Lancefly: Group Uses Custom Backdoor to Target Orgs in Government, Aviation, Other Sectors

Lancefly’s recent activity centers on the Merdoor backdoor and ZXShell rootkit, targeting government, aviation, and other sectors with intelligence-gathering as a primary motive. The campaign shows adaptability in initial access vectors, credential theft via non-malware methods, and a mix of loaders and backdoors to maintain access and exfiltrate data. #Lancefly #Merdoor #ZXShell #PlugX #ShadowPad #APT41

Keypoints

  • Lancefly employed the Merdoor backdoor and an updated ZXShell rootkit, with targeted activity across government, aviation, and other sectors.
  • Initial infection vectors were not definitively identified, but indications include SSH brute forcing and exploitation of an exposed public-facing load balancer/server.
  • Credential theft relied on non-malware, living-off-the-land techniques such as PowerShell-based memory dumping, Reg.exe registry export, and LSASS memory dumping using comsvcs.dll.
  • A masqueraded WinRAR was used to stage and encrypt data prior to exfiltration, indicating use of traditional archiving for data handling.
  • Attack chain tools and TTPs include Impacket Atexec for lateral movement, suspicious SMB activity, LSSAS dumper, NBTScan, and loaders like Blackloader and Prcloader linked to PlugX.
  • ZXShell rootkit details show a carrot of kernel-level drivers (TdiProxy.sys) and a loader that drops and interacts with a kernel driver via DeviceIoControl, with extensive registry manipulation and compression techniques.
  • Possible links to other groups (e.g., APT41) are discussed but no definitive attribution is established; the ZXShell/toolchain history suggests overlaps but not a conclusive tie.

MITRE Techniques

  • [T1078.004] Valid Accounts – SSH – SSH brute forcing suspected as a potential initial infection vector. Quote: “the initial infection vector may have been SSH brute forcing.”
  • [T1133] External Remote Services – Exposed public-facing server used as an initial access vector. Quote: “an exposed public-facing server.”
  • [T1003.001] Credential Dumping: LSASS – Dump memory via MiniDump (LSASS memory). Quote: “PowerShell was used to launch rundll32.exe in order to dump the memory of a process using the MiniDump function of comsvcs.dll. This technique is often used to dump LSASS memory.”
  • [T1003.002] Credential Dumping: SAM and SYSTEM – Reg.exe dumped SAM and SYSTEM registry hives. Quote: “Reg.exe was used to dump the SAM and SYSTEM registry hives.”
  • [T1059.001] PowerShell – usage to facilitate credential dumping and other actions. Quote: “PowerShell was used to launch rundll32.exe…”
  • [T1036] Masquerading – Masqueraded WinRAR to stage files. Quote: “A masqueraded version of the legitimate archiving tool WinRAR to stage and encrypt files before exfiltration.”
  • [T1560.001] Archive Collected Data – Use of WinRAR to stage/encrypt data before exfiltration. Quote: “to stage and encrypt files before exfiltration.”
  • [T1021.002] SMB/Windows Admin Shares – Impacket Atexec used to execute remote commands via SMB (lateral movement). Quote: “Impacket Atexec: A dual-use tool that can be used by malicious actors to create and run an immediate scheduled task on a remote target via SMB in order to execute commands on a target system.”
  • [T1053.005] Scheduled Task – Remote scheduled task creation via SMB to run commands. Quote: “immediate scheduled task on a remote target via SMB…”
  • [T1055] Process Injection – mavinject.exe used for process injection; createdump used to dump LSASS. Quote: “mavinject.exe (which can be used for process injection) and createdump.exe (which can be used to dump a process e.g. LSASS).”
  • [T1112] Modify Registry – Numerous registry writes and values created (ptdf, ecdf, tudf, etc.). Quote: “Next, it sets the following registry value” and “It creates the following registry value.”
  • [T1543.003] Create/Modify System Process: Create Service – Creation of services (TdiProxy0, etc.) and starting them. Quote: “The sample creates a service with the following parameters…”
  • [T1140] Deobfuscate/Decode Files or Information – XOR-transformed data and decompression steps. Quote: “partially transformed using the XOR algorithm with the byte key 0x12” and “decompresses”
  • [T1562.001] Impair Defenses – Termination of Defender processes (egui.exe, ekrn.exe, msmpeng.exe). Quote: “it may terminate the processes ‘egui.exe’, ‘ekrn.exe’, and ‘msmpeng.exe’.”
  • [T1564.001] Hide Artifacts: Archive Collected Data – Use of compression (aPLib) and staged files. Quote: “using aPLib for compression”
  • [T1036] Masquerading – WinRAR and related file names used to conceal their actions. Quote: “masqueraded WinRAR (wmiprvse.exe)”
  • [T1547] Boot or Logon Autostart Execution – Service creation and manipulation to run at startup (service-based persistence). Quote: “It restarts the referred service.”

Indicators of Compromise

  • [SHA256] Merdoor Backdoor – 13df2d19f6d2719beeff3b882df1d3c9131a292cf097b27a0ffca5f45e139581, 8f64c25ba85f8b77cfba3701bebde119f610afef6d9a5965a3ed51a4a4b9dead, and 22 more hashes
  • [Filename] Merdoor-related files – a.exe, chrome_frame_helper.exe, siteadv.exe, and 14 more filenames

Read more: https://symantec-enterprise-blogs.security.com/blogs/threat-intelligence/lancefly-merdoor-zxshell-custom-backdoor?web_view=true