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APT41 Cyber-Espionage Campaign Targets U.S. Policy Institutions

Red | Attack Report
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APT41 Cyber-Espionage Campaign Targets U.S. Policy Institutions

Summary

In April 2025, the China-linked advanced persistent threat group APT41 (also known as HOODOO, WICKED PANDA, Winnti, Group 72, BARIUM, LEAD, GREF, Earth Baku, and Brass Typhoon) launched a sophisticated cyber-espionage campaign against a U.S.-based non-profit organization involved in influencing government policy. This APT41 campaign reflects China’s strategic focus on institutions that shape U.S. foreign relations and international policy decisions.

The APT41 threat actors exploited multiple vulnerabilities, including Log4j (CVE-2021-44228), Atlassian Confluence OGNL Injection (CVE-2022-26134), Apache Struts (CVE-2017-9805), and GoAhead RCE (CVE-2017-17562), to gain initial access to the target network. Once inside, the attackers used legitimate tools such as msbuild.exe for stealthy persistence and employed DLL sideloading techniques with a legitimate VipreAV executable (vetysafe.exe) to load malicious payloads.

The campaign deployed Deed RAT (also known as Snappy Bee or Poisonplug.deed), a remote access trojan previously linked to Chinese state-sponsored operations, for remote access and credential theft. APT41 cyber-espionage tactics included DCSync attacks to harvest domain credentials, lateral movement across the network, and data exfiltration over command-and-control channels. This operation underscores the ongoing threat posed by state-sponsored espionage groups and highlights the urgent need for stronger patching, continuous monitoring, and proactive threat-hunting defenses.


Attack Details

APT41 Campaign Overview and Strategic Targeting

The APT41 cyber-espionage campaign was identified in April 2025 and targeted a U.S.-based non-profit organization with significant influence over government policy and foreign relations. This targeted cyber-espionage operation aligns with China’s broader intelligence-gathering strategy aimed at anticipating U.S. foreign-policy decisions and diplomatic initiatives. The APT41 threat group demonstrated a high level of operational discipline and technical sophistication, leveraging overlapping tools and techniques previously observed in related campaigns such as Kelp (Salt Typhoon) and Space Pirates.

The primary objective of the APT41 attack was to establish long-term, covert access to the victim’s network and exfiltrate sensitive policy-related intelligence. The attackers focused on institutions involved in shaping international relations, reflecting a strategic priority for Chinese state-sponsored espionage efforts.

APT41 Exploits Log4j, Atlassian, and Other Vulnerabilities for Initial Access

The APT41 initial access phase began with extensive vulnerability scanning across the target network. The attackers identified and exploited multiple critical vulnerabilities, including:

  • CVE-2022-26134: Atlassian Confluence Server and Data Center Remote Code Execution Vulnerability
  • CVE-2021-44228: Log4Shell (Apache Log4j2 Remote Code Execution Vulnerability)
  • CVE-2017-9805: Apache Struts Deserialization of Untrusted Data Vulnerability
  • CVE-2017-17562: Embedthis GoAhead Remote Code Execution Vulnerability

All four vulnerabilities are listed in the CISA Known Exploited Vulnerabilities (KEV) catalog and have available patches. The exploitation of these vulnerabilities allowed APT41 cyber attackers to achieve initial access and establish a foothold within the victim environment.

Following successful exploitation, the attackers conducted internal reconnaissance to map network assets, identify critical systems, and confirm internet connectivity. This phase involved system information discovery, network service scanning, and the identification of domain controllers and policy-sensitive servers.

APT41 Persistence Using Living-Off-the-Land Techniques and DLL Sideloading

To maintain persistence within the compromised network, APT41 threat actors employed multiple sophisticated techniques designed to evade detection. A key persistence method involved the creation of scheduled tasks under SYSTEM privileges to execute malicious code via legitimate binaries such as msbuild.exe. The attackers embedded malicious payloads within XML configuration files, leveraging the trusted MSBuild utility to execute code without triggering traditional security alerts. This living-off-the-land (LotL) technique allowed malicious activity to blend seamlessly with routine administrative operations.

Another notable persistence mechanism was DLL sideloading, where the attackers abused a legitimate VipreAV executable (vetysafe.exe) signed by Sunbelt Software to load a malicious DLL (sbamres.dll). This technique exploited the trust associated with digitally signed binaries, enabling the malware to execute without raising suspicion.

The campaign also deployed Deed RAT (also known as Snappy Bee or Poisonplug.deed), a remote access trojan previously linked to Chinese threat groups. Deed RAT malware provided the attackers with remote command execution, credential harvesting, and data exfiltration capabilities.

APT41 Credential Theft and Lateral Movement Using DCSync and Imjpuexc

To escalate privileges and move laterally across the network, APT41 cyber-espionage operators used advanced credential theft techniques. The attackers employed DCSync, a technique that impersonates domain controllers to harvest domain credentials from Active Directory. This method allowed the attackers to obtain privileged credentials without directly accessing the domain controller, reducing the risk of detection.

Additionally, the APT41 campaign utilized the Imjpuexc utility for obfuscation and persistence. This legitimate Windows Input Method Editor component was abused to maintain access and execute payloads covertly. The combination of DCSync, Deed RAT, and Imjpuexc reflects the shared toolsets and methodologies observed across multiple Chinese APT operations, indicating coordination and shared development resources.

APT41 Data Exfiltration and Command-and-Control Infrastructure

The final phase of the APT41 cyber-espionage campaign involved data exfiltration over command-and-control (C2) channels. The attackers used application layer protocols and web protocols to communicate with external infrastructure, including the identified C2 server at 38.180.83.166. Exfiltration occurred over C2 channels, allowing the attackers to transfer sensitive policy documents, strategic communications, and other intelligence-related data.

The operation demonstrated a high degree of discipline, with the attackers maintaining covert access for an extended period while exfiltrating sensitive information. The APT41 attack underscores the ongoing threat posed by state-sponsored espionage groups targeting institutions involved in public policy, diplomacy, and strategic research.


Recommendations

Patch and Vulnerability Management for APT41 Exploited CVEs

Organizations must immediately patch systems vulnerable to the CVEs exploited in the APT41 cyber-espionage campaign, including CVE-2022-26134, CVE-2021-44228 (Log4j), CVE-2017-9805, and CVE-2017-17562. Implementing a robust vulnerability management program with continuous scanning and prioritized remediation of internet-facing services is critical to reducing exposure to APT41 attacks and similar threats.

Hardening and Network Segmentation to Limit APT41 Lateral Movement

Restricting access to administrative interfaces and sensitive systems through network segmentation and least-privilege principles is essential for limiting lateral movement. Organizations should separate critical infrastructure, including domain controllers and policy-sensitive data servers, from user networks. This reduces the attack surface and contains potential breaches.

Detection and Monitoring for APT41 Living-Off-the-Land Techniques

Deploying advanced endpoint detection and response (EDR) solutions capable of identifying living-off-the-land techniques, scheduled task abuse, and DLL sideloading is critical for detecting APT41 persistence mechanisms. Organizations should monitor for unusual process execution involving msbuild.exe, schtasks.exe, and netstat, especially under privileged accounts. Enabling audit logging for task creation, registry changes, and DLL loads improves visibility into persistence mechanisms used by APT41 threat actors.

Credential and Identity Security to Defend Against APT41 DCSync Attacks

Organizations must detect and mitigate DCSync or similar credential theft techniques by closely monitoring domain controller replication traffic. Enforcing multi-factor authentication (MFA) for privileged and remote accounts is essential for preventing APT41 credential theft. Regularly rotating administrative passwords and purging unused credentials or service accounts reduces the risk of credential compromise.


Indicators of Compromise (IoCs)

MD5 Hashes:

  • 2561b457103e7e74f5e6d9dcf703bfe6
  • 96e3e845220da6795096bc37e3f82d6a

SHA1 Hashes:

  • 0cd284f5e206972c66ba0eafe7a698fe7e9fc751
  • bcde791850b3a547aee585ea8c8bf060b16512a9

SHA256 Hashes:

  • 51ffcff8367b5723d62b3e3108e38fb7cbf36354e0e520e7df7c8a4f52645c4d
  • 6f7f099d4c964948b0108b4e69c9e81b5fc5ff449f2fa8405950d41556850ed9
  • 99a0b424bb3a6bbf60e972fd82c514fd971a948f9cedf3b9dc6b033117ecb106
  • dae63db9178c5f7fb5f982fbd89683dd82417f1672569fef2bbfef83bec961e2
  • e356dbd3bd62c19fa3ff8943fc73a4fab01a6446f989318b7da4abf48d565af2
  • f52b86b599d7168d3a41182ccd89165e0d1f2562aa7363e0718d502b7e3fcb69

URLs:

  • hxxp[:]//38.180.83.166/6CDF0FC26CDF0FC2

MITRE ATT&CK TTPs

Tactics:

  • TA0001: Initial Access
  • TA0002: Execution
  • TA0003: Persistence
  • TA0005: Defense Evasion
  • TA0006: Credential Access
  • TA0007: Discovery
  • TA0008: Lateral Movement
  • TA0009: Collection
  • TA0010: Exfiltration
  • TA0011: Command and Control

Techniques:

  • T1190: Exploit Public-Facing Application
  • T1204: User Execution
  • T1059: Command and Scripting Interpreter
  • T1059.001: PowerShell
  • T1059.003: Windows Command Shell
  • T1127: Trusted Developer Utilities Proxy Execution
  • T1127.001: MSBuild
  • T1053: Scheduled Task/Job
  • T1053.005: Scheduled Task
  • T1574: Hijack Execution Flow
  • T1574.002: DLL Side-Loading
  • T1027: Obfuscated Files or Information
  • T1548: Abuse Elevation Control Mechanism
  • T1082: System Information Discovery
  • T1046: Network Service Discovery
  • T1003: OS Credential Dumping
  • T1003.006: DCSync
  • T1021: Remote Services
  • T1219: Remote Access Software
  • T1041: Exfiltration Over C2 Channel
  • T1071: Application Layer Protocol
  • T1071.001: Web Protocols
  • T1588: Obtain Capabilities
  • T1588.005: Exploits
  • T1588.006: Vulnerabilities

References

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