Cybercriminals Exploit Cloudflare Tunnel for Malware Campaigns

by | Aug 2, 2024 | News




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Emerging Threat Using Cloudflare Tunnel

Researchers have identified a growing trend where threat actors are increasingly abusing the Cloudflare Tunnel service to distribute remote access trojans (RATs). First detected in February, this cybercriminal activity leverages the free TryCloudflare service to spread multiple RATs, including AsyncRAT, GuLoader, VenomRAT, Remcos RAT, and Xworm.

Campaigns attributed to the same activity clusterCampaigns attributed to the same activity cluster
Source: Proofpoint

Cloudflare Tunnel Service Misuse

The Cloudflare Tunnel service allows for the proxying of traffic through an encrypted tunnel, providing secure and convenient access to local services and servers over the internet without exposing IP addresses. This service, intended to enhance security by eliminating the need to open public inbound ports or set up VPN connections, has been misused by threat actors to evade detection and gain remote access to compromised systems.

Temporary Subdomains for Malicious Activity

With TryCloudflare, users can create temporary tunnels to local servers without needing a Cloudflare account. Each tunnel generates a temporary random subdomain on the trycloudflare.com domain, routing traffic through Cloudflare’s network to the local server. Threat actors exploit this feature to mask their activities and evade detection.

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Latest Campaign Details

In a recent report by Proofpoint, cybersecurity experts observed malware activity targeting organizations in the law, finance, manufacturing, and technology sectors. The attackers use malicious .LNK files hosted on the legitimate TryCloudflare domain, luring targets with tax-themed emails that contain URLs or attachments leading to the LNK payload. Once launched, the payload executes BAT or CMD scripts that deploy PowerShell, eventually downloading Python installers for the final payload.

Two attack chains used in the campaignTwo attack chains used in the campaign
Source: Proofpoint

Increased Campaign Activity

Proofpoint noted a significant increase in this campaign’s activity. An email distribution wave that started on July 11 delivered over 1,500 malicious messages, compared to less than 50 messages in an earlier wave from May 28. Hosting LNK files on Cloudflare provides several benefits to the attackers, including making the traffic appear legitimate due to Cloudflare’s reputable service.

Malicious email sampleMalicious email sample
Source: Proofpoint

Challenges in Blocking Malicious Activity

The temporary nature of the subdomains used in the TryCloudflare Tunnel feature poses a challenge for defenders, as blocking these subdomains is not effective long-term. The free and reliable service also eliminates the need for cybercriminals to set up their own infrastructure, and the use of automation helps them evade blocks from Cloudflare, enabling large-scale operations.




Cloudflare’s Response

BleepingComputer reached out to Cloudflare regarding the malicious activity reported by Proofpoint.

A company representative stated:

“Cloudflare immediately disables and takes down malicious tunnels as they are discovered by our team or reported on by third parties. In the past few years, Cloudflare has introduced machine learning detections on our tunnel product in order to better contain malicious activity that may occur. We encourage Proofpoint and other security vendors to submit any suspicious URLs and we will take action against any customers that use our services for malware.”

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Source: bleepingcomputer.com

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