Infoblox Threat Intel
  • infoblox:blogs/tags/domain-impersonation-threats
2021-09-29T15:53:25
3 minutes

Reply-Chain Threadjacking Campaign Delivers Squirrelwaffle Loader and Cobalt Strike

Squirrelwaffle downloads a commercial penetration-testing product and uses it to deploy a program allowing attackers to carry out command execution, key logging, file transfer, and more.

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Author: Seth Williams

Overview

On 13 September, security researchers discovered a malicious phishing campaign that uses reply-chain threadjacking to distribute a downloader known as Squirrelwaffle: an emerging threat that is delivered on the TR botnet and has the same infrastructure as that of the QakBot banking trojan.1

Customer impact

Squirrelwaffle downloads the commercial penetration-testing product Cobalt Strike and uses it to deploy Beacon:2 a program that lets attackers carry out command execution, key logging, file transfer, privilege escalation, port scanning, lateral movement, and other post-exploitation functions.3

Campaign analysis

This campaign uses reply-chain threadjacking, where the malspam spoofs a legitimate user and impersonates a reply to an existing email. The same technique has been used in Emotet and QakBot campaigns.4 The body of the email contains a URL that, when clicked, downloads a ZIP archive containing a malicious Microsoft Excel or Word document named as diagram-{number}, where number is a set of random digits.

Attack chain

After extracting and opening the downloaded file, the victim is prompted to enable content. If the victim complies, the content runs a macro, which executes a VBS file via cscript.exe. This VBS file contains an obfuscated PowerShell script, which attempts to connect to one of several command and control (C&C) sites. Upon connecting, the script downloads Squirrelwaffle in the form of a DLL file: a loader that attempts to download Cobalt Strike.5

Vulnerabilities and mitigation

Malspam campaigns are a common distribution method for malware. Infoblox recommends the following precautions:

Endnotes

  1. https://twitter.com/ffforward/status/1437752329462222851
  2. https://www.cobaltstrike.com/help-beacon
  3. https://malpedia.caad.fkie.fraunhofer.de/details/win.cobalt_strike
  4. https://security-soup.net/squirrelwaffle-maldoc-analysis/
  5. https://www.malware-traffic-analysis.net/2021/09/17/index.html
Article Tags
  • infoblox:blogs/tags/dns-threat-intelligence
  • infoblox:blogs/tags/lookalike-domain-attacks
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