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Chinese APT ‘Phantom Taurus’ Targeting Organizations With Net-Star Malware

Author

Ionut Arghire

Author Profile

Ionuț Arghire is a seasoned cybersecurity journalist and analyst known for his in-depth reporting on cyber threats, malware, and information security trends. With extensive experience in the cybersecurity industry, he contributes to various reputable publications, providing insights into emerging cyber risks, hacking techniques, and defense strategies. Arghire's work is valued for its clarity and technical accuracy, making complex security topics accessible to a broad audience.

Article Summary English

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**Chinese State-Sponsored Hacking Group ‘Phantom Taurus’ Targets Government and Telecom for Espionage**

- Overview:
A Chinese state-sponsored hacking group, tracked as Phantom Taurus, has been targeting government and telecommunications organizations for espionage for over two years, according to Palo Alto Networks.

- Discovery and Attribution:
- First observed in 2023.
- Recently linked to Chinese hacking groups through shared infrastructure.
- Its tactics, techniques, and procedures (TTPs) differ from those typically associated with Chinese threat actors.

- Operational Capabilities:
“These enable the group to conduct highly covert operations and maintain long-term access to critical targets,” says Palo Alto Networks.

- Target Profile:
- Uses operational infrastructure exclusive to Chinese APTs.
- Targets high-value organizations such as ministries of foreign affairs and embassies.
- Activities align with China’s economic and geopolitical interests.

- Unique Characteristics:
- Employs a different set of TTPs, some unique to the group.
- Uses malware families such as Specter, Net-Star, and Ntospy.
- Also uses common Chinese hacking tools like China Chopper, the Potato suite, and Impacket.

- Attack Methods:
- Targets email servers to exfiltrate messages of interest.
- Directly attacks databases.
- Active in Africa, the Middle East, and Asia.

- New Developments in 2025:
- Began using Net-Star, a .NET malware suite targeting IIS web servers.
- Net-Star consists of three web-based backdoors:
1. IIServerCore (a fileless backdoor operating entirely in memory)
2. AssemblyExecuter V1 (a .NET malware loader)
3. AssemblyExecuter V2 (an enhanced version with evasion capabilities)

- IIServerCore Backdoor Features:
- Executes payloads and arguments in memory.
- Sends results to the command-and-control (C&C) server.
- Supports built-in commands for:
- File system operations
- Database access
- Arbitrary code execution
- Web shell management
- Security evasion and bypass
- Loading

Article Sentiment

The sentiment of the article is predominantly neutral to slightly negative, reflecting a factual and analytical tone typical of cybersecurity reporting. Here is a detailed sentiment analysis:

### Tone and Language
- Neutral and Informative: The article presents information in a straightforward, factual manner without emotional or sensational language. It uses technical terminology and detailed descriptions of malware, techniques, and targets, which indicates an objective reporting style.
- Slightly Negative Undertones: The subject matter—state-sponsored hacking targeting government and telecommunications organizations for espionage—naturally carries negative implications. Words like “espionage,” “covert operations,” “exfiltrate,” “bypass security,” and “malware” highlight malicious activities, contributing to a slightly negative sentiment.

### Sentiment by Section
- Introduction of Phantom Taurus: Neutral, introducing the group and its activities without judgment.
- Technical Details of TTPs and Malware: Neutral to slightly negative, as the description of advanced hacking tools and techniques underscores the threat posed by Phantom Taurus.
- Targets and Motivations: Slightly negative, highlighting that the group targets sensitive government and diplomatic entities, implying risk to national security and geopolitical stability.
- Operational Sophistication: Neutral, focusing on the technical prowess of the group without expressing approval or condemnation.
- Implications and Observations: Slightly negative, noting the timing of attacks coinciding with global events and the targeting of critical sectors, which hints at strategic and potentially harmful espionage.

### Overall Sentiment Summary
- The article maintains an objective and professional tone appropriate for cybersecurity news.
- While not emotionally charged, the content inherently conveys concern due to the malicious nature of the hacking activities described.
- The sentiment is primarily informative with a cautious undertone, reflecting the seriousness of the cyber threat without sensationalism.

### Conclusion
The article’s sentiment is best characterized as neutral with a slight negative bias, driven by the subject of state-sponsored cyber espionage and its implications for global security. It aims to inform cybersecurity professionals and interested readers about emerging threats in a clear, precise, and non-alarmist manner.

Article Sentiment

-8.0: [Range Negative:Sentiment -10.0 to Positive:Sentment 10.0]

Global Relevence

The global relevance of this article about the Chinese state-sponsored hacking group ‘Phantom Taurus’ is significant across multiple dimensions:

1. International Security and Espionage
Phantom Taurus targets government ministries, foreign affairs departments, embassies, and telecommunications organizations across Africa, the Middle East, and Asia. This highlights ongoing state-sponsored cyber espionage efforts that can influence diplomatic relations, defense strategies, and geopolitical stability on a global scale.

2. Cybersecurity Threat Landscape
The group’s use of sophisticated, unique malware (Specter, Net-Star, Ntospy) and advanced evasion techniques demonstrates evolving cyberattack capabilities. This evolution challenges global cybersecurity defenses, emphasizing the need for international cooperation and improved cyber threat intelligence sharing.

3. Geopolitical Implications
The targeting aligns with China’s economic and geopolitical interests, indicating cyber operations as a tool of statecraft. The timing of attacks coinciding with major global events and regional security affairs suggests cyber espionage is integrated into broader geopolitical strategies, affecting international diplomacy and power balances.

4. Critical Infrastructure Vulnerabilities
By focusing on telecommunications and governmental databases, Phantom Taurus exposes vulnerabilities in critical national infrastructure worldwide. This raises concerns about the resilience of essential services and the potential for disruption or manipulation, which can have cascading effects on global communications and governance.

5. Global Cyber Defense and Policy
The article underscores the importance of global cybersecurity awareness, preparedness, and policy frameworks. Nations and organizations must prioritize identity protection, threat intelligence, and managed security services to counteract such advanced persistent threats (APTs).

In summary, the article is globally relevant as it reveals ongoing sophisticated cyber espionage activities by a state-sponsored group that impact international security, diplomatic relations, critical infrastructure protection, and the global cybersecurity posture.

Article Threat Level

### Threat Assessment: Phantom Taurus Chinese State-Sponsored Hacking Group

#### Overview
Phantom Taurus is a sophisticated Chinese state-sponsored Advanced Persistent Threat (APT) group engaged in espionage activities targeting government and telecommunications organizations. Active for over two years, the group has been linked to China through shared infrastructure, despite using distinct tactics, techniques, and procedures (TTPs) that differ from typical Chinese APT profiles.

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### Threat Actor Profile

- Attribution: Chinese state-sponsored APT
- Operational Period: Active since at least 2023
- Target Sectors: Government ministries (foreign affairs, defense), embassies, telecommunications, critical infrastructure
- Geographic Focus: Africa, Middle East, Asia
- Motivation: Espionage aligned with China’s economic and geopolitical interests
- Operational Security: Highly covert, maintaining long-term access to critical targets

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### Capabilities

- Malware Families:
- Specter and Net-Star: Unique to Phantom Taurus, especially notable is Net-Star, a .NET malware suite targeting IIS web servers.
- Ntospy: Another unique tool in their arsenal.
- Common Chinese Tools: China Chopper (web shell), Potato suite (privilege escalation), Impacket (network protocol manipulation).

- Net-Star Suite Details:
- Targets IIS web servers with three web-based backdoors:
- IIServerCore: Fileless backdoor operating entirely in memory, capable of executing payloads, file system operations, database access, arbitrary code execution, web shell management, and encrypted C2 communication.
- AssemblyExecuter V1 & V2: Load and execute .NET assemblies in memory post-compromise. V2 includes advanced evasion techniques against Windows Antimalware Scan Interface (AMSI) and Event Tracing for Windows (ETW).

- Techniques:
- Fileless malware execution to evade traditional detection.
- Encrypted communications with command-and-control (C2) servers.
- Ability to bypass modern endpoint detection and response (EDR) mechanisms.
- Use of web shells for persistence and lateral movement.
- Targeting of email servers and databases for data exfiltration.

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### Tactics, Techniques, and Procedures (TTPs)

- Use of unique malware families alongside known Chinese hacking tools.
- Highly covert operations focusing on stealth and long-term persistence.
- Targeting of email servers to intercept diplomatic and governmental communications.
- Direct

Article Threat Level

8.0: [Range Low:Threat -10.0 to High:Threat 10.0]

Extract People

The article does not mention any real people's names. All references are to organizations, hacking groups, malware tools, and cybersecurity firms, but no individual person is named.

Extract Locations

Here are the geographic locations mentioned in the article and the reasons they were identified:

1. China
- Identified because the hacking group ‘Phantom Taurus’ is linked to Chinese state-sponsored actors, and the article discusses tactics and infrastructure exclusive to Chinese APTs.

2. Africa
- Mentioned as one of the regions where the group has targeted organizations.

3. Middle East
- Also mentioned as a region where the group has conducted attacks.

4. Asia
- Included as another region targeted by the hacking group.

5. Seoul
- Referenced in relation to the "Seoul Summit," where nations agreed to align work on AI risks, indicating a notable international event location.

No cities, states, or specific landmarks other than Seoul are mentioned explicitly in the article.

Extract Organizations

The organizations mentioned in the article are:

1. Phantom Taurus
- Identified as a Chinese state-sponsored hacking group (APT) conducting espionage against government and telecommunications organizations. It is the main subject of the article.

2. Palo Alto Networks
- Identified as the cybersecurity firm reporting on the activities of Phantom Taurus. The article cites Palo Alto Networks as the source of the analysis and information about the hacking group.

3. Chinese state-sponsored hacking groups / Chinese APTs
- Mentioned as the broader category of threat actors to which Phantom Taurus belongs, identified through shared infrastructure and malware tools.

4. Ministries of foreign affairs and embassies
- Mentioned as high-value organizations targeted by Phantom Taurus, relevant because they are the victims or targets of the hacking group’s espionage.

No other specific company or organization names are mentioned in the article. The references to other topics like "Cybersecurity Awareness Month 2025" and "AI Companies" are generic and do not specify particular companies or organizations.

Was this article AI Generated

This article does not strongly exhibit typical signs of AI generation and is more likely written by a human expert or journalist. Several factors support this determination:

1. Technical Detail and Specificity:
The article contains detailed technical descriptions of malware families (Specter, Net-Star, Ntospy), specific backdoors (IIServerCore, AssemblyExecuter V1 and V2), and their capabilities (in-memory execution, AMSI and ETW evasion). AI-generated content often struggles to maintain accuracy and coherence when describing complex, niche technical subjects in such depth without errors or contradictions.

2. Use of Domain-Specific Terminology and Context:
The text uses precise cybersecurity terminology (TTPs, APT, C&C servers, fileless backdoor) correctly and contextually, indicating familiarity with the subject matter. It also references geopolitical implications and links the group’s activity to China’s economic and geopolitical interests, showing a nuanced understanding of the broader context.

3. Attribution and Quotations:
The article quotes Palo Alto Networks and uses phrases like “Palo Alto Networks says,” which is typical of professional reporting citing credible sources. AI-generated articles often lack proper attribution or insert generic placeholder quotes.

4. Logical Flow and Structure:
The article follows a coherent structure: introduction of the threat actor, explanation of their unique features, technical details of malware, and strategic implications. This shows thoughtful organization rather than the sometimes disjointed flow seen in AI-generated text.

5. Current and Forward-Looking References:
The article references events and technology developments projected into 2025, which is recent and forward-looking. This suggests access to up-to-date intelligence reports or expert analysis rather than generic or outdated information often found in AI-generated content trained on older datasets.

6. Related Articles Section:
The inclusion of related articles with relevant and realistic titles adds to the professional presentation typical of human-written content on news or cybersecurity websites.

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**Summary:**
The article’s depth, accuracy, domain expertise, attribution, logical flow, and contextual awareness strongly suggest it was written by a human with cybersecurity expertise rather than being AI-generated.

Provide Additional Insights

Certainly! Here are some additional insights and context regarding the article on the Chinese state-sponsored hacking group ‘Phantom Taurus’:

1. Distinctive TTPs Indicate Sophistication and Adaptability
While Phantom Taurus shares infrastructure with other Chinese APT groups, its unique tactics, techniques, and procedures (TTPs) suggest a high level of sophistication and operational security. This divergence could be a deliberate effort to evade detection by security researchers and defenders who are familiar with traditional Chinese hacking methods.

2. Use of Advanced Malware Families
The deployment of specialized malware such as Specter, Net-Star, and Ntospy indicates that Phantom Taurus invests in custom tool development. The use of fileless backdoors like IIServerCore, which operate entirely in memory, enhances stealth by avoiding common disk-based detection methods. This approach complicates incident response and forensic investigations.

3. Strategic Targeting Reflects Geopolitical Priorities
The focus on ministries of foreign affairs, embassies, and telecommunications organizations aligns with China’s strategic interests in gathering diplomatic intelligence and monitoring geopolitical developments, especially in Africa, the Middle East, and Asia. These regions are critical to China’s Belt and Road Initiative and broader foreign policy goals.

4. Long-Term Persistence and Covert Operations
The group’s ability to maintain long-term access to high-value targets underscores a goal beyond immediate data theft—likely to enable ongoing intelligence gathering and influence operations. This persistence is facilitated by advanced malware loaders capable of dynamically executing code in memory and bypassing security measures such as AMSI and ETW.

5. Implications for Cybersecurity Defenses
Organizations, especially in the government and telecommunications sectors, should be aware of the evolving threat landscape represented by Phantom Taurus. Traditional detection tools may struggle against fileless malware and sophisticated evasion techniques. Enhanced monitoring of memory-based activities, network traffic encryption, and anomaly detection will be critical.

6. Timing with Global Events Suggests Opportunistic Exploitation
The synchronization of Phantom Taurus’s operations with major global and regional events indicates a responsive intelligence-gathering approach. This suggests that the group adapts its targeting and objectives based on real-time geopolitical developments, emphasizing the need for timely threat intelligence sharing among allied nations and organizations.

7. Broader Context of Chinese Cyber Espionage
Phantom Taurus adds to the diverse portfolio of Chinese state-sponsored cyber operations, which range from intellectual property theft to influence campaigns. Its unique operational profile may reflect an

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