As per sources, a new Android banking malware, named ToxicPanda, has infected over 1,500 devices, enabling attackers to perform unauthorized banking transactions. According to Cleafy researchers, ToxicPanda's primary goal is to initiate money transfers through account takeover (ATO) by employing on-device fraud (ODF) techniques. This method bypasses typical identity verification and behavioral detection used by banks. The malware is suspected to be the work of a Chinese-speaking group, sharing some code similarities with a previous banking trojan, TgToxic, which also targets bank and crypto wallet credentials. A significant number of infections have been reported in Italy, Portugal, Hong Kong, Spain, and Peru, marking an unusual move by Chinese threat actors targeting European and Latin American banking users. Unlike its predecessor, ToxicPanda is a stripped-down variant, lacking obfuscation routines and the Automatic Transfer System (ATS) but introducing 33 new commands, suggesting an evolving threat. The malware disguises itself as popular apps like Google Chrome and Visa and is distributed via fake app store pages. Once sideloaded, it exploits Android's accessibility services to intercept one-time passwords (OTPs) and bypass two-factor authentication (2FA). The researchers also accessed ToxicPanda’s command-and-control (C2) panel, which provides attackers with real-time device data and remote access. Analysis suggests that ToxicPanda is either in an early development phase or undergoing significant refinement. Meanwhile, researchers at various universities have introduced a malware detection tool, DVa, to identify malware exploiting Android’s accessibility features.
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