Iran-linked hackers target Israeli, Egyptian critical infrastructure through phishing campaign

The Iran-tied threat actor MuddyWater targeted critical infrastructure in Egypt and Israel with spyware that masqueraded as the classic Snake game, researchers say.

Active between September 2024 and March 2025, the operation primarily targeted organizations in Israel’s technology, engineering, local government, educational and manufacturing sectors, according to researchers at ESET, who uncovered the campaign.

The new activity unfolded through spearphishing emails which typically featured PDF attachments that included links to installers for spyware hosted on free file-sharing platforms such as OneHub and Mega, according to an ESET blog post.

A new backdoor called MuddyViper allowed attackers to exfiltrate Windows login credentials and browser data, gather system information, transfer files and execute files and shell commands, ESET researchers say.

The custom loader MuddyViper uses, dubbed Fooder, makes the malware harder to detect because of how it mirrors the Snake game. 

MuddyViper shows MuddyWater, which is aligned with the Ministry of Intelligence and National Security of Iran, is evolving technically and has grown more capable at evading detection and remaining persistent, according to ESET.

Fooder “reflectively loads MuddyViper into memory and executes it,” ESET said in a press release. The loader also relies on a custom delay function that implements the “core logic” of the Snake game, combined with “Sleep” API calls, ESET says. 

“These features are intended to delay execution in an attempt to hide malicious behavior from automated analysis systems,” ESET said. “Overall this campaign shows signs of technical evolution – increased precision, strategic targeting and a more advanced toolset.”

After the initial compromise, MuddyWater deployed multiple credential stealers in the attacks, ESET said. These included CE-Notes, which targets Chromium-based browsers; LP-Notes, which “stages and verifies” stolen credentials; and Blub, which steals login data from Chrome, Edge, Firefox and Opera browsers.

MuddyWater first became publicly known in 2017 through its cyberespionage campaigns. In October, the threat actor was linked to a phishing campaign which targeted more than 100 government entities and international organizations across the Middle East and North Africa.

Get more insights with the

Recorded Future

Intelligence Cloud.

Learn more.

No previous article

No new articles

Suzanne Smalley

Suzanne Smalley

is a reporter covering privacy, disinformation and cybersecurity policy for The Record. She was previously a cybersecurity reporter at CyberScoop and Reuters. Earlier in her career Suzanne covered the Boston Police Department for the Boston Globe and two presidential campaign cycles for Newsweek. She lives in Washington with her husband and three children.

 

Total
0
Shares
Previous Post

India Orders Messaging Apps to Work Only With Active SIM Cards to Prevent Fraud and Misuse

Next Post

DOJ takes down Myanmar scam center website spoofing TickMill trading platform

Related Posts

[Webinar] The Smarter SOC Blueprint: Learn What to Build, Buy, and Automate

Most security teams today are buried under tools. Too many dashboards. Too much noise. Not enough real progress. Every vendor promises “complete coverage” or “AI-powered automation,” but inside most SOCs, teams are still overwhelmed, stretched thin, and unsure which tools are truly pulling their weight. The result? Bloated stacks, missed signals, and mounting pressure to do more with less. This
Read More

Hackers Exploit c-ares DLL Side-Loading to Bypass Security and Deploy Malware

Security experts have disclosed details of an active malware campaign that's exploiting a DLL side-loading vulnerability in a legitimate binary associated with the open-source c-ares library to bypass security controls and deliver a wide range of commodity trojans and stealers. "Attackers achieve evasion by pairing a malicious libcares-2.dll with any signed version of the legitimate ahost.exe (
Read More

Konni Hackers Deploy AI-Generated PowerShell Backdoor Against Blockchain Developers

The North Korean threat actor known as Konni has been observed using PowerShell malware generated using artificial intelligence (AI) tools to target developers and engineering teams in the blockchain sector. The phishing campaign has targeted Japan, Australia, and India, highlighting the adversary's expansion of the targeting scope beyond South Korea, Russia, Ukraine, and European nations, Check
Read More