Mustang Panda Uses Zoho WorkDrive for C2 in Campaigns Targeting Indian Government

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Summary

Acronis reports Mustang Panda campaigns targeting Indian government and hydropower organizations, detailing three tools that use signed-binary sideloading and Zoho WorkDrive for command delivery and data exfiltration.

Key points

  • Acronis says it found active compromises in Indian government networks, including systems used by senior administrative staff, and worked with CERT-In on notification and cleanup.
  • The campaigns allegedly used spear-phishing ZIP archives with hidden malicious DLLs, themed around hydropower cooperation and an India-Taiwan memorandum.
  • SHARDLOADER sideloaded a malicious DLL through signed Solid PDF Creator or Citrix Receiver binaries, then deployed an implant.
  • MINIRECON is described as a reworked Toneshell variant that beacons over HTTPS WebSockets.
  • ZOHOMURK used hardcoded Zoho OAuth credentials to read commands from a WorkDrive inbox and write stolen output to an outbox.
  • Acronis attributed the activity to Mustang Panda with high confidence, citing code overlap, reused infrastructure, and a recurring typo across implants.
  • Acronis published hunting indicators, including persistence details, a scheduled task, Zoho user-agent patterns, and the C2 domain couldinstallup[.]com.

Article Details

Attack Vectors
  • Acronis believes both campaigns were delivered through spear-phishing ZIP archives themed around hydropower cooperation and an India–Taiwan memorandum of understanding.
  • SHARDLOADER sideloaded a malicious DLL through legitimately signed Solid PDF Creator or Citrix Receiver binaries, then deployed an implant.
  • ZOHOMURK used hardcoded Zoho OAuth credentials to read commands from an attacker-controlled Zoho WorkDrive inbox and write stolen data to an outbox.
  • MINIRECON beaconed over WebSocket on HTTPS; the campaigns also used Zoho WorkDrive as a covert command channel and for data exfiltration.
Defensive Notes
  • Monitor for geopolitical-themed lures and malicious DLL sideloading through signed binaries.
  • Hunt for the reported persistence Run keys and the scheduled task named SolidPDFPcl2Bmp.
  • Flag endpoint processes making cloud API calls they have no legitimate reason to use, including suspicious Zoho WorkDrive activity.
  • Acronis and CERT-In shared indicators and hunting guidance; the article says there is no patch to apply.

Indicators of compromise

TypeIndicatorContext
DOMAINcouldinstallup[.]comC2 domain listed by the article as an indicator for the campaigns.

MITRE ATT&CK

Threat Actors

Malware

Vendors

Products

Countries

Industries

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