud access tokens across 40 corporate tenants in 34 hours, and a lone hacktivist who targeted European political parties via stolen API keys.
For decades, cybersecurity researchers and investigators have pointed to sophisticated operations as a signature of state-sponsored tradecraft, while crude intrusions suggested amateurs or petty criminals. Anthropic posits in the report that AI has erased that conventional thinking, especially since a “majority of the operations described in this report were enabled by AI via direct execution or orchestration.”
“For threat intelligence investigators, sophistication has stopped being a reliable signal of who is behind an operation,” the report said, adding that a hacktivist on stolen API keys, scattered criminals and a state espionage operator each ran campaigns that a year earlier “would have required many skilled operators and specialist knowledge.”
The most extensive case involved a malicious actor using the handle “JackPoterz” whose actions aligned with Russian state espionage, matching behaviors linked to Midnight Blizzard.
According to the report, the actor employed a custom toolkit composed of two families of Windows-based implants, a mobile exploitation kit, a credential stealing tool that targets browser password stores, a phishing platform designed to mimic priority targets like government organizations, and an administrative console used to manage compromised accounts. Targets included military intelligence bodies in Ukrainian and European governments, diplomatic and defense organizations, and people connected to U.S. foreign policy.
According to the report, AI monitored whether security products flagged the actor’s malware. When a detection occurred, “agents would then set about the process of autonomously modifying and rebuilding the malware to evade the existing detections,” the report said.
The same actor bulk-exported mailboxes at drone component manufacturers and stole a complete software development kit for a drone vision system, then spent days recovering its architecture and details of an unannounced product. The actor also compromised hotel Wi-Fi vendors to reach guests through DNS hijacking, took over WhatsApp accounts with headless browsers, and stole more than 300,000 national identity records from a North African government agency, along with registry data on more than half a million companies.
The Chinese-speaking operators, which the company says were partly carried out by undergraduates at a Chinese university, put Claude to work on vulnerability research around the clock. One workflow iterating on network appliance firmware “yielded more than a dozen possible zero day findings in a single month.” It ran “agent swarms,” in which a lead agent divided work among parallel subagents, and kept campaign memory between sessions.
Clusters linked to ShinyHunters showed how AI shortens criminal timelines. One supply-chain breach ended with a dump of more than 2,100 Azure access tokens spanning more than 40 corporate tenants in about 34 hours. “AI agents performed nearly all of the work,” the report said. Another compromise moved from a single stolen developer token to full control of a victim’s cloud environment in roughly three hours.
The report also has a section dedicated to distillation attacks that Anthropic claims were carried out since February by seven labs based in China, including Alibaba, DeepSeek, Moonshot AI, Xiaomi and Zhipu. Operators affiliated with Alibaba ran the largest attack Anthropic has measured, peaking “at nearly 3 million exchanges per day launched from more than 3,500 fraudulent accounts” to harvest the outputs of Claude Opus models for training its Qwen systems.
The outputs were culled from users who never knew they were involved. The report said Moonshot and DeepSeek silently forwarded their own customers’ requests to Claude and returned its answers as their own, exposing data users had not agreed to share, including surveillance footage of a tracked individual pulled by a user likely affiliated with the People’s Liberation Army. Those practices are “likely inconsistent with privacy laws and the labs’ own terms of service,” the report said.
Earlier this week, a joint cybersecurity advisory from the National Security Agency, the Cybersecurity and Infrastructure Security Agency and the FBI accused Chinese AI companies of engaging in a deliberate and “systematic” effort to illegally distill U.S. frontier AI models and their capabilities.
Anthropic said it published the cases to give outsiders a view of how these threats form, framing the disclosures as an early look at a shifting landscape.
“As models become increasingly capable, their risks will increase, unless AI developers and society’s defenders act to make them safer,” the report said. The old idea of “security through obscurity,” it added, “is no longer viable in this new AI-assisted world: everything connected to the internet is a potential target for exploitation.”
You can read the full report on Anthropic’s website.
The post AI lets small actors run state-level hacking campaigns, Anthropic report finds appeared first on CyberScoop.
Proofpoint researchers have spotted at least four state-aligned threat groups chain a trio of zero-day vulnerabilities to conduct espionage on various targets of interest to China’s government since late August.
The Chinese espionage group that Proofpoint tracks as TA412, also known as Violet Typhoon and APT31, struck first, exploiting the chain of vulnerabilities Aug. 28. At least three additional espionage threat groups followed suit, exploiting the same vulnerabilities in subsequent waves of attacks days later, researchers said.
The exploit chain Proofpoint calls BlueMoon targets Chrome, Chromium-based browsers and Microsoft Windows. It allows attackers to run code in the browser’s sandbox, escape the sandbox and gain system privileges to access a targeted machine, said Mark Kelly, staff threat researcher at Proofpoint.
“All three vulnerabilities were exploited before patches were available to the public,” he said.
The vulnerabilities include: CVE-2026-85046 and CVE-2026-87491, remote-code execution defects in the JavaScript engine for Chromium-based browsers; and CVE-2026-85880, a privilege-escalation zero-day that Microsoft disclosed Tuesday in Windows Advanced Local Procedure Call.
“While the V8 vulnerabilities were known and fixed in Chromium source code, they were not yet patched in the latest publicly available browsers at the time of the activity, meaning they effectively functioned as zero-days in those products,” Kelly said.
Proofpoint said the exploit kit developer likely reverse engineered the publicly available Chromium patches to weaponize the browser exploit chain during that gap.
With a limited group of organizations exposed to all three vulnerabilities, attackers moved quickly and likely rushed development to target a narrow pool of potential targets. “In all observed cases, the infrastructure used for exploit delivery was created on the same day as — or in the days immediately preceding — the associated campaigns,” Proofpoint wrote in a threat intelligence report.
APT31, a group that’s committed espionage on behalf of China’s Ministry of State Security, including seven Chinese nationals indicted by the Justice Department in 2024, dropped various lures containing the exploit chain loader in phishing emails targeting non-governmental organizations, mining companies and commodity trading firms in the United States.
The phishing link installed a malicious browser extension disguised as Google Gemini on targeted machines, enabling attackers to surveil browser activity, steal credentials and execute commands, according to Proofpoint.
Other distinct threat groups have also used the BlueMoon exploit chain with some slight technical changes and variances in targeting.
“Proofpoint observed BlueMoon usage as recently as Sept. 8,” Kelly said. “The activity peaked Sept. 2-3 immediately prior to the Chrome patch being released and has continued intermittently since then.”
A China-aligned espionage threat group Proofpoint tracks as UNK_LateNight targeted multiple U.S. aerospace companies Sept. 2. Researchers also that day observed UNK_DoubleCheck, a suspected espionage-motivated threat group targeting Vietnamese manufacturing organizations with emails from a compromised Southeast Asian government account.
Researchers said UNK_QuietRacket, another espionage group aligned with China, targeted government, consulting and financial sector organizations in Indonesia and Singapore Sept. 3.
Proofpoint has directly observed fewer than 20 organizations targeted globally thus far, but Kelly said the true number of impacted organizations is likely much higher.
While Proofpoint attributes most of the observed attacks to Chinese espionage groups, attackers of other origins and motivations could strike soon as well.
“Given its ease of adoption, we expect the exploit kit is likely to proliferate further and be adopted by additional espionage-motivated and financially motivated threat actors as patched versions are fully rolled out across all Chromium-based browsers,” Kelly said.
The post Chinese espionage groups swarm to exploit triple-link chain of zero-days appeared first on CyberScoop.
Federal authorities Wednesday revealed a multi-layered Chinese state-sponsored espionage operation that’s targeted and compromised U.S. critical infrastructure, including multiple federal agencies, since 2018.
Officials seized domains and unsealed an affidavit detailing how a Chinese government-funded front company assembled a botnet and complementary systems that allowed attackers to intrude highly sensitive networks.
The FBI and Justice Department said the state-sponsored group, known as “QTFY,” has targeted and intruded the networks of the Departments of Energy, Justice, Health and Human Services, the Federal Reserve, NASA, National Institutes of Health, and, unsuccessfully in March, the Senate.
Financial institutions, defense contractors, utility companies, telecom providers and hospitals have also been targeted by the threat group, which includes former members of China’s military, according to court records.
Officials said QTFY also attempted, but was unsuccessful, in gaining access to a U.S. election system in June.
The long-running operation, which officials obstructed by seizing malicious infrastructure, provided an expansive set of services. QTFY’s full hacking suite allowed attackers to scan and exploit vulnerabilities, infect IoT devices for a botnet, and conceal or reroute traffic.
QTFY’s operation was comprehensive with features that provided continuous reconnaissance capabilities and flexibilities designed for specific targets or objectives, said Ryan English, information security engineer at Lumen Technologies’ Black Lotus Labs, which aided the disruption efforts.
Officials said they seized three domains, which cut off access to QScan and QTRouter, the group’s primary platforms.
“Today’s announcement demonstrates the Justice Department’s steadfast commitment to going on the offensive against cyber threats to national security,” John A. Eisenberg, assistant attorney general for national security, said in a statement. “These court-authorized seizures deny People’s Republic of China-linked hackers access to tools they use to mount online attacks against our nation’s critical infrastructure.”
The FBI, National Security Agency and Cyber National Mission Force released a joint cybersecurity advisory with QTFY’s known indicators of compromise Wednesday. Officials also detailed the China-linked hacking group’s affiliations and collaborations with other state-sponsored groups.
QTFY targeted sensitive networks in the U.S. and globally by exploiting vulnerabilities in multiple vendors’ products, including Pulse Secure, Fortinet, Citrix, Microsoft, F5, Kentico CMS, Atlassian Confluence, Ivanti, Check Point, CrushFTP and BeyondTrust, officials said.
QScan, the reconnaissance and vulnerability scanning tool, included more than 200 proof-of-concept exploits, according to court records.
“It was designed for large-scale deployment. On a single day in 2024 for example, QScan processed over two million scanning and exploit tasks,” a special agent for the FBI said in the affidavit.
The Chinese hacking collective exploited multiple Ivanti zero-day vulnerabilities in September 2024 to intrude the networks of three DOE national laboratories, NIH, an HHS agency and a U.S.-based security device manufacturer. Officials said the seized domains were all used in those attacks.
The FBI has been investigating QTFY, which operated out of a private China-based front company, Nanjing Xinjiuwei Network Technology Company, since at least 2019. The group has been consistently active for more than eight years.
“Discovery of these private companies building networks for China is becoming more frequent,” English said. “We’re starting to see that when they’re getting exposed, some of these have been in business a few years before they’re found.”
The takedown follows a series of technical operations aimed at dismantling China state-sponsored attackers’ infrastructure, including an operation in early 2025 that allowed officials to remove PlugX malware from thousands of U.S.-based computers.
“State-sponsored malicious hackers preying on America’s critical infrastructure will be stopped and prosecuted,” Attorney General Todd Blanche said in a statement. “We are here to ensure security for the American people and will use every tool we have to keep that promise.”
The post Officials disrupt Chinese espionage operation that hit multiple federal agencies appeared first on CyberScoop.
Since early May 2026, Microsoft Threat Intelligence has observed Storm-2945, a sub-cluster of Midnight Blizzard, conducting widespread but targeted traffic manipulation attacks involving hospitality sector networks served by captive portals worldwide. Despite some tactic, technique, and procedure (TTP) similarities to the Forest Blizzard DNS hijacking operation that we publicly disclosed in April 2026, we attribute this campaign, which we call CaptiveCrunch, to Storm-2945. As reported by ReliaQuest on July 23, a portion of this activity leverages doppelganger domains mimicking Microsoft online services to conduct follow-on adversary-in-the-middle (AitM) phishing operations that abuse the device code authentication flow in Microsoft Entra ID. Microsoft Threat Intelligence has also identified active traffic manipulation attacks leading to the delivery of malware on impacted systems. Microsoft has observed Storm-2945 leveraging AI to support a significant portion of these operations.
Today, we are sharing our findings on these ongoing intrusions to raise awareness of this threat and enable customers to protect their devices, especially while traveling. We provide our assessment of Storm-2945’s relationship to Midnight Blizzard and analysis of the CaptiveCrunch campaign, detailing the malware and tradecraft used in these operations. We also provide mitigation, detection, and hunting guidance to help organizations identify and defend against Storm-2945 and related activity.
Microsoft Threat Intelligence would like to thank our partners at Anthropic and OpenAI for their collaboration and support during this investigation.
Since February 2026, Storm-2945 has conducted AI-augmented operations including targeted device code and OAuth code phishing campaigns leading to Entra device registration and subsequent data collection from Microsoft 365. Since early May 2026, Microsoft Threat Intelligence has observed Storm-2945 manipulating DNS and HTTP traffic from networks served by captive portals to redirect user traffic through actor-controlled infrastructure. Although our investigation into the initial compromise vector for the captive portal networks is ongoing, we have observed notable commonalities in the equipment and management systems used across multiple affected networks. These similarities suggest that the activity might not be limited to isolated compromises of individual venues and could reflect access to shared services within portions of the captive portal ecosystem.
As part of the CaptiveCrunch campaign, Storm-2945 has leveraged their AitM position to redirect users through actor-controlled phishing infrastructure and has also delivered malware purporting to be browser or operating system updates in response to automated connectivity checks issued by users’ browsers. Multiple variants have been delivered, including fully-featured Windows remote access trojans (RAT) in compiled Golang, with functionality to conduct system enumeration, collect files and keystrokes, steal credentials and session tokens, conduct audio and video surveillance, monitor for removable media, and provide the threat actor a remote shell on infected systems.
The threat actor infrastructure leverages a variety of ClickFix techniques to elicit the user into downloading and executing the malware:
In addition to variants of malware targeting Windows systems, Microsoft Threat Intelligence is also aware of indications that the threat actor might be targeting Android devices with similar techniques as the ClickFix landings also include instructions for Android devices to download and install an APK file.
To date, Microsoft has identified widespread compromise of Wi-Fi networks at hospitality-related organizations and other networks serviced by captive portal equipment in several countries. ReliaQuest has identified this activity not only at hotels, but also conference centers and other shared venues, and assesses that the goal of this activity is to access the accounts of corporate travelers.
Microsoft Threat Intelligence assesses that Storm-2945 is an operational sub-cluster of Midnight Blizzard based on distinctive technical and operational overlaps. These include technical similarities to Storm-2372, a Midnight Blizzard initial access operations sub-cluster, also notable for their device code and OAuth code phishing operations tracked throughout 2025, Microsoft Graph-based email exfiltration, social engineering delivered via commercial messaging apps, and significant similarities in victimology.
Midnight Blizzard is a Russia-based threat actor attributed by the US and UK governments to the Foreign Intelligence Service of the Russian Federation, also known as the SVR. This threat actor is known to primarily target governments, diplomatic entities, non-governmental organizations (NGOs), and information technology (IT) service providers, primarily in the US and Europe. Midnight Blizzard is consistent and persistent in their operational targeting, and their objectives rarely change. Their focus is to collect intelligence through longstanding and dedicated espionage in support of Russian foreign policy interests.
Midnight Blizzard operations often involve compromise of valid accounts and, in some highly targeted cases, advanced techniques to compromise authentication mechanisms within an organization to expand access and evade detection. They utilize diverse initial access methods, and Midnight Blizzard is also adept at identifying and abusing OAuth applications to move laterally across cloud environments and for post-compromise activity, such as email collection.
CornFlake is a full-featured Windows RAT written in Go that serves as Storm-2945’s primary persistent implant. Microsoft has observed the threat actor rapidly iterating on this malware layer, which features customizable capabilities from the social engineering user interface and data collection capabilities to anti-detection and evasion techniques.
On initial execution, CornFlake operates in dropper mode: it displays a convincing fake progress window designed to occupy the victim’s attention while the binary copies itself to %APPDATA%\svchost32\svchost32.exe and establishes persistence.
Fake window options configurable by the threat actor at build time:
CornFlake registers as a Windows service named svchost32 with the display name “Cloud Sync Service” and description “Synchronizes files with the cloud storage provider”, deliberately mimicking the legitimate svchost.exe process. It establishes redundant persistence mechanisms: Windows service registrations, Registry Run keys, named scheduled tasks, and a persistence watchdog routine that runs continuously to restore any persistence mechanism that is removed by defenders or endpoint protection.
For command and control (C2), CornFlake performs an Elliptic Curve Diffie-Hellman (ECDH) P-256 ephemeral key exchange with the C2 server, derives a session key via SHA-256, and communicates over a custom JSON protocol framed within the encrypted channel. This provides an encrypted channel to the C2 server, with each C2 session using a unique ephemeral key, making decryption of captured traffic impossible without the session-specific private key. The runtime configuration file sync.dat supports hot reconfiguration of C2 servers, watched directories, file targeting patterns, and Transport Layer Security (TLS) settings without requiring redeployment.
Once established on a victim system, CornFlake provides the operator with a comprehensive collection toolkit, gated by configuration flags that allow selective activation post-deployment:
| Capability | Description |
| Keylogging | Raw input API-based keylogger capturing all keystrokes, including password fields |
| Clipboard monitoring | Captures clipboard changes with SHA-256 deduplication and records the active window title at time of capture |
| Screenshot capture | Idle-triggered and on-demand screenshots with configurable idle threshold |
| Audio surveillance | Windows Audio Session API (WASAPI)-based microphone capture, encoded as WAV files |
| Video surveillance | Media Foundation-based webcam capture, encoded as JPEG |
| Browser credential theft | ChromeKatz-derived module supporting live cookie extraction from process memory (Chromium browsers) and stored password extraction from on-disk databases, including Chrome App-Bound Encryption (ABE) bypass and Firefox NSS/SDR decryption |
| File exfiltration | Targets files based on file extensions with real-time file system monitoring and an upload throttle (1,000 files or 500 MB per cycle). File extensions are categorized as Documents, Archives, Images, Code, Data, Emails, and Keys |
| USB drive monitoring | Detects and scans removable media when inserted |
| Security posture sweep | Collects 18 categories of host intelligence including installed software, antivirus (AV)/endpoint detection and response (EDR) products, Defender exclusions, User Account Control (UAC) level, Remote Desktop Protocol (RDP) history, Office most recently used (MRU) files, and credential hints |
| Remote shell | Arbitrary command execution via cmd.exe or PowerShell (with -NoP flag to suppress profile-based detection) |
CornFlake also exposes a localhost HTTP API server (/upload, /reload, /status) that transforms the RAT into a modular platform: companion or next-stage payloads such as ChocoShell could task file exfiltration, trigger configuration hot reloads or check C2 connectivity using the pre-established secure C2 channel for communication.
ChocoShell is the campaign’s Powershell-based infostealer, delivered and executed entirely in-memory. Its primary objective is the high-volume theft of browser session cookies, saved passwords, Microsoft 365 Single Sign-On (SSO) tokens, and Wi-Fi credentials from compromised systems. Where CornFlake provides the operator with a persistent, long-running foothold on the device, ChocoShell is designed to extract the most operationally valuable credentials, giving the operator access to victim cloud environments.
The ChocoShell script was authored with full developer comments that reveal the operator’s intent behind each code decision, including explicit references to Microsoft detection signatures and the reasoning behind specific evasion choices. The consistent coding standard and descriptive commentary suggest the author might have leveraged AI-assisted code generation.
Defense evasion. Upon execution, ChocoShell beacons to a hardcoded C2 server at 213.145.86[.]112 and implements several evasion techniques in sequence. It disables the Antimalware Scan Interface (AMSI) via .NET reflection to prevent ScriptBlock scanning and evades Microsoft behavioral detection that triggers on suspicious PowerShell web request cmdlets. A timing-based sandbox detection check is also employed as a virtual machine (VM) detection mechanism, silently exiting without performing any collection if detected.
C2 communication. ChocoShell communicates with its C2 server using HTTPS with URI paths designed to blend in with legitimate web traffic. Beacons use /t/pixel.gif?m=<status>, mimicking an image tracking pixel. Additional tooling is fetched from /cdn/chunks/polyfill-7e2b.min.js, disguised as a JavaScript polyfill file. This downloaded module is Base64-decoded and executed in memory via [ScriptBlock]::Create(), providing browser encryption key extraction capabilities, SYSTEM token impersonation, and Defender signature locking. Exfiltrated data is sent by POST to /t/event as GZip-compressed, Base64-wrapped JSON.
Privilege escalation. ChocoShell requires administrative privileges for its most impactful capabilities: SYSTEM token impersonation for Chrome ABE decryption, Volume Shadow Copy Service (VSS) shadow copy creation, Defender signature locking. It implements three silent UAC bypass techniques with ordered fallback:
If none of the silent bypasses succeed (for example, the user is not a local administrator), ChocoShell falls back to a visible UAC prompt via Start-Process -Verb RunAs. Notably, the script also contains a variant designed to execute within the WinGet Desired State Configuration (DSC) host process (ConfigurationRemotingServer), suggesting an attack vector through malicious WinGet DSC configuration used in Windows machine provisioning.
Credential and session theft. Once running with elevated permissions, ChocoShell locks Defender signature updates and systematically harvests data from multiple sources. For Chromium-based browsers (Chrome, Edge, Brave, Opera, Opera GX, Vivaldi), it extracts the master encryption key from the browser’s Local State file, handling both the modern ABE scheme (Chrome v127+) and the legacy data protection API (DPAPI)-only scheme. ABE decryption requires SYSTEM-level DPAPI access, which the malware obtains by impersonating a SYSTEM process token borrowed from winlogon.exe, wininit.exe, or services.exe. Locked browser SQLite databases are accessed through three strategies: shared file access, Volume Shadow Service snapshots, and direct copy as a fallback.
As a parallel collection path, ChocoShell launches Chrome, Edge, and Brave with the –remote-debugging-port flag and issues Network.getAllCookies through the Chrome DevTools Protocol (CDP). This completely bypasses ABE, enabling the browser to perform its own internal decryption and returns plaintext cookie values. To handle privilege issues (SYSTEM-launched browsers inherit the wrong token), the malware creates transient scheduled tasks with TASK_LOGON_INTERACTIVE_TOKEN to launch the browser under the signed-in user’s session. After extraction, the browser is stopped and relaunched with –restore-last-session to avoid alerting the user.
For Firefox family browsers (Firefox, Waterfox, LibreWolf, Floorp, Zen), the malware copies unencrypted cookies.sqlite databases from each profile. Additionally, ChocoShell collects Microsoft 365 and Azure Active Directory (AD) access tokens, refresh tokens, and Web Account Manager (WAM) tokens from .tbres files in the Token Broker cache. Collection of these tokens represents a significant threat to enterprise environments, as threat actors could replay SSO sessions without browser cookies. Additionally, Wi-Fi credentials are harvested via netsh wlan show profile with key=clear.
Exfiltration and cleanup. All collected data is aggregated into a JSON structure, GZip-compressed, Base64-encoded, and sent by POST to the C2’s /t/event endpoint. After exfiltration, all collected data variables are nulled, garbage collection is forced, VSS shadow copies are deleted via Windows Management Instrumentation (WMI), temporary elevation scripts are removed, and all UAC bypass registry keys (already cleaned during escalation) are verified removed.
FruitStone is the web-based C2 panel that Storm-2945 operators use to manage the entire CaptiveCrunch campaign infrastructure. Implemented as a single-page application (HTML and JavaScript) serving as the front-end of the C2 server with all functionality exposed without authentication, FruitStone provides a centralized dashboard for managing compromised endpoints, building and deploying new campaign payloads, and reviewing all collected data (such as screenshots, keystrokes, browser credentials).
Operational cover. The panel is branded as “CloudSync Console” with a footer reading “Acuity Systems, Inc. — Cloud Infrastructure Portal v3.2.1,” designed to appear as legitimate enterprise cloud management software if the panel URL is discovered by defenders or hosting providers. This masquerading extends to the CornFlake agent’s service name (Cloud Sync Service) and description (“Synchronizes files with the cloud storage provider”), creating a consistent cover story across the toolchain.
Session management and multi-operator support. FruitStone uses JSON Web Token (JWT)-based authentication, session revocation, and rate limiting with IP blocking to prevent brute force attacks against the panel sign in. Multiple operators could be provisioned with individual accounts, and all active sessions are visible with IP address, user-agent, and creation time to enable operational security awareness across the operators.
Agent management. The panel displays all registered CornFlake agents in a dashboard with real-time status updates via Server-Sent Events (SSE). Each agent card shows comprehensive system information including hostname, username, OS version, CPU, RAM, disk usage, screen resolution, timezone, domain membership, and camera/microphone presence, all collected during the CornFlake posture sweep. Agents are grouped by country and subnet, with geographic distribution visualized on a map.
Operators could interact with individual agents through:
Campaign builder. A step-by-step wizard enables operators to configure and build new CornFlake payloads directly from the panel:
Infrastructure management. FruitStone provides management interfaces for three layers of supporting infrastructure:
Since July 16, Microsoft has observed a portion of CaptiveCrunch landing pages redirecting users to device code authentication flow experiences. In these cases, users served these landings might be instructed to enter a device code into a legitimate Microsoft sign-in page, a technique commonly referred to as device code phishing.
Device code authentication is a legitimate OAuth workflow designed for devices that cannot support a traditional sign-in experience. However, threat actors could abuse this flow by initiating an authentication request on behalf of a user then convincing the user to enter an actor-controlled device code into a legitimate Microsoft authentication page. When successful, the victim authenticates the threat actor’s session rather than their own.
This activity is consistent with previously reported device code phishing operations conducted by Midnight Blizzard since August 2024. The observed technique does not appear fundamentally novel; however, integrating device code phishing into captive portal and traffic manipulation operations might increase the likelihood that users perceive the authentication request as legitimate. For additional details on Midnight Blizzard-related device code phishing techniques, see: Storm-2372 conducts device code phishing campaign. To understand other threat actors’ use of device code phishing and associated mitigations, see Inside an AI‑enabled device code phishing campaign.
When traveling, users should treat hotel, conference, airport, and other guest wireless networks as untrustworthy.
Organizations should assume that public and hospitality network infrastructure might not be trustworthy and should adopt controls that limit exposure to traffic manipulation, credential theft, and device code phishing.
Organizations should review what information employees provide to hospitality providers when connecting to guest networks.
Microsoft Defender customers can refer to the list of applicable detections below. Microsoft Defender coordinates detection, prevention, investigation, and response across endpoints, identities, email, apps to provide integrated protection against attacks like the threat discussed in this blog.
Microsoft Defender for Endpoint detects Storm-2945 activity under the detection Suspicious activity linked to a Russian state-sponsored threat actor has been detected. However, these alerts might be triggered by unrelated threat actor activity. The following chart lists Microsoft Defender detections specific to the TTPs utilized by Storm-2945 in this attack.
| Tactic | Observed activity | Microsoft Defender coverage |
| Initial access | File download via captive portal redirection | Microsoft Defender for Endpoint – Suspicious downloaded file |
| Initial access | ClickFix technique, fake browser or OS update, initial file download | Microsoft Defender for Endpoint – Possible initial access from an emerging threat – Possible ClickFix activity |
| Persistence | CornFlake registers a Windows service, a Registry Run key, a scheduled task | Microsoft Defender for Endpoint – Suspicious Scheduled Task Process Launched – Suspicious scheduled task – Suspicious file added to run key – Suspicious service registration Microsoft Entra ID Protection – Microsoft Entra threat intelligence – Verified threat actor IP |
| Stealth/Defense evasion | ChocoShell disables AMSI | Microsoft Defender for Endpoint – Possible Antimalware Scan Interface (AMSI) tampering |
| Credential access | ChocoShell’s theft of browser session cookies, saved passwords, Microsoft 365 SSO tokens, and Wi-Fi credentials. Device code abuse. | Microsoft Defender for Endpoint – Possible theft of passwords and other sensitive web browser information – Suspicious DPAPI activity Microsoft Defender For Identity – Anomalous OAuth device code authentication activity Microsoft Defender XDR – User account compromise via OAuth device code phishing – Malicious sign in from an IP address associated with recognized attacker infrastructure – Suspicious Azure authentication through possible device code phishing |
| Collection | CornFlake monitoring and logging | Microsoft Defender for Endpoint – Activity that might lead to information stealer |
| Privilege escalation | ChocoShell UAC bypass techniques | Microsoft Defender for Endpoint – UAC bypass was detected – Possible Component Object Model (COM) hijacking |
Microsoft Security Copilot is embedded in Microsoft Defender and provides security teams with AI-powered capabilities to summarize incidents, analyze files and scripts, summarize identities, use guided responses, and generate device summaries, hunting queries, and incident reports.
Customers can also deploy AI agents, including the following Microsoft Security Copilot agents, to perform security tasks efficiently:
Security Copilot is also available as a standalone experience where customers can perform specific security-related tasks, such as incident investigation, user analysis, and vulnerability impact assessment. In addition, Security Copilot offers developer scenarios that allow customers to build, test, publish, and integrate AI agents and plugins to meet unique security needs.
Microsoft Defender XDR customers can use the following threat analytics reports in the Defender portal (requires license for at least one Defender XDR product) to get the most up-to-date information about the threat actor, malicious activity, and techniques discussed in this blog. These reports provide the intelligence, protection information, and recommended actions to prevent, mitigate, or respond to associated threats found in customer environments.
Microsoft Security Copilot customers can also use the Microsoft Security Copilot integration in Microsoft Defender Threat Intelligence, either in the Security Copilot standalone portal or in the embedded experience in the Microsoft Defender portal to get more information about this threat actor.
Microsoft Defender XDR customers can run the following advanced hunting queries to find related activity in their networks:
Detect file creation after Wi-Fi connectivity test on devices
The following query checks for a file creation on a device within two minutes of the device performing built‑in Network Connectivity Status Indicator (NCSI) test, which occurs when network connectivity is established to a Wi-Fi network with a captive portal. This activity might indicate an attacker’s initial access file presence on a device.
Please note that not all files discovered through this query might be malicious or related to this threat activity.
Login
let ncsi_endpoints = dynamic(["msftconnecttest.com","edge-http.microsoft.com","msftncsi.com","captive.apple.com","clients1.google.com",
"clients3.google.com","clients4.google.com","clients6.google.com","connectivitycheck.gstatic.com","connectivitycheck.android.com",
"android.clients.google.com","www.gstatic.com","detectportal.firefox.com","detectportal.brave-http-only.com","cloudflareportal.com",
"cloudflarecp.com","cloudflareok.com","connectivity-check.warp-svc","connectivity.cloudflareclient.com","spectrum.s3.amazonaws.com",
"nmcheck.gnome.org"]);
let NCSIEvents = DeviceNetworkEvents
| where Timestamp > ago(7d)
| where RemoteUrl has_any (ncsi_endpoints)
| project NCSI_Timestamp = Timestamp, DeviceId, DeviceName, RemoteUrl, NCSI_ReportId = ReportId, NCSI_InitiatingProcessFileName = InitiatingProcessFileName, NCSI_InitiatingProcessCommandLine = InitiatingProcessCommandLine, NCSI_AccountName = InitiatingProcessAccountName;
let FileDownloadEvents = DeviceFileEvents
| where Timestamp > ago(7d)
| where ActionType == "FileCreated"
| where FileName has_any (".exe",".msi",".zip",".rar",".7z")
| project Download_Timestamp = Timestamp, DeviceId, FileName, FolderPath, Download_ReportId = ReportId, Download_InitiatingProcessFileName = InitiatingProcessFileName, Download_InitiatingProcessCommandLine = InitiatingProcessCommandLine, Download_AccountName = InitiatingProcessAccountName;
NCSIEvents
| join kind=inner (
FileDownloadEvents
) on DeviceId
| where Download_Timestamp >= NCSI_Timestamp and Download_Timestamp Detect connectivity to Storm-2945 infrastructure
The following query checks for connectivity to Storm-2945 infrastructure observed in this attack activity.
let target_domains = dynamic(["ms365-device.com", "ms365-live.com", "m365-owa.com", "owa-ms365.com"]);
let target_ips = dynamic(["31.57.243.154", "38.146.28.75", "38.146.28.132", "104.194.159.150", "107.189.26.194", "213.145.86.112"]);
DeviceNetworkEvents
| where RemoteUrl has_any(target_domains) or RemoteIP in (target_ips)
| project
Timestamp,
DeviceName,
DeviceId,
RemoteUrl,
RemoteIP,
LocalIP,
InitiatingProcessFileName,
InitiatingProcessCommandLine,
AccountName = InitiatingProcessAccountName,
ReportId
Detect CornFlake RAT presence on affected systems
The following query checks for the presence of the CornFlake RAT binary.
DeviceProcessEvents | where FolderPath == "%APPDATA%\\svchost32\\svchost32.exe" or FolderPath endswith @"\svchost32\svchost32.exe" | project Timestamp, DeviceName, DeviceId, FileName, FolderPath, InitiatingProcessFileName, InitiatingProcessCommandLine, AccountName, ReportId
Detect CornFlake RAT Windows service registration
The following query checks for the CornFlake RAT Windows service registration.
DeviceRegistryEvents
| where RegistryKey has @"\SYSTEM\CurrentControlSet\Services\svchost32"
| where ActionType == "RegistryValueSet"
| where (RegistryValueName == "DisplayName" and RegistryValueData == "Cloud Sync Service")
or (RegistryValueName == "Description" and RegistryValueData == "Synchronizes files with the cloud storage provider")
| project
Timestamp,
DeviceName,
DeviceId,
RegistryKey,
RegistryValueName,
RegistryValueData,
ActionType,
InitiatingProcessFileName,
InitiatingProcessCommandLine,
InitiatingProcessAccountName,
ReportId
Microsoft Sentinel customers can use the TI Mapping analytics (a series of analytics all prefixed with ‘TI map’) to automatically match the malicious domain indicators mentioned in this blog post with data in their workspace. If the TI Map analytics are not currently deployed, customers can install the Threat Intelligence solution from the Microsoft Sentinel Content Hub to have the analytics rule deployed in their Sentinel workspace.
Detect network IP and domain indicators of compromise using ASIM
The following query checks IP addresses and domain IOCs across data sources supported by ASIM network session parser:
//IP list and domain list- _Im_NetworkSession let lookback = 30d; let ioc_ip_addr = dynamic(["213.145.86.112"]); let ioc_domains = dynamic(["213.145.86.112/t/pixel.gif", "213.145.86.112/cdn/chunks/polyfill-7e2b.min.js", "213.145.86.112/t/event"]); _Im_NetworkSession(starttime=todatetime(ago(lookback)), endtime=now()) | where DstIpAddr in (ioc_ip_addr) or DstDomain has_any (ioc_domains) | summarize imNWS_mintime=min(TimeGenerated), imNWS_maxtime=max(TimeGenerated), EventCount=count() by SrcIpAddr, DstIpAddr, DstDomain, Dvc, EventProduct, EventVendor
Detect web sessions IP and file hash indicators of compromise using ASIM
The following query checks IP addresses, domains, and file hash IOCs across data sources supported by ASIM web session parser:
//IP list - _Im_WebSession let lookback = 30d; let ioc_ip_addr = dynamic(["213.145.86.112"]); let ioc_sha_hashes =dynamic([“918fa52ae45ed60ba7cc8bdc99c3cbe9ab92e0375ec31fc05d0d4513be11c593”, “be99857449d2856dd5a84e21c8a3d5e0e01456adb44062ddec5a6b4970d8d42c”]); _Im_WebSession(starttime=todatetime(ago(lookback)), endtime=now()) | where DstIpAddr in (ioc_ip_addr) or FileSHA256 in (ioc_sha_hashes) | summarize imWS_mintime=min(TimeGenerated), imWS_maxtime=max(TimeGenerated), EventCount=count() by SrcIpAddr, DstIpAddr, Url, Dvc, EventProduct, EventVendor
Detect domain and URL indicators of compromise using ASIM
The following query checks domain and URL IOCs across data sources supported by ASIM web session parser:
// file hash list - imFileEvent // Domain list - _Im_WebSession let ioc_domains = dynamic(["https://213.145.86.112/t/pixel.gif", "https://213.145.86.112/cdn/chunks/polyfill-7e2b.min.js", "https://213.145.86.112/t/event"]); _Im_WebSession (url_has_any = ioc_domains)
ChocoShell C2 communications
The following query detects ChocoShell communications with its C2 server using HTTPS with URI paths designed to blend in with legitimate web traffic. Beacons use /t/pixel.gif?m=<status>, mimicking an image tracking pixel.
let lookback = 30d; let ioc_url_artifacts = dynamic(["/t/pixel.gif?m="]); _Im_WebSession(starttime=todatetime(ago(lookback)), endtime=now()) | where DstDomain in (ioc_url_artifacts) | summarize imWS_mintime=min(TimeGenerated), imWS_maxtime=max(TimeGenerated), EventCount=count() by SrcIpAddr, DstIpAddr, Url, Dvc, EventProduct, EventVendor
| Indicator | Type | Description | First seen |
| ms365-device[.]com | Domain | CaptiveCrunch DCF redirect | 2026-07-23 |
| ms365-live[.]com | Domain | CaptiveCrunch DCF redirect | 2026-05-14 |
| m365-owa[.]com | Domain | CaptiveCrunch AitM infrastructure | 2026-07-20 |
| owa-ms365[.]com | Domain | CaptiveCrunch AitM infrastructure | 2026-07-16 |
| 31.57.243[.]154 | IP address | CaptiveCrunch AitM infrastructure | 2026-07-16 |
| 38.146.28[.]75 | IP address | CaptiveCrunch AitM infrastructure | 2026-07-01 |
| 38.146.28[.]132 | IP address | CaptiveCrunch DNS Resolver | 2026-07-15 |
| 104.194.159[.]150 | IP address | CaptiveCrunch AitM infrastructure | 2026-04-28 |
| 107.189.26[.]194 | IP address | ChocoShell C2 / CaptiveCrunch DNS Resolver | 2026-02-27 |
| 213.145.86[.]112 | IP address | ChocoShell C2 | 2026-07-01 |
| 918fa52ae45ed60ba7cc8bdc99c3cbe9ab92e0375ec31fc05d0d4513be11c593 | File hash | CornFlake | 2026-07-03 |
| be99857449d2856dd5a84e21c8a3d5e0e01456adb44062ddec5a6b4970d8d42c | File hash | ChocoShell | 2026-07-10 |
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The post CaptiveCrunch: Midnight Blizzard targets travelers worldwide for malware delivery and credential theft appeared first on Microsoft Security Blog.
Since early May 2026, Microsoft Threat Intelligence has observed Storm-2945, a sub-cluster of Midnight Blizzard, conducting widespread but targeted traffic manipulation attacks involving hospitality sector networks served by captive portals worldwide. Despite some tactic, technique, and procedure (TTP) similarities to the Forest Blizzard DNS hijacking operation that we publicly disclosed in April 2026, we attribute this campaign, which we call CaptiveCrunch, to Storm-2945. As reported by ReliaQuest on July 23, a portion of this activity leverages doppelganger domains mimicking Microsoft online services to conduct follow-on adversary-in-the-middle (AitM) phishing operations that abuse the device code authentication flow in Microsoft Entra ID. Microsoft Threat Intelligence has also identified active traffic manipulation attacks leading to the delivery of malware on impacted systems. Microsoft has observed Storm-2945 leveraging AI to support a significant portion of these operations.
Today, we are sharing our findings on these ongoing intrusions to raise awareness of this threat and enable customers to protect their devices, especially while traveling. We provide our assessment of Storm-2945’s relationship to Midnight Blizzard and analysis of the CaptiveCrunch campaign, detailing the malware and tradecraft used in these operations. We also provide mitigation, detection, and hunting guidance to help organizations identify and defend against Storm-2945 and related activity.
Microsoft Threat Intelligence would like to thank our partners at Anthropic and OpenAI for their collaboration and support during this investigation.
Since February 2026, Storm-2945 has conducted AI-augmented operations including targeted device code and OAuth code phishing campaigns leading to Entra device registration and subsequent data collection from Microsoft 365. Since early May 2026, Microsoft Threat Intelligence has observed Storm-2945 manipulating DNS and HTTP traffic from networks served by captive portals to redirect user traffic through actor-controlled infrastructure. Although our investigation into the initial compromise vector for the captive portal networks is ongoing, we have observed notable commonalities in the equipment and management systems used across multiple affected networks. These similarities suggest that the activity might not be limited to isolated compromises of individual venues and could reflect access to shared services within portions of the captive portal ecosystem.
As part of the CaptiveCrunch campaign, Storm-2945 has leveraged their AitM position to redirect users through actor-controlled phishing infrastructure and has also delivered malware purporting to be browser or operating system updates in response to automated connectivity checks issued by users’ browsers. Multiple variants have been delivered, including fully-featured Windows remote access trojans (RAT) in compiled Golang, with functionality to conduct system enumeration, collect files and keystrokes, steal credentials and session tokens, conduct audio and video surveillance, monitor for removable media, and provide the threat actor a remote shell on infected systems.
The threat actor infrastructure leverages a variety of ClickFix techniques to elicit the user into downloading and executing the malware:
In addition to variants of malware targeting Windows systems, Microsoft Threat Intelligence is also aware of indications that the threat actor might be targeting Android devices with similar techniques as the ClickFix landings also include instructions for Android devices to download and install an APK file.
To date, Microsoft has identified widespread compromise of Wi-Fi networks at hospitality-related organizations and other networks serviced by captive portal equipment in several countries. ReliaQuest has identified this activity not only at hotels, but also conference centers and other shared venues, and assesses that the goal of this activity is to access the accounts of corporate travelers.
Microsoft Threat Intelligence assesses that Storm-2945 is an operational sub-cluster of Midnight Blizzard based on distinctive technical and operational overlaps. These include technical similarities to Storm-2372, a Midnight Blizzard initial access operations sub-cluster, also notable for their device code and OAuth code phishing operations tracked throughout 2025, Microsoft Graph-based email exfiltration, social engineering delivered via commercial messaging apps, and significant similarities in victimology.
Midnight Blizzard is a Russia-based threat actor attributed by the US and UK governments to the Foreign Intelligence Service of the Russian Federation, also known as the SVR. This threat actor is known to primarily target governments, diplomatic entities, non-governmental organizations (NGOs), and information technology (IT) service providers, primarily in the US and Europe. Midnight Blizzard is consistent and persistent in their operational targeting, and their objectives rarely change. Their focus is to collect intelligence through longstanding and dedicated espionage in support of Russian foreign policy interests.
Midnight Blizzard operations often involve compromise of valid accounts and, in some highly targeted cases, advanced techniques to compromise authentication mechanisms within an organization to expand access and evade detection. They utilize diverse initial access methods, and Midnight Blizzard is also adept at identifying and abusing OAuth applications to move laterally across cloud environments and for post-compromise activity, such as email collection.
CornFlake is a full-featured Windows RAT written in Go that serves as Storm-2945’s primary persistent implant. Microsoft has observed the threat actor rapidly iterating on this malware layer, which features customizable capabilities from the social engineering user interface and data collection capabilities to anti-detection and evasion techniques.
On initial execution, CornFlake operates in dropper mode: it displays a convincing fake progress window designed to occupy the victim’s attention while the binary copies itself to %APPDATA%\svchost32\svchost32.exe and establishes persistence.
Fake window options configurable by the threat actor at build time:
CornFlake registers as a Windows service named svchost32 with the display name “Cloud Sync Service” and description “Synchronizes files with the cloud storage provider”, deliberately mimicking the legitimate svchost.exe process. It establishes redundant persistence mechanisms: Windows service registrations, Registry Run keys, named scheduled tasks, and a persistence watchdog routine that runs continuously to restore any persistence mechanism that is removed by defenders or endpoint protection.
For command and control (C2), CornFlake performs an Elliptic Curve Diffie-Hellman (ECDH) P-256 ephemeral key exchange with the C2 server, derives a session key via SHA-256, and communicates over a custom JSON protocol framed within the encrypted channel. This provides an encrypted channel to the C2 server, with each C2 session using a unique ephemeral key, making decryption of captured traffic impossible without the session-specific private key. The runtime configuration file sync.dat supports hot reconfiguration of C2 servers, watched directories, file targeting patterns, and Transport Layer Security (TLS) settings without requiring redeployment.
Once established on a victim system, CornFlake provides the operator with a comprehensive collection toolkit, gated by configuration flags that allow selective activation post-deployment:
| Capability | Description |
| Keylogging | Raw input API-based keylogger capturing all keystrokes, including password fields |
| Clipboard monitoring | Captures clipboard changes with SHA-256 deduplication and records the active window title at time of capture |
| Screenshot capture | Idle-triggered and on-demand screenshots with configurable idle threshold |
| Audio surveillance | Windows Audio Session API (WASAPI)-based microphone capture, encoded as WAV files |
| Video surveillance | Media Foundation-based webcam capture, encoded as JPEG |
| Browser credential theft | ChromeKatz-derived module supporting live cookie extraction from process memory (Chromium browsers) and stored password extraction from on-disk databases, including Chrome App-Bound Encryption (ABE) bypass and Firefox NSS/SDR decryption |
| File exfiltration | Targets files based on file extensions with real-time file system monitoring and an upload throttle (1,000 files or 500 MB per cycle). File extensions are categorized as Documents, Archives, Images, Code, Data, Emails, and Keys |
| USB drive monitoring | Detects and scans removable media when inserted |
| Security posture sweep | Collects 18 categories of host intelligence including installed software, antivirus (AV)/endpoint detection and response (EDR) products, Defender exclusions, User Account Control (UAC) level, Remote Desktop Protocol (RDP) history, Office most recently used (MRU) files, and credential hints |
| Remote shell | Arbitrary command execution via cmd.exe or PowerShell (with -NoP flag to suppress profile-based detection) |
CornFlake also exposes a localhost HTTP API server (/upload, /reload, /status) that transforms the RAT into a modular platform: companion or next-stage payloads such as ChocoShell could task file exfiltration, trigger configuration hot reloads or check C2 connectivity using the pre-established secure C2 channel for communication.
ChocoShell is the campaign’s Powershell-based infostealer, delivered and executed entirely in-memory. Its primary objective is the high-volume theft of browser session cookies, saved passwords, Microsoft 365 Single Sign-On (SSO) tokens, and Wi-Fi credentials from compromised systems. Where CornFlake provides the operator with a persistent, long-running foothold on the device, ChocoShell is designed to extract the most operationally valuable credentials, giving the operator access to victim cloud environments.
The ChocoShell script was authored with full developer comments that reveal the operator’s intent behind each code decision, including explicit references to Microsoft detection signatures and the reasoning behind specific evasion choices. The consistent coding standard and descriptive commentary suggest the author might have leveraged AI-assisted code generation.
Defense evasion. Upon execution, ChocoShell beacons to a hardcoded C2 server at 213.145.86[.]112 and implements several evasion techniques in sequence. It disables the Antimalware Scan Interface (AMSI) via .NET reflection to prevent ScriptBlock scanning and evades Microsoft behavioral detection that triggers on suspicious PowerShell web request cmdlets. A timing-based sandbox detection check is also employed as a virtual machine (VM) detection mechanism, silently exiting without performing any collection if detected.
C2 communication. ChocoShell communicates with its C2 server using HTTPS with URI paths designed to blend in with legitimate web traffic. Beacons use /t/pixel.gif?m=<status>, mimicking an image tracking pixel. Additional tooling is fetched from /cdn/chunks/polyfill-7e2b.min.js, disguised as a JavaScript polyfill file. This downloaded module is Base64-decoded and executed in memory via [ScriptBlock]::Create(), providing browser encryption key extraction capabilities, SYSTEM token impersonation, and Defender signature locking. Exfiltrated data is sent by POST to /t/event as GZip-compressed, Base64-wrapped JSON.
Privilege escalation. ChocoShell requires administrative privileges for its most impactful capabilities: SYSTEM token impersonation for Chrome ABE decryption, Volume Shadow Copy Service (VSS) shadow copy creation, Defender signature locking. It implements three silent UAC bypass techniques with ordered fallback:
If none of the silent bypasses succeed (for example, the user is not a local administrator), ChocoShell falls back to a visible UAC prompt via Start-Process -Verb RunAs. Notably, the script also contains a variant designed to execute within the WinGet Desired State Configuration (DSC) host process (ConfigurationRemotingServer), suggesting an attack vector through malicious WinGet DSC configuration used in Windows machine provisioning.
Credential and session theft. Once running with elevated permissions, ChocoShell locks Defender signature updates and systematically harvests data from multiple sources. For Chromium-based browsers (Chrome, Edge, Brave, Opera, Opera GX, Vivaldi), it extracts the master encryption key from the browser’s Local State file, handling both the modern ABE scheme (Chrome v127+) and the legacy data protection API (DPAPI)-only scheme. ABE decryption requires SYSTEM-level DPAPI access, which the malware obtains by impersonating a SYSTEM process token borrowed from winlogon.exe, wininit.exe, or services.exe. Locked browser SQLite databases are accessed through three strategies: shared file access, Volume Shadow Service snapshots, and direct copy as a fallback.
As a parallel collection path, ChocoShell launches Chrome, Edge, and Brave with the –remote-debugging-port flag and issues Network.getAllCookies through the Chrome DevTools Protocol (CDP). This completely bypasses ABE, enabling the browser to perform its own internal decryption and returns plaintext cookie values. To handle privilege issues (SYSTEM-launched browsers inherit the wrong token), the malware creates transient scheduled tasks with TASK_LOGON_INTERACTIVE_TOKEN to launch the browser under the signed-in user’s session. After extraction, the browser is stopped and relaunched with –restore-last-session to avoid alerting the user.
For Firefox family browsers (Firefox, Waterfox, LibreWolf, Floorp, Zen), the malware copies unencrypted cookies.sqlite databases from each profile. Additionally, ChocoShell collects Microsoft 365 and Azure Active Directory (AD) access tokens, refresh tokens, and Web Account Manager (WAM) tokens from .tbres files in the Token Broker cache. Collection of these tokens represents a significant threat to enterprise environments, as threat actors could replay SSO sessions without browser cookies. Additionally, Wi-Fi credentials are harvested via netsh wlan show profile with key=clear.
Exfiltration and cleanup. All collected data is aggregated into a JSON structure, GZip-compressed, Base64-encoded, and sent by POST to the C2’s /t/event endpoint. After exfiltration, all collected data variables are nulled, garbage collection is forced, VSS shadow copies are deleted via Windows Management Instrumentation (WMI), temporary elevation scripts are removed, and all UAC bypass registry keys (already cleaned during escalation) are verified removed.
FruitStone is the web-based C2 panel that Storm-2945 operators use to manage the entire CaptiveCrunch campaign infrastructure. Implemented as a single-page application (HTML and JavaScript) serving as the front-end of the C2 server with all functionality exposed without authentication, FruitStone provides a centralized dashboard for managing compromised endpoints, building and deploying new campaign payloads, and reviewing all collected data (such as screenshots, keystrokes, browser credentials).
Operational cover. The panel is branded as “CloudSync Console” with a footer reading “Acuity Systems, Inc. — Cloud Infrastructure Portal v3.2.1,” designed to appear as legitimate enterprise cloud management software if the panel URL is discovered by defenders or hosting providers. This masquerading extends to the CornFlake agent’s service name (Cloud Sync Service) and description (“Synchronizes files with the cloud storage provider”), creating a consistent cover story across the toolchain.
Session management and multi-operator support. FruitStone uses JSON Web Token (JWT)-based authentication, session revocation, and rate limiting with IP blocking to prevent brute force attacks against the panel sign in. Multiple operators could be provisioned with individual accounts, and all active sessions are visible with IP address, user-agent, and creation time to enable operational security awareness across the operators.
Agent management. The panel displays all registered CornFlake agents in a dashboard with real-time status updates via Server-Sent Events (SSE). Each agent card shows comprehensive system information including hostname, username, OS version, CPU, RAM, disk usage, screen resolution, timezone, domain membership, and camera/microphone presence, all collected during the CornFlake posture sweep. Agents are grouped by country and subnet, with geographic distribution visualized on a map.
Operators could interact with individual agents through:
Campaign builder. A step-by-step wizard enables operators to configure and build new CornFlake payloads directly from the panel:
Infrastructure management. FruitStone provides management interfaces for three layers of supporting infrastructure:
Since July 16, Microsoft has observed a portion of CaptiveCrunch landing pages redirecting users to device code authentication flow experiences. In these cases, users served these landings might be instructed to enter a device code into a legitimate Microsoft sign-in page, a technique commonly referred to as device code phishing.
Device code authentication is a legitimate OAuth workflow designed for devices that cannot support a traditional sign-in experience. However, threat actors could abuse this flow by initiating an authentication request on behalf of a user then convincing the user to enter an actor-controlled device code into a legitimate Microsoft authentication page. When successful, the victim authenticates the threat actor’s session rather than their own.
This activity is consistent with previously reported device code phishing operations conducted by Midnight Blizzard since August 2024. The observed technique does not appear fundamentally novel; however, integrating device code phishing into captive portal and traffic manipulation operations might increase the likelihood that users perceive the authentication request as legitimate. For additional details on Midnight Blizzard-related device code phishing techniques, see: Storm-2372 conducts device code phishing campaign. To understand other threat actors’ use of device code phishing and associated mitigations, see Inside an AI‑enabled device code phishing campaign.
When traveling, users should treat hotel, conference, airport, and other guest wireless networks as untrustworthy.
Organizations should assume that public and hospitality network infrastructure might not be trustworthy and should adopt controls that limit exposure to traffic manipulation, credential theft, and device code phishing.
Organizations should review what information employees provide to hospitality providers when connecting to guest networks.
Microsoft Defender customers can refer to the list of applicable detections below. Microsoft Defender coordinates detection, prevention, investigation, and response across endpoints, identities, email, apps to provide integrated protection against attacks like the threat discussed in this blog.
Microsoft Defender for Endpoint detects Storm-2945 activity under the detection Suspicious activity linked to a Russian state-sponsored threat actor has been detected. However, these alerts might be triggered by unrelated threat actor activity. The following chart lists Microsoft Defender detections specific to the TTPs utilized by Storm-2945 in this attack.
| Tactic | Observed activity | Microsoft Defender coverage |
| Initial access | File download via captive portal redirection | Microsoft Defender for Endpoint – Suspicious downloaded file |
| Initial access | ClickFix technique, fake browser or OS update, initial file download | Microsoft Defender for Endpoint – Possible initial access from an emerging threat – Possible ClickFix activity |
| Persistence | CornFlake registers a Windows service, a Registry Run key, a scheduled task | Microsoft Defender for Endpoint – Suspicious Scheduled Task Process Launched – Suspicious scheduled task – Suspicious file added to run key – Suspicious service registration Microsoft Entra ID Protection – Microsoft Entra threat intelligence – Verified threat actor IP |
| Stealth/Defense evasion | ChocoShell disables AMSI | Microsoft Defender for Endpoint – Possible Antimalware Scan Interface (AMSI) tampering |
| Credential access | ChocoShell’s theft of browser session cookies, saved passwords, Microsoft 365 SSO tokens, and Wi-Fi credentials. Device code abuse. | Microsoft Defender for Endpoint – Possible theft of passwords and other sensitive web browser information – Suspicious DPAPI activity Microsoft Defender For Identity – Anomalous OAuth device code authentication activity Microsoft Defender XDR – User account compromise via OAuth device code phishing – Malicious sign in from an IP address associated with recognized attacker infrastructure – Suspicious Azure authentication through possible device code phishing |
| Collection | CornFlake monitoring and logging | Microsoft Defender for Endpoint – Activity that might lead to information stealer |
| Privilege escalation | ChocoShell UAC bypass techniques | Microsoft Defender for Endpoint – UAC bypass was detected – Possible Component Object Model (COM) hijacking |
Microsoft Security Copilot is embedded in Microsoft Defender and provides security teams with AI-powered capabilities to summarize incidents, analyze files and scripts, summarize identities, use guided responses, and generate device summaries, hunting queries, and incident reports.
Customers can also deploy AI agents, including the following Microsoft Security Copilot agents, to perform security tasks efficiently:
Security Copilot is also available as a standalone experience where customers can perform specific security-related tasks, such as incident investigation, user analysis, and vulnerability impact assessment. In addition, Security Copilot offers developer scenarios that allow customers to build, test, publish, and integrate AI agents and plugins to meet unique security needs.
Microsoft Defender XDR customers can use the following threat analytics reports in the Defender portal (requires license for at least one Defender XDR product) to get the most up-to-date information about the threat actor, malicious activity, and techniques discussed in this blog. These reports provide the intelligence, protection information, and recommended actions to prevent, mitigate, or respond to associated threats found in customer environments.
Microsoft Security Copilot customers can also use the Microsoft Security Copilot integration in Microsoft Defender Threat Intelligence, either in the Security Copilot standalone portal or in the embedded experience in the Microsoft Defender portal to get more information about this threat actor.
Microsoft Defender XDR customers can run the following advanced hunting queries to find related activity in their networks:
Detect file creation after Wi-Fi connectivity test on devices
The following query checks for a file creation on a device within two minutes of the device performing built‑in Network Connectivity Status Indicator (NCSI) test, which occurs when network connectivity is established to a Wi-Fi network with a captive portal. This activity might indicate an attacker’s initial access file presence on a device.
Please note that not all files discovered through this query might be malicious or related to this threat activity.
let ncsi_endpoints = dynamic(["msftconnecttest.com","edge-http.microsoft.com","msftncsi.com","captive.apple.com","clients1.google.com",
"clients3.google.com","clients4.google.com","clients6.google.com","connectivitycheck.gstatic.com","connectivitycheck.android.com",
"android.clients.google.com","www.gstatic.com","detectportal.firefox.com","detectportal.brave-http-only.com","cloudflareportal.com",
"cloudflarecp.com","cloudflareok.com","connectivity-check.warp-svc","connectivity.cloudflareclient.com","spectrum.s3.amazonaws.com",
"nmcheck.gnome.org"]);
let NCSIEvents = DeviceNetworkEvents
| where Timestamp > ago(7d)
| where RemoteUrl has_any (ncsi_endpoints)
| project NCSI_Timestamp = Timestamp, DeviceId, DeviceName, RemoteUrl, NCSI_ReportId = ReportId, NCSI_InitiatingProcessFileName = InitiatingProcessFileName, NCSI_InitiatingProcessCommandLine = InitiatingProcessCommandLine, NCSI_AccountName = InitiatingProcessAccountName;
let FileDownloadEvents = DeviceFileEvents
| where Timestamp > ago(7d)
| where ActionType == "FileCreated"
| where FileName has_any (".exe",".msi",".zip",".rar",".7z")
| project Download_Timestamp = Timestamp, DeviceId, FileName, FolderPath, Download_ReportId = ReportId, Download_InitiatingProcessFileName = InitiatingProcessFileName, Download_InitiatingProcessCommandLine = InitiatingProcessCommandLine, Download_AccountName = InitiatingProcessAccountName;
NCSIEvents
| join kind=inner (
FileDownloadEvents
) on DeviceId
| where Download_Timestamp >= NCSI_Timestamp and Download_Timestamp Detect connectivity to Storm-2945 infrastructure
The following query checks for connectivity to Storm-2945 infrastructure observed in this attack activity.
let target_domains = dynamic(["ms365-device.com", "ms365-live.com", "m365-owa.com", "owa-ms365.com"]);
let target_ips = dynamic(["31.57.243.154", "38.146.28.75", "38.146.28.132", "104.194.159.150", "107.189.26.194", "213.145.86.112"]);
DeviceNetworkEvents
| where RemoteUrl has_any(target_domains) or RemoteIP in (target_ips)
| project
Timestamp,
DeviceName,
DeviceId,
RemoteUrl,
RemoteIP,
LocalIP,
InitiatingProcessFileName,
InitiatingProcessCommandLine,
AccountName = InitiatingProcessAccountName,
ReportId
Detect CornFlake RAT presence on affected systems
The following query checks for the presence of the CornFlake RAT binary.
DeviceProcessEvents | where FolderPath == "%APPDATA%\\svchost32\\svchost32.exe" or FolderPath endswith @"\svchost32\svchost32.exe" | project Timestamp, DeviceName, DeviceId, FileName, FolderPath, InitiatingProcessFileName, InitiatingProcessCommandLine, AccountName, ReportId
Detect CornFlake RAT Windows service registration
The following query checks for the CornFlake RAT Windows service registration.
DeviceRegistryEvents
| where RegistryKey has @"\SYSTEM\CurrentControlSet\Services\svchost32"
| where ActionType == "RegistryValueSet"
| where (RegistryValueName == "DisplayName" and RegistryValueData == "Cloud Sync Service")
or (RegistryValueName == "Description" and RegistryValueData == "Synchronizes files with the cloud storage provider")
| project
Timestamp,
DeviceName,
DeviceId,
RegistryKey,
RegistryValueName,
RegistryValueData,
ActionType,
InitiatingProcessFileName,
InitiatingProcessCommandLine,
InitiatingProcessAccountName,
ReportId
Microsoft Sentinel customers can use the TI Mapping analytics (a series of analytics all prefixed with ‘TI map’) to automatically match the malicious domain indicators mentioned in this blog post with data in their workspace. If the TI Map analytics are not currently deployed, customers can install the Threat Intelligence solution from the Microsoft Sentinel Content Hub to have the analytics rule deployed in their Sentinel workspace.
Detect network IP and domain indicators of compromise using ASIM
The following query checks IP addresses and domain IOCs across data sources supported by ASIM network session parser:
//IP list and domain list- _Im_NetworkSession let lookback = 30d; let ioc_ip_addr = dynamic(["213.145.86.112"]); let ioc_domains = dynamic(["213.145.86.112/t/pixel.gif", "213.145.86.112/cdn/chunks/polyfill-7e2b.min.js", "213.145.86.112/t/event"]); _Im_NetworkSession(starttime=todatetime(ago(lookback)), endtime=now()) | where DstIpAddr in (ioc_ip_addr) or DstDomain has_any (ioc_domains) | summarize imNWS_mintime=min(TimeGenerated), imNWS_maxtime=max(TimeGenerated), EventCount=count() by SrcIpAddr, DstIpAddr, DstDomain, Dvc, EventProduct, EventVendor
Detect web sessions IP and file hash indicators of compromise using ASIM
The following query checks IP addresses, domains, and file hash IOCs across data sources supported by ASIM web session parser:
//IP list - _Im_WebSession let lookback = 30d; let ioc_ip_addr = dynamic(["213.145.86.112"]); let ioc_sha_hashes =dynamic([“918fa52ae45ed60ba7cc8bdc99c3cbe9ab92e0375ec31fc05d0d4513be11c593”, “be99857449d2856dd5a84e21c8a3d5e0e01456adb44062ddec5a6b4970d8d42c”]); _Im_WebSession(starttime=todatetime(ago(lookback)), endtime=now()) | where DstIpAddr in (ioc_ip_addr) or FileSHA256 in (ioc_sha_hashes) | summarize imWS_mintime=min(TimeGenerated), imWS_maxtime=max(TimeGenerated), EventCount=count() by SrcIpAddr, DstIpAddr, Url, Dvc, EventProduct, EventVendor
Detect domain and URL indicators of compromise using ASIM
The following query checks domain and URL IOCs across data sources supported by ASIM web session parser:
// file hash list - imFileEvent // Domain list - _Im_WebSession let ioc_domains = dynamic(["https://213.145.86.112/t/pixel.gif", "https://213.145.86.112/cdn/chunks/polyfill-7e2b.min.js", "https://213.145.86.112/t/event"]); _Im_WebSession (url_has_any = ioc_domains)
ChocoShell C2 communications
The following query detects ChocoShell communications with its C2 server using HTTPS with URI paths designed to blend in with legitimate web traffic. Beacons use /t/pixel.gif?m=<status>, mimicking an image tracking pixel.
let lookback = 30d; let ioc_url_artifacts = dynamic(["/t/pixel.gif?m="]); _Im_WebSession(starttime=todatetime(ago(lookback)), endtime=now()) | where DstDomain in (ioc_url_artifacts) | summarize imWS_mintime=min(TimeGenerated), imWS_maxtime=max(TimeGenerated), EventCount=count() by SrcIpAddr, DstIpAddr, Url, Dvc, EventProduct, EventVendor
| Indicator | Type | Description | First seen |
| ms365-device[.]com | Domain | CaptiveCrunch DCF redirect | 2026-07-23 |
| ms365-live[.]com | Domain | CaptiveCrunch DCF redirect | 2026-05-14 |
| m365-owa[.]com | Domain | CaptiveCrunch AitM infrastructure | 2026-07-20 |
| owa-ms365[.]com | Domain | CaptiveCrunch AitM infrastructure | 2026-07-16 |
| 31.57.243[.]154 | IP address | CaptiveCrunch AitM infrastructure | 2026-07-16 |
| 38.146.28[.]75 | IP address | CaptiveCrunch AitM infrastructure | 2026-07-01 |
| 38.146.28[.]132 | IP address | CaptiveCrunch DNS Resolver | 2026-07-15 |
| 104.194.159[.]150 | IP address | CaptiveCrunch AitM infrastructure | 2026-04-28 |
| 107.189.26[.]194 | IP address | ChocoShell C2 / CaptiveCrunch DNS Resolver | 2026-02-27 |
| 213.145.86[.]112 | IP address | ChocoShell C2 | 2026-07-01 |
| 918fa52ae45ed60ba7cc8bdc99c3cbe9ab92e0375ec31fc05d0d4513be11c593 | File hash | CornFlake | 2026-07-03 |
| be99857449d2856dd5a84e21c8a3d5e0e01456adb44062ddec5a6b4970d8d42c | File hash | ChocoShell | 2026-07-10 |
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The post CaptiveCrunch: Midnight Blizzard targets travelers worldwide for malware delivery and credential theft appeared first on Microsoft Security Blog.
A Russian state-sponsored threat group has been stealing sensitive data from governments and commercial organizations since July 2025 via a novel exploit in popular Linux-based enterprise software, U.S. authorities and cyber officials from more than a dozen other countries warned in a joint cybersecurity advisory Thursday.
Laundry Bear’s most recent espionage campaign involves the exploitation of a zero-day vulnerability in Zimbra Collaboration Suite that wasn’t patched until November 2025, five months after attacks were well underway, officials said.
The exploit just requires a view — no clicks — and allows attackers to steal the previous 90 days’ worth of email, the account’s password, search history, the victim organization’s email directory, two-factor authentication tokens and other newly created passwords.
“The covert and persistent nature of this activity, along with the absence of any known financial extortion, almost certainly indicates this group’s involvement in espionage activities with Russian government backing,” officials wrote in the advisory.
“Additionally, extensive Ukrainian targeting, prior to use against U.S. and other NATO allies, outlines an increasing trend within Russian cyber threat groups to target Ukrainian users first—both as a priority target and as a testbench for malicious cyber techniques before broader global deployment.”
The state-sponsored espionage group, also known as Void Blizzard, has compromised governments and organizations in the defense, education, energy, law enforcement, media, finance, transportation and technology sectors.
Laundry Bear’s year-long campaign involving the exploitation of CVE-2025-66376 showcases more technical capabilities, including a custom JavaScript payload it delivers to targeted victims via phishing emails. The threat group could also likely adapt the novel data exfiltration and aggregation capability, dubbed “beehive,” to exploit other vulnerabilities, officials warned.
The defect’s medium-severity rating of 6.1 underscores the challenge defenders regularly confront in prioritizing patching schedules based on measure of severity alone.
The Russian state-supported group, which has been active since at least 2024, is still actively exploiting Zimbra Collaboration Suite instances that remain unpatched, officials said.
Authorities shared Thursday indicators of compromise, mitigation steps and urged organizations to update their vulnerable software.
“This campaign’s targeted victimology and limited exploitation capabilities likely indicate this group manually identifies and targets the victim organizations” by identifying organizations with public-facing infrastructure, officials wrote in the advisory.
Once a target is identified, Laundry Bear also likely compiles email addresses for users to target with the exploit via phishing emails. Officials did not identify specific victims or describe the volume of organizations already compromised.
The joint cybersecurity advisory was issued by the United States, Australia, Canada, New Zealand, the United Kingdom, Czech Republic, Denmark, Estonia, Finland, France, Italy, Moldova, the Netherlands, Poland, Spain and Sweden.
The post Russian espionage group using novel Zimbra exploit to steal sensitive data from Western countries appeared first on CyberScoop.
European governments sanctioned Russian individuals and organizations Monday over what they said was a years-long campaign of cyberespionage from Turla and other Russian government-led “destructive attacks” against the bloc.
Monday’s confrontation of Moscow included action from the European Union, its individual member governments and the United Kingdom. It mostly took aim at Center 16 of Russia’s Federal Security Service (FSB) over its control of the cyber threat group known by a list of names including Turla, Secret Blizzard and Waterbug.
“Cybercriminals, self-proclaimed hacktivists and private companies linked to Russia, including actors operating under its instructions, direction or control, have also carried out, enabled and facilitated a wide range of malicious activities,” European Union High Representative Kaja Kallas said in a statement.
The EU called out Russia for the Turla campaign that dated back to 2010 in France with targeting of the government there, and has also featured activity against Germany, Poland, Cyprus, the Netherlands, Austria, Slovakia, Romania and Finland. It made special mention of blaming the FSB for last December’s attacks on Poland’s energy grid, which left half a million people without heat.
In all, the European Union sanctioned nine Russian individuals and four entities. While the EU didn’t name them, Kallas’s statement said it also included officers of Russia’s Main Intelligence Directorate of the General Staff (GRU).
The United Kingdom’s cyber sanctions, the first it’s done in coordination with the EU, featured a longer list of 24 individuals and entities. The U.K. named GRU senior leadership figures Vyacheslav Stafeyev, Ivan Senin and Ivan Kasyanenko for their alleged hybrid cyberattacks in conjunction with cybercriminals and recruitment of hackers across Russian universities. The U.K. also sanctioned individuals behind Lumma Stealer, the target of an international takedown last year.
“These sanctions strike at the core of the cybercriminal networks propping up the Russian state’s aggression, and the UK and EU are sending a clear message that Russia cannot hide behind its use of these proxy groups,” Foreign Secretary, Yvette Cooper, said in a news release that mentioned “destructive attacks” by Russia. “From directing criminals to targeting businesses, and striking Poland’s energy grid in the depths of winter, the Russian state is sinking to new lows in its attempts to undermine European security.”
At least two European governments, Germany and France, said they would be summoning Russia’s ambassadors in their nations over the attacks.
Also Monday, the European Union announced sanctions against the company behind Russia’s messaging app, Max, citing its use of surveillance features to clamp down on dissent. And separately, 13 nations including the United States issued a warning on Monday about Russian government hackers targeting routers to carry out critical infrastructure attacks.
Russia routinely denies allegations of responsibility for any malicious cyber activity.
The post Europe strikes out against Russia’s Turla over espionage, ‘destructive attacks’ appeared first on CyberScoop.
China-aligned attackers broke into the networks of U.S. and Canadian universities to steal sensitive data and establish persistent access via webshells and backdoors, Proofpoint threat researchers said Tuesday.
The espionage-motivated attacks targeted physics and engineering departments, focusing on administrators and professors with national security links or organizations researching astrophysics and particle physics.
Proofpoint identified less than 10 university victims and estimates a few dozen universities may be impacted, Greg Lesnewich, principal threat researcher at Proofpoint, told CyberScoop. The company first observed the campaign in May and believes the campaign is ongoing.
“There is a high likelihood that many victims have not been made aware of this activity yet,” Lesnewich added.
Researchers traced the attacks to a pair of critical vulnerabilities in Roundcube, an open-source email client, that were exploited and chained together to steal credentials and gain long-term access.
The threat cluster, which Proofpoint tracks as UNK_MassTraction, exploited CVE-2024-42009 to execute JavaScript inside the victim’s browser, then exploited CVE-2025-49113 to gain a foothold in the mailserver.
The initial exploit in the chain only requires a victim to open an email, and the attackers sent victims a series of generic lures to trigger the initial access.
Proofpoint attributes the campaign to a China-aligned cluster because the attackers used a known covert network used by multiple China-aligned threat groups, an infection chain leading to VShell and left Chinese language artifacts in the phishing emails.
Researchers haven’t drawn any conclusions about why attackers targeted the universities and what they are seeking.
“We do not have data to suggest what got stolen, as we only observe the initial inbound email attempt,” Lesnewich said.
The engineering aspects do align with China’s strategic initiatives, he added. Google threat hunters recently spotted a Chinese state-sponsored espionage group that burrowed into systems for years, stealing data across academia, medicine, military, cybersecurity and foreign policy.
“China-aligned adversaries have been targeting other types of edge devices such as routers and VPN concentrators for years with various exploits to create a foothold into a target network, not using email for delivery,” Lesnewich said. “This campaign flips that on its head, using email to deliver an exploit chain to compromise a mail server, instead of using email to deliver a credential harvesting URL or malware to target an end user, not a server.”
The post Suspected Chinese espionage group used a Roundcube exploit chain to burrow into universities appeared first on CyberScoop.
