Avira researchers uncovered a new spyware named ValleyFall, identified in the wild in late April this year. This malware can infect people with a remote-control component also focused on password stealing and keylogging.
In the course of our daily malware detection activities, we’ve discovered a Remote Access Trojan (RAT) in the wild. This RAT is delivered through a downloader and is capable of stealing user passwords by logging their keyboard activities. Following an in-depth investigation, Avira researchers successfully pinpointed the malicious components of this newly-identified malware family, along with their respective servers dispersed worldwide. The majority of these malicious servers have been operational since early April, with one notable exception. This exception was a server that was active from December 22, 2022, which contained several test malware samples. However, this server was swiftly taken offline after we identified it. In this blog post, we aim to discuss the impact of this malware in the wild, provide a technical analysis of the main sample, and narrate the full story behind it. Avira actively detects this new malware family and remains committed to helping our customers protect their data from a variety of threats.
Impact in the wild:
Based on our telemetry, the following image shows the geographical distribution of the ValleyFall malware. On the left we can observe that United States was found to be more affected by this malware, followed by European and Asian countries, while on the right we have the malware server’s distribution, showing the origin of the servers that were used for command and control or malware hosting.
Infection kill chain:
Features
- Keylogger
- Spyware
- Backdoor
- Remote Administration Tool
- Downloader
- Virtualization/Sandbox Evasion
- Security Software Discovery
Technical analysis:
1. The Downloader
The attack commences with a downloader that necessitates elevated privileges, deceptively posing as a significant image. The malware adopts the guise of a small image icon, typically from a graduation certificate (although other variants use resident identification cards or various images), to mislead victims into mistakenly identifying the file as a harmless image. Upon executing it, the malware will download three files in a new directory named C:\Program Files (x86)\Microsoft Silverlight Update\ as it follows: – hosteye.exe – Which is a clean application that is loading a Dynamic Link Library (DLL) named nw_elf.dll and calls its SignalChromeElf exported method. – nw_elf.dll – Which is a malformed version of the original nw_elf.dll file, containing an embedded payload that is loaded into memory when the SignalChromeElf method is called. – ooco.jpg – Which is a clean image, usually the full-size version of the original icon of the downloader, that pops into the victim’s Desktop to make it seem like only an image was opened and nothing else happened.
The downloader also creates persistence for hosteye.exe via Task Scheduler.
The previously described tactics are known to aid in evading detection. They do so by masquerading as Microsoft software and utilizing a legitimate application as the root process. This root process then loads the malicious DLL further.
2. The malicious nw_elf.dll loaded into memory
The clean application hosteye.exe normally loads nw_elf.dll into memory and calls its exported function SignalChromeElf. A legitimate nw_elf.dll would normally be associated with NWJS, which was previously known as node-webkit, used for developing modern desktop applications with Node.js features and third-party modules. Instead, the nw_elf.dll version downloaded at the previous step contains the following exported function which is used to decode an embedded payload that will further be loaded into memory.
As we can observe in the previous image, the payload is decoded via a XOR with 0x7b followed by a subtraction arithmetic that calculates two’s complement.
After decoding the payload, we were able to identify that it uses a shellcode for loading multiple functions from Kernel32.dll such as Sleep, LoadLibraryA, VirtualAlloc, VirtualProtect, FlushInstruction, GetNativeSystemInfo, RtlAddFunctionTable and use them to load and execute another DLL into memory, that is also present in the payload.
While analyzing the DLL embedded in the decoded payload, we have identified the name of the PDB leading to the ValleyFall family name:
3. The ValleyFall malware
We confirmed that this malware family is a new threat in the wild by identifying a version function that was present in the ValleyFall DLL. This function returns the value “2023. 4” which stands for April 2023 as shown in the following image.
In the course of our analysis, we noted numerous malicious functionalities including keylogging, gathering data on the victim, establishing a connection with a command-and-control center, scrutinizing for security software installed on the victim’s machine, and much more. We also observed that the malware scans for virtualization processes in an effort to elude detection and impede further analysis. It accomplishes this by cycling through the current processes and seeking “VMwareService.exe”, “VMwareTray.exe”, and “VMwareUser.exe”. These specific processes are frequently active on virtual machines managed by the VMWare hypervisor.
Further, the security software discovery is done by iterating through all active processes and determining whether the mentioned executable is found to be running. If the executable is present as a running process, the security software is added to a list. The list is then checked for whether it is empty or not, and if it is found to be not empty, the malware then exits. Moreover, the malware identifies security software by cycling through all active processes to discern whether a specific security executable is running. The software name is added to a list if the targeted executable is detected. This list is subsequently checked to see if it is empty. If the list isn’t empty—indicating the presence of security software—the malware ceases to operate.
The keylogging stage is managed with a mutual exclusion object (mutex), locking the logging session for only the currently executing thread, to avoid multiple instances of the malware creating duplicates in the logged keys.
In addition to the aforementioned functionalities, this malware also pilfers critical computer information. This includes details about the graphics devices, disk and Random Access Memory (RAM) size, the version of Windows installed, the hardware profile, the processor’s specifications, the list of active processes, essential file paths, and more.
Furthermore, this malware contains the functionality to download a PE file on command and execute it on the victim’s machine. This functionality enables the possibility to download another malware that is present on the identified servers.
The downloaded file is then run via a call to the CreateProcessW Win32 API. After it downloads and runs the desired file, it is also capable of creating persistence for said file in the victim’s registry, via the usual Run key.
In the end, for all the previously mentioned capabilities to make sense, this malware connects to one of its Command and Control (C&C) servers to get the stolen data and send commands to be executed on the infected machine. First, it gets the required IP and port, by reversing some values present in plaintext in the decoded payload (the values represent the IP, port and some verification value used by this malware).
From the image above, we can see that there are 3 connections, namely 103.39.231.7:7780, 127.0.0.1:8888 and 127.0.0.1:80. The last 2 will be used to generate traffic to hinder the analysis process. Moving on, it then obtains the appropriate virtual function table (vftable) for the connection protocol to be used (local traffic is made via UDP, whilst traffic towards the C&C is made via TCP), obtained from the vftable attribute of the CTcpSocket class, respectively from CUdpSocket.
After the aforementioned actions, it connects to the C&C.
Malware servers:
While tracking and establishing the malware network, we’ve identified numerous malicious servers associated with the ValleyFall family. Furthermore, we were able to pinpoint various threats stored on these servers. These range from clean files that are exploited to load malicious DLLs—as depicted in our research—to other variants of nw_elf.dll and numerous recognized backdoor payloads. Some files appeared as simple text files, but their contents were in fact malicious PE files intended for loading on the target machine. We observed that the oldest active server dates back to late December 2022, but the malware was first detected in the wild in early April.
Some of the identified servers had the number of hits present. This information is useful as it depicts the number of downloads that were initiated from those servers. We observed that a main backdoor payload was downloaded over 670.000 times in a timeframe of 17 days, showing the prevalence and the impact of this new malware family.
Conclusions:
Emerging threats, novel malware families, and spyware attacks are persistent risks. At Avira’s Vulnerability and PE Detection lab, we tirelessly monitor malicious activities and analyze the latest malware trends. Our goal is to equip our customers with superior protection and detection capabilities.
Throughout this article, we’ve delved into the intricate workings of a new malware family which emerged in the wild and had a significant impact in a short period. Primarily targeting the US user base, most of the malware servers are located in China/Hong Kong. This new malware family, which we’ve termed ValleyFall, has been classified as a Backdoor/Remote Access Trojan. Its capabilities encompass keyboard logging, virtualization detection, security software detection, information gathering, and communication with a Command-and-Control server, among others. Our investigation began with a single dubious sample, leading us to unearth a multitude of servers related to this malware. Each server housed different versions of ValleyFall, along with other test samples and well-known backdoor payloads.
How to prevent infection and stay safe online:
- It is always good to double check the files that you download from the internet.
- Avoid executing files on your device if you are unsure about their provenience.
- Double check a file extension before executing it, for as we have presented in this research, the ValleyFall malware was delivered by a downloader masquerading as an image.
- If you receive files in emails, check the spelling of the product name/mail subject, even if you think that the mail has been sent by official product sellers.
- Avoid clicking on links in emails you received from an unknown sender.
MWhen opening email attachments, especially executables, Office documents, HTML pages, ZIP and RAR archives, make sure you expected to receive this document and that it is trustworthy, otherwise we advise you to not open it before scanning said file with a strong cyber safety solution.
- Use a strong cyber safety solution such as Norton, Avast, or Avira to make sure you are protected against these types of malware.
MITRE ATT&CK:
Downloader
TACTIC | ID | TECHNIQUE |
Defense Evasion | T1036.005 | Masquerading: Match Legitimate Name or Location |
Persistence | T1053 | Scheduled Task/Job |
Execution | T1053 | Scheduled Task/Job |
Discovery | T1518 | Software Discovery |
T1057 | Process Discovery | |
T1012 | Query Registry |
Loader DLL (nw_elf.dll)
TACTIC | ID | TECHNIQUE |
Defense Evasion | T1036.005 | Masquerading: Match Legitimate Name or Location |
T1112 | Modify Registry | |
T1027 | Obfuscated Files or Information | |
T1027.009 | Obfuscated Files or Information: Embedded Payloads | |
T1140 | Deobfuscate/Decode Files or Information | |
T1055 | Process Injection | |
T1574.001 | Hijack Execution Flow: DLL Search Order Hijacking | |
Discovery | T1083 | File and Directory Discovery |
T1012 | Query Registry | |
Persistence | T1574.001 | Hijack Execution Flow: DLL Search Order Hijacking |
ValleyFall
TACTIC | ID | TECHNIQUE |
Defense Evasion | T1112 | Modify Registry |
T1027 | Obfuscated Files or Information | |
T1497 | Virtualization/Sandbox evasion | |
T1518.001 | Software Discovery: Security Software Discovery | |
Persistence | T1547.001 | Boot or Logon AutoStart Execution: Registry Run Keys / Startup Folder |
Discovery | T1622 | Debugger Evasion |
T1518 | Software Discovery | |
T1518.001 | Software Discovery: Security Software Discovery | |
T1010 | Application Window Discovery | |
T1083 | File and Directory Discovery | |
T1057 | Process Discovery | |
T1012 | Query Registry | |
T1082 | System Info Discovery | |
T1614 | System Location Discovery | |
T1016 | System Network Configuration Discovery | |
T1033 | System Owner/User Discovery | |
Collection | T1056.001 | Input Capture: Keylogging |
Credential Access | T1056.001 | Input Capture: Keylogging |
Command and Control | T1102 | Web Service |
T1095 | Non-Application Layer Protocol | |
T1132.001 | Data Encoding: Standard Encoding | |
T1041 | Exfiltration Over C2 Channel |
IOCs:
Samples:
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2cecf1443c1143d075c5d96d61b4934bd2d2d005e35dbef7cad7354ee09560bb
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0a62d54d9fce314751e98d0c9f5a8ab9fd8187e2e8254f2b49811751bc7b91d1
0bf44ab95c084855ec5363dedd17f3f2c14a0b7fed45352efe4d9ab5e5edfbd1
0ca299333c426db2bfcffdc028fedf5005380b7926035b760f5b3affcbba5909
0d577bb6c870455c8bb166cfa4508d18e81c5f9b1338064c8bfa868f230d7dad
0d928df99d07ed945b8327920640cf95de1b2900be474caa040ddb59d22fed7b
0da154c7e09aa27ff7c70a4151bd35402ed7ae27cc2318d10c13154b18b8adfb
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1b5d262984549cab8d95b59e9d77a85aec5c439def572ed96d52618634e377c7
1c81c28fce551611ed8b2ab7ee554432ca893afcd4530af8bd6c717e637281de
1f077ae0f82a4212cfd8cd8e16e8fe8d0e2544e97a4c081d26d0473e094f9720
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2e0afc6c7a4b11c0928b6c1ccbc03c241a8820005ea9f00b08868ca7e7fb7bb0
2e0f4a3fca4fbd851c6eeb8589742a5617627b8cde440ae037739f5d0b5f385a
2f8dab77cb4b125c126b6164bfe06df474c832676d9817787b7b67bdefe53201
2f93657ad814e3de0adb5c1e2509a175d6187a8b7321625f2ccaf493ee251839
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30c69aa08b43f898f6531bbe2cb5dbcdc44ae444dfb214fe509808f1240fda3a
319b5f1d1b75dd8dd4e43240ae5b1214a9affef5b26f8adf267ee585e744d1eb
3218b4ecc2f4ad48de0c3efebe46324a1cef7fc6ea986fc7c3642164f02408e0
32a02267f8e2b2cb8efd153e60af8572703fb6a17107c34ecb7a56bdfe1b0286
32f5ba97e616e15a0a73ea90b787abc3b4d89775c3f39c154cd2929e4b9c5b7b
33be63331bd9065b44f819c1f9226b6045a9fabde809cafb444253a50d457493
33cec7575d1f72b0d5915a95d45add54788a6888fadcc43eb554f4fd6fc17e84
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Servers:
43.249.31.3:9751
43.249.30.55
43.249.172.222:9751
45.195.149.177
45.204.71.133
45.204.1.206
45.205.1.7
45.205.1.30
47.96.38.160:8160
47.98.133.57:3357
103.39.229.124:9751
103.39.231.7
103.44.244.84
103.148.186.124
104.233.220.14:9996
https://4-27.oss-cn-hangzhou.aliyuncs.com/ (106.14.229.114)
107.148.10.3:9751
112.124.64.7:4647
119.91.142.14:9751
121.199.161.215:1215
https://oss-cn-hangzhou.aliyuncs.com (121.199.204.177)
139.224.13.184
http://bluest.cc:6121/down/ (107.148.55.56:6121)
129.226.222.90
154.12.79.129
154.39.250.164
154.39.251.140
154.39.251.179
154.55.135.17
154.55.135.37
154.55.135.84
154.55.135.186
175.27.230.178:888
192.74.237.20:9751
202.79.168.210:9751
202.95.11.66
202.95.14.162
202.95.14.185
202.95.14.154
goou56.xqwjhtz.com:9751
goou56.xqwjhtz.com:6121
goou56.xqwjhtz.com:9752
About the authors:
Marian Gusatu (Specialist Threat Researcher), discovered this new threat and together with Alexandru-Cristian Bardas (Specialist Threat Researcher), and Stefan Nicula (Senior Threat Researcher), efficiently worked on this complete research, including hunting for other variants of this malware, building up the server hive, the malware analysis process and detection enhancements against this newly emerged threat. They work together for GenDigital in Romania and their expertise lies in reverse engineering, malware analysis and vulnerability research from both offensive and defensive perspectives.