Chinese APT Phantom Taurus Targets Organizations with Net-Star Malware

Fast Facts

1. A Chinese-linked hacking group, ‘Phantom Taurus,’ has been conducting covert espionage against government and telecommunications organizations worldwide for over two years, utilizing shared infrastructure but distinct TTPs.
2. It employs unique malware families like Specter, Net-Star, and Ntospy, alongside traditional Chinese hacking tools, to target high-value organizations in Africa, the Middle East, and Asia, especially email servers and databases.
3. Since 2025, Phantom Taurus has used advanced .NET malware, including the IIServerCore backdoor and AssemblyExecuter loaders, capable of in-memory operations and evasion of security measures.
4. The group focuses on diplomatic and defense intelligence, timing attacks with major global events, reflecting China’s geopolitical interests and long-term strategic espionage activities.

Key Challenge

A Chinese state-sponsored hacking group known as ‘Phantom Taurus’ has been conducting espionage activities targeting government and telecommunications organizations across Africa, the Middle East, and Asia for over two years, according to Palo Alto Networks. Although initially identified in 2023 without clear links to Chinese hacking groups due to their unique tactics, they have now been connected through shared infrastructure commonly associated with Chinese advanced persistent threat (APT) groups. This group employs sophisticated malware families like Specter, Net-Star, and Ntospy to infiltrate high-value targets such as foreign embassies and ministries, often aiming to steal diplomatic messages and sensitive governmental data. Their operations are carefully timed to coincide with major global or regional events, highlighting their strategic purpose aligned with China’s geopolitical interests.

The distinguishing feature of Phantom Taurus is its use of specialized malware, particularly the Net-Star suite, introduced in 2025, which targets IIS web servers with advanced backdoors capable of operating entirely in memory to evade detection. Their malware tools support complex commands, allowing attackers to remotely execute code, manipulate databases, and bypass security measures, indicating highly covert, long-term espionage capabilities. Reporting from Palo Alto Networks emphasizes that the group’s activities are carefully planned to gather intelligence on diplomacy, defense, and critical infrastructure, revealing a calculated effort to influence geopolitical dynamics and secure China’s strategic interests worldwide.

Critical Concerns

The Chinese state-sponsored hacking group known as ‘Phantom Taurus’ has been conducting covert espionage operations targeting government and telecommunications organizations across Africa, the Middle East, and Asia for over two years, with a recent link to Chinese infrastructure complicating attribution. Utilizing sophisticated and sometimes unique malware families like Specter, Net-Star, and Ntospy, they exploit vulnerabilities in email servers and databases to exfiltrate sensitive information related to diplomacy, defense, and critical ministries, often aligning their operations with major geopolitical events. Notably, their deployment of advanced tools like the Net-Star malware suite, which operates entirely in-memory through web shell backdoors (e.g., IIServerCore), grants them prolonged access and stealth capabilities while enabling dynamic payload execution and evasion of security measures. This persistent access not only compromises national security but also enables long-term intelligence gathering, amplifying the strategic risks posed by such cyber espionage campaigns to the stability and sovereignty of targeted nations.

Fix & Mitigation

Timely remediation is crucial when dealing with threats like Chinese APT ‘Phantom Taurus’ targeting organizations with Net-Star malware because delays can lead to severe data breaches, operational disruptions, and long-term security compromises, greatly increasing the cost and complexity of recovery.

Containment Measures

• Isolate affected systems immediately to prevent malware spread
• Disable compromised accounts or access points

Investigation and Assessment

• Conduct thorough forensic analysis to identify infection sources
• Assess the extent of data exfiltration or system compromise

Mitigation Actions

• Remove malware from infected machines using specialized tools
• Apply updated security patches and firmware updates

Strengthening Defenses

• Enhance network monitoring to detect unusual activity
• Implement advanced threat detection and intrusion prevention systems

User Awareness

• Notify employees about the threat and advise on recognizing malicious activity
• Conduct targeted training to prevent social engineering attacks

Continuous Monitoring

• Monitor for signs of reinfection or other malicious activity
• Regularly review and update security policies and defenses

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Disclaimer: The information provided may not always be accurate or up to date. Please do your own research, as the cybersecurity landscape evolves rapidly. Intended for secondary references purposes only.

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