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Threat Actors Turn to Supply Chain Attacks to Push Malware

Arete Analysis

Cyber Threats

Arete has observed multiple campaigns of targeted supply chain attacks in which threat actors convince targets to download malware disguised as legitimate software. The tactics displayed are similar throughout the campaigns, regardless of who is launching the attack or what malware is to be downloaded.

Targeting Developers

Nx, an open-source platform designed to manage codebases, experienced a security incident beginning on August 26th that allowed threat actors to publish malicious versions of npm packages and other tools. When unsuspecting developers download and execute the malicious package, the malware can scan the file system, collect credentials, and then post the information to a GitHub repo under the user’s account. It is estimated that at least 1,000 GitHub tokens were leaked, with 90% remaining valid, in addition to legitimate cloud credentials and npm tokens. During these attacks, the malware was typically run on developers’ machines using the Nx Visual Studio Code extension.

Following the remediation of the first incident, there were second and third rounds of this activity by threat actors on the Nx platform, leading to the compromise of additional GitHub auth tokens, cloud-based credentials, and other stolen information that actors could use to launch ancillary attacks. To combat this activity, Nx is removing malicious npm packages as they are identified and working to fix the root cause of the incidents. Nx recommends that users who have encountered malicious repositories assume they have been compromised, stop using the malicious packages, and check for file names. zshrc and .bashrc for any evidence of unfamiliar instructions before removal of the files.

Targeting Crypto Users

Threat actors are distributing malware targeting crypto users through smart contracts on the Ethereum blockchain. A smart contract is a piece of code that sits on the blockchain and automatically executes once the predefined parameters are met and mined into the blockchain. Threat actors abused this native capability by disguising malware as legitimate npm packages to be downloaded by unsuspecting users and used as smart contracts. Once the package is used in a contract, the malicious script runs, executing a malicious command that contacts the threat actors’ command and control (C2) server and can then download additional malware.

What’s unique in this instance is the method of downloading the malware. Typically, malicious packages download second-stage malware by using a script already contained within the package. This gives security-minded users the chance to identify the package’s nefarious purposes by scanning for unusual URLs or commands. However, by using smart contracts to host the URLs where these malicious commands are located, threat actors can improve their odds of evading detection.

One Off or Here to Stay?

These are just two recent and novel examples of supply chain attacks utilizing illegitimate npm packages, and there are always new nefarious npm packages being uploaded to code repository sites like Nx and GitHub. Tricking users into downloading malicious code is a simple way to deploy second-stage malware to unknowing individuals, especially developers who may have admin access to organizations and sensitive tooling. This access allows threat actors to immediately begin ancillary actions without escalating privileges within the environment.

Conclusion and Remediations

Combating the use of malicious npm packages by threat actors can be difficult in organizational settings. Developers should carefully assess each library they implement before deploying it to their organization. As discussed in this article, scanning packages for threats can help identify malicious code, actor-owned C2s, or other suspicious activity, but it isn’t foolproof. Additionally, developers should view code repositories through the lens of monitoring for social engineering attacks. Threat actors can “prop up” their repositories with likes and comments from other fake accounts to bump them towards the top of the repository list. Finally, anytime suspicious activity is suspected from a downloaded npm package, security teams should delete the files and reset passwords.

Sources

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Ransomware Trends & Data Insights: October 2026

Although Akira once again emerged as the most active ransomware group in October, overall ransomware and extortion activity was not dominated by any single threat group and instead remained widely distributed among a variety of threat actors, continuing the trend that began around August. Arete identified 31 unique named threat groups in October, the most observed in a single month so far in 2026. In addition to Akira, Settra, and The Gentlemen were among the three most active groups. Several new threat actors also emerged, including BYOD, Kubera Team, QWCrypt, AoQin, Emperador, Osiris Team, and Cinder, with Cinder assessed as possibly part of a threat actor cluster affiliated with the former BlackFile group.

Figure 1. Activity from the top 10 threat groups in October 2026

Throughout the month, analysts at Arete identified several trends behind the threat actors perpetrating cybercrime activities:

  • PHP2Shell emerged as one of the most significant threats in October, with increasing exploitation of the critical PHP vulnerabilities CVE-2026-109618 and CVE-2026-109619. Other notable vulnerabilities included CVE-2026-104286 affecting FortiMail, and CVE-2026-102255, a critical pre-authentication Server-Side Request Forgery (SSRF) vulnerability affecting SonicWall SMA1000 appliances, highlighting continued threat actor interest in internet-facing enterprise infrastructure.

  • International law enforcement operations against cybercriminal groups continued to make headlines in October. German authorities announced the arrest of 28-year-old Russian national Vladimir K., suspected of being a senior operator within the Qilin Ransomware-as-a-Service (RaaS) group. Separately, the FBI arrested an individual with suspected links to ShinyHunters, adding to recent law enforcement activity targeting ransomware and extortion groups, including the disruption of KillSec. While Vladimir K.’s arrest has not yet had a notable impact on Qilin’s operational activity, it could provide law enforcement with greater insight into the group’s infrastructure and affiliate network, potentially supporting further disruption efforts.

  • In early October, “The Luna Moth Files” exposed several files containing alleged internal communications associated with Luna Moth, also known as Silent Ransom Group, revealing insights into the group’s social engineering, data extortion, and victim negotiation operations. However, several claims remain unverified, and the exposure has not notably disrupted the group’s activity thus far, as it was among the top threat actors Arete observed throughout the month.

Sources

  • Arete Internal

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PHP2Shell Exploitation Update

PHP2Shell exploitation activity continues to increase globally, with threat actors targeting the critical PHP remote code execution (RCE) vulnerabilities CVE-2026-109618 and CVE-2026-109619. Researchers recently identified low-volume scanning targeting unpatched or partially mitigated hosts across multiple countries and sectors, and the activity is assessed with moderate confidence as linked to a Korean-speaking operator associated with the Lazarus Group ecosystem. While PHP2Shell (CVE-2026-109618 and CVE-2026-109619) has been patched in PHP 8.5.12, 8.4.27, 8.3.36, and 8.2.35, the separately identified CVE-2026-115560 remains unpatched. 

What’s Notable and Unique

  • PHP2Shell vulnerabilities can cause memory corruption due to improper error handling, potentially allowing threat actors to achieve remote code execution on vulnerable PHP servers.

  • Observed activity includes mass scanning, PHP environment fingerprinting, exploitation attempts, credential and secret theft attempts, and attempts to deliver second-stage payloads and malware.

  • Successful in-the-wild exploitation has also been reported against honeypots, resulting in shell command execution and the retrieval of additional payloads, demonstrating the potential for follow-on malicious activity.

Mitigations

Organizations should prioritize upgrading internet-facing PHP deployments to patched versions, migrating unsupported PHP versions, updating embedded and containerized PHP runtimes, and implementing available Web Application Firewall (WAF) protections as a temporary defense-in-depth measure.

Analyst Comments

PHP2Shell poses a significant security concern due to its potential to enable unauthenticated remote code execution on vulnerable PHP servers. The progression from mass scanning and exploitation attempts to reports of successful command execution demonstrates the potential for these vulnerabilities to support initial access and subsequent malicious activity. Arete has been closely monitoring PHP2Shell exploitation activity and regularly reviewing and updating related indicators to support detection and blocking efforts. Given the potential for remote exploitation and follow-on activity, PHP2Shell represents a high-priority initial-access risk, emphasizing the importance of timely patching and remediation of affected PHP environments.  

Sources

  • PHP shares mitigation for new RCE vulnerability with no patch 

  • PHP2Shell Exploitation Attempts Continue Amid Suspected N. Korea Global Scanning Activity 

  • PHP2Shell Exploit Attempts Hit Millions as Attackers Try to Deploy Mirai Malware 

  • Advisory: PHP2Shell Vulnerabilities (CVE-2026-109618, CVE-2026-109619) 

Article

LiteLLM Supply-Chain Compromise

A software supply-chain attack compromised the release pipeline of LiteLLM, a widely used open-source Python SDK and AI gateway. Attackers leveraged the compromised pipeline on October 21st to publish a malicious LiteLLM version through PyPI and associated Docker registries. The affected release, LiteLLM 1.107.0, contained malware designed to steal credentials, sensitive configuration data, private keys, browser information, and other secrets from compromised systems.

What’s Notable and Unique

  • The incident is particularly significant because LiteLLM provides a common API for applications to interact with AI models from multiple providers. It is reported that the project had approximately 61,800 GitHub stars and 92 million monthly PyPI downloads.

  • Rather than modifying the core LiteLLM application source code, the threat actors reportedly tampered with the installation package itself. The malware was designed for broad credential and information theft and encrypted the collected data before uploading it to the attacker's endpoint.

  • The compromise went beyond one-time credential theft. A malicious Python component launched a detached loader that checked a GitHub-hosted pointer every hour and could download Python code from an external server for execution on the compromised machine. This provided threat actors with a mechanism for subsequent remote code execution.

Analyst Comments

Although the malicious packages were subsequently removed, simply uninstalling or deleting the affected LiteLLM package may not be sufficient, because malicious Python startup files or the detached loader could remain on the host. All exposed information should be rotated immediately, and infected systems should be isolated and rebuilt from clean backups. The most recent clean release prior to the attack, LiteLLM 1.106.2, is currently the suggested recovery version.

Sources

  • LiteLLM release pipeline hacked to distribute info-stealer malware

  • LiteLLM 1.107.0 Compromised: Python Startup Hooks Steal Cloud, AI, and Proxy Credentials

  • The Collector Reaches Beyond Provider API Keys

Article

French Supermarket Cyberattack Highlights Risks in Exposed Refrigeration Controllers

Hundreds of French supermarkets were reportedly affected by a cyberattack in which threat actors compromised internet-connected refrigeration controllers and manipulated temperature and defrost settings, which caused refrigeration units to overheat, resulting in widespread food spoilage and significant financial loss. Impacted refrigeration systems were associated with Danfoss, Copeland, and Dixell, and demonstrated how vulnerabilities in industrial control systems (ICS) can disrupt physical operations without relying on conventional data theft or encryption. The attack also raised concerns about the wider exposure of similar devices, as thousands of refrigeration management interfaces remain accessible from the public internet. The incident highlights the growing risk posed by insecure operational technology (OT), particularly where legacy equipment and remote-management interfaces lack adequate security controls.

What’s Notable and Unique

  • Researchers identified approximately 2,765 internet-accessible Danfoss AK-SM 800A interfaces during assessment. This figure reflects the scope of that research and should not be interpreted as a current count of exposed devices. Publicly accessible management interfaces increase the opportunity for unauthorized access to industrial equipment.


  • Research also identified several security flaws in the Danfoss AK-SM 800A platform, including an authentication bypass command injection that could enable remote code execution and a weakness involving web-server configuration changes. Danfoss addressed these findings through firmware updates.


  • Authorities reported compromised Danfoss AK-SM and AK-SC systems, alongside Copeland XWEB and Dixell XWEB monitoring platforms.

Analyst Comments

The incident demonstrates the business consequences of insufficiently secured industrial infrastructure and reinforces the need to integrate OT security into enterprise risk management. Organizations operating connected facility systems should establish clear ownership of industrial assets, enforce secure remote-access policies, and prioritize remediation based on exposure and operational criticality. The findings also highlight the importance of coordinating security teams with facilities and engineering personnel to ensure that protective measures do not compromise essential operations. A risk-based approach to OT security can help organizations reduce exposure while maintaining the availability and reliability of critical equipment. 

Sources

  • France Supermarket Hacks Expose Risks of Internet-Facing Refrigeration Systems

  • Freeze the Controller, Defrost the Food: Uncovering Vulnerabilities in Danfoss Refrigeration Controllers

  • Attackers Heat French Supermarket Fridges Up to 50°C by Hijacking Danfoss Controllers