MuddyWater Uses Chaos Ransomware as Decoy in Attacks
🔍 The Iranian state-sponsored group MuddyWater disguised a cyber-espionage operation as a Chaos ransomware attack, leveraging Microsoft Teams social engineering to harvest credentials and manipulate MFA. Attackers used fake Quick Assist phishing pages or tricked victims into typing passwords into local files, then moved laterally via AnyDesk, DWAgent, and RDP to establish persistence. Rapid7 links the campaign to MuddyWater with moderate confidence, noting a signed loader (ms_upd.exe) that drops a backdoor (Game.exe) with anti-analysis checks.
