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In August 2025, Counter Menace Unit™ (CTU) researchers investigated an intrusion that concerned deployment of the legit open-source Velociraptor digital forensics and incident response (DFIR) device. On this incident, the risk actor used the device to obtain and execute Visible Studio Code with the seemingly intention of making a tunnel to an attacker-controlled command and management (C2) server. Enabling the tunnel possibility in Visible Studio Code triggered a Taegis™ alert, as this feature can permit each distant entry and distant code execution and has been abused by a number of risk teams prior to now.

The risk actor used the Home windows msiexec utility to obtain an installer (v2.msi) from a Cloudflare Staff area (recordsdata[.]qaubctgg[.]employees[.]dev). This location seems to be a staging folder for attacker instruments, together with the Cloudflare tunneling device and the Radmin distant administration device. This file put in Velociraptor, which is configured to speak with C2 server velo[.]qaubctgg[.]employees[.]dev. The attacker then used an encoded PowerShell command to obtain Visible Studio Code (code.exe) from the identical staging folder and executed it with the tunnel possibility enabled. The risk actor put in code.exe as a service and redirected the output to a log file. They then used the msiexec Home windows utility once more to obtain further malware (sc.msi) from the employees[.]dev folder (see Determine 1).

Velociraptor creating Visual Studio Code tunnel

Determine 1: Course of tree exhibiting Velociraptor creating Visible Studio Code tunnel.

The Visible Studio Code tunneling exercise triggered a Taegis alert that prompted a Sophos investigation. The analysts offered mitigation recommendation that enabled the shopper to shortly implement remediations equivalent to isolating the affected host, which prevented the attacker from attaining their aims. Evaluation means that the malicious exercise would seemingly have led to ransomware deployment.

Menace actors usually abuse distant monitoring and administration (RMM) instruments. In some situations, they leverage preexisting instruments on the focused methods. In others, they deploy the instruments through the assault. The Velociraptor incident reveals attackers pivoting to utilizing incident response instruments to achieve a foothold in a community and decrease the quantity of malware they deploy.

Organizations ought to monitor for and examine unauthorized use of Velociraptor and deal with observations of this tradecraft as a precursor to ransomware. Implementing an endpoint detection and response system, monitoring for sudden instruments and suspicious behaviors, and following greatest practices for securing methods and producing backups can mitigate the ransomware risk. The impression of an assault is tremendously diminished whether it is caught previous to ransomware deployment.

The next Sophos protections detect exercise associated to this risk:

  • Troj/Agent-BLMR
  • Troj/BatDl-PL
  • Troj/Mdrop-KDK

To mitigate publicity to this malware, CTU™ researchers suggest that organizations use out there controls to overview and prohibit entry utilizing the indications listed in Desk 1. The domains might include malicious content material, so contemplate the dangers earlier than opening them in a browser.

IndicatorSortContext
recordsdata[.]qaubctgg[.]employees[.]devArea identifyHosted instruments utilized in August 2025 Velociraptor marketing campaign
velo[.]qaubctgg[.]employees[.]devArea identifyC2 server utilized in August 2025 Velociraptor marketing campaign

Desk 1: Indicators for this risk.

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