Virus Info

Microsoft Corp. today issued security updates to fix more than 80 vulnerabilities in its Windows operating systems and software. There are no known “zero-day” or actively exploited vulnerabilities in this month’s bundle from Redmond, which nevertheless includes patches for 13 flaws that earned Microsoft’s most-dire “critical” label. Meanwhile, both Apple and Google recently released updates to fix zero-day bugs in their devices.

Microsoft assigns security flaws a “critical” rating when malware or miscreants can exploit them to gain remote access to a Windows system with little or no help from users. Among the more concerning critical bugs quashed this month is CVE-2025-54918. The problem here resides with Windows NTLM, or NT LAN Manager, a suite of code for managing authentication in a Windows network environment.

Redmond rates this flaw as “Exploitation More Likely,” and although it is listed as a privilege escalation vulnerability, Kev Breen at Immersive says this one is actually exploitable over the network or the Internet.

“From Microsoft’s limited description, it appears that if an attacker is able to send specially crafted packets over the network to the target device, they would have the ability to gain SYSTEM-level privileges on the target machine,” Breen said. “The patch notes for this vulnerability state that ‘Improper authentication in Windows NTLM allows an authorized attacker to elevate privileges over a network,’ suggesting an attacker may already need to have access to the NTLM hash or the user’s credentials.”

Breen said another patch — CVE-2025-55234, a 8.8 CVSS-scored flaw affecting the Windows SMB client for sharing files across a network — also is listed as privilege escalation bug but is likewise remotely exploitable. This vulnerability was publicly disclosed prior to this month.

“Microsoft says that an attacker with network access would be able to perform a replay attack against a target host, which could result in the attacker gaining additional privileges, which could lead to code execution,” Breen noted.

CVE-2025-54916 is an “important” vulnerability in Windows NTFS — the default filesystem for all modern versions of Windows — that can lead to remote code execution. Microsoft likewise thinks we are more than likely to see exploitation of this bug soon: The last time Microsoft patched an NTFS bug was in March 2025 and it was already being exploited in the wild as a zero-day.

“While the title of the CVE says ‘Remote Code Execution,’ this exploit is not remotely exploitable over the network, but instead needs an attacker to either have the ability to run code on the host or to convince a user to run a file that would trigger the exploit,” Breen said. “This is commonly seen in social engineering attacks, where they send the user a file to open as an attachment or a link to a file to download and run.”

Critical and remote code execution bugs tend to steal all the limelight, but Tenable Senior Staff Research Engineer Satnam Narang notes that nearly half of all vulnerabilities fixed by Microsoft this month are privilege escalation flaws that require an attacker to have gained access to a target system first before attempting to elevate privileges.

“For the third time this year, Microsoft patched more elevation of privilege vulnerabilities than remote code execution flaws,” Narang observed.

On Sept. 3, Google fixed two flaws that were detected as exploited in zero-day attacks, including CVE-2025-38352, an elevation of privilege in the Android kernel, and CVE-2025-48543, also an elevation of privilege problem in the Android Runtime component.

Also, Apple recently patched its seventh zero-day (CVE-2025-43300) of this year. It was part of an exploit chain used along with a vulnerability in the WhatsApp (CVE-2025-55177) instant messenger to hack Apple devices. Amnesty International reports that the two zero-days have been used in “an advanced spyware campaign” over the past 90 days. The issue is fixed in iOS 18.6.2, iPadOS 18.6.2, iPadOS 17.7.10, macOS Sequoia 15.6.1, macOS Sonoma 14.7.8, and macOS Ventura 13.7.8.

The SANS Internet Storm Center has a clickable breakdown of each individual fix from Microsoft, indexed by severity and CVSS score. Enterprise Windows admins involved in testing patches before rolling them out should keep an eye on askwoody.com, which often has the skinny on wonky updates.

AskWoody also reminds us that we’re now just two months out from Microsoft discontinuing free security updates for Windows 10 computers. For those interested in safely extending the lifespan and usefulness of these older machines, check out last month’s Patch Tuesday coverage for a few pointers.

As ever, please don’t neglect to back up your data (if not your entire system) at regular intervals, and feel free to sound off in the comments if you experience problems installing any of these fixes.

At least 18 popular JavaScript code packages that are collectively downloaded more than two billion times each week were briefly compromised with malicious software today, after a developer involved in maintaining the projects was phished. The attack appears to have been quickly contained and was narrowly focused on stealing cryptocurrency. But experts warn that a similar attack with a slightly more nefarious payload could lead to a disruptive malware outbreak that is far more difficult to detect and restrain.

This phishing email lured a developer into logging in at a fake NPM website and supplying a one-time token for two-factor authentication. The phishers then used that developer’s NPM account to add malicious code to at least 18 popular JavaScript code packages.

Akido is a security firm in Belgium that monitors new code updates to major open-source code repositories, scanning any code updates for suspicious and malicious code. In a blog post published today, Akido said its systems found malicious code had been added to at least 18 widely-used code libraries available on NPM (short for) “Node Package Manager,” which acts as a central hub for JavaScript development and the latest updates to widely-used JavaScript components.

JavaScript is a powerful web-based scripting language used by countless websites to build a more interactive experience with users, such as entering data into a form. But there’s no need for each website developer to build a program from scratch for entering data into a form when they can just reuse already existing packages of code at NPM that are specifically designed for that purpose.

Unfortunately, if cybercriminals manage to phish NPM credentials from developers, they can introduce malicious code that allows attackers to fundamentally control what people see in their web browser when they visit a website that uses one of the affected code libraries.

According to Akido, the attackers injected a piece of code that silently intercepts cryptocurrency activity in the browser, “manipulates wallet interactions, and rewrites payment destinations so that funds and approvals are redirected to attacker-controlled accounts without any obvious signs to the user.”

“This malware is essentially a browser-based interceptor that hijacks both network traffic and application APIs,” Akido researcher Charlie Eriksen wrote. “What makes it dangerous is that it operates at multiple layers: Altering content shown on websites, tampering with API calls, and manipulating what users’ apps believe they are signing. Even if the interface looks correct, the underlying transaction can be redirected in the background.”

Akido said it used the social network Bsky to notify the affected developer, Josh Junon, who quickly replied that he was aware of having just been phished. The phishing email that Junon fell for was part of a larger campaign that spoofed NPM and told recipients they were required to update their two-factor authentication (2FA) credentials. The phishing site mimicked NPM’s login page, and intercepted Junon’s credentials and 2FA token. Once logged in, the phishers then changed the email address on file for Junon’s NPM account, temporarily locking him out.

Aikido notified the maintainer on Bluesky, who replied at 15:15 UTC that he was aware of being compromised, and starting to clean up the compromised packages.

Junon also issued a mea culpa on HackerNews, telling the community’s coder-heavy readership, “Hi, yep I got pwned.”

“It looks and feels a bit like a targeted attack,” Junon wrote. “Sorry everyone, very embarrassing.”

Philippe Caturegli, “chief hacking officer” at the security consultancy Seralys, observed that the attackers appear to have registered their spoofed website — npmjs[.]help — just two days before sending the phishing email. The spoofed website used services from dnsexit[.]com, a “dynamic DNS” company that also offers “100% free” domain names that can instantly be pointed at any IP address controlled by the user.

Junon’s mea cupla on Hackernews today listed the affected packages.

Caturegli said it’s remarkable that the attackers in this case were not more ambitious or malicious with their code modifications.

“The crazy part is they compromised billions of websites and apps just to target a couple of cryptocurrency things,” he said. “This was a supply chain attack, and it could easily have been something much worse than crypto harvesting.”

Akito’s Eriksen agreed, saying countless websites dodged a bullet because this incident was handled in a matter of hours. As an example of how these supply-chain attacks can escalate quickly, Eriksen pointed to another compromise of an NPM developer in late August that added malware to “nx,” an open-source code development toolkit with as many as six million weekly downloads.

In the nx compromise, the attackers introduced code that scoured the user’s device for authentication tokens from programmer destinations like GitHub and NPM, as well as SSH and API keys. But instead of sending those stolen credentials to a central server controlled by the attackers, the malicious code created a new public repository in the victim’s GitHub account, and published the stolen data there for all the world to see and download.

Eriksen said coding platforms like GitHub and NPM should be doing more to ensure that any new code commits for broadly-used packages require a higher level of attestation that confirms the code in question was in fact submitted by the person who owns the account, and not just by that person’s account.

“More popular packages should require attestation that it came through trusted provenance and not just randomly from some location on the Internet,” Eriksen said. “Where does the package get uploaded from, by GitHub in response to a new pull request into the main branch, or somewhere else? In this case, they didn’t compromise the target’s GitHub account. They didn’t touch that. They just uploaded a modified version that didn’t come where it’s expected to come from.”

Eriksen said code repository compromises can be devastating for developers, many of whom end up abandoning their projects entirely after such an incident.

“It’s unfortunate because one thing we’ve seen is people have their projects get compromised and they say, ‘You know what, I don’t have the energy for this and I’m just going to deprecate the whole package,'” Eriksen said.

Kevin Beaumont, a frequently quoted security expert who writes about security incidents at the blog doublepulsar.com, has been following this story closely today in frequent updates to his account on Mastodon. Beaumont said the incident is a reminder that much of the planet still depends on code that is ultimately maintained by an exceedingly small number of people who are mostly overburdened and under-resourced.

“For about the past 15 years every business has been developing apps by pulling in 178 interconnected libraries written by 24 people in a shed in Skegness,” Beaumont wrote on Mastodon. “For about the past 2 years orgs have been buying AI vibe coding tools, where some exec screams ‘make online shop’ into a computer and 389 libraries are added and an app is farted out. The output = if you want to own the world’s companies, just phish one guy in Skegness.”

Image: https://infosec.exchange/@GossiTheDog@cyberplace.social.

Akido recently launched a product that aims to help development teams ensure that every code library used is checked for malware before it can be used or installed. Nicholas Weaver, a researcher with the International Computer Science Institute, a nonprofit in Berkeley, Calif., said Akido’s new offering exists because many organizations are still one successful phishing attack away from a supply-chain nightmare.

Weaver said these types of supply-chain compromises will continue as long as people responsible for maintaining widely-used code continue to rely on phishable forms of 2FA.

“NPM should only support phish-proof authentication,” Weaver said, referring to physical security keys that are phish-proof — meaning that even if phishers manage to steal your username and password, they still can’t log in to your account without also possessing that physical key.

“All critical infrastructure needs to use phish-proof 2FA, and given the dependencies in modern software, archives such as NPM are absolutely critical infrastructure,” Weaver said. “That NPM does not require that all contributor accounts use security keys or similar 2FA methods should be considered negligence.”

The chairman of the Federal Trade Commission (FTC) last week sent a letter to Google’s CEO demanding to know why Gmail was blocking messages from Republican senders while allegedly failing to block similar missives supporting Democrats. The letter followed media reports accusing Gmail of disproportionately flagging messages from the GOP fundraising platform WinRed and sending them to the spam folder. But according to experts who track daily spam volumes worldwide, WinRed’s messages are getting blocked more because its methods of blasting email are increasingly way more spammy than that of ActBlue, the fundraising platform for Democrats.

Image: nypost.com

On Aug. 13, The New York Post ran an “exclusive” story titled, “Google caught flagging GOP fundraiser emails as ‘suspicious’ — sending them directly to spam.” The story cited a memo from Targeted Victory – whose clients include the National Republican Senatorial Committee (NRSC), Rep. Steve Scalise and Sen. Marsha Blackburn – which said it observed that the “serious and troubling” trend was still going on as recently as June and July of this year.

“If Gmail is allowed to quietly suppress WinRed links while giving ActBlue a free pass, it will continue to tilt the playing field in ways that voters never see, but campaigns will feel every single day,” the memo reportedly said.

In an August 28 letter to Google CEO Sundar Pichai, FTC Chairman Andrew Ferguson cited the New York Post story and warned that Gmail’s parent Alphabet may be engaging in unfair or deceptive practices.

“Alphabet’s alleged partisan treatment of comparable messages or messengers in Gmail to achieve political objectives may violate both of these prohibitions under the FTC Act,” Ferguson wrote. “And the partisan treatment may cause harm to consumers.”

However, the situation looks very different when you ask spam experts what’s going on with WinRed’s recent messaging campaigns. Atro Tossavainen and Pekka Jalonen are co-founders at Koli-Lõks OÜ, an email intelligence company in Estonia. Koli-Lõks taps into real-time intelligence about daily spam volumes by monitoring large numbers of “spamtraps” — email addresses that are intentionally set up to catch unsolicited emails.

Spamtraps are generally not used for communication or account creation, but instead are created to identify senders exhibiting spammy behavior, such as scraping the Internet for email addresses or buying unmanaged distribution lists. As an email sender, blasting these spamtraps over and over with unsolicited email is the fastest way to ruin your domain’s reputation online. Such activity also virtually ensures that more of your messages are going to start getting listed on spam blocklists that are broadly shared within the global anti-abuse community.

Tossavainen told KrebsOnSecurity that WinRed’s emails hit its spamtraps in the .com, .net, and .org space far more frequently than do fundraising emails sent by ActBlue. Koli-Lõks published a graph of the stark disparity in spamtrap activity for WinRed versus ActBlue, showing a nearly fourfold increase in spamtrap hits from WinRed emails in the final week of July 2025.

Image: Koliloks.eu

“Many of our spamtraps are in repurposed legacy-TLD domains (.com, .org, .net) and therefore could be understood to have been involved with a U.S. entity in their pre-zombie life,” Tossavainen explained in the LinkedIn post.

Raymond Dijkxhoorn is the CEO and a founding member of SURBL, a widely-used blocklist that flags domains and IP addresses known to be used in unsolicited messages, phishing and malware distribution. Dijkxhoorn said their spamtrap data mirrors that of Koli-Lõks, and shows that WinRed has consistently been far more aggressive in sending email than ActBlue.

Dijkxhoorn said the fact that WinRed’s emails so often end up dinging the organization’s sender reputation is not a content issue but rather a technical one.

“On our end we don’t really care if the content is political or trying to sell viagra or penis enlargements,” Dijkhoorn said. “It’s the mechanics, they should not end up in spamtraps. And that’s the reason the domain reputation is tempered. Not ‘because domain reputation firms have a political agenda.’ We really don’t care about the political situation anywhere. The same as we don’t mind people buying penis enlargements. But when either of those land in spamtraps it will impact sending experience.”

The FTC letter to Google’s CEO also referenced a debunked 2022 study (PDF) by political consultants who found Google caught more Republican emails in spam filters. Techdirt editor Mike Masnick notes that while the 2022 study also found that other email providers caught more Democratic emails as spam, “Republicans laser-focused on Gmail because it fit their victimization narrative better.”

Masnick said GOP lawmakers then filed both lawsuits and complaints with the Federal Election Commission (both of which failed easily), claiming this was somehow an “in-kind contribution” to Democrats.

“This is political posturing designed to keep the White House happy by appearing to ‘do something’ about conservative claims of ‘censorship,'” Masnick wrote of the FTC letter. “The FTC has never policed ‘political bias’ in private companies’ editorial decisions, and for good reason—the First Amendment prohibits exactly this kind of government interference.”

WinRed did not respond to a request for comment.

The WinRed website says it is an online fundraising platform supported by a united front of the Trump campaign, the Republican National Committee (RNC), the NRSC, and the National Republican Congressional Committee (NRCC).

WinRed has recently come under fire for aggressive fundraising via text message as well. In June, 404 Media reported on a lawsuit filed by a family in Utah against the RNC for allegedly bombarding their mobile phones with text messages seeking donations after they’d tried to unsubscribe from the missives dozens of times.

One of the family members said they received 27 such messages from 25 numbers, even after sending 20 stop requests. The plaintiffs in that case allege the texts from WinRed and the RNC “knowingly disregard stop requests and purposefully use different phone numbers to make it impossible to block new messages.”

Dijkhoorn said WinRed did inquire recently about why some of its assets had been marked as a risk by SURBL, but he said they appeared to have zero interest in investigating the likely causes he offered in reply.

“They only replied with, ‘You are interfering with U.S. elections,'” Dijkhoorn said, noting that many of SURBL’s spamtrap domains are only publicly listed in the registration records for random domain names.

“They’re at best harvested by themselves but more likely [they] just went and bought lists,” he said. “It’s not like ‘Oh Google is filtering this and not the other,’ the reason isn’t the provider. The reason is the fundraising spammers and the lists they send to.”

The recent mass-theft of authentication tokens from Salesloft, whose AI chatbot is used by a broad swath of corporate America to convert customer interaction into Salesforce leads, has left many companies racing to invalidate the stolen credentials before hackers can exploit them. Now Google warns the breach goes far beyond access to Salesforce data, noting the hackers responsible also stole valid authentication tokens for hundreds of online services that customers can integrate with Salesloft, including Slack, Google Workspace, Amazon S3, Microsoft Azure, and OpenAI.

Salesloft says its products are trusted by 5,000+ customers. Some of the bigger names are visible on the company’s homepage.

Salesloft disclosed on August 20 that, “Today, we detected a security issue in the Drift application,” referring to the technology that powers an AI chatbot used by so many corporate websites. The alert urged customers to re-authenticate the connection between the Drift and Salesforce apps to invalidate their existing authentication tokens, but it said nothing then to indicate those tokens had already been stolen.

On August 26, the Google Threat Intelligence Group (GTIG) warned that unidentified hackers tracked as UNC6395 used the access tokens stolen from Salesloft to siphon large amounts of data from numerous corporate Salesforce instances. Google said the data theft began as early as Aug. 8, 2025 and lasted through at least Aug. 18, 2025, and that the incident did not involve any vulnerability in the Salesforce platform.

Google said the attackers have been sifting through the massive data haul for credential materials such as AWS keys, VPN credentials, and credentials to the cloud storage provider Snowflake.

“If successful, the right credentials could allow them to further compromise victim and client environments, as well as pivot to the victim’s clients or partner environments,” the GTIG report stated.

The GTIG updated its advisory on August 28 to acknowledge the attackers used the stolen tokens to access email from “a very small number of Google Workstation accounts” that were specially configured to integrate with Salesloft. More importantly, it warned organizations to immediately invalidate all tokens stored in or connected to their Salesloft integrations — regardless of the third-party service in question.

“Given GTIG’s observations of data exfiltration associated with the campaign, organizations using Salesloft Drift to integrate with third-party platforms (including but not limited to Salesforce) should consider their data compromised and are urged to take immediate remediation steps,” Google advised.

On August 28, Salesforce blocked Drift from integrating with its platform, and with its productivity platforms Slack and Pardot.

The Salesloft incident comes on the heels of a broad social engineering campaign that used voice phishing to trick targets into connecting a malicious app to their organization’s Salesforce portal. That campaign led to data breaches and extortion attacks affecting a number of companies including Adidas, Allianz Life and Qantas.

On August 5, Google disclosed that one of its corporate Salesforce instances was compromised by the attackers, which the GTIG has dubbed UNC6040 (“UNC” is Google’s shorthand for “uncategorized threat group”). Google said the extortionists consistently claimed to be the threat group ShinyHunters, and that the group appeared to be preparing to escalate its extortion attacks by launching a data leak site.

ShinyHunters is an amorphous threat group known for using social engineering to break into cloud platforms and third-party IT providers, and for posting dozens of stolen databases to cybercrime communities like the now-defunct Breachforums.

The ShinyHunters brand dates back to 2020, and the group has been credited with or taken responsibility for dozens of data leaks that exposed hundreds of millions of breached records. The group’s member roster is thought to be somewhat fluid, drawing mainly from active denizens of the Com, a mostly English-language cybercrime community scattered across an ocean of Telegram and Discord servers.

Recorded Future’s Alan Liska told Bleeping Computer that the overlap in the “tools, techniques and procedures” used by ShinyHunters and the Scattered Spider extortion group likely indicate some crossover between the two groups.

To muddy the waters even further, on August 28 a Telegram channel that now has nearly 40,000 subscribers was launched under the intentionally confusing banner “Scattered LAPSUS$ Hunters 4.0,” wherein participants have repeatedly claimed responsibility for the Salesloft hack without actually sharing any details to prove their claims.

The Telegram group has been trying to attract media attention by threatening security researchers at Google and other firms. It also is using the channel’s sudden popularity to promote a new cybercrime forum called “Breachstars,” which they claim will soon host data stolen from victim companies who refuse to negotiate a ransom payment.

The “Scattered Lapsus$ Hunters 4.0” channel on Telegram now has roughly 40,000 subscribers.

But Austin Larsen, a principal threat analyst at Google’s threat intelligence group, said there is no compelling evidence to attribute the Salesloft activity to ShinyHunters or to other known groups at this time.

“Their understanding of the incident seems to come from public reporting alone,” Larsen told KrebsOnSecurity, referring to the most active participants in the Scattered LAPSUS$ Hunters 4.0 Telegram channel.

Joshua Wright, a senior technical director at Counter Hack, is credited with coining the term “authorization sprawl” to describe one key reason that social engineering attacks from groups like Scattered Spider and ShinyHunters so often succeed: They abuse legitimate user access tokens to move seamlessly between on-premises and cloud systems.

Wright said this type of attack chain often goes undetected because the attacker sticks to the resources and access already allocated to the user.

“Instead of the conventional chain of initial access, privilege escalation and endpoint bypass, these threat actors are using centralized identity platforms that offer single sign-on (SSO) and integrated authentication and authorization schemes,” Wright wrote in a June 2025 column. “Rather than creating custom malware, attackers use the resources already available to them as authorized users.”

It remains unclear exactly how the attackers gained access to all Salesloft Drift authentication tokens. Salesloft announced on August 27 that it hired Mandiant, Google Cloud’s incident response division, to investigate the root cause(s).

“We are working with Salesloft Drift to investigate the root cause of what occurred and then it’ll be up to them to publish that,” Mandiant Consulting CTO Charles Carmakal told Cyberscoop. “There will be a lot more tomorrow, and the next day, and the next day.”

Last month, KrebsOnSecurity tracked the sudden emergence of hundreds of polished online gaming and wagering websites that lure people with free credits and eventually abscond with any cryptocurrency funds deposited by players. We’ve since learned that these scam gambling sites have proliferated thanks to a new Russian affiliate program called “Gambler Panel” that bills itself as a “soulless project that is made for profit.”

A machine-translated version of Gambler Panel’s affiliate website.

The scam begins with deceptive ads posted on social media that claim the wagering sites are working in partnership with popular athletes or social media personalities. The ads invariably state that by using a supplied “promo code,” interested players can claim a $2,500 credit on the advertised gaming website.

The gaming sites ask visitors to create a free account to claim their $2,500 credit, which they can use to play any number of extremely polished video games that ask users to bet on each action. However, when users try to cash out any “winnings” the gaming site will reject the request and prompt the user to make a “verification deposit” of cryptocurrency — typically around $100 — before any money can be distributed.

Those who deposit cryptocurrency funds are soon pressed into more wagering and making additional deposits. And — shocker alert — all players eventually lose everything they’ve invested in the platform.

The number of scam gambling or “scambling” sites has skyrocketed in the past month, and now we know why: The sites all pull their gaming content and detailed strategies for fleecing players straight from the playbook created by Gambler Panel, a Russian-language affiliate program that promises affiliates up to 70 percent of the profits.

Gambler Panel’s website gambler-panel[.]com links to a helpful wiki that explains the scam from cradle to grave, offering affiliates advice on how best to entice visitors, keep them gambling, and extract maximum profits from each victim.

“We have a completely self-written from scratch FAKE CASINO engine that has no competitors,” Gambler Panel’s wiki enthuses. “Carefully thought-out casino design in every pixel, a lot of audits, surveys of real people and test traffic floods were conducted, which allowed us to create something that has no doubts about the legitimacy and trustworthiness even for an inveterate gambling addict with many years of experience.”

Gambler Panel explains that the one and only goal of affiliates is to drive traffic to these scambling sites by any and all means possible.

A machine-translated portion of Gambler Panel’s singular instruction for affiliates: Drive traffic to these scambling sites by any means available.

“Unlike white gambling affiliates, we accept absolutely any type of traffic, regardless of origin, the only limitation is the CIS countries,” the wiki continued, referring to a common prohibition against scamming people in Russia and former Soviet republics in the Commonwealth of Independent States.

The program’s website claims it has more than 20,000 affiliates, who earn a minimum of $10 for each verification deposit. Interested new affiliates must first get approval from the group’s Telegram channel, which currently has around 2,500 active users.

The Gambler Panel channel is replete with images of affiliate panels showing the daily revenue of top affiliates, scantily-clad young women promoting the Gambler logo, and fast cars that top affiliates claimed they bought with their earnings.

A machine-translated version of the wiki for the affiliate program Gambler Panel.

The apparent popularity of this scambling niche is a consequence of the program’s ease of use and detailed instructions for successfully reproducing virtually every facet of the scam. Indeed, much of the tutorial focuses on advice and ready-made templates to help even novice affiliates drive traffic via social media websites, particularly on Instagram and TikTok.

Gambler Panel also walks affiliates through a range of possible responses to questions from users who are trying to withdraw funds from the platform. This section, titled “Rules for working in Live chat,” urges scammers to respond quickly to user requests (1-7 minutes), and includes numerous strategies for keeping the conversation professional and the user on the platform as long as possible.

A machine-translated version of the Gambler Panel’s instructions on managing chat support conversations with users.

The connection between Gambler Panel and the explosion in the number of scambling websites was made by a 17-year-old developer who operates multiple Discord servers that have been flooded lately with misleading ads for these sites.

The researcher, who asked to be identified only by the nickname “Thereallo,” said Gambler Panel has built a scalable business product for other criminals.

“The wiki is kinda like a ‘how to scam 101’ for criminals written with the clarity you would expect from a legitimate company,” Thereallo said. “It’s clean, has step by step guides, and treats their scam platform like a real product. You could swap out the content, and it could be any documentation for startups.”

“They’ve minimized their own risk — spreading the links on Discord / Facebook / YT Shorts, etc. — and outsourced it to a hungry affiliate network, just like a franchise,” Thereallo wrote in response to questions.

“A centralized platform that can serve over 1,200 domains with a shared user base, IP tracking, and a custom API is not at all a trivial thing to build,” Thereallo said. “It’s a scalable system designed to be a resilient foundation for thousands of disposable scam sites.”

The security firm Silent Push has compiled a list of the latest domains associated with the Gambler Panel, available here (.csv).

The cybersecurity community on Reddit responded in disbelief this month when a self-described Air National Guard member with top secret security clearance began questioning the arrangement they’d made with company called DSLRoot, which was paying $250 a month to plug a pair of laptops into the Redditor’s high-speed Internet connection in the United States. This post examines the history and provenance of DSLRoot, one of the oldest “residential proxy” networks with origins in Russia and Eastern Europe.

The query about DSLRoot came from a Reddit user “Sacapoopie,” who did not respond to questions. This user has since deleted the original question from their post, although some of their replies to other Reddit cybersecurity enthusiasts remain in the thread. The original post was indexed here by archive.is, and it began with a question:

“I have been getting paid 250$ a month by a residential IP network provider named DSL root to host devices in my home,” Sacapoopie wrote. “They are on a separate network than what we use for personal use. They have dedicated DSL connections (one per host) to the ISP that provides the DSL coverage. My family used Starlink. Is this stupid for me to do? They just sit there and I get paid for it. The company pays the internet bill too.”

Many Redditors said they assumed Sacapoopie’s post was a joke, and that nobody with a cybersecurity background and top-secret (TS/SCI) clearance would agree to let some shady residential proxy company introduce hardware into their network. Other readers pointed to a slew of posts from Sacapoopie in the Cybersecurity subreddit over the past two years about their work on cybersecurity for the Air National Guard.

When pressed for more details by fellow Redditors, Sacapoopie described the equipment supplied by DSLRoot as “just two laptops hardwired into a modem, which then goes to a dsl port in the wall.”

“When I open the computer, it looks like [they] have some sort of custom application that runs and spawns several cmd prompts,” the Redditor explained. “All I can infer from what I see in them is they are making connections.”

When asked how they became acquainted with DSLRoot, Sacapoopie told another user they discovered the company and reached out after viewing an advertisement on a social media platform.

“This was probably 5-6 years ago,” Sacapoopie wrote. “Since then I just communicate with a technician from that company and I help trouble shoot connectivity issues when they arise.”

Reached for comment, DSLRoot said its brand has been unfairly maligned thanks to that Reddit discussion. The unsigned email said DSLRoot is fully transparent about its goals and operations, adding that it operates under full consent from its “regional agents,” the company’s term for U.S. residents like Sacapoopie.

“As although we support honest journalism, we’re against of all kinds of ‘low rank/misleading Yellow Journalism’ done for the sake of cheap hype,” DSLRoot wrote in reply. “It’s obvious to us that whoever is doing this, is either lacking a proper understanding of the subject or doing it intentionally to gain exposure by misleading those who lack proper understanding,” DSLRoot wrote in answer to questions about the company’s intentions.

“We monitor our clients and prohibit any illegal activity associated with our residential proxies,” DSLRoot continued. “We honestly didn’t know that the guy who made the Reddit post was a military guy. Be it an African-American granny trying to pay her rent or a white kid trying to get through college, as long as they can provide an Internet line or host phones for us — we’re good.”

DSLRoot is sold as a residential proxy service on the forum BlackHatWorld under the name DSLRoot and GlobalSolutions. The company is based in the Bahamas and was formed in 2012. The service is advertised to people who are not in the United States but who want to seem like they are. DSLRoot pays people in the United States to run the company’s hardware and software — including 5G mobile devices — and in return it rents those IP addresses as dedicated proxies to customers anywhere in the world — priced at $190 per month for unrestricted access to all locations.

The DSLRoot website.

The GlobalSolutions account on BlackHatWorld lists a Telegram account and a WhatsApp number in Mexico. DSLRoot’s profile on the marketing agency digitalpoint.com from 2010 shows their previous username on the forum was “Incorptoday.” GlobalSolutions user accounts at bitcointalk[.]org and roclub[.]com include the email clickdesk@instantvirtualcreditcards[.]com.

Passive DNS records from DomainTools.com show instantvirtualcreditcards[.]com shared a host back then — 208.85.1.164 — with just a handful of domains, including dslroot[.]com, regacard[.]com, 4groot[.]com, residential-ip[.]com, 4gemperor[.]com, ip-teleport[.]com, and proxyrental[.]net.

Cyber intelligence firm Intel 471 finds GlobalSolutions registered on BlackHatWorld in 2016 using the email address prepaidsolutions@yahoo.com. This user shared that their birthday is March 7, 1984.

Several negative reviews about DSLRoot on the forums noted that the service was operated by a BlackHatWorld user calling himself “USProxyKing.” Indeed, Intel 471 shows this user told fellow form members in 2013 to contact him at the Skype username “dslroot.”

USProxyKing on BlackHatWorld, soliciting installations of his adware via torrents and file-sharing sites.

USProxyKing had a reputation for spamming the forums with ads for his residential proxy service, and he ran a “pay-per-install” program where he paid affiliates a small commission each time one of their websites resulted in the installation of his unspecified “adware” programs — presumably a program that turned host PCs into proxies. On the other end of the business, USProxyKing sold that pay-per-install access to others wishing to distribute questionable software — at $1 per installation.

Private messages indexed by Intel 471 show USProxyKing also raised money from nearly 20 different BlackHatWorld members who were promised shareholder positions in a new business that would offer robocalling services capable of placing 2,000 calls per minute.

Constella Intelligence, a platform that tracks data exposed in breaches, finds that same IP address GlobalSolutions used to register at BlackHatWorld was also used to create accounts at a handful of sites, including a GlobalSolutions user account at WebHostingTalk that supplied the email address incorptoday@gmail.com. Also registered to incorptoday@gmail.com are the domains dslbay[.]com, dslhub[.]net, localsim[.]com, rdslpro[.]com, virtualcards[.]biz/cc, and virtualvisa[.]cc.

Recall that DSLRoot’s profile on digitalpoint.com was previously named Incorptoday. DomainTools says incorptoday@gmail.com is associated with almost two dozen domains going back to 2008, including incorptoday[.]com, a website that offers to incorporate businesses in several states, including Delaware, Florida and Nevada, for prices ranging from $450 to $550.

As we can see in this archived copy of the site from 2013, IncorpToday also offered a premiere service for $750 that would allow the customer’s new company to have a retail checking account, with no questions asked.

Global Solutions is able to provide access to the U.S. banking system by offering customers prepaid cards that can be loaded with a variety of virtual payment instruments that were popular in Russian-speaking countries at the time, including WebMoney. The cards are limited to $500 balances, but non-Westerners can use them to anonymously pay for goods and services at a variety of Western companies. Cardnow[.]ru, another domain registered to incorptoday@gmail.com, demonstrates this in action.

A copy of Incorptoday’s website from 2013 offers non-US residents a service to incorporate a business in Florida, Delaware or Nevada, along with a no-questions-asked checking account, for $750.

The oldest domain (2008) registered to incorptoday@gmail.com is andrei[.]me; another is called andreigolos[.]com. DomainTools says these and other domains registered to that email address include the registrant name Andrei Holas, from Huntsville, Ala.

Public records indicate Andrei Holas has lived with his brother — Aliaksandr Holas — at two different addresses in Alabama. Those records state that Andrei Holas’ birthday is in March 1984, and that his brother is slightly younger. The younger brother did not respond to a request for comment.

Andrei Holas maintained an account on the Russian social network Vkontakte under the email address ryzhik777@gmail.com, an address that shows up in numerous records hacked and leaked from Russian government entities over the past few years.

Those records indicate Andrei Holas and his brother are from Belarus and have maintained an address in Moscow for some time (that address is roughly three blocks away from the main headquarters of the Russian FSB, the successor intelligence agency to the KGB). Hacked Russian banking records show Andrei Holas’ birthday is March 7, 1984 — the same birth date listed by GlobalSolutions on BlackHatWorld.

A 2010 post by ryzhik777@gmail.com at the Russian-language forum Ulitka explains that the poster was having trouble getting his B1/B2 visa to visit his brother in the United States, even though he’d previously been approved for two separate guest visas and a student visa. It remains unclear if one, both, or neither of the Holas brothers still lives in the United States. Andrei explained in 2010 that his brother was an American citizen.

We can all wag our fingers at military personnel who should undoubtedly know better than to install Internet hardware from strangers, but in truth there is an endless supply of U.S. residents who will resell their Internet connection if it means they can make a few bucks out of it. And these days, there are plenty of residential proxy providers who will make it worth your while.

Traditionally, residential proxy networks have been constructed using malicious software that quietly turns infected systems into traffic relays that are then sold in shadowy online forums. Most often, this malware gets bundled with popular cracked software and video files that are uploaded to file-sharing networks and that secretly turn the host device into a traffic relay. In fact, USPRoxyKing bragged that he routinely achieved thousands of installs per week via this method alone.

These days, there a number of residential proxy networks that entice users to monetize their unused bandwidth (inviting you to violate the terms of service of your ISP in the process); others, like DSLRoot, act as a communal VPN, and by using the service you gain access to the connections of other proxies (users) by default, but you also agree to share your connection with others.

Indeed, Intel 471’s archives show the GlobalSolutions and DSLRoot accounts routinely received private messages from forum users who were college students or young people trying to make ends meet. Those messages show that many of DSLRoot’s “regional agents” often sought commissions to refer friends interested in reselling their home Internet connections (DSLRoot would offer to cover the monthly cost of the agent’s home Internet connection).

But in an era when North Korean hackers are relentlessly posing as Western IT workers by paying people to host laptop farms in the United States, letting strangers run laptops, mobile devices or any other hardware on your network seems like an awfully risky move regardless of your station in life. As several Redditors pointed out in Sacapoopie’s thread, an Arizona woman was sentenced in July 2025 to 102 months in prison for hosting a laptop farm that helped North Korean hackers secure jobs at more than 300 U.S. companies, including Fortune 500 firms.

Lloyd Davies is the founder of Infrawatch, a London-based security startup that tracks residential proxy networks. Davies said he reverse engineered the software that powers DSLRoot’s proxy service, and found it phones home to the aforementioned domain proxyrental[.]net, which sells a service that promises to “get your ads live in multiple cities without getting banned, flagged or ghosted” (presumably a reference to CraigsList ads).

Davies said he found the DSLRoot installer had capabilities to remotely control residential networking equipment across multiple vendor brands.

Image: Infrawatch.app.

“The software employs vendor-specific exploits and hardcoded administrative credentials, suggesting DSLRoot pre-configures equipment before deployment,” Davies wrote in an analysis published today. He said the software performs WiFi network enumeration to identify nearby wireless networks, thereby “potentially expanding targeting capabilities beyond the primary internet connection.”

It’s unclear exactly when the USProxyKing was usurped from his throne, but DSLRoot and its proxy offerings are not what they used to be. Davies said the entire DSLRoot network now has fewer than 300 nodes nationwide, mostly systems on DSL providers like CenturyLink and Frontier.

On Aug. 17, GlobalSolutions posted to BlackHatWorld saying,”We’re restructuring our business model by downgrading to ‘DSL only’ lines (no mobile or cable).” Asked via email about the changes, DSLRoot blamed the decline in his customers on the proliferation of residential proxy services.

“These days it has become almost impossible to compete in this niche as everyone is selling residential proxies and many companies want you to install a piece of software on your phone or desktop so they can resell your residential IPs on a much larger scale,” DSLRoot explained. “So-called ‘legal botnets’ as we see them.”

A 20-year-old Florida man at the center of a prolific cybercrime group known as “Scattered Spider” was sentenced to 10 years in federal prison today, and ordered to pay roughly $13 million in restitution to victims.

Noah Michael Urban of Palm Coast, Fla. pleaded guilty in April 2025 to charges of wire fraud and conspiracy. Florida prosecutors alleged Urban conspired with others to steal at least $800,000 from five victims via SIM-swapping attacks that diverted their mobile phone calls and text messages to devices controlled by Urban and his co-conspirators.

A booking photo of Noah Michael Urban released by the Volusia County Sheriff.

Although prosecutors had asked for Urban to serve eight years, Jacksonville news outlet News4Jax.com reports the federal judge in the case today opted to sentence Urban to 120 months in federal prison, ordering him to pay $13 million in restitution and undergo three years of supervised release after his sentence is completed.

In November 2024 Urban was charged by federal prosecutors in Los Angeles as one of five members of Scattered Spider (a.k.a. “Oktapus,” “Scatter Swine” and “UNC3944”), which specialized in SMS and voice phishing attacks that tricked employees at victim companies into entering their credentials and one-time passcodes at phishing websites. Urban pleaded guilty to one count of conspiracy to commit wire fraud in the California case, and the $13 million in restitution is intended to cover victims from both cases.

The targeted SMS scams spanned several months during the summer of 2022, asking employees to click a link and log in at a website that mimicked their employer’s Okta authentication page. Some SMS phishing messages told employees their VPN credentials were expiring and needed to be changed; other missives advised employees about changes to their upcoming work schedule.

That phishing spree netted Urban and others access to more than 130 companies, including Twilio, LastPass, DoorDash, MailChimp, and Plex. The government says the group used that access to steal proprietary company data and customer information, and that members also phished people to steal millions of dollars worth of cryptocurrency.

For many years, Urban’s online hacker aliases “King Bob” and “Sosa” were fixtures of the Com, a mostly Telegram and Discord-based community of English-speaking cybercriminals wherein hackers boast loudly about high-profile exploits and hacks that almost invariably begin with social engineering. King Bob constantly bragged on the Com about stealing unreleased rap music recordings from popular artists, presumably through SIM-swapping attacks. Many of those purloined tracks or “grails” he later sold or gave away on forums.

Noah “King Bob” Urban, posting to Twitter/X around the time of his sentencing today.

Sosa also was active in a particularly destructive group of accomplished criminal SIM-swappers known as “Star Fraud.” Cyberscoop’s AJ Vicens reported in 2023 that individuals within Star Fraud were likely involved in the high-profile Caesars Entertainment and MGM Resorts extortion attacks that same year.

The Star Fraud SIM-swapping group gained the ability to temporarily move targeted mobile numbers to devices they controlled by constantly phishing employees of the major mobile providers. In February 2023, KrebsOnSecurity published data taken from the Telegram channels for Star Fraud and two other SIM-swapping groups showing these crooks focused on SIM-swapping T-Mobile customers, and that they collectively claimed internal access to T-Mobile on 100 separate occasions over a 7-month period in 2022.

Reached via one of his King Bob accounts on Twitter/X, Urban called the sentence unjust, and said the judge in his case discounted his age as a factor.

“The judge purposefully ignored my age as a factor because of the fact another Scattered Spider member hacked him personally during the course of my case,” Urban said in reply to questions, noting that he was sending the messages from a Florida county jail. “He should have been removed as a judge much earlier on. But staying in county jail is torture.”

A court transcript (PDF) from a status hearing in February 2025 shows Urban was telling the truth about the hacking incident that happened while he was in federal custody. It involved an intrusion into a magistrate judge’s email account, where a copy of Urban’s sealed indictment was stolen. The judge told attorneys for both sides that a co-defendant in the California case was trying to find out about Mr. Urban’s activity in the Florida case.

“What it ultimately turned into a was a big faux pas,” Judge Harvey E. Schlesinger said. “The Court’s password…business is handled by an outside contractor. And somebody called the outside contractor representing Judge Toomey saying, ‘I need a password change.’ And they gave out the password change. That’s how whoever was making the phone call got into the court.”

A 22-year-old Oregon man has been arrested on suspicion of operating “Rapper Bot,” a massive botnet used to power a service for launching distributed denial-of-service (DDoS) attacks against targets — including a March 2025 DDoS that knocked Twitter/X offline. The Justice Department asserts the suspect and an unidentified co-conspirator rented out the botnet to online extortionists, and tried to stay off the radar of law enforcement by ensuring that their botnet was never pointed at KrebsOnSecurity.

The control panel for the Rapper Bot botnet greets users with the message “Welcome to the Ball Pit, Now with refrigerator support,” an apparent reference to a handful of IoT-enabled refrigerators that were enslaved in their DDoS botnet.

On August 6, 2025, federal agents arrested Ethan J. Foltz of Springfield, Ore. on suspicion of operating Rapper Bot, a globally dispersed collection of tens of thousands of hacked Internet of Things (IoT) devices.

The complaint against Foltz explains the attacks usually clocked in at more than two terabits of junk data per second (a terabit is one trillion bits of data), which is more than enough traffic to cause serious problems for all but the most well-defended targets. The government says Rapper Bot consistently launched attacks that were “hundreds of times larger than the expected capacity of a typical server located in a data center,” and that some of its biggest attacks exceeded six terabits per second.

Indeed, Rapper Bot was reportedly responsible for the March 10, 2025 attack that caused intermittent outages on Twitter/X. The government says Rapper Bot’s most lucrative and frequent customers were involved in extorting online businesses — including numerous gambling operations based in China.

The criminal complaint was written by Elliott Peterson, an investigator with the Defense Criminal Investigative Service (DCIS), the criminal investigative division of the Department of Defense (DoD) Office of Inspector General. The complaint notes the DCIS got involved because several Internet addresses maintained by the DoD were the target of Rapper Bot attacks.

Peterson said he tracked Rapper Bot to Foltz after a subpoena to an ISP in Arizona that was hosting one of the botnet’s control servers showed the account was paid for via PayPal. More legal process to PayPal revealed Foltz’s Gmail account and previously used IP addresses. A subpoena to Google showed the defendant searched security blogs constantly for news about Rapper Bot, and for updates about competing DDoS-for-hire botnets.

According to the complaint, after having a search warrant served on his residence the defendant admitted to building and operating Rapper Bot, sharing the profits 50/50 with a person he claimed to know only by the hacker handle “Slaykings.” Foltz also shared with investigators the logs from his Telegram chats, wherein Foltz and Slaykings discussed how best to stay off the radar of law enforcement investigators while their competitors were getting busted.

Specifically, the two hackers chatted about a May 20 attack against KrebsOnSecurity.com that clocked in at more than 6.3 terabits of data per second. The brief attack was notable because at the time it was the largest DDoS that Google had ever mitigated (KrebsOnSecurity sits behind the protection of Project Shield, a free DDoS defense service that Google provides to websites offering news, human rights, and election-related content).

The May 2025 DDoS was launched by an IoT botnet called Aisuru, which I discovered was operated by a 21-year-old man in Brazil named Kaike Southier Leite. This individual was more commonly known online as “Forky,” and Forky told me he wasn’t afraid of me or U.S. federal investigators. Nevertheless, the complaint against Foltz notes that Forky’s botnet seemed to diminish in size and firepower at the same time that Rapper Bot’s infection numbers were on the upswing.

“Both FOLTZ and Slaykings were very dismissive of attention seeking activities, the most extreme of which, in their view, was to launch DDoS attacks against the website of the prominent cyber security journalist Brian Krebs,” Peterson wrote in the criminal complaint.

“You see, they’ll get themselves [expletive],” Slaykings wrote in response to Foltz’s comments about Forky and Aisuru bringing too much heat on themselves.

“Prob cuz [redacted] hit krebs,” Foltz wrote in reply.

“Going against Krebs isn’t a good move,” Slaykings concurred. “It isn’t about being a [expletive] or afraid, you just get a lot of problems for zero money. Childish, but good. Let them die.”

“Ye, it’s good tho, they will die,” Foltz replied.

The government states that just prior to Foltz’s arrest, Rapper Bot had enslaved an estimated 65,000 devices globally. That may sound like a lot, but the complaint notes the defendants weren’t interested in making headlines for building the world’s largest or most powerful botnet.

Quite the contrary: The complaint asserts that the accused took care to maintain their botnet in a “Goldilocks” size — ensuring that “the number of devices afforded powerful attacks while still being manageable to control and, in the hopes of Foltz and his partners, small enough to not be detected.”

The complaint states that several days later, Foltz and Slaykings returned to discussing what that they expected to befall their rival group, with Slaykings stating, “Krebs is very revenge. He won’t stop until they are [expletive] to the bone.”

“Surprised they have any bots left,” Foltz answered.

“Krebs is not the one you want to have on your back. Not because he is scary or something, just because he will not give up UNTIL you are [expletive] [expletive]. Proved it with Mirai and many other cases.”

[Unknown expletives aside, that may well be the highest compliment I’ve ever been paid by a cybercriminal. I might even have part of that quote made into a t-shirt or mug or something. It’s also nice that they didn’t let any of their customers attack my site — if even only out of a paranoid sense of self-preservation.]

Foltz admitted to wiping the user and attack logs for the botnet approximately once a week, so investigators were unable to tally the total number of attacks, customers and targets of this vast crime machine. But the data that was still available showed that from April 2025 to early August, Rapper Bot conducted over 370,000 attacks, targeting 18,000 unique victims across 1,000 networks, with the bulk of victims residing in China, Japan, the United States, Ireland and Hong Kong (in that order).

According to the government, Rapperbot borrows much of its code from fBot, a DDoS malware strain also known as Satori. In 2020, authorities in Northern Ireland charged a then 20-year-old man named Aaron “Vamp” Sterritt with operating fBot with a co-conspirator. U.S. prosecutors are still seeking Sterritt’s extradition to the United States. fBot is itself a variation of the Mirai IoT botnet that has ravaged the Internet with DDoS attacks since its source code was leaked back in 2016.

The complaint says Foltz and his partner did not allow most customers to launch attacks that were more than 60 seconds in duration — another way they tried to keep public attention to the botnet at a minimum. However, the government says the proprietors also had special arrangements with certain high-paying clients that allowed much larger and longer attacks.

The accused and his alleged partner made light of this blog post about the fallout from one of their botnet attacks.

Most people who have never been on the receiving end of a monster DDoS attack have no idea of the cost and disruption that such sieges can bring. The DCIS’s Peterson wrote that he was able to test the botnet’s capabilities while interviewing Foltz, and that found that “if this had been a server upon which I was running a website, using services such as load balancers, and paying for both outgoing and incoming data, at estimated industry average rates the attack (2+ Terabits per second times 30 seconds) might have cost the victim anywhere from $500 to $10,000.”

“DDoS attacks at this scale often expose victims to devastating financial impact, and a potential alternative, network engineering solutions that mitigate the expected attacks such as overprovisioning, i.e. increasing potential Internet capacity, or DDoS defense technologies, can themselves be prohibitively expensive,” the complaint continues. “This ‘rock and a hard place’ reality for many victims can leave them acutely exposed to extortion demands – ‘pay X dollars and the DDoS attacks stop’.”

The Telegram chat records show that the day before Peterson and other federal agents raided Foltz’s residence, Foltz allegedly told his partner he’d found 32,000 new devices that were vulnerable to a previously unknown exploit.

Foltz and Slaykings discussing the discovery of an IoT vulnerability that will give them 32,000 new devices.

Shortly before the search warrant was served on his residence, Foltz allegedly told his partner that “Once again we have the biggest botnet in the community.” The following day, Foltz told his partner that it was going to be a great day — the biggest so far in terms of income generated by Rapper Bot.

“I sat next to Foltz while the messages poured in — promises of $800, then $1,000, the proceeds ticking up as the day went on,” Peterson wrote. “Noticing a change in Foltz’ behavior and concerned that Foltz was making changes to the botnet configuration in real time, Slaykings asked him ‘What’s up?’ Foltz deftly typed out some quick responses. Reassured by Foltz’ answer, Slaykings responded, ‘Ok, I’m the paranoid one.”

The case is being prosecuted by Assistant U.S. Attorney Adam Alexander in the District of Alaska (at least some of the devices found to be infected with Rapper Bot were located there, and it is where Peterson is stationed). Foltz faces one count of aiding and abetting computer intrusions. If convicted, he faces a maximum penalty of 10 years in prison, although a federal judge is unlikely to award anywhere near that kind of sentence for a first-time conviction.

Cybercriminal groups peddling sophisticated phishing kits that convert stolen card data into mobile wallets have recently shifted their focus to targeting customers of brokerage services, new research shows. Undeterred by security controls at these trading platforms that block users from wiring funds directly out of accounts, the phishers have pivoted to using multiple compromised brokerage accounts in unison to manipulate the prices of foreign stocks.

Image: Shutterstock, WhataWin.

This so-called ‘ramp and dump‘ scheme borrows its name from age-old “pump and dump” scams, wherein fraudsters purchase a large number of shares in some penny stock, and then promote the company in a frenzied social media blitz to build up interest from other investors. The fraudsters dump their shares after the price of the penny stock increases to some degree, which usually then causes a sharp drop in the value of the shares for legitimate investors.

With ramp and dump, the scammers do not need to rely on ginning up interest in the targeted stock on social media. Rather, they will preposition themselves in the stock that they wish to inflate, using compromised accounts to purchase large volumes of it and then dumping the shares after the stock price reaches a certain value. In February 2025, the FBI said it was seeking information from victims of this scheme.

“In this variation, the price manipulation is primarily the result of controlled trading activity conducted by the bad actors behind the scam,” reads an advisory from the Financial Industry Regulatory Authority (FINRA), a private, non-profit organization that regulates member brokerage firms. “Ultimately, the outcome for unsuspecting investors is the same—a catastrophic collapse in share price that leaves investors with unrecoverable losses.”

Ford Merrill is a security researcher at SecAlliance, a CSIS Security Group company. Merrill said he has tracked recent ramp-and-dump activity to a bustling Chinese-language community that is quite openly selling advanced mobile phishing kits on Telegram.

“They will often coordinate with other actors and will wait until a certain time to buy a particular Chinese IPO [initial public offering] stock or penny stock,” said Merrill, who has been chronicling the rapid maturation and growth of the China-based phishing community over the past three years.

“They’ll use all these victim brokerage accounts, and if needed they’ll liquidate the account’s current positions, and will preposition themselves in that instrument in some account they control, and then sell everything when the price goes up,” he said. “The victim will be left with worthless shares of that equity in their account, and the brokerage may not be happy either.”

Merrill said the early days of these phishing groups — between 2022 and 2024 — were typified by phishing kits that used text messages to spoof the U.S. Postal Service or some local toll road operator, warning about a delinquent shipping or toll fee that needed paying. Recipients who clicked the link and provided their payment information at a fake USPS or toll operator site were then asked to verify the transaction by sharing a one-time code sent via text message.

In reality, the victim’s bank is sending that code to the mobile number on file for their customer because the fraudsters have just attempted to enroll that victim’s card details into a mobile wallet. If the visitor supplies that one-time code, their payment card is then added to a new mobile wallet on an Apple or Google device that is physically controlled by the phishers.

The phishing gangs typically load multiple stolen cards to digital wallets on a single Apple or Android device, and then sell those phones in bulk to scammers who use them for fraudulent e-commerce and tap-to-pay transactions.

An image from the Telegram channel for a popular Chinese mobile phishing kit vendor shows 10 mobile phones for sale, each loaded with 4-6 digital wallets from different financial institutions.

This China-based phishing collective exposed a major weakness common to many U.S.-based financial institutions that already require multi-factor authentication: The reliance on a single, phishable one-time token for provisioning mobile wallets. Happily, Merrill said many financial institutions that were caught flat-footed on this scam two years ago have since strengthened authentication requirements for onboarding new mobile wallets (such as requiring the card to be enrolled via the bank’s mobile app).

But just as squeezing one part of a balloon merely forces the air trapped inside to bulge into another area, fraudsters don’t go away when you make their current enterprise less profitable: They just shift their focus to a less-guarded area. And lately, that gaze has settled squarely on customers of the major brokerage platforms, Merrill said.

Merrill pointed to several Telegram channels operated by some of the more accomplished phishing kit sellers, which are full of videos demonstrating how every feature in their kits can be tailored to the attacker’s target. The video snippet below comes from the Telegram channel of “Outsider,” a popular Mandarin-speaking phishing kit vendor whose latest offering includes a number of ready-made templates for using text messages to phish brokerage account credentials and one-time codes.

According to Merrill, Outsider is a woman who previously went by the handle “Chenlun.” KrebsOnSecurity profiled Chenlun’s phishing empire in an October 2023 story about a China-based group that was phishing mobile customers of more than a dozen postal services around the globe. In that case, the phishing sites were using a Telegram bot that sent stolen credentials to the “@chenlun” Telegram account.

Chenlun’s phishing lures are sent via Apple’s iMessage and Google’s RCS service and spoof one of the major brokerage platforms, warning that the account has been suspended for suspicious activity and that recipients should log in and verify some information. The missives include a link to a phishing page that collects the customer’s username and password, and then asks the user to enter a one-time code that will arrive via SMS.

The new phish kit videos on Outsider’s Telegram channel only feature templates for Schwab customers, but Merrill said the kit can easily be adapted to target other brokerage platforms. One reason the fraudsters are picking on brokerage firms, he said, has to do with the way they handle multi-factor authentication.

Schwab clients are presented with two options for second factor authentication when they open an account. Users who select the option to only prompt for a code on untrusted devices can choose to receive it via text message, an automated inbound phone call, or an outbound call to Schwab. With the “always at login” option selected, users can choose to receive the code through the Schwab app, a text message, or a Symantec VIP mobile app.

In response to questions, Schwab said it regularly updates clients on emerging fraud trends, including this specific type, which the company addressed in communications sent to clients earlier this year.

The 2FA text message from Schwab warns recipients against giving away their one-time code.

“That message focused on trading-related fraud, highlighting both account intrusions and scams conducted through social media or messaging apps that deceive individuals into executing trades themselves,” Schwab said in a written statement. “We are aware and tracking this trend across several channels, as well as others like it, which attempt to exploit SMS-based verification with stolen credentials. We actively monitor for suspicious patterns and take steps to disrupt them. This activity is part of a broader, industry-wide threat, and we take a multi-layered approach to address and mitigate it.”

Other popular brokerage platforms allow similar methods for multi-factor authentication. Fidelity requires a username and password on initial login, and offers the ability to receive a one-time token via SMS, an automated phone call, or by approving a push notification sent through the Fidelity mobile app. However, all three of these methods for sending one-time tokens are phishable; even with the brokerage firm’s app, the phishers could prompt the user to approve a login request that they initiated in the app with the phished credentials.

Vanguard offers customers a range of multi-factor authentication choices, including the option to require a physical security key in addition to one’s credentials on each login. A security key implements a robust form of multi-factor authentication known as Universal 2nd Factor (U2F), which allows the user to complete the login process simply by connecting an enrolled USB or Bluetooth device and pressing a button. The key works without the need for any special software drivers, and the nice thing about it is your second factor cannot be phished.

Merrill said that in many ways the ramp-and-dump scheme is the perfect crime because it leaves precious few connections between the victim brokerage accounts and the fraudsters.

“It’s really genius because it decouples so many things,” he said. “They can buy shares [in the stock to be pumped] in their personal account on the Chinese exchanges, and the price happens to go up. The Chinese or Hong Kong brokerages aren’t going to see anything funky.”

Merrill said it’s unclear exactly how those perpetrating these ramp-and-dump schemes coordinate their activities, such as whether the accounts are phished well in advance or shortly before being used to inflate the stock price of Chinese companies. The latter possibility would fit nicely with the existing human infrastructure these criminal groups already have in place.

For example, KrebsOnSecurity recently wrote about research from Merrill and other researchers showing the phishers behind these slick mobile phishing kits employed people to sit for hours at a time in front of large banks of mobile phones being used to send the text message lures. These technicians were needed to respond in real time to victims who were supplying the one-time code sent from their financial institution.

The ashtray says: You’ve been phishing all night.

“You can get access to a victim’s brokerage with a one-time passcode, but then you sort of have to use it right away if you can’t set new security settings so you can come back to that account later,” Merrill said.

The rapid pace of innovations produced by these China-based phishing vendors is due in part to their use of artificial intelligence and large language models to help develop the mobile phishing kits, he added.

“These guys are vibe coding stuff together and using LLMs to translate things or help put the user interface together,” Merrill said. “It’s only a matter of time before they start to integrate the LLMs into their development cycle to make it more rapid. The technologies they are building definitely have helped lower the barrier of entry for everyone.”