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New China-Linked Hacker Group Hits Governments With Stealth Malware

Posted on September 30, 2025September 30, 2025 By CWS

Sep 30, 2025Ravie LakshmananCyber Espionage / Malware
Authorities and telecommunications organizations throughout Africa, the Center East, and Asia have emerged because the goal of a beforehand undocumented China-aligned nation-state actor dubbed Phantom Taurus over the previous two-and-a-half years.
“Phantom Taurus’ important focus areas embrace ministries of international affairs, embassies, geopolitical occasions, and navy operations,” Palo Alto Networks Unit 42 researcher Lior Rochberger stated. “The group’s major goal is espionage. Its assaults show stealth, persistence, and a capability to rapidly adapt their ways, methods, and procedures (TTPs).”
It is price declaring that the hacking group was first detailed by the cybersecurity firm again in June 2023 underneath the moniker CL-STA-0043. Then final Might, the menace cluster was graduated to a brief group, TGR-STA-0043, following revelations about its sustained cyber espionage efforts aimed toward governmental entities since not less than late 2022 as a part of a marketing campaign codenamed Operation Diplomatic Specter.
Unit 42 stated its continued remark of the group yielded sufficient proof to categorise it as a brand new menace actor whose major aim is to allow long-term intelligence assortment and acquire confidential information from targets which can be of strategic curiosity to China, each economically and geopolitically.

“The group takes an curiosity in diplomatic communications, defense-related intelligence and the operations of vital governmental ministries,” the corporate stated. “The timing and scope of the group’s operations often coincide with main international occasions and regional safety affairs.”
This facet is especially revealing, not least as a result of different Chinese language hacking teams have additionally embraced an analogous strategy. For example, a brand new adversary tracked by Recorded Future as RedNovember is assessed to have focused entities in Taiwan and Panama in shut proximity to “geopolitical and navy occasions of key strategic curiosity to China.”
Phantom Taurus’ modus operandi additionally stands out attributable to using custom-developed instruments and methods not often noticed within the menace panorama. This features a never-before-seen bespoke malware suite dubbed NET-STAR. Developed in .NET, this system is designed to focus on Web Data Companies (IIS) internet servers.

That stated, the hacking crew has relied on shared operational infrastructure that has been beforehand employed by teams like AT27 (aka Iron Taurus), APT41 (aka Starchy Taurus or Winnti), and Mustang Panda (aka Stately Taurus). Conversely, the infrastructure elements utilized by the menace actor haven’t been detected in operations carried out by others, indicating some form of “operational compartmentalization” inside the shared ecosystem.

The precise preliminary entry vector shouldn’t be clear, however prior intrusions have weaponized susceptible on-premises Web Data Companies (IIS) and Microsoft Change servers, abusing flaws like ProxyLogon and ProxyShell, to infiltrate goal networks.
One other vital side of the assaults is the shift from gathering emails to the direct focusing on of databases utilizing a batch script that makes it attainable to hook up with an SQL Server database, export the ends in the type of a CSV file, and terminate the connection. The script is executed utilizing the Home windows Administration Instrumentation (WMI) infrastructure.
Unit 42 stated the menace actor used this methodology to methodically seek for paperwork of curiosity and data associated to particular nations akin to Afghanistan and Pakistan.

Latest assaults mounted by Phantom Taurus have additionally leveraged NET-STAR, which consists of three web-based backdoors, every of which performs a particular perform whereas sustaining entry to the compromised IIS setting –

IIServerCore, a fileless modular backdoor loaded by way of an ASPX internet shell that helps in-memory execution of command-line arguments, arbitrary instructions, and payloads, and transmits the ends in an encrypted command-and-control (C2) communication channel
AssemblyExecuter V1, which masses and executes extra .NET payloads in reminiscence
AssemblyExecuter V2, an enhanced model of AssemblyExecuter V1 that additionally comes fitted with the flexibility to bypass Antimalware Scan Interface (AMSI) and Occasion Tracing for Home windows (ETW)

“The NET-STAR malware suite demonstrates Phantom Taurus’ superior evasion methods and a deep understanding of .NET structure, representing a major menace to internet-facing servers,” Unit 42 stated. “IIServerCore additionally helps a command known as changeLastModified. This implies that the malware has energetic timestomping capabilities, designed to confuse safety analysts and digital forensics instruments.”

The Hacker News Tags:ChinaLinked, Governments, Group, Hacker, Hits, Malware, Stealth

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