New Vidar Variant Uses API Hooking to Steal Data Before Encryption

A recent investigation by Aryaka Threat Research Labs has revealed a new version of the Vidar infostealer that demonstrates how cybercriminals are refining existing malware to make it more discreet and effective. Vidar, which has circulated for years through malware-as-a-service platforms, is known for its modular structure that allows operators to customize attacks easily. 

The latest strain introduces a significant upgrade: the ability to intercept sensitive information directly through API hooking. 

This method lets the malware capture credentials, authentication tokens, and encryption keys from Windows systems at the precise moment they are accessed by legitimate applications, before they are encrypted or secured. 

By hooking into cryptographic functions such as CryptProtectMemory, Vidar injects its own code into running processes to momentarily divert execution and extract unprotected data before resuming normal operations. 

This process enables it to gather plaintext credentials silently from memory, avoiding noisy file activity that would typically trigger detection. Once harvested, the stolen data which includes browser passwords, cookies, payment information, cryptocurrency wallets, and two-factor tokens is compressed and sent through encrypted network channels that mimic legitimate internet traffic. 

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