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Microsoft warns of TerminalFix attacks deploying reverse tunnels

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Why This Matters

Microsoft's discovery of TerminalFix highlights a sophisticated attack method that leverages fake CAPTCHA prompts and steganography to establish reverse tunnels into internal networks. This technique poses significant risks for organizations, enabling lateral movement, privilege escalation, and data theft, which could lead to widespread security breaches or ransomware deployment. The evolving complexity of such threats underscores the need for enhanced detection and user awareness in cybersecurity defenses.

Key Takeaways

A new ClickFix variant dubbed TerminalFix uses fake Cloudflare CAPTCHA prompts on compromised websites to trick victims into executing malicious PowerShell commands in Windows Terminal.

Unlike typical ClickFix attacks that often lead to infostealer malware infections, this campaign uses a multi-stage intrusion chain that ultimately gives attackers a reverse tunnel into the victim’s internal network.

TerminalFix differs from normal ClickFix attacks in that it directs users to Windows Terminal or PowerShell, which enables successful execution of more complex, multi-line scripts.

Microsoft discovered the attacks in the wild but did not observe hands-on activity. However, the researchers warn that access obtained this way could be leveraged for lateral movement, privilege escalation, credential theft, disabling security tools, data exfiltration, or deploying ransomware.

The infection begins with a fake CAPTCHA prompt that instructs victims to execute a PowerShell command preloaded into the clipboard as part of the purported verification process.

The ClickFix step

Source: Microsoft

The command downloads a ZIP archive that contains a legitimate signed executable and a malicious DLL file, which decodes and launches an obfuscated payload directly in memory.

For the second stage, the threat actor used steganography to hide executables and DLL fragments in the pixel data of three PNG images. The script downloads the image files from the command-and-control (C2) server and reassembles the embedded payloads on the disk.

Retrieving code from three steganographic images

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