In a recent cybersecurity revelation, the threat actor group known as Space Pirates has been identified orchestrating a sophisticated campaign against Russian information technology (IT) organizations. Central to this operation is a newly uncovered malware, dubbed LuckyStrike Agent, which has been instrumental in breaching and infiltrating targeted networks.

Discovery and Attribution

The malicious activities were first detected in November 2024 by Solar, the cybersecurity division of Russia’s state-owned telecom giant, Rostelecom. Solar has been monitoring this series of attacks under the codename “Erudite Mogwai.” Their investigations reveal that Space Pirates have been active since at least 2017, focusing on the theft of confidential information and conducting espionage. Their targets span government agencies, IT departments across various sectors, and enterprises in high-tech industries such as aerospace and electric power.

Malware Arsenal and Techniques

The hallmark of this campaign is the deployment of LuckyStrike Agent, a versatile .NET-based backdoor. This malware distinguishes itself by utilizing Microsoft OneDrive for command-and-control (C2) communications, enabling it to blend seamlessly into legitimate network traffic and evade detection.

In addition to LuckyStrike Agent, the attackers have employed other sophisticated tools:

  • Deed RAT (also known as ShadowPad Light): A remote access trojan that provides the attackers with extensive control over compromised systems.
  • Customized Stowaway Proxy Utility: Originally an open-source proxy tool, Stowaway has been modified by Space Pirates to suit their specific needs. Alterations include retaining only essential proxy functionalities, integrating the LZ4 compression algorithm, adopting the XXTEA encryption algorithm, and adding support for the QUIC transport protocol. These modifications enhance the tool’s efficiency and stealth in network communications.

Attack Progression and Persistence

One notable incident detailed by Solar involved a prolonged attack on a government sector entity. The initial breach occurred through the compromise of a publicly accessible web service, with evidence suggesting that access was gained as early as March 2023. Following the initial intrusion, the attackers conducted a methodical and stealthy lateral movement within the network over a span of 19 months. This deliberate approach allowed them to avoid detection while progressively accessing more sensitive segments of the infrastructure. By November 2024, they had successfully infiltrated network areas connected to critical monitoring systems.

Connections to Other Threat Actors

Research indicates that Space Pirates share tactical overlaps with another known hacking group, Webworm. Both groups have been observed employing similar tools and methodologies, suggesting possible collaboration or a shared origin. Their operations have predominantly targeted organizations in Russia, Georgia, and Mongolia, focusing on sectors of strategic interest.

Implications and Recommendations

The advanced techniques and prolonged persistence demonstrated by Space Pirates underscore the evolving nature of cyber threats facing critical infrastructure and high-tech industries. Organizations are urged to adopt a proactive cybersecurity posture, which includes:

  • Regular Security Audits: Conduct comprehensive assessments to identify and remediate vulnerabilities within the network.
  • Network Segmentation: Implement strict segmentation to prevent lateral movement by attackers, thereby containing potential breaches.
  • Advanced Threat Detection Systems: Deploy solutions capable of identifying anomalous activities, especially those mimicking legitimate services like OneDrive.
  • Employee Training: Educate staff about phishing and other social engineering tactics commonly used to gain initial access.

By integrating these measures, organizations can enhance their defenses against sophisticated adversaries such as Space Pirates and mitigate the risks associated with advanced persistent threats.

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