Waterbear is Back, Uses API Hooking to Evade Security Product Detection

Waterbear is Back, Uses API Hooking to Evade Security Product Detection

By Vickie Su, Anita Hsieh, and Dove Chiu


Waterbear, which has been around for several years, is a campaign that uses modular malware capable of including additional functions remotely. It is associated with the cyberespionage group BlackTech, which mainly targets technology companies and government agencies in East Asia (specifically Taiwan, and in some instances, Japan and Hong Kong) and is responsible for some infamous campaigns such as PLEAD and Shrouded Crossbow. In previous campaigns, we’ve seen Waterbear primarily being used for lateral movement, decrypting and triggering payloads with its loader component. In most cases, the payloads are backdoors that are able to receive and load additional modules. However, in one of its recent campaigns, we’ve discovered a piece of Waterbear payload with a brand-new purpose: hiding its network behaviors from a specific security product by API hooking techniques. In our analysis, we have discovered that the security vendor is APAC-based, which is consistent with BlackTech’s targeted countries.


Knowing which specific APIs to hook might mean that the attackers are familiar with how certain security products gather information on their clients’ endpoints and networks. And since the API hooking shellcode adopts a generic approach, a similar code snippet might be used to target other products in the future and make Waterbear harder to detect.


A closer look at Waterbear


Waterbear employs a modular approach to its malware. It utilizes a DLL loader to decrypt and execute an RC4-encrypted payload. Typically, the payload is the first-stage backdoor which receives and loads other executables from external attackers. These first-stage backdoors can be divided into two types: First, to connect to a command-and-control (C&C) server, and second, to listen in on a specif ..

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