China-based TA416 Targets European Businesses via Phishing Campaigns

Chinese state-sponsored attacks

A China-based hacker is targeting European government and diplomatic entities; the attack started in mid-2025, after a two-year period of no targeting in the region. The campaign has been linked to TA416; the activities coincide with DarkPeony, Red Lich, RedDelta, SmugX, Vertigo Panda, and UNC6384.

According to Proofpoint, “This TA416 activity included multiple waves of web bug and malware delivery campaigns against diplomatic missions to the European Union and NATO across a range of European countries. Throughout this period, TA416 regularly altered its infection chain, including abusing Cloudflare Turnstile challenge pages, abusing OAuth redirects, and using C# project files, as well as frequently updating its custom PlugX payload.”

Multiple attack campaigns

Additionally, TA416 organized multiple campaigns against the government and diplomatic organizations in the Middle East after the US-Iran conflict in February 2026. The attack aimed to gather regional intelligence regarding the conflict.

TA416 also has a history of technical overlaps with a different group, Mustang Panda (UNK_SteadySplit, CerenaKeeper, and Red Ishtar). The two gangs are listed as Hive0154, Twill Typhoon, Earth Preta, Temp.HEX, Stately Taurus, and HoneyMyte. 

TA416’s attacks use PlugX variants. The Mustang Panda group continually installed tools like COOLCLIENT, TONESHELL, and PUBLOAD. One common thing is using DLL side-loading to install malware.

Attack tactic

TA416’s latest campaigns against European entities are pushing a mix of web bug and malware deployment operations, while threat actors use freemail sender accounts to do spying and install the PlugX backdoor through harmful archives via Google Drive, Microsoft Azure Blob Storage, and exploited SharePoint incidents. The PlugX malware campaigns were recently found by Arctic Wolf and StrikeReady in October 2025. 

According to Proofpoint, “A web bug (or tracking pixel) is a tiny invisible object embedded in an email that triggers an HTTP request to a remote server when opened, revealing the recipient’s IP address, user agent, and time of access, allowing the threat actor to assess whether the email was opened by the intended target.”

The TA416 attacks in December last year leveraged third-party Microsoft Entra ID cloud apps to start redirecting to the download of harmful archives. Phishing emails in this campaign link to Microsoft’s authentic OAuth authorization. Once opened, resends the user to the hacker-controlled domain and installs PlugX.

According to experts, “When the MSBuild executable is run, it searches the current directory for a project file and automatically builds it.”