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MuddyWater Adopts Rust-Based RustyWater Implant in Middle East Espionage Campaign
CloudSEK identified a spearphishing campaign attributed to the MuddyWater APT group targeting diplomatic, maritime, financial, telecom, education, and shipping sectors across the Middle East, including Turkmenistan, the UAE, and regional maritime organizations. The operation uses impersonated government and telecom emails to deliver malicious Word documents embedding obfuscated VBA macros. These macros drop and execute a Rust-based implant dubbed RustyWater, which provides asynchronous HTTP C2, registry persistence, anti-analysis features, and modular post-compromise capabilities. The shift from PowerShell and VBS loaders to a Rust RAT marks a significant evolution in MuddyWater’s tooling toward stealthier, long-term espionage operations.
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MuddyWater Deploys New Toolset in Targeted Attacks on Israel and Egypt
ESET researchers uncovered a new MuddyWater campaign targeting organizations in Israel and one in Egypt, primarily within the telecommunications, government, oil and energy, and manufacturing sectors. The Iran-aligned group deployed a suite of newly developed tools, including the Fooder reflective loader and MuddyViper, a C/C++ backdoor capable of credential theft, system reconnaissance, and file operations. Additional stealers such as CE-Notes, LP-Notes, and Blub, along with customized go-socks5 reverse tunnels, enhanced persistence and defense evasion. The campaign also revealed operational overlap with Lyceum, indicating MuddyWater’s role as an initial access broker. Activity ran from September 30, 2024 to March 18, 2025.
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