North Korean Hackers Turn VS Code Projects Into Silent Malware Triggers

 

Opening a project in a code editor is supposed to be routine. In this case, it is enough to trigger a full malware infection.

Security researchers have linked an ongoing campaign associated with North Korean actors, tracked as Contagious Interview or WaterPlum, to a malware family known as StoatWaffle. Instead of relying on software vulnerabilities, the group is embedding malicious logic directly into Microsoft Visual Studio Code (VS Code) projects, turning a trusted development tool into the starting point of an attack.

The entire mechanism is hidden inside a file developers rarely question: tasks.json. This file is typically used to automate workflows. In these attacks, it has been configured with a setting that forces execution the moment a project folder is opened. No manual action is required beyond opening the workspace.

Research from NTT Security shows that the embedded task connects to an external web application, previously hosted on Vercel, to retrieve additional data. The same task operates consistently regardless of the operating system, meaning the behavior does not change between environments even though most observed cases involve Windows systems.

Once triggered, the malware checks whether Node.js is installed. If it is not present, it downloads and installs it from official sources. This ensures the system can execute the rest of the attack chain without interruption.

What follows is a staged infection process. A downloader repeatedly contacts a remote server to fetch additional payloads. Each stage behaves in the same way, reaching out to new endpoints and executing the returned code as Node.js scripts. This creates a recursive chain where one payload continuously pulls in the next.

StoatWaffle is built as a modular framework. One component is designed for data theft, extracting saved credentials and browser extension data from Chromium-based browsers and Mozilla Firefox. On macOS systems, it also targets the iCloud Keychain database. The collected information is then sent to a command-and-control server.

A second module functions as a remote access trojan, allowing attackers to operate the infected system. It supports commands to navigate directories, list and search files, execute scripts, upload data, run shell commands, and terminate itself when required.

Researchers note that the malware is not static. The operators are actively refining it, introducing new variants and updating existing functionality.

The VS Code-based delivery method is only one part of a broader campaign aimed at developers and the open-source ecosystem. In one instance, attackers distributed malicious npm packages carrying a Python-based backdoor called PylangGhost, marking its first known propagation through npm.

Another campaign, known as PolinRider, involved injecting obfuscated JavaScript into hundreds of public GitHub repositories. That code ultimately led to the deployment of an updated version of BeaverTail, a malware strain already linked to the same threat activity.

A more targeted compromise affected four repositories within the Neutralinojs GitHub organization. Attackers gained access by hijacking a contributor account with elevated permissions and force-pushed malicious code. This code retrieved encrypted payloads hidden within blockchain transactions across networks such as Tron, Aptos, and Binance Smart Chain, which were then used to download and execute BeaverTail. Victims are believed to have been exposed through malicious VS Code extensions or compromised npm packages.

According to analysis from Microsoft, the initial compromise often begins with social engineering rather than technical exploitation. Attackers stage convincing recruitment processes that closely resemble

[…]
Content was cut in order to protect the source.Please visit the source for the rest of the article.

This article has been indexed from CySecurity News – Latest Information Security and Hacking Incidents

Read the original article: