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Chinese hackers hijack auth flow, spy on isolated network for a decade

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Why This Matters

The discovery of a decade-long Chinese cyber-espionage campaign highlights the persistent and sophisticated nature of state-sponsored hacking groups targeting critical infrastructure. This underscores the urgent need for organizations to enhance security measures, especially around internet-facing systems and air-gapped networks, to prevent prolonged undetected intrusions. For consumers and industry alike, it emphasizes the importance of robust cybersecurity practices to safeguard sensitive data and infrastructure from advanced persistent threats.

Key Takeaways

Chinese hackers took control of a target organization's authentication stack and maintained persistence for 10 years, with full visibility into the administrative activity.

Dubbed "Operation Highland," the intrusion is attributed to the Velvet Ant cyberespionage threat group, which targeted vulnerable internet-facing systems before pivoting to a network with no direct external path.

Chinese hackers of the “Velvet Ant” activity cluster breached the isolated critical infrastructure network of a large organization and conducted cyber-espionage operations for 10 years.

The campaign, dubbed “Operation Highland” by Sygnia researchers who discovered it, began in 2016, targeting vulnerable internet-facing systems before pivoting to an “air-gapped” environment with no direct internet connection.

Velvet Ant’s lengthy espionage operations were documented in 2024, when Sygnia warned of a campaign targeting F5 BIG-IP devices that operated undetected for three years.

Also in 2024, Cisco warned of a zero-day in NX-OS running on Nexus switches, which was exploited by Velvet Ant to gain access to targets.

Velvet Ant attack chain

The attack begins with the compromise of internet-facing servers, though the researchers don’t mention the specific product or any vulnerability used.

Velvet Ant deployed a modified GS-Netcat reverse shell disguised as a legitimate system component that connected to a hardcoded relay domain, providing encrypted remote shell access.

The shell achieved persistence either via a malicious systemd service or through startup script modification.

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