Tag: Internet of Things (IoT)

  • Tech Firms Dismantle Botnet That Turned 1.3M TV Boxes Into Proxies

    Tech Firms Dismantle Botnet That Turned 1.3M TV Boxes Into Proxies

    Google said today it worked with industry partners to dismantle a botnet made up of more than 1.3 million Android TV set-top boxes that ship with malicious software which secretly rents the user’s Internet connection out to strangers and conducts advertising fraud. Experts involved in the takedown say the action is likely to sever the botnet’s access to more than 10 million additional compromised systems, including other Internet of Things (IoT) products such as Android-based healthcare devices and karaoke machines.

    A report from the Google Threat Intelligence Group (GTIG) said Google has severed ties with Videostrong Technology Co., a TV box manufacturer in China that GTIG and other industry experts concluded was responsible for including malware that enrolled more than 1.3 million set-top boxes in a botnet dubbed “XCPE” (named after one of the malware’s core code components).

    The global distribution of XCPE botnet infections. Image: Google Threat Intelligence Group.

    The report said the XCPE botnet loaded the user’s device with software that makes their Internet address available for resale by multiple “residential proxy” services, which allow customers to rent Internet addresses as a way to anonymize their web traffic or spoof their true location. As detailed in several stories here over the past year, residential proxy services are a major source of unwanted and often malicious traffic, including account takeover activity, advertising fraud, and mass content scraping for AI projects.

    “Videostrong monetized the backdoor by selling access to criminal affiliates and loading those affiliates’ malware modules onto infected devices,” the GTIG post reads, noting that Google took legal action to take down the domains and servers Videostrong used to control the botnet and install additional malware. “A device manufacturer intentionally infecting their users with malware is an unacceptable breach of trust, and represents a serious risk to those users. Without users’ knowledge or consent, infected devices were offered as a distribution mechanism for a wide array of criminal actors.”

    The report notes that while TV boxes made up the the majority of the botnet, the same XCPE malware was found in other Android-based IoT products, including telehealth devices, karaoke machines, and even digital signage systems.

    Google said it requires all Android device makers to pass compatibility and security tests to ensure their products don’t harm users, but that Videostrong nevertheless found a way to load their malicious software immediately after a user boots up one of these devices for the first time (Google says it has since addressed that weakness).

    The GTIG report calls out a number of residential proxy providers whose software development kits were routinely downloaded by devices infected by the XCPE botnet. Those include AppSalt, also known as Honeygain, which is owned by the Vilnius, Lithuania-based Oxylabs. In October 2026, Oxylabs was relaunched under a new brand called Source, after receiving $130 million in funding from private equity firm Warburg Pincus that reportedly valued the business at $3.6 billion. Oxylabs did not respond to a request for comment.

    Another provider linked to the botnet was NetNut, a once sprawling residential proxy company operated by the publicly-traded Israeli company Alarum Technologies. In July 2026, the FBI worked with industry partners to seize hundreds of domains associated with NetNut, saying the company was responsible for operating a separate botnet called Popa that enslaved TV boxes as residential proxies. Other proxy providers named in the GTIG report include EarnFM, Traffmonetizer, Jaguar, LINKFOG, BMW/IPWeb and GaGaNode.

    Google’s announcement credits a number of industry partners, including Synthient, a startup that tracks proxy providers. In January 2026, Synthient published research into the rapid spread of the Kimwolf botnet, which at the time was hammering networks worldwide with record-smashing DDoS attacks. Synthient documented how Kimwolf infected millions of Android set-top boxes virtually overnight, using a widespread vulnerability in these residential proxy services to compromise other Android-based devices inside the local networks of unsuspecting TV box users.

    Synthient’s research caused dozens of residential proxy providers to patch their networks, which helped to fragment the Kimwolf botnet into much smaller pieces that made its incessant and disruptive DDoS attacks far easier for network operators to manage. It also attracted the attention of the Motion Picture Association (MPA), a trade group representing the major Hollywood studios, which partnered with Synthient to purchase and tear apart a number of popular Android TV set-top boxes — including some that were being infected by Kimwolf and other IoT botnets.

    In a report published today, Synthient examined a popular, pre-infected TV box sold under the brand MECOOL by a publicly traded company in China called Skyworth Technology, concluding that MECOOL also bundled the malware from Videostrong Technology Co. and likewise installed AppSalt/Honeygain and other proxy components.

    The MECOOL storefront and marketing. Image: Synthient.com.

    Synthient founder Ben Brundage told KrebsOnSecurity that Videostrong’s malware also distributed software for the proxy service Grass. In our November 2025 story, “Is Your Android TV Streaming Box Part of a Botnet?” we quoted a researcher from Censys who found the popular Superbox TV streaming device bundled Grass’s residential proxy software. We also quoted the Grass founder, who denied any affiliation with the TV box maker.

    That November 2025 story noted that Superbox and similar Android TV set-top boxes gain new customers primarily by engaging influencers on Tiktok and other social networks who praise the product’s ability to offer hundreds of (pirated) pay TV streaming services for a one-time fee.

    Likewise, Synthient’s report observes that the MECOOL set-top boxes exploded in popularity after the product was mentioned in 2023 by the Youtube channel Linux Tech Tips, which has an audience of nearly 17 million subscribers [Linux Tech Tips said in a statement shared with Synthient that it has since updated the video to explicitly frame the product as a scam and have removed all associated affiliate links].

    The popular Youtube channel Linus Tech Tips discussing MECOOL TV streaming boxes.

    The GTIG report estimates the XCPE botnet takedown should sever access to at least 10 million additional compromised devices, noting that the various proxy and ad fraud affiliates of Videostrong “each have diversified distribution channels for their modules beyond XCPE.”

    Synthient’s Brundage echoed that conclusion, calling the 1.3 million number “highly conservative.”

    “The scale of affected devices is likely way higher,” he said. “This is probably the largest operation against backdoored TV boxes that we’ve seen.”

    Further reading:
    Plume Security Labs white paper on the XCPE botnet (PDF)
    Black Lotus Labs writeup on LinkedIn
    TrendAI’s analysis
    Synthient’s list of affected devices, broken down by model number

    Source: Krebs on Security · 2026-11-03

  • Researchers uncover Volt Typhoon’s covert, ephemeral network

    Volt Typhoon, a China-government backed hacking group that has infiltrated America’s critical infrastructure networks for years, has consistently built and dismantled ephemeral malicious infrastructure to burrow into hundreds of sensitive systems undetected, Lumen Technologies’ Black Lotus Labs said in a Wednesday report.

    The covert access operation that researchers call “Silent Train” isn’t a standalone network, but rather a series of compromised small office home office (SOHO) routers, internet of things (IoT) devices and enterprise infrastructure that Volt Typhoon has rapidly rotated through since late 2023. 

    The Chinese threat group has used this chain of short-lived compromised infrastructure to exploit additional vulnerabilities, including zero-days, in network edge devices and gain deeper, persistent access into victim networks, researchers said. 

    “Individual chains are assembled and dismantled every day, with infrastructure continually refreshed,” Michael Horka, principal information security engineer at Black Lotus Labs, told CyberScoop. “Volt Typhoon demonstrated a repeatable capability to rebuild a new chain with different infrastructure in less than two minutes, making the number of nodes at any one moment effectively close to zero.”

    Black Lotus Labs has notified hundreds of victims since it first identified Silent Train activity, including telecom providers, government entities, defense contractors, communication services, universities and IT firms. Other victims spanning critical infrastructure include organizations in the water, energy, transportation, maritime, rail, aviation and emergency services sectors.

    “The ephemeral nature of the framework means our observations should not be interpreted as a complete census of Volt Typhoon activity,” said Horka, who also was the lead researcher on the report.

    The nation-state group’s investment in operational security and preserving access is remarkable, according to Black Lotus Labs.

    “We observed infrastructure assembled in under two minutes, sessions averaging roughly four hours, extensive cleanup, compartmentalization and continued development of new access vectors,” Horka said. “That is considerable effort devoted not even to get into their end targets, but purely to making important operations difficult to discover and trace.”

    Volt Typhoon relied more heavily on Silent Train after the FBI and Justice Department disrupted the KV Botnet in early 2024, researchers said. Earlier this year, U.S. and global authorities warned about a widespread shift in Chinese hacking groups’ use of covert networks riding on compromised common devices.

    The reach of those efforts is extensive and ongoing. Volt Typhoon has exploited and abused more than 27 device classes in Silent Train operations, including edge devices, enterprise management tools, identity and access management systems, networking infrastructure and other technologies. 

    “The diversity matters, but the discipline matters even more,” Horka said. “Specific device types were consistently reserved for particular positions in the chain. It operated less like a collection of randomly compromised devices and more like an organized inventory of capabilities.”

    The threat group has successfully compromised devices and technologies from Fortinet, Cisco, ManageEngine, Ivanti, F5, Check Point, Palo Alto Networks, ServiceNow, TP-Link, Netgear and ArcGIS, researchers said. Black Lotus Labs also observed confirmed zero-day campaigns targeting Versa Director, N-Able N-Central, Cisco Catalyst SD-WAN and VeloCloud Orchestrator. 

    “The exploitation patterns, victimology, and geographic targeting observed throughout our investigation point to a sustained focus on communications, defense, government, and critical infrastructure environments of enduring strategic value,” Black Lotus Labs researchers wrote in the report. “Through repeated targeting of centralized management platforms and control-plane technologies, Silent Train shows how Volt Typhoon systematically pursues and preserves access to some of the most consequential networks in the United States.”

    Silent Train’s ephemerality and operational discipline means it can’t be measured in size. These attributes also make it “fundamentally difficult to disrupt because there isn’t one network to take down,” Horka said. 

    “What exists today will be completely different tomorrow,” he added. “You can try to remove individual pieces, but removing the actor’s ability to continuously rebuild them is a much harder problem to solve.”

    Source: CyberScoop · 2026-10-28