North Korea-Linked Campaign Uses Malicious VS Code Projects to Target Developers

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Summary

Proofpoint says UNK_DeadDrop used recruitment and code-review lures to target nearly 100 organizations, abusing VS Code project auto-execution to install malware and steal credentials and wallet data. The article also summarizes separate malicious-extension and supply‑

Key points

  • Proofpoint reports that UNK_DeadDrop sent more than 250 emails over six weeks, targeting people at nearly 100 organizations.
  • The lures directed developers to malicious GitHub repositories; opening projects in VS Code could trigger code execution through the runOn: folderOpen feature.
  • The campaign used loaders and a malicious VS Code extension to steal credentials and wallet data. Linux and macOS infection chains also deployed a customized Overlord framework.
  • Proofpoint tracks UNK_DeadDrop separately from Contagious Interview, while describing it as North Korea-linked; the article notes differences in initial access and malware use.
  • Yeeth Security reported three malicious VS Code marketplace extensions using SharePoint and Microsoft Graph API for command-and-control and file operations; it said there was no direct overlap with a publicly documented North Korean campaign.
  • The article also describes separate npm and GitHub campaigns, including TaskJacker, which uses malicious VS Code task files, and campaigns distributing BeaverTail and OtterCookie.

Article Details

Event Type
Reported phishing, malicious developer-tool, and software supply-chain campaigns targeting developers with malware.
Impact
The reported activity used recruitment and code-review lures, malicious GitHub repositories, VS Code extensions, and npm packages to compromise developer systems and steal credentials, wallet data, and files. Proofpoint reported more than 250 emails targeting individuals at nearly 100 organizations. Separately, Expel reported that campaigns stole $12 million in cryptocurrency during the first three months of 2026 and exfiltrated 26,584 cryptocurrency wallets from 2,726 infected developer systems.

MITRE ATT&CK

T1036 · MasqueradingMalicious VS Code extensions were disguised as legitimate services or harmless productivity tools.T1041 · Exfiltration Over C2 ChannelStolen data was exfiltrated to a server over an HTTP POST request.T1056.002 · GUI Input CaptureThe malware displayed a fake security prompt asking users to enter their system password.T1059.001 · PowerShellPowerShell implants were used for credential and data theft in campaigns described in the article.T1059.003 · Windows Command ShellThe Windows infection chain used a CMD file to install a malicious VS Code extension.T1059.004 · Unix ShellShell scripts were used as loaders on macOS and Linux.T1059.005 · Visual BasicA VBScript payload was used in the Windows attack chain.T1059.006 · PythonA Python script was used by malicious extensions for code execution on Linux and macOS.T1059.007 · JavaScriptMalicious JavaScript handled C2 communications and was used in loaders and payloads.T1082 · System Information DiscoveryThe malicious extension supported system reconnaissance.T1105 · Ingress Tool TransferA JavaScript malware loader fetched a next-stage payload from blockchain and public RPC infrastructure.T1195.002 · Compromise Software Supply ChainMalicious npm packages and compromised developer packages were used to deliver payloads.T1555.003 · Credentials from Web BrowsersCampaigns targeted credentials and data from browser wallet extensions.T1566.002 · Spearphishing LinkRecruitment-themed phishing emails contained links to malicious GitHub repositories.T1567.002 · Exfiltration to Cloud StorageA SharePoint site was used as an exfiltration channel by malicious VS Code extensions.

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Countries

AustraliaOver 75% of the targeted entities are located in the U.S., followed by the U.K., Australia, France, Brazil, Germany, India, Israel, Japan, and the Netherlands.BrazilOver 75% of the targeted entities are located in the U.S., followed by the U.K., Australia, France, Brazil, Germany, India, Israel, Japan, and the Netherlands.FranceOver 75% of the targeted entities are located in the U.S., followed by the U.K., Australia, France, Brazil, Germany, India, Israel, Japan, and the Netherlands.GermanyOver 75% of the targeted entities are located in the U.S., followed by the U.K., Australia, France, Brazil, Germany, India, Israel, Japan, and the Netherlands.IndiaOver 75% of the targeted entities are located in the U.S., followed by the U.K., Australia, France, Brazil, Germany, India, Israel, Japan, and the Netherlands.IsraelOver 75% of the targeted entities are located in the U.S., followed by the U.K., Australia, France, Brazil, Germany, India, Israel, Japan, and the Netherlands.JapanOver 75% of the targeted entities are located in the U.S., followed by the U.K., Australia, France, Brazil, Germany, India, Israel, Japan, and the Netherlands.NetherlandsOver 75% of the targeted entities are located in the U.S., followed by the U.K., Australia, France, Brazil, Germany, India, Israel, Japan, and the Netherlands.North KoreaResearchers uncovered UNK_DeadDrop, a North Korea-linked phishing campaign using recruitment and code-review lures on GitHub to push malicious VS Code projects and Overlord malware against developers across nearly 100United StatesOver 75% of the targeted entities are located in the U.S., followed by the U.K., Australia, France, Brazil, Germany, India, Israel, Japan, and the Netherlands.

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