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A new China-aligned cyber espionage group named PlushDaemon has been discovered conducting a supply chain attack against a South Korean VPN provider, IPany. The group compromised the VPN provider's software installer, replacing it with a malicious version that deploys the custom SlowStepper malware. This malware is a sophisticated backdoor with a large toolkit composed of around 30 modules, programmed in C++, Python, and Go, designed for espionage activities. The initial access vector for the group is typically by hijacking legitimate software updates of Chinese applications, but this supply chain attack marks a significant departure from their usual tactics.

ESET Research identified the attack after detecting malicious code in a Windows NSIS installer downloaded from the IPany website in May 2024. The compromised installer included both the legitimate VPN software and the SlowStepper backdoor. ESET researchers notified IPany, and the malicious installer has since been removed. PlushDaemon, active since at least 2019, is believed to be the exclusive user of the SlowStepper malware and has targeted individuals and entities in China, Taiwan, Hong Kong, South Korea, the US, and New Zealand. The group is also known to gain access via vulnerabilities in legitimate web servers.

ImgSrc: ciso2ciso.com

References:

• CISO2CISO.COM & CYBER SECURITY GROUP - PlushDaemon APT Targets South Korean VPN Provider in Supply Chain Attack. - 8d
• @BleepingComputer - South Korean VPN provider IPany was breached in a supply chain attack by the "PlushDaemon" China-aligned hacking group - 8d
• @screaminggoat - ESET Research : A previously unknown China-aligned APT dubbed PlushDaemon conducts cyberespionage and is responsible for a supply-chain attack against a VPN provider in South Korea. - 8d
• ciso2ciso.com - Details about the Chinese threat group PlushDaemon. - 7d
• www.welivesecurity.com - A previously unknown China-aligned APT dubbed PlushDaemon conducts cyberespionage and is responsible for a supply-chain attack against a VPN provider in South Korea. - 7d
• CISO2CISO.COM & CYBER SECURITY GROUP - Chinese cyberspies target South Korean VPN in supply chain attack aimed at deploying a custom backdoor to collect data for cyber-espionage purposes. - 7d
• www.bleepingcomputer.com - South Korean VPN provider IPany was breached in a supply chain attack by the "PlushDaemon" China-aligned hacking group, who compromised the company's VPN installer to deploy the custom 'SlowStepper - 7d
• Privacy Guides Community - Latest topics - The attackers replaced the legitimate installer with one that also deployed the group’s signature backdoor. - 7d
• therecord.media - Chinese hackers target Korean VPN provider by placing backdoored installer on website - 6d
• ciso2ciso.com - ESET researchers discovered a previously undocumented China-aligned advanced persistent threat (APT) group named PlushDaemon, which has been linked to a supply chain attack targeting a South Korean vi - 5d
• go.theregister.com - Supply chain attack hits Chrome extensions, could expose millions - 5d

Classification:

• HashTags: PlushDaemon SupplyChain CyberEspionage
• Company: ESET
• Target: South Korean VPN Provider
• Attacker: PlushDaemon APT
• Product: VPN
• Feature: Supply Chain Attack
• Type: Espionage
• Severity: Major