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Cyber Espionage Campaign Raises Alarms in Canada, U.S., and U.K.
Cybersecurity authorities in North America and Europe are raising red flags over a sophisticated cyber espionage campaign allegedly orchestrated by China-linked hacking groups. These threat actors, notably dubbed Salt Typhoon, have launched coordinated attacks on global telecommunications providers using critical vulnerabilities in widely used network equipment.
the Cyberattack Operation
In a joint advisory issued in June 2025, the Canadian Centre for Cyber Security and the U.S. Federal Bureau of Investigation (FBI) warned of cyber intrusions led by China-affiliated actors known as Salt Typhoon. These attackers exploited a serious vulnerability in Cisco IOS XE software (CVE-2023-20198, with a perfect CVSS score of 10.0) to infiltrate a Canadian telecommunications provider in February 2025. Although the targeted company’s identity remains undisclosed, three network devices were confirmed compromised.
The hackers accessed configuration files and altered at least one to create a Generic Routing Encapsulation (GRE) tunnel, a mechanism used to siphon traffic from the network stealthily. This setup allowed long-term surveillance and data collection, a typical hallmark of cyber espionage.
Security agencies believe the cyber operations were not limited to the telecom sector. There are growing concerns that the attackers may use the compromised Canadian devices as a foothold to breach other systems, emphasizing a broader strategy of network reconnaissance and prolonged data extraction.
These findings correlate with previous intelligence from Recorded Future, which exposed the same Cisco vulnerabilities being weaponized against internet and telecom companies in the U.S., Italy, and South Africa. GRE tunnels were again used to maintain hidden access and exfiltrate sensitive information over extended periods.
In a related disclosure, the U.K. National Cyber Security Centre (NCSC) reported the emergence of two malware families — SHOE RACK and UMBRELLA STAND — specifically targeting Fortinet FortiGate 100D firewalls. These tools are designed for post-exploitation, offering backdoor access, TCP tunneling, and remote command execution.
SHOE RACK, for instance, is a refined tool partly derived from the publicly available reverse_shell utility. Interestingly, this same utility has been weaponized by a Chinese-aligned threat group, PurpleHaze, to create a Windows-based implant named GoReShell. Although it’s unclear if these operations are connected, the parallels in tooling and tactics suggest a broader strategy by Chinese state-sponsored cyber units.
The UMBRELLA STAND malware appears to share code similarities with COATHANGER, a backdoor previously used in an attack on the Dutch armed forces’ network, further linking the malware to known Chinese espionage efforts.
🔍 What Undercode Say:
Critical Infrastructure at Risk
Undercode’s analysis highlights how state-sponsored cyber groups are increasingly targeting edge network devices, such as routers and firewalls, which sit at the frontline of digital communications. These devices are often overlooked during security audits but serve as gateways to sensitive internal systems. Their compromise can result in persistent, nearly invisible access to an organization’s data flow.
A Growing Pattern of Exploitation
The campaign demonstrates a pattern of synchronized, global cyber operations, relying on known but unpatched vulnerabilities. CVE-2023-20198 and its companion CVE-2023-20273 are part of this larger exploit strategy, giving attackers deep access with minimal noise. The reuse of GRE tunnels also illustrates how threat actors prioritize stealthy persistence over immediate disruption.
Multinational Impact and Strategic Espionage
This isn’t just about one company or one country. The victims span Canada, the U.S., Italy, South Africa, and likely more. Such geographical dispersion underlines how espionage is no longer conducted with agents and microfilms — today, it’s executed with code, malware, and network tunnels. The targeting of telecom infrastructure further suggests an intent to intercept or monitor communications, affecting both private sector operations and national security.
Tools Reused, Repurposed, and Upgraded
The technical overlap between SHOE RACK, UMBRELLA STAND, and COATHANGER malware families suggests that Chinese hacking units are sharing resources, refining tools, and repurposing open-source utilities for advanced espionage. The use of reverse_shell in multiple projects — now as part of SHOE RACK and GoReShell — shows the fluidity and adaptability of modern malware ecosystems.
Recommendations for Organizations
Patch critical vulnerabilities immediately (especially Cisco IOS XE and Fortinet firmware).
Monitor edge devices closely for unusual configuration changes or traffic anomalies.
Implement segmentation in critical networks to limit the blast radius in case of a breach.
Use behavior-based threat detection rather than relying solely on signature-based antivirus solutions.
✅ Fact Checker Results:
- CVE-2023-20198 is officially listed as a critical vulnerability with a CVSS score of 10.0.
- GRE tunneling is a known tactic for stealthy traffic redirection used by state-backed actors.
- UMBRELLA STAND and COATHANGER malware have been linked to Chinese cyber espionage campaigns in previous reports.
🔮 Prediction:
With the increase in targeted attacks on edge devices and routers, 2025–2026 will likely see a spike in firmware-focused vulnerabilities being exploited by advanced persistent threat (APT) groups. Telecommunications and critical infrastructure companies are expected to become prime targets as cyber espionage shifts to more covert, long-term access methods. Expect more malware variants like SHOE RACK to emerge, as threat actors continue to evolve their post-exploitation capabilities.
Cyber warfare is evolving — not with bullets, but with bytes. Stay patched, stay monitored, and stay alert.
References:
Reported By: thehackernews.com
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