Alert: China-Nexus APT Weaponizes "DLL Sideloading" in New Attack (Technical Analysis) published: true

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title: "🚨 Alert: China-Nexus APT Weaponizes \"DLL Sideloading\" in New Attack (Technical Analysis)"
published: true
tags: cybersecurity, malware, hacking, windows, security
canonical_url: https://cyberupdates365.com/dll-sideloading-alert-china-nexus-apt-group-weaponizes-new-campaign/

cover_image: https://cyberupdates365.com/wp-content/uploads/2025/11/The-WinRAR-file-will-drop-a-batch-file-which-in-turn-will-download-the-next-Source-CyberArmor.jpg

A sophisticated China-nexus Advanced Persistent Threat (APT) group is actively exploiting DLL Sideloading techniques to bypass security detection. They are utilizing legitimate software to launch malware into critical infrastructure and government networks.

This is a critical alert for Blue Teams, SOC Analysts, and System Admins.

🚨 The Core Threat

Security researchers have uncovered a highly targeted campaign where attackers are weaponizing a technique known as DLL Sideloading. This allows them to execute malicious code while hiding behind trusted, "clean" applications.

This method effectively blinds many traditional antivirus solutions that whitelist digitally signed software.

🛠️ Technical Deep Dive: How it Works

DLL Sideloading abuses the way Windows handles Dynamic Link Libraries (DLLs). Here is the step-by-step execution flow used in this campaign:

1. The Bait: The attacker drops three files onto the victim's system: a legitimate application (The Host), a malicious DLL (The Payload), and an encrypted config file.
2. The Execution: The user or a script runs the legitimate application. Because it is digitally signed by a trusted vendor, Windows allows it to run.
3. The Hijack: The application looks for a specific DLL file it needs to function (e.g., version.dll or user32.dll). Instead of loading the real one from System32, it loads the attacker's malicious DLL sitting in the same folder.
4. The Control: The malicious DLL executes its code in the memory space of the trusted application.

📉 Why This Matters

The campaign highlights a dangerous trend known as "Living off the Land" (LotL). The threat actors are not just writing new malware; they are exploiting older, vulnerable versions of legitimate software that are still present in many environments.

Key Targets identified so far:

• Government Agencies (Asia Region)
• Defense Contractors
• Critical Infrastructure

🛡️ Mitigation Strategies for Defenders

If you are a defender, standard signatures won't help. You need to shift to Behavioral Analysis.

• Tune EDR Policies: Flag instances where known legitimate binaries launch from non-standard paths like %TEMP% or %APPDATA%.
• Hunt for Unknown DLLs: Scan endpoints for unsigned DLLs residing in the same directories as signed applications.
• Restrict Execution: Use AppLocker or Windows Defender Application Control (WDAC) to block execution from user-writable folders.

📖 Read the Full Report & Get IoCs

For the complete list of Indicators of Compromise (IoCs), the specific legitimate apps being abused, and detailed analysis of the "DeepData" framework, please read the full report on our main site.

👉 Click Here to Read the Full Analysis on CyberUpdates365

Originally published at CyberUpdates365.com`