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North Korean hackers use EtherHiding to hide malware on the blockchain. North Korean hackers have adopted the 'EtherHiding' technique that leverages smart contracts to host and deliver malware in social engineering campaigns that steal cryptocurrency. Google Threat Intelligence Group (GTIG) says that a DPRK nation state threat actor, tracked internally as UNC5342, has been employing EtherHiding since February in Contagious Interview operations. The researchers note that this is the first time they saw a state-backed hacker group using this method. First described by Guardio Labs in 2023, EtherHiding is a malware distribution technique where payloads are embedded within smart contracts on a public blockchain (Binance Smart Chain or Ethereum). The threat actor can thus host malicious scripts and retrieve them when needed. Due to how blockchains work, EtherHiding offers anonimity, resistance to takedown actions and allows flexible payload updating, all at a very low cost. Furthermore, fetching the payloads is possible through read-only calls that leave no visible transaction history, adding stealth to the process. DPRK ops on the blockchain The attacks typically begin fake job interviews, a hallmark for DPRK's hallmark social engineering tactics, from carefully fabricated entities (BlockNovas LLC, Angeloper Agency, SoftGlide LLC) targeting software and web developers. The victim is tricked into downloading a malicious file from GitHub or NPM, under the guise of a coding test, which triggers the initial infection. The malicious packages involved in the attacks or the websites facilitating them contain a small JavaScript snippet that acts as the loader, named Jadesnow. Jadesnow uses EtherHiding to fetch Base64/XOR-encoded payloads stored on BNB Smart Chain and Ethereum via read-only API calls. Through this method, the loader retrieves the main payload, InvisibleFerret, which also uses a blockchain (Ethereum) transaction to download a credential-stealer component. "The transaction details show that the contract has been updated over 20 times within the first four months, with each update costing an average of $1.37 USD in gas fees," explains GTIG. "The low cost and frequency of these updates illustrate the attacker's ability to easily change the campaign's configuration," the researchers say. The malware runs in the background and listens for incoming commands from its command and control (C2), like executing arbitrary commands and exfiltrating files in ZIP form to an external server or Telegram. The credential stealer component targets passwords (1Password), credit cards, and cryptocurrency wallet (MetaMask and Phantom) information stored on web browsers like Chrome and Edge. The adoption of EtherHiding by North Korean threat actors is a notable development that creates campaign tracking and disruption complexities. Individuals targeted with alluring job offers should remain cautious when asked to download anything, and test files in isolated environments first. GTIG suggests that administrators place download restrictions for risky file types (exe, .msi, .bat, .dll) on Chrome Enterprise, assume full control of browser updates, and place strict web access and script execution policies. The Security Validation Event of the Year: The Picus BAS Summit Join the Breach and Attack Simulation Summit and experience the future of security validation. Hear from top experts and see how AI-powered BAS is transforming breach and attack simulation. Don't miss the event that will shape the future of your security strategy

Daily Brief Summary

NATION STATE ACTIVITY // North Korean Hackers Exploit Blockchain for Stealthy Malware Delivery

North Korean group UNC5342 utilizes the EtherHiding technique to embed malware within smart contracts on public blockchains, targeting cryptocurrency through sophisticated social engineering.

The Google Threat Intelligence Group reports this novel method, marking the first known use by a state-backed actor, leveraging Binance Smart Chain and Ethereum for malware distribution.

EtherHiding offers anonymity, resistance to takedown efforts, and low-cost, flexible payload updates, complicating detection and response efforts.

Attackers initiate campaigns with fake job interviews, tricking software developers into downloading malicious files disguised as coding tests from platforms like GitHub or NPM.

The Jadesnow loader retrieves encoded payloads from blockchains, executing the InvisibleFerret malware to steal credentials and exfiltrate data via command and control channels.

Credential-stealing targets include passwords, credit cards, and cryptocurrency wallets, with malware updates occurring frequently and at minimal cost.

Organizations are advised to enforce strict download restrictions, control browser updates, and implement robust web access and script execution policies to mitigate risks.