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Squirrel waffle Drops CobaltStrike

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A new malware dubbed Squirrelwaffle has emerged, supporting actors with an initial foothold and a way to drop malware onto compromised systems and network, spreads via spam campaigns dropping Qakbot and Cobalt Strike in the most recent campaigns. Famously known to replace Emotet tool

The spam campaign primarily uses stolen reply chain email campaigns in English, the threat actors also utilize French, German, Dutch, and Polish emails.

These emails contain hyperlinks to malicious ZIP archives hosted on attacker-controlled web servers and typically include a malicious .doc or a .xls attachment that runs malware-retrieving code if opened.

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The actors use the DocuSign signing platform as bait to trick the recipients into enabling macros on their MS Office suite. The contained code leverages string reversal for obfuscation, writes a VBS script to %PROGRAMDATA%, and executes it.

This action fetches Squirrelwaffle from one of the five hardcoded URLs, delivering it in the form of a DLL file onto the compromised system.

Macro code running to fetch payloads from the C2

The Squirrelwaffle loader then deploys malware like Qakbot or the widely abused penetration testing tool Cobalt Strike.

Cacked versions of Cobalt Strike are also used by threat actors for post-exploitation tasks after deploying beacons, which provide them with persistent remote access to compromised devices.

Squirrelwaffle also features an IP blocklist  that is populated with notable security research firms as a way to evade detection and analysis. All communications between Squirrelwaffle and the C2 infrastructure are encrypted (XOR+Base64) and sent via HTTP POST requests.

The threat actors leverage previously compromised web servers to support the file distribution aspect of their operations, with most of these sites running WordPress 5.8.1. The adversaries deploy “antibot” scripts that help prevent white-hat detection and analysis.

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Squirrelwaffle may be a reboot of Emotet by members who dodged law enforcement or other threat actors attempting to fill the void left behind by the notorious malware. Organizations should aware of TTPs used in the campaign to defend.

Also Read: SqirrelEngine Abuses Games

Indicators of Compromise

Squirrelwaffle ZIP archive URLs

Squirrelwaffle Loader URLs

Squirrelwaffle Word Document File MD5 Hashes

Squirrelwaffle VBS File MD5 Hash

Squirrelwaffle Loader MD5 Hashes

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Unpacked DLL file MD5 Hash

Domain used by the DLL for Squirrelwaffle CnC

Cobalt Strike Stager MD5 Hashes

Cobalt Strike CnC Servers

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