Table of Contents
APT40 is a prolific Chinese state-sponsored cyber espionage group that has been active since at least 2009. Linked to the Hainan State Security Department, a branch of China's Ministry of State Security (MSS), APT40 focuses on collecting intelligence and intellectual property that aligns with China's strategic interests, particularly its naval modernization and the Belt and Road Initiative. This group poses a significant and ongoing threat to government entities, universities, and private companies across a range of sectors, including maritime, defense, aerospace, biomedical research, and more. Understanding APT40's tactics, techniques, and procedures (TTPs) is crucial for organizations to effectively defend against their persistent and sophisticated attacks. To protect against these sophisticated attacks, security logging and monitoring is crucial.
Origins & Evolution
APT40 was first publicly identified in the early 2010s, although its activities are believed to date back to at least 2009. The group is believed to be linked to the Hainan State Security Department, located in Haikou, Hainan Province, China. This attribution is supported by various sources, including threat intelligence reports, government indictments, and joint advisories from multiple nations.
APT40 is known by several aliases, reflecting the different tracking and reporting methodologies used by cybersecurity firms. These include:
BRONZE MOHAWK
FEVERDREAM
G0065
GADOLINIUM
Gingham Typhoon
GreenCrash
Hellsing
Kryptonite Panda
Leviathan
MUDCARP
Periscope
Temp.Periscope
Temp.Jumper
Over time, APT40 has evolved its tactics and techniques to adapt to changing cybersecurity defenses. They have demonstrated a particular ability to rapidly weaponize and deploy exploits for newly disclosed vulnerabilities, making them a highly agile and responsive threat actor. The group's shift towards using compromised Small Office/Home Office (SOHO) devices for Command and Control (C2) demonstrates their adaptability and focus on evading detection.
There are reported connections between APT40 and Hafnium, another Chinese state-sponsored group. While the exact nature of the relationship is unclear, it may involve shared resources, infrastructure, or even operational coordination.
In July 2021, the U.S. Department of Justice (DOJ) unsealed an indictment against four Chinese nationals associated with APT40, specifically linked to a front company called Hainan Xiandun Technology Development Company. This indictment highlighted the group's long-term espionage campaign targeting intellectual property and sensitive information. More recently, in March 2024, New Zealand formally accused the Chinese government of backing an APT40 cyberattack that breached the country's parliamentary network in 2021. In July of 2024, a multi-national, joint advisory was published providing details on the group. Understanding the MITRE ATT&CK framework can help to analyze and understand the groups' tactics.
Tactics & Techniques
APT40 employs a range of tactics and techniques throughout the cyberattack lifecycle, demonstrating sophistication and a deep understanding of their targets' networks. Their operations typically involve the following stages:
Initial Access: APT40 prioritizes exploiting vulnerabilities in public-facing applications and infrastructure. They are known for rapidly weaponizing publicly available Proof-of-Concept (POC) exploits for newly disclosed vulnerabilities, often within days or even hours. Key vulnerabilities exploited by APT40 include:
* Log4Shell (CVE-2021-44228)
* ProxyShell (CVE-2021-31207, CVE-2021-34523, CVE-2021-34473) in Microsoft Exchange servers
* Atlassian Confluence vulnerabilities (CVE-2021-26084, CVE-2022-26134)
* They are also known for using older vulnerabilities, including those from 2017.
While vulnerability exploitation is preferred, APT40 also uses spear-phishing emails, often impersonating prominent individuals like journalists, trade publication representatives, or military/NGO personnel. They may also leverage previously compromised email addresses to increase the likelihood of success. One way to identify such attacks is UEBA.
Execution: Once inside a network, APT40 utilizes various techniques to execute commands and deploy further tools. They frequently employ:
* Command and Scripting Interpreter (T1059): Windows/Unix shell commands and Python scripts.
* Software Deployment Tools (T1072): Secure Socket Funnelling (SSF) for remote command execution and tunneling traffic.
Persistence: A key element of APT40's operations is establishing persistent access to compromised networks. Web shells are a favored method, often deployed early in an intrusion. Multiple web shells may be deployed in different locations to ensure redundancy, emphasizing the need for thorough threat hunting.
Defense Evasion: APT40 employs techniques to avoid detection and hinder analysis. They are known to modify log files (T1070 - Indicator Removal) to cover their tracks.
Credential Access: Obtaining valid credentials is a crucial objective for APT40. They use various techniques, including:
* Kerberoasting (T1558.003): Exploiting Kerberos vulnerabilities to obtain domain credentials.
* OS Credential Dumping (T1003): Extracting credentials from compromised systems.
* Multi-Factor Authentication Interception (T1111) & Steal Application Access Token (T1528): Capturing MFA tokens and JWTs to hijack or create virtual desktop sessions.
* Input Capture: Web Portal Capture (T1056.003): Modifying authentication mechanisms to steal cleartext credentials.
* Network Sniffing (T1040) & Steal Web Session Cookie (T1539): Capturing JWTs by sniffing HTTP traffic with tools like tcpdump.
Discovery: APT40 conducts thorough reconnaissance within compromised networks to identify valuable targets and map network infrastructure. They use tools like
nmap(T1046 - Network Service Discovery) to scan for reachable network services.Lateral Movement: Once initial access is achieved, APT40 moves laterally within the network to access high-value assets. They utilize:
* Remote Services (T1021): SMB and RDP protocols for lateral movement.
* Remote Service Session Hijacking: RDP Hijacking (T1563.002): Hijacking existing virtual desktop sessions using stolen credentials.
Collection: APT40 collects data from various sources, including network shared drives (T1039 - Data from Network Shared Drive) within the victim's Demilitarized Zone (DMZ).
Command and Control (C2): APT40 increasingly uses compromised SOHO devices as operational infrastructure and redirectors (T1001.003 - Protocol Impersonation). This allows them to blend their malicious traffic with legitimate network activity, making detection more challenging. They are reportedly using less victim-facing C2 infrastructure.
Exfiltration: Data is typically exfiltrated over the C2 channel (T1041). APT40 has been observed mounting file shares from the DMZ to compromised appliances to facilitate data exfiltration.
Shared Malware: APT40 shares at least seven non-public malware tools (BADSIGN, FIELDGOAL, FINDLOCK, PHOTO, SCANBOX, SOGU, and WIDETONE) with other suspected China-nexus operators. Utilize VirusTotal to scan malware.
Targets or Victimology
APT40's targeting aligns with China's strategic geopolitical and economic interests. Their operations demonstrate a clear focus on:
Geographic Regions:
* Countries involved in the Belt and Road Initiative.
* The United States, Canada, Europe, the Middle East, and the South China Sea area.
* Historically, Southeast Asia.
Industry Sectors:
* Maritime: Targeting research, designs, and data related to naval capabilities.
* Defense: Acquiring sensitive military information and technology.
* Aerospace: Seeking intellectual property and technological advancements.
* Biomedical Research: Targeting research related to infectious diseases and other areas of strategic importance.
* Engineering: Obtaining designs and plans for various projects.
* Government: Espionage against government entities and personnel.
* Healthcare: Theft of medical research data.
* Telecommunications
* Universities and research institutions
APT40's focus on maritime and defense sectors underscores China's ambition to modernize its naval power and assert its presence in strategic regions. The targeting of universities and research institutions highlights the group's interest in acquiring cutting-edge technologies and research data.
The targeting of industries involved in the Belt and Road Initiative reflects China's broader economic and geopolitical strategy. By obtaining sensitive information related to infrastructure projects and partnerships, APT40 supports China's efforts to expand its global influence. Understanding the cyber security challenges is essential for businesses today.
Attack Campaigns
APT40 has been implicated in numerous high-profile cyber espionage campaigns over the years. Some notable examples include:
Targeting of U.S. and European Defense Contractors (Ongoing): APT40 continues to actively target defense contractors, seeking sensitive military information and intellectual property.
Exploitation of Log4Shell Vulnerability (2021-2022): APT40 was among the first groups to rapidly exploit the Log4Shell vulnerability in Apache Log4j, demonstrating their agility and ability to capitalize on newly disclosed vulnerabilities.
Compromise of Maritime Research Institutions (Multiple Campaigns): APT40 has repeatedly targeted maritime research institutions to steal designs, plans, and data related to naval technology and underwater vehicles.
Targeting of Universities Involved in COVID-19 Research (2020): Reports indicated that APT40 targeted universities involved in COVID-19 research, likely seeking to acquire information related to vaccine development and pandemic response.
New Zealand Parliamentary Network Breach (2021): New Zealand accused the Chinese government via APT40 of breaching its parliamentary network.
Case Study 1 (July-September 2022): Exploitation of a custom web application led to a foothold in a network's DMZ. Compromised credentials, including hardcoded service account credentials, were used for Active Directory queries and data exfiltration. Kerberoasting was employed to obtain additional credentials. Lateral movement was facilitated by multiple access vectors and a flat network structure. Tools like Secure Socket Funnelling (SSF) were deployed. Sensitive data, including privileged authentication credentials and network information, was exfiltrated.
Case Study 2 (April 2022): A remote access login portal was compromised, likely through exploitation of an RCE vulnerability. Hundreds of username/password pairs, MFA codes, and technical artifacts related to remote access sessions were exfiltrated. Escalated privileges were achieved on the compromised appliance. Technical artifacts were collected to potentially hijack or create remote login sessions as legitimate users. An internal SQL server was scraped. Lateral movement attempts were evidenced by interactions with malicious IPs. Patch management is necessary to mitigate vulnerabilities.
Defenses
Protecting against APT40 requires a multi-layered approach that combines proactive vulnerability management, robust security controls, and effective threat detection capabilities. Key defensive strategies include:
Vulnerability Management: Prioritize rapid patching of internet-exposed systems and applications, especially those known to be targeted by APT40 (e.g., Microsoft Exchange, Atlassian Confluence, Apache Log4j). Implement a centralized patch management system and aim to patch critical vulnerabilities within 48 hours.
Network Segmentation: Implement robust network segmentation to limit lateral movement within the network. This can significantly contain the impact of a successful breach.
Least Privilege Access: Enforce the principle of least privilege, granting users only the minimum necessary access rights to perform their job functions.
Multi-Factor Authentication (MFA): Mandate MFA for all internet-accessible remote access services, including VPNs, webmail, and cloud applications.
Web Application Firewalls (WAFs): Deploy and properly configure WAFs to protect public-facing web applications from exploitation attempts.
Endpoint Detection and Response (EDR): Implement EDR solutions to monitor endpoint activity and detect malicious behavior.
Security Information and Event Management (SIEM): Utilize a SIEM system to collect and analyze security logs from various sources, enabling centralized threat detection and incident response. What is SIEM?
Threat Hunting: Conduct proactive threat hunting to identify signs of compromise that may have bypassed existing security controls. Focus on searching for web shells and unusual activity in system directories.
Disable Unnecessary Services: Disable unused or unnecessary network services, ports, and protocols to reduce the attack surface.
Replace End-of-Life Equipment: Replace end-of-life equipment, particularly SOHO devices, as they are often unpatched and vulnerable to exploitation.
Logging: Implement comprehensive logging practices, including web server logs, Windows event logs, and proxy logs. Ensure that logs are retained for a sufficient period to support incident investigations.
Sigma Rules: Utilize Sigma rules to detect anomalous activity, specifically focusing on execution from world-writable directories like
C:\Windows\Temp\*, non-Temp system subdirectories, andC:\Users\Public\*.
Conclusion
APT40 represents a persistent and sophisticated cyber espionage threat with a clear focus on targets of strategic importance to China. Their ability to rapidly exploit new vulnerabilities, coupled with their use of compromised infrastructure and advanced techniques, makes them a formidable adversary. Organizations in targeted sectors, particularly maritime, defense, and research institutions, must prioritize cybersecurity and implement robust defenses to mitigate the risk of APT40 intrusions. Continuous vigilance, proactive threat hunting, and strong collaboration between government and private sector entities are essential to counter this ongoing threat. To enhance security, consider zero trust security.
Found this article interesting? Keep visit thesecmaster.com, and our social media page on Facebook, LinkedIn, Twitter, Telegram, Tumblr, Medium, and Instagram and subscribe to receive tips like this.
You may also like these articles:
Chinese State Hackers Breach BeyondTrust Enabling US Treasury Cyber Intrusion
Chinese APT Group Earth Estries Targets Critical Infrastructure with Advanced Cyber Attacks
Intel 471: Report Highlights Evolving Cyber Threats from Chinese APT Groups
Digital PR Firms Unmasked in Global Pro-China Influence Operation Network
Arun KL
Arun KL is a cybersecurity professional with 15+ years of experience in IT infrastructure, cloud security, vulnerability management, Penetration Testing, security operations, and incident response. He is adept at designing and implementing robust security solutions to safeguard systems and data. Arun holds multiple industry certifications including CCNA, CCNA Security, RHCE, CEH, and AWS Security.
- February 24, 2025
- February 24, 2025
- February 24, 2025
- February 24, 2025
Learn Something New with Free Email subscription
Learn Something New with Free Email subscription
Subscribe
Subscribe
Subscribe
Subscribe
- February 24, 2025
- February 24, 2025
- February 24, 2025
- February 24, 2025
