GodFather Malware Evolution: Virtual Hijacking of Banking Apps Redefines Android Threats

Introduction: A New Era in Mobile Malware Tactics

The GodFather malware has returned, but not as we knew it. In a significant leap from previous versions, this Android banking trojan now uses virtualization—yes, virtualization—to hijack real financial applications. This marks a revolutionary shift in how malware operates on mobile devices, particularly Android. Rather than deploying typical fake overlays or phishing screens, GodFather goes deeper: it creates a hidden sandbox on the victim’s device, runs actual banking or crypto apps within that environment, and intercepts user interactions in real-time. The result? A near-perfect deception that’s nearly undetectable to both the user and many security tools.

The campaign currently targets Turkish banks but has the technical capability to scale globally. It exploits Android’s accessibility services, hooks into major frameworks like Xposed, and manipulates the ZIP structure of app files to hide its code and bypass static detection. In essence, GodFather redefines what’s possible in mobile malware—and that’s a problem the entire cybersecurity ecosystem must address urgently.

the Original

Zimperium’s zLabs has uncovered a radical advancement in the GodFather Android banking trojan. Unlike previous malware that used static overlays to trick users, the new GodFather version virtualizes entire apps in a sandboxed environment created on the victim’s device. This virtualization enables it to run real banking and crypto applications inside a controlled space where it can observe and manipulate user behavior undetected.

The malware targets Turkish banks and utilizes various advanced techniques to remain hidden. It alters APK ZIP structures and manipulates Android Manifest files with misleading flags like “\$JADXBLOCK,” effectively tricking static analysis tools. It stores its payload in the assets folder and leverages session-based installations and accessibility services to monitor user input, grant permissions, and exfiltrate stolen data using encoded URLs.

GodFather leverages open-source tools like Virtualapp and Xposed to hijack apps by launching them within a container app (process: com.heb.reb:va_core). By doing so, it gains access to the app’s API calls, data streams, and session activities. It even replicates the target app’s environment, including package names and security configurations, in files like package.ini.

When a user launches their legitimate banking app, the malware intercepts the attempt and instead opens a virtualized version inside its sandbox. With full access to accessibility services and injected proxy tools, it can mimic the original app’s behavior flawlessly, stealing credentials in real-time without raising suspicion.

Zimperium emphasizes that this method gives attackers full control over the app’s behavior while bypassing usual security measures like root detection. The malware also hooks into libraries like OkHttpClient to intercept sensitive information, including usernames and passwords. In addition, it can create lock screen overlays to steal PINs or patterns.

With modular commands capable of simulating gestures, faking updates, launching fake screens, and adjusting screen settings, GodFather can operate almost invisibly. It’s been found targeting over 484 apps globally, although the current campaign is laser-focused on Turkish financial institutions. Compared to previous threats like FjordPhantom, this marks a dangerous escalation in mobile malware sophistication.

What Undercode Say:

GodFather’s latest iteration is a serious wake-up call for both cybersecurity professionals and the banking sector. Its use of virtualization—essentially spinning up a fake internal Android OS—is not just clever; it’s game-changing. For years, malware focused on deceiving the user through visual tricks. Now, it’s deceiving the system itself by embedding real apps inside a hostile container where it controls the rules.

What makes this particularly dangerous is the illusion of authenticity. Users aren’t interacting with a fake UI or phishing screen—they’re engaging with their real banking app. That makes traditional user awareness campaigns less effective. No blinking indicators, no spelling errors, no mismatched logos—just a real app in a fake world.

The use of accessibility services and API hooking frameworks like Xposed gives GodFather near-total control of the device’s behavior. It can intercept network traffic, modify in-app behaviors, and log sensitive data silently. Even security mechanisms such as checking for rooted devices are bypassed because the app doesn’t know it’s being virtualized.

This is also a prime example of how open-source tools, when repurposed maliciously, become double-edged swords. Tools like Virtualapp were never designed for cybercrime, but here they serve as the backbone of an invisible attack infrastructure. It’s a grim reminder that open innovation must be balanced with cautious oversight.

From a policy and cybersecurity strategy perspective, the implications are huge. Google’s Play Store vetting processes, anti-malware scanners, and device manufacturers will need to rethink how to monitor and block virtual containers. Additionally, banking apps must start incorporating virtualization-detection mechanisms and runtime integrity checks.

This also exposes a regulatory gap. Few security standards currently account for sandbox-based malware. Cybersecurity frameworks must evolve to address not just file-based anomalies but behavioral anomalies in virtual environments.

Finally, we must consider the geopolitical implications. While this campaign is currently focused on Turkey, the technology can easily be adapted and scaled to target institutions in Europe, the Americas, and Asia. It wouldn’t be surprising if we see copycats using similar virtualization tactics to target e-commerce, healthcare, or even government apps.

The next wave of mobile security will not be about keeping malware out—it will be about detecting when the environment itself has been hijacked from within.

🔍 Fact Checker Results

✅ Zimperium zLabs did release a report confirming virtualization use in GodFather malware.
✅ The malware targets over 484 apps globally, with a current focus on Turkish financial institutions.
✅ Tools like Virtualapp and Xposed are verified to be used in creating the malicious virtual environments.

📊 Prediction

The GodFather malware will likely expand beyond Turkish banks within the next 6–12 months, targeting high-value institutions in Europe and Southeast Asia. As virtualization becomes a preferred method for bypassing app security, we expect a surge in mobile malware using similar sandboxing strategies. Financial and crypto apps without runtime environment verification could become primary victims in the next major cybercrime wave. Expect more regulation and increased scrutiny on mobile app architecture, especially those tied to financial services.

References:

Reported By: securityaffairs.com
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