Chinese Mustang Panda Hackers Deploy Infostealers via CoolClient Backdoor

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What happened

Chinese Mustang Panda hackers deploy infostealers via CoolClient backdoor as researchers reported that the China-linked espionage threat group Mustang Panda updated its longstanding CoolClient backdoor to include new infostealer capabilities that can capture login credentials from web browsers and monitor clipboard content. According to analysis by Kaspersky, the updated CoolClient variant has been observed in recent campaigns and is used to harvest sensitive data and may deploy additional components such as a previously unseen rootkit in later stages. The backdoor has been associated with Mustang Panda activity since at least 2022 and is often deployed as a secondary foothold alongside other implants like PlugX and LuminousMoth. The group’s evolution of these tooling capabilities underscores ongoing refinement of persistent access and data exfiltration methods in targeted operations. 

Who is affected

Government, diplomatic, and enterprise targets aligned with geopolitical interests and sensitive data operations are directly affected by Mustang Panda’s tailored backdoor and infostealer deployment; downstream entities with privileged login use are indirectly at risk of credential compromise. 

Why CISOs should care

The addition of credential theft and clipboard monitoring to an established espionage backdoor increases risk of account compromise, lateral movement, and undetected data exfiltration, particularly when used in conjunction with other C2 tools in advanced persistent threat (APT) campaigns. 

3 practical actions

  • Elevate detection on credential theft: Tune endpoint and network detection to identify browser credential exfiltration and clipboard scanning patterns.

  • Enforce multi-factor authentication: Require MFA on all privileged and high-risk accounts to limit utility of harvested credentials.

  • Harden legacy backdoor vectors: Conduct threat hunting focused on known CoolClient, PlugX, and LuminousMoth indicators across enterprise environments.Â