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Storm-2603 Deploys DNS-Controlled Backdoor in Warlock and LockBit Ransomware Attacks

Posted on August 1, 2025August 1, 2025 By CWS

Aug 01, 2025Ravie LakshmananThreat Intelligence / Ransomware
The risk actor linked to the exploitation of the just lately disclosed safety flaws in Microsoft SharePoint Server is utilizing a bespoke command-and-control (C2) framework referred to as AK47 C2 (additionally spelled ak47c2) in its operations.
The framework contains at the very least two various kinds of shoppers, HTTP-based and Area Title System (DNS)-based, which have been dubbed AK47HTTP and AK47DNS, respectively, by Test Level Analysis.
The exercise has been attributed to Storm-2603, which, in keeping with Microsoft, is a suspected China-based risk actor that has leveraged the SharePoint flaws – CVE-2025-49706 and CVE-2025-49704 (aka ToolShell) – to deploy Warlock (aka X2anylock) ransomware.

A beforehand unreported risk cluster, proof gathered following an evaluation of VirusTotal artifacts reveals that the group could have been lively since at the very least March 2025, deploying ransomware households like LockBit Black and Warlock collectively – one thing that is not noticed generally amongst established e-crime teams.
“Based mostly on VirusTotal information, Storm-2603 doubtless focused some organizations in Latin America all through the primary half of 2025, in parallel to attacking organizations in APAC,” Test Level stated.
The assault instruments utilized by the risk actor contains reputable open-source and Home windows utilities like masscan, WinPcap, SharpHostInfo, nxc, and PsExec, in addition to a customized backdoor (“dnsclient.exe”) that makes use of DNS for command-and-control with the area “replace.updatemicfosoft[.]com.”

The backdoor is a part of the AK47 C2 framework, alongside AK47HTTP, that is employed to assemble host data and parse DNS or HTTP responses from the server and execute them on the contaminated machine by way of “cmd.exe.” The preliminary entry pathway utilized in these assaults are unknown.
A degree value mentioning right here is that the aforementioned infrastructure was additionally flagged by Microsoft as utilized by the risk actor as a C2 server to determine communication with the “spinstall0.aspx” internet shell. Along with the open-source instruments, Storm-2603 has been discovered to distribute three further payloads –

7z.exe and 7z.dll, the reputable 7-Zip binary that is used to sideload a malicious DLL, which delivers Warlock
bbb.msi, an installer that makes use of clink_x86.exe to sideload “clink_dll_x86.dll,” which results in LockBit Black deployment

Test Level stated it additionally found one other MSI artifact uploaded to VirusTotal in April 2025 that is used to launch Warlock and LockBit ransomware, and likewise drop a customized antivirus killer executable (“VMToolsEng.exe”) that employs the carry your personal weak driver (BYOVD) method to terminate safety software program utilizing ServiceMouse.sys, a third-party driver supplied by Chinese language safety vendor Antiy Labs.

In the end, Storm-2603’s precise motivations stay unclear at this stage, making it more durable to find out if it is espionage-focused or pushed by revenue motives. Nonetheless, it bears noting that there have been cases the place nation-state actors from China, Iran, and North Korea have deployed ransomware on the facet.
“Storm-2603 leverages BYOVD strategies to disable endpoint defenses and DLL hijacking to deploy a number of ransomware households – blurring the traces between APT and felony ransomware operations,” Test Level stated. “The group additionally makes use of open-source instruments like PsExec and masscan, signaling a hybrid strategy seen more and more in subtle assaults.”

The Hacker News Tags:Attacks, Backdoor, Deploys, DNSControlled, LockBit, Ransomware, Storm2603, Warlock

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