Dropping Elephant Malware Campaign Utilizes China-Themed Loader Chain

• •Dropping Elephant uses China-themed documents to deliver a sophisticated RAT.
• •The malware employs advanced evasion techniques like DLL side-loading and in-memory execution.
• •Defenders should focus on behavioral detections and memory-level visibility to combat this threat.

Rapid7 identified a sophisticated malware campaign attributed to the threat actor 'Dropping Elephant,' leveraging China-themed decoy documents to deliver a revamped in-memory remote access trojan (RAT). The attack employs advanced evasion techniques, including DLL side-loading using a legitimate Microsoft binary (Fondue.exe) and the Donut shellcode loader, to avoid detection by traditional security measures. The campaign was uncovered during a proactive threat hunt that began with a malicious Windows shortcut masquerading as a PDF document. The final payload is characterized by control-flow flattening and runtime API reconstruction, complicating detection efforts. Key behaviors for defenders to monitor include suspicious shortcut files, unusual scheduled tasks, and payload staging in C:\Users\Public. The infrastructure associated with this actor is actively being monitored by Rapid7 to provide intelligence and protection to customers. The campaign's complexity highlights the need for enhanced memory-level visibility and proactive threat hunting.