Fake Cloudflare Service: A New Cyber Threat Targeting Credentials and Crypto

A Dangerous Malware Disguised as Cloudflare

Cybercriminals are now selling an advanced malware toolkit disguised as a Cloudflare enterprise service, posing a serious threat to businesses and individuals. Known as “Fake Cloudflare Service,” this malware is being marketed on dark web forums, offering attackers undetected payloads that can bypass security measures.

This malicious software is capable of credential theft, cryptocurrency hijacking, and remote command execution (RCE). By leveraging Cloudflare’s infrastructure, the toolkit effectively disguises its traffic, making it difficult for security systems to detect.

Let’s take a closer look at how this malware operates and the significant risks it presents.

How the Fake Cloudflare Malware Works

1. Infiltration and Data Theft

The malware is delivered through obfuscated PowerShell scripts, which help it evade detection. Once installed, it establishes persistence using a Python script (server.pyw) and initiates:

Credential Theft – Extracts browser cookies, saved passwords, and Discord tokens. It specifically targets Phantom Wallet and 30+ browser extensions.
File Exfiltration – Compresses and steals sensitive files, such as private keys, Telegram data, and documents, sending them to an external server via transfer[.]sh.
Authentication Key Theft – Focuses on stealing Axiom and Bullx authentication keys, which are crucial for enterprise API access.

2. Cryptocurrency and Wallet Attacks

The malware includes a multi-chain crypto clipper, capable of intercepting transactions across 20+ blockchain networks, such as Ethereum, Solana, and Binance Smart Chain. It can:

Modify wallet addresses in clipboard data to divert funds.
Target browser-based wallets like MetaMask and software wallets.
Utilize Cloudflare Tunnel (flask_cloudflared) to disguise its command-and-control (C2) traffic as legitimate CDN requests.

3. Remote Code Execution and Phishing Attacks

Attackers can execute arbitrary commands using the /exec feature, which allows direct system access. This aligns with previous vulnerabilities, such as the 2024 Cloudflare cdnjs RCE flaw (CVE-2024-5467), which enabled path traversal attacks.

The malware also abuses Cloudflare Workers to proxy legitimate login pages for services like Microsoft 365 and AWS, capturing user credentials in real-time.

4. Domain Infrastructure for Evasion

To make detection harder, the attackers provide malware buyers with Cloudflare-routed domains, mimicking legitimate traffic. Some sample domains include:

| Domain Type | Example | Purpose |

||–|–|

5. Cloudflare’s Response and Security Concerns

Cloudflare has denied involvement in hosting these malicious domains but acknowledges that its infrastructure has been exploited before.

Security experts highlight that Cloudflare has been used in past cyberattacks, such as:
– Hosting 40% of typosquatting sites (fake domains mimicking real ones).

– Serving 62% of major pirate platforms.

A recent misconfiguration in Cloudflare’s abuse remediation system also led to a 59-minute outage in its R2 storage service, revealing potential security gaps.

What Undercode Say:

Cloudflare as a Cybercrime Enabler?

Cloudflare is widely used for legitimate purposes, but its reverse proxy services have increasingly become a tool for cybercriminals. This raises serious concerns:

Bypassing Security Measures: Attackers use Cloudflare’s encryption and traffic masking features to hide malware activity.
Legitimizing Malicious Domains: Since Cloudflare shields site origins, many phishing campaigns appear more trustworthy.
Delayed Detection and Takedown: Cloudflare’s abuse reporting system is slower than traditional hosting providers, giving attackers more time to exploit victims.

Advanced Malware and Evolving Threats

The “Fake Cloudflare Service” malware is a highly sophisticated threat that combines multiple attack methods:

Obfuscation Techniques – PowerShell scripts and Python-based persistence make detection harder.
Cloudflare Tunnels for C2 Communication – Prevents security tools from flagging malicious traffic.
Multi-Layered Attacks – Credential theft, file exfiltration, and crypto transaction manipulation all in one package.

This type of malware represents a growing trend where legitimate enterprise services are abused to create highly deceptive and dangerous cyber threats.

Security Implications for Businesses and Individuals

For businesses, this attack highlights the need for stronger authentication and monitoring:

Enable Multi-Factor Authentication (MFA) – Prevent unauthorized API key usage.
Monitor Cloudflare Tunnel Traffic – Look for unusual encrypted requests.
Use Behavioral Analysis Tools – Detect obfuscated PowerShell scripts and unusual clipboard activity.

For individuals, extra precautions should include:

Never clicking on Cloudflare-branded login pages unless verified.
Using hardware wallets instead of browser-based crypto wallets.
Regularly checking for unauthorized transactions or changed clipboard data.

Could This Be the Start of a New Malware Trend?
With the increasing abuse of SaaS and cloud platforms, cybercriminals may continue to weaponize services like Cloudflare, Google Cloud, and AWS for stealthy malware campaigns. This attack should serve as a warning:

Security solutions must evolve beyond traditional detection methods.
Cloud service providers should implement stricter abuse monitoring.
Users must be more vigilant against phishing and malware disguised as trusted services.

The weaponization of legitimate platforms is a growing cybersecurity crisis, and organizations must proactively adapt to new threats before they become widespread.

Fact Checker Results:

Cloudflare has not confirmed hosting these malicious domains, but its services have been exploited before.
Security researchers warn that SaaS abuse is increasing, making this attack highly plausible.
Using Cloudflare Tunnels for C2 communication is a known technique, reinforcing the credibility of the threat.

This malware is a serious risk, and cybersecurity experts urge organizations to enhance monitoring and authentication measures to mitigate potential attacks.

References:

Reported By: https://cyberpress.org/fake-cloudflare-services/
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