CoffeeLoader: A Sophisticated New Malware Threat to Houston Businessess

Cybersecurity researchers have recently uncovered a sophisticated new malware family called CoffeeLoader. First detected in September 2024, this stealthy threat is designed to download and execute secondary payloads while evading detection by endpoint security products. CoffeeLoader employs numerous advanced evasion techniques, making it particularly dangerous in today’s cyber threat environment.

  How CoffeeLoader Works

Distribution Method

CoffeeLoader is currently being distributed via SmokeLoader, another well-known malware family. Defenders have observed this new stealthy malware evading security protection using advanced techniques and taking advantage of Red Team methods to boost its effectiveness.

Infection Process

The infection begins with a dropper component that installs the malware on the victim’s system. Like most crimeware families, CoffeeLoader samples are packed. What makes it unique is its use of a specialized packer called “Armoury” that executes code on a system’s GPU to hinder analysis in virtual environments. This packer impersonates the legitimate Armoury Crate utility developed by ASUS.

The infection sequence starts with a dropper that attempts to execute a DLL payload packed by Armoury (“ArmouryAIOSDK.dll” or “ArmouryA.dll”) with elevated privileges. If the dropper doesn’t have administrator permissions, it attempts to bypass User Account Control (UAC) using the CMSTPLUA COM interface.

Once unpacked, CoffeeLoader executes the dropper that installs the malware. Researchers have identified multiple dropper variants with different functionalities.

  Persistence Mechanisms

CoffeeLoader’s dropper maintains persistence via a scheduled task with a hardcoded name. If running with elevated privileges, it executes at user logon with the highest run level; otherwise, it runs every 30 minutes, or every 10 minutes in the latest version.

Advanced Evasion Techniques

What makes CoffeeLoader particularly dangerous is its sophisticated arsenal of evasion techniques:

1. GPU-Based Execution: The malware runs code on the infected system’s GPU instead of on the computer’s CPU. Since most security programs and antivirus scanners don’t check the GPU, the malware stays hidden.
2. Call Stack Spoofing: CoffeeLoader implements call stack spoofing, which is a technique that forges a call stack to mask the origin of a function call. This is designed to evade security software that analyzes call stack traces to identify suspicious behavior. When programs run, they leave behind a trail of function calls. CoffeeLoader changes that trail, making it look like something harmless so security tools don’t recognize it as suspicious.
3. Sleep Obfuscation: CoffeeLoader implements a technique known as sleep obfuscation designed to hide from security tools that scan memory. Using this method, the malware’s code and data are encrypted while in a sleep state. When not active, CoffeeLoader “locks” itself up in an encrypted form in the computer’s memory. This way, if an antivirus tool scans memory, it won’t find anything readable.
4. Windows Fibers: Windows fibers are an obscure and lightweight mechanism for implementing user-mode multitasking. CoffeeLoader has an option to use Windows fibers to implement sleep obfuscation as yet another way to evade detection, since some EDRs may not directly monitor or track them.
5. Domain Generation Algorithm (DGA): CoffeeLoader leverages a domain generation algorithm (DGA) as a fallback mechanism in case the primary command-and-control (C2) channels become unreachable.

Command and Control Communication

CoffeeLoader uses the HTTPS protocol for command-and-control (C2) communications. Requests are sent using POST requests with a hardcoded user-agent (which currently mimics an iPhone).

The malware implements certificate pinning to prevent TLS man-in-the-middle attacks from deciphering the network communications with the C2 server.

  Payloads and Impact

ThreatLabz has observed the CoffeeLoader C2 server providing multiple commands to inject and execute Rhadamanthys shellcode. Rhadamanthys is a known infostealer malware that can harvest sensitive information from infected systems.

  Connection to SmokeLoader

ThreatLabz identified numerous overlaps between CoffeeLoader and SmokeLoader, including:

• Both leverage a stager that injects a main module into another process
• Both generate a bot ID based on the computer name and volume serial number
• Both create a mutex name based on the bot ID
• Both resolve imports by hash, and use a global structure for internal variables and pointers to API functions
• Both encrypt network traffic using a hardcoded RC4 key and a separate hardcoded RC4 key for decryption

In December 2024, a new version of SmokeLoader was allegedly announced. Many (but not all) of the features advertised in the SmokeLoader announcement, such as EDR and AV evasions, are found in CoffeeLoader.

  Protecting Against CoffeeLoader

To defend against this sophisticated threat, organizations should consider implementing the following security measures:

1. Maintain Updated Antivirus Solutions: Keep antivirus signatures up to date to help detect and block malware effectively.
2. Implement Phishing Awareness Training: Organizations are encouraged to take advantage of free resources for information security awareness training.
3. Deploy Content Disarm and Reconstruction (CDR): Implementing CDR services can neutralize malicious macros embedded in documents.
4. Only Download Software from Official Sources: In order to keep your data and your Asus gear safe from the CoffeeLoader malware, ensure that you’re downloading Armoury Crate from the company’s official site. Hackers often impersonate popular brands and their software as a means to infect unsuspecting users with malware.
5. Practice Good Cyber Hygiene: Remain vigilant online, especially when downloading new software.

 How CinchOps Can Help

At CinchOps, we understand the evolving nature of today’s cyber threats like CoffeeLoader. Our comprehensive security solutions can help protect your organization through:

1. Advanced Threat Detection: Our next-generation security tools can detect and block sophisticated malware like CoffeeLoader that uses advanced evasion techniques.
2. Endpoint Protection: We implement robust endpoint security solutions that can detect suspicious activities beyond just basic file scanning.
3. Security Monitoring: Our 24/7 security operations center continuously monitors your environment for signs of compromise.
4. User Awareness Training: We provide comprehensive phishing and security awareness training to help your team recognize and avoid potential threats.
5. Incident Response: In the event of a breach, our expert team can quickly contain, eradicate, and recover from the incident.

Discover more about our enterprise-grade and business protecting cybersecurity services on our Cybersecurity page.

Don’t wait until it’s too late. Contact CinchOps today to learn how we can help secure your environment against sophisticated threats like CoffeeLoader and keep your business protected in today’s challenging cyber threat environment.

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