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Chinese hackers breached 20,000 FortiGate systems worldwide. The Dutch Military Intelligence and Security Service (MIVD) warned today that the impact of a Chinese cyber-espionage campaign unveiled earlier this year is "much larger than previously known." As the MIVD disclosed in February in a joint report with the General Intelligence and Security Service (AIVD), Chinese hackers exploited a critical FortiOS/FortiProxy remote code execution vulnerability (CVE-2022-42475) over a few months between 2022 and 2023 to deploy malware on vulnerable Fortigate network security appliances. "During this so-called 'zero-day' period, the actor infected 14,000 devices alone. Targets include dozens of (Western) governments, international organizations and a large number of companies within the defense industry," the MIVD said. The Coathanger remote access trojan (RAT) malware used in the attacks was also found on a Dutch Ministry of Defence network used in the research and development (R&D) of unclassified projects. Still, due to network segmentation, the attackers were blocked from moving to other systems. The MIVD found that this previously unknown malware strain, which could survive system reboots and firmware upgrades, was deployed by a Chinese state-sponsored hacking group in a political espionage campaign targeting the Netherlands and its allies. "This gave the state actor permanent access to the systems. Even if a victim installs security updates from FortiGate, the state actor continues to keep this access," the MIVD added. "It is not known how many victims actually have malware installed. The Dutch intelligence services and the NCSC consider it likely that the state actor could potentially expand his access to hundreds of victims worldwide and carry out additional actions such as stealing data." At least 20,000 Fortigate systems breached Since February, the Dutch military intelligence service has discovered that the Chinese threat group obtained access to at least 20,000 FortiGate systems worldwide in 2022 and 2023 over a span of a few months, at least two months before Fortinet disclosed the CVE-2022-42475 vulnerability. The MIVD believes the Chinese hackers still have access to many victims because the Coathanger malware is difficult to detect as it intercepts system calls to avoid revealing its presence and is also challenging to remove since it survives firmware upgrades. CVE-2022-42475 was also exploited as a zero-day to target government organizations and related entities, as disclosed by Fortinet in January 2023. These attacks bear many similarities to another Chinese hacking campaign that targeted unpatched SonicWall Secure Mobile Access (SMA) appliances with cyber-espionage malware designed to withstand firmware upgrades.

Daily Brief Summary

NATION STATE ACTIVITY // Extensive Chinese Espionage Campaign Compromises 20,000 FortiGate Systems

The Dutch Military Intelligence and Security Service (MIVD) reported a significant escalation in a Chinese cyber-espionage operation, affecting over 20,000 global FortiGate systems.

Chinese hackers exploited the FortiOS/FortiProxy vulnerability (CVE-2022-42475) between 2022 and 2023, targeting governments, international bodies, and defense industry firms.

The operation deployed the Coathanger RAT, enabling persistent access to infected devices, even after system updates and firmware upgrades.

The malware was detected on a Dutch Ministry of Defence network, but attackers were contained due to network segmentation.

The Chinese state-sponsored group leveraged this access for political espionage, focusing on the Netherlands and its allies.

Despite security patches, the stealthy nature of the Coathanger malware means many systems likely remain compromised.

The Dutch intelligence service highlighted similarities with another Chinese campaign targeting SonicWall appliances, underscording a broader strategy of leveraging firmware-resilient malware in espionage.