According to a joint advisory released by CISA, the FBI, and MS-ISAC, U.S. federal agency's Microsoft Internet Information Services (IIS) web server was hacked gaining access to the server between November 2022 and early January 2023, by exploiting the Progress Telerik UI security vulnerability. As per sources, at least two threat actors, in which one of them, the Vietnamese XE group, had accessed the unpatched server by exploiting CVE-2019-18935, a critical .NET deserialization vulnerability in the Progress Telerik UI for ASP.NET AJAX component to gain remote code execution. After getting access to the unnamed federal civilian executive branch (FCEB) agency's server, hackers deployed malicious payloads in the C:\Windows\Temp\ folder to collect and exfiltrate information to C2 servers controlled by the hackers. Moreover, the installed malware can deploy additional payloads, evade detection by deleting its traces on the system and open reverse shells for persistence. It can even be used to drop an ASPX web shell to provide an interface for browsing the local system, downloading and uploading files and executing remote commands, but no webshells were observed on the target system because it might have restrictive writing permissions. Furthermore, in November 2021, CISA added Progress Telerik UI security vulnerability to its Known Exploited Vulnerabilities catalog, which orders federal agencies to be patched until May 3, 2022. Unfortunately, the U.S. federal agency failed to patch its Microsoft IIS server until the due date.
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