Quote:We have been tracking the latest attack campaign by the Lazarus group since last November, as it targeted organizations in South Korea with a sophisticated combination of a watering hole strategy and vulnerability exploitation within South Korean software. The campaign, dubbed “Operation SyncHole”, has impacted at least six organizations in South Korea’s software, IT, financial, semiconductor manufacturing, and telecommunications industries, and we are confident that many more companies have actually been compromised. We immediately took action by communicating meaningful information to the Korea Internet & Security Agency (KrCERT/CC) for rapid action upon detection, and we have now confirmed that the software exploited in this campaign has all been updated to patched versions.

Timeline of the operation

Our findings in a nutshell:

• At least six South Korean organizations were compromised by a watering hole attack combined with exploitation of vulnerabilities by the Lazarus group.
  
• A one-day vulnerability in Innorix Agent was also used for lateral movement.
  
• Variants of Lazarus’ malicious tools, such as ThreatNeedle, Agamemnon downloader, wAgent, SIGNBT, and COPPERHEDGE, were discovered with new features.
  

Background

The initial infection was discovered in November of last year when we detected a variant of the ThreatNeedle backdoor, one of the Lazarus group’s flagship malicious tools, used against a South Korean software company. We found that the malware was running in the memory of a legitimate SyncHost.exe process, and was created as a subprocess of Cross EX, legitimate software developed in South Korea. This potentially was the starting point for the compromise of further five organizations in South Korea. Additionally, according to a recent security advisory posted on the KrCERT website, there appear to be recently patched vulnerabilities in Cross EX, which were addressed during the timeframe of our research.

In the South Korean internet environment, the online banking and government websites require the installation of particular security software to support functions such as anti-keylogging and certificate-based digital signatures. However, due to the nature of these software packages, they constantly run in the background to interact with the browser. The Lazarus group shows a strong grasp of these specifics and is using a South Korea-targeted strategy that combines vulnerabilities in such software with watering hole attacks. The South Korean National Cyber Security Center published its own security advisory in 2023 against such incidents, and also published additional joint security advisories in cooperation with the UK government.

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