Earth Alux Hackers Deploy VARGEIT Malware in Targeted Cyber Espionage Campaigns

In the evolving landscape of cyber threats, a sophisticated group known as Earth Alux has emerged as a significant concern. This China-linked advanced persistent threat (APT) group has been actively conducting espionage operations since the second quarter of 2023. Initially focusing on the Asia-Pacific region, Earth Alux expanded its operations to Latin America by mid-2024, targeting sectors such as government, technology, logistics, manufacturing, telecommunications, IT services, and retail in countries including Thailand, the Philippines, Malaysia, Taiwan, and Brazil.

Initial Access and Exploitation Techniques

Earth Alux primarily gains initial access by exploiting vulnerabilities in exposed servers. Once access is obtained, the group implants web shells like GODZILLA to facilitate the delivery of their malware payloads. This method allows them to establish a foothold within the target network, enabling further malicious activities.

Deployment of VARGEIT Malware

Central to Earth Alux’s operations is the deployment of VARGEIT, a multi-channel configurable backdoor. VARGEIT is utilized across multiple stages of their attacks to maintain persistence and execute malicious operations. The malware’s capabilities include:

– Drive Information Collection: Gathering detailed information about the system’s storage devices.

– Process Monitoring: Observing and analyzing active processes to identify potential targets or threats.

– File Manipulation: Creating, modifying, or deleting files to achieve specific objectives.

– Command Line Execution: Running commands to control or alter system behavior.

– Injection of Additional Tools: Deploying further malicious tools without leaving traces on the filesystem.

Notably, VARGEIT leverages multiple communication channels, with the Outlook channel (using Graph API) being predominantly used in observed attacks. This approach enhances the malware’s stealth and effectiveness.

The mspaint Injection Technique

A distinctive aspect of VARGEIT’s operation is its unique mspaint injection technique. Instead of dropping files onto the target system, the malware opens instances of mspaint.exe and injects shellcode received directly from command-and-control servers. This method allows Earth Alux to execute additional tools without leaving detectable artifacts on disk, thereby evading traditional detection mechanisms.

The injection process utilizes APIs such as RtlCreateUserThread, VirtualAllocEx, and WriteProcessMemory. For example, during reconnaissance activities, the following command pattern was observed:

“`

C:\Windows\System32\mspaint.exe sElf98RqkF ldap
“`

These mspaint processes perform various malicious activities, including:

– Security Event Log Examination: Reviewing logs to identify security measures and potential vulnerabilities.

– Group Policy Discovery: Understanding the organization’s policies to tailor attacks accordingly.

– Network/LDAP Reconnaissance: Mapping the network and directory services to identify targets.

– Data Exfiltration: Collecting and transmitting sensitive information to attacker-controlled cloud storage buckets.

Implications and Recommendations

The increasing sophistication of Earth Alux’s tactics underscores the evolving nature of cyber espionage threats facing organizations today. Their focus on long-term data collection and exfiltration can lead to disrupted operations and significant financial losses across critical industries.

To mitigate such threats, organizations are advised to:

1. Regularly Update and Patch Systems: Ensure that all software and systems are up-to-date to prevent exploitation of known vulnerabilities.

2. Implement Robust Monitoring: Deploy advanced monitoring tools to detect unusual activities and potential intrusions.

3. Conduct Employee Training: Educate staff about phishing attacks and other common infiltration methods to reduce the risk of human error.

4. Establish Incident Response Plans: Develop and regularly update response strategies to quickly address and mitigate breaches.

By adopting these measures, organizations can enhance their resilience against sophisticated threats like those posed by Earth Alux.