XWorm Malware Adopts New Infection Chain to Bypass Security Detection

Cybersecurity researchers have identified a sophisticated evolution in XWorm malware operations, with the backdoor campaign implementing advanced tactics to evade detection systems.

The Trellix Advanced Research Center has documented this significant shift in the malware’s deployment strategy, revealing a deliberate move toward more deceptive and intricate infection methods designed to increase success rates while remaining undetected.

XWorm has traditionally relied on predictable distribution mechanisms, but recent campaigns demonstrate a strategic transformation.

The malware now employs legitimate-looking executable filenames to disguise itself as harmless applications, exploiting both user and system trust.

This approach combines social engineering with technical attack vectors, moving beyond conventional email-based attacks while still utilizing .lnk files and phishing emails as initial access points.

Multi-Stage Infection Process

The infection begins with a stealthy .lnk file distributed through phishing campaigns. When executed, this shortcut triggers malicious PowerShell commands that initiate a complex chain reaction.

The process drops a text file containing the message “domethelegandary-ontop hackingtest f**ked” into the system’s temporary directory before downloading a deceptive executable named ‘discord.exe’ from a remote server.

The downloaded ‘discord.exe’ file serves as the second stage, utilizing sophisticated .NET packing techniques and masquerading with a legitimate Discord application icon.

Upon execution, it drops two additional malicious files: ‘main.exe’ and ‘system32.exe’. The latter represents the actual XWorm payload, deliberately named to imitate a vital Windows system file for camouflage purposes.

The ‘main.exe’ component focuses on system compromise by disabling Windows Firewall through registry modifications and checking for third-party security applications.

It creates a registry entry at “HKEY_LOCAL_MACHINE\SOFTWARE\Policies\Microsoft\WindowsFirewall\DisableFirewall” to ensure persistent firewall disablement across system reboots.

Meanwhile, ‘system32.exe’ implements advanced evasion techniques, including virtual environment detection to avoid security sandbox analysis.

If virtualization is detected, the malware terminates itself using a failfast mechanism. In legitimate environments, it creates a duplicate named “Xclient.exe” and establishes multiple persistence mechanisms.

XWorm demonstrates sophisticated anti-analysis capabilities through several methods. It uses PowerShell commands with ExecutionPolicy Bypass to add itself to Windows Defender exclusion lists, circumventing real-time monitoring.

The malware creates a scheduled task called “XClient” that runs every minute, ensuring continuous operation even after system reboots or termination attempts.

The malware employs advanced cryptography, utilizing the Rijndael cipher combined with Base64 encoding for data concealment.

This two-stage decoding process protects critical operational data, including Command and Control server information, IP addresses, domain names, and port numbers essential for attacker communication.

Once established, XWorm provides extensive backdoor capabilities through its C2 server communication.

Attackers can execute various remote commands including system shutdowns, file downloads, URL redirections, and DDoS attacks. This transforms compromised machines into botnet nodes, expanding the threat actor’s operational capabilities.

The malware creates a mutex named “1JJyHGXN8Jb9yEZG” to prevent multiple instances and systematically gathers system reconnaissance data including computer names, manufacturers, and model information.

This intelligence helps attackers understand their targets and customize subsequent attack phases.

The evolution of XWorm represents a significant advancement in malware sophistication, highlighting the critical need for multi-layered security approaches.

Organizations must implement robust detection mechanisms, user awareness training, and comprehensive endpoint protection to defend against these increasingly deceptive attack vectors that continue to challenge traditional security measures.

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