MuddyWater Cyberespionage Campaign Leveraging Snake Game-Inspired Malware
Iranian state-aligned threat group MuddyWater has launched a new cyberespionage campaign targeting organizations in Israel and Egypt, with a focus on technology, engineering, manufacturing, local government, and educational sectors. Researchers from ESET and other security firms have identified that MuddyWater is using a novel loader, dubbed Fooder, which masquerades as the classic Snake video game to deliver a new backdoor called MuddyViper. This loader introduces execution delays, inspired by the Snake game's mechanics, to evade antivirus detection. The campaign also employs spearphishing emails with PDF attachments that link to remote monitoring and management software installers, hosted on free file-sharing services, to gain initial access.
The MuddyViper backdoor enables attackers to collect system information, execute files and shell commands, transfer files, and exfiltrate Windows login credentials and browser data. Additional tools, such as credential stealers and another backdoor named VAX One, have also been deployed. MuddyWater's evolving tactics, including the use of reflective loading for in-memory execution and the impersonation of legitimate software, demonstrate increased sophistication and a continued focus on defense evasion and persistence. Security researchers note the possibility that MuddyWater may be acting as an initial access broker for other Iranian threat actors, given observed overlaps in operations.
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How this story unfolded
5 events from the most recent confirmed update back to the earliest known activity.
ESET discloses MuddyWater's evolved campaign and new malware
On 2025-12-02, ESET publicly reported that MuddyWater had evolved its tradecraft in the 2024-2025 campaign, highlighting the Snake-themed Fooder loader, the new MuddyViper backdoor, and expanded credential theft capabilities. ESET assessed the activity as showing increased sophistication and possible overlap or collaboration with other Iran-aligned actors such as Lyceum and OilRig.
Observed MuddyWater campaign activity ends
ESET-tracked activity associated with this wave of MuddyWater intrusions ran through 2025-03-18. By that point, the campaign had affected 17 Israeli organizations and one Egyptian technology company according to later reporting.
MuddyWater deploys new MuddyViper backdoor and credential theft tooling
After gaining access, the attackers deployed a previously undocumented in-memory backdoor dubbed MuddyViper, along with credential stealers including CE-Notes and LP-Notes, and in some reporting VAX One. The malware supported persistence, credential harvesting, command execution, and data exfiltration while using techniques such as reverse SOCKS5 tunneling and the Windows CNG cryptographic API for stealth.
MuddyWater uses Snake-themed Fooder loader and phishing for initial access
During the campaign, MuddyWater used spear-phishing emails with PDF lures that led victims to remote monitoring and management tool installers hosted on free file-sharing services; one report also mentions exploitation of VPN vulnerabilities. The group delivered a custom loader called Fooder, disguised as the Snake video game and using delayed execution to evade automated defenses.
MuddyWater begins campaign targeting Israeli and Egyptian organizations
The Iran-aligned MuddyWater group launched a cyberespionage campaign primarily against organizations in Israel, with at least one victim in Egypt, spanning sectors such as government, telecom, energy, technology, manufacturing, transportation, utilities, and academia. Multiple reports place the start of the activity on 2024-09-30.
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'MuddyWater' Hackers Target Israeli Orgs With Retro Game Tactic
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MuddyWater Used DLL Side-Loading and PowerShell Tooling in Multi-Country Espionage Campaign
Iran-linked **MuddyWater** (also tracked as **Seedworm**) was tied to an espionage campaign that compromised at least nine organizations across nine countries and four continents, hitting sectors including manufacturing, education, government, financial services, professional services, telecommunications, and an international airport. Researchers said the group used **DLL side-loading** with legitimate signed binaries such as `fmapp.exe` from Fortemedia and `sentinelmemoryscanner.exe` from SentinelOne to launch malicious DLLs, including the open-source **ChromElevator** tool for browser-data theft. One confirmed victim was a major South Korean electronics manufacturer, where the attackers reportedly maintained access for about a week, while earlier activity also targeted telecom providers in Egypt, Sudan, and Tanzania. The operators combined stealthy execution with a broad post-compromise toolkit, using **Node.js** to launch PowerShell payloads for reconnaissance, screenshot capture, privilege escalation, credential theft, and SOCKS5 reverse-proxy tunneling. Symantec also linked MuddyWater to the **MuddyC2Go** PowerShell framework, use of legitimate remote-management software **SimpleHelp**, and the publicly available **Venom Proxy** to maintain access and move through victim networks. Persistence was established through registry modifications, credentials were harvested through fake login prompts and registry hive dumping, and stolen data was exfiltrated via the public file-transfer service `sendit[.]sh`, indicating a sustained intelligence-collection effort aligned with Iranian state interests.
May 27, 2026
MuddyWater Deploys Phoenix v4 Backdoor via Phishing and VPN Infrastructure
The Iranian state-sponsored threat group MuddyWater has conducted a widespread cyber espionage campaign targeting over 100 government and international organizations, primarily in the Middle East and North Africa. The attackers leveraged compromised email accounts accessed through NordVPN exit nodes to distribute phishing emails containing malicious Word documents. These documents, when opened and macros enabled, deployed the FakeUpdate malware loader, which subsequently decrypted and installed the Phoenix v4 backdoor on victim systems. The campaign focused on diplomatic entities such as embassies, consulates, and ministries of foreign affairs, with the attackers adapting their techniques to bypass modern security controls, including the use of macro-based payloads despite Microsoft's default macro restrictions. Researchers observed that after an initial phase using a command-and-control server, MuddyWater shifted tactics, likely employing additional tools and malware to further their espionage objectives. The Phoenix v4 backdoor, central to this operation, enabled persistent access and data exfiltration from compromised networks. The campaign highlights MuddyWater's continued evolution in attack methods and its focus on high-value government targets through sophisticated phishing and malware deployment strategies.
Mar 21, 2026
MuddyWater Phishing Campaign Targets Middle East and North Africa Government Networks
Iranian state-sponsored threat actor MuddyWater has conducted a large-scale cyberespionage campaign breaching over 100 government entities and international organizations across the Middle East and North Africa. The attackers leveraged a compromised enterprise mailbox, accessed via NordVPN, to send convincing phishing emails from legitimate addresses to embassies, ministries, and telecom providers. These emails contained weaponized Microsoft Word attachments that, when opened and macros enabled, deployed the updated "Phoenix" backdoor, granting persistent remote access, credential theft, and file exfiltration capabilities. The campaign also utilized off-the-shelf remote management tools such as PDQ and Action1 to blend in with legitimate administrative traffic and pilfered browser passwords from Chrome, Edge, Opera, and Brave. Researchers at Group-IB highlighted that MuddyWater, also known as Seedworm, APT34, OilRig, and TA450, has demonstrated evolving tradecraft and operational maturity in this operation, mixing official government and personal email addresses to increase the likelihood of successful compromise. The campaign's scale and targeting suggest either a significant increase in capability or a broader intelligence collection mandate from Iranian authorities. MuddyWater, linked to Iran's Ministry of Intelligence and Security, has a history of targeting government, energy, telecom, and defense sectors, focusing on long-term espionage rather than destructive attacks. Analysts warn that further activity is likely amid ongoing regional tensions.
Mar 21, 2026