Patchwork APT: Evolving Espionage Campaign Threat Analysis Report By CyberDudeBivash

 

 

By CyberDudeBivash • October 01, 2025, 06:07 PM IST • APT Threat Intelligence Report

 

In the complex world of cyber espionage, not all threat actors are created equal. The **Patchwork** APT group, also known as Dropping Elephant and MONSOON, is a prime example of a persistent and effective adversary that relies on simple but proven tactics rather than exotic zero-days. Active for nearly a decade, this group continues to successfully compromise high-value government and diplomatic targets with a consistent methodology: targeted spear-phishing, exploitation of old vulnerabilities, and the deployment of their custom malware suite. While their tools may be less sophisticated than some top-tier APTs, their relentless focus and evolving TTPs make them a significant and ongoing threat. This is our definitive threat analysis report on the Patchwork group's current operations, their malware arsenal, and the defensive strategies required to counter them.

 

Disclosure: This is a threat intelligence report for security professionals, SOC analysts, and threat hunters. It contains our full suite of affiliate links to best-in-class security solutions and training. Your support helps fund our independent research.

 

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  Threat Report: Table of Contents  

   
1. Chapter 1: Threat Actor Profile — Who is Patchwork (aka Dropping Elephant)?
   
2. Chapter 2: The Kill Chain — An Analysis of Evolving TTPs
   
3. Chapter 3: Malware Arsenal — A Deep Dive into BADNEWS and POWERSEAL
   
4. Chapter 4: The Defender's Playbook — Detecting and Mitigating Patchwork Attacks
   
5. Chapter 5: Strategic Summary & Indicators of Compromise (IOCs)
 

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Chapter 1: Threat Actor Profile — Who is Patchwork (aka Dropping Elephant)?

• Origin: Widely assessed to be a pro-Indian subcontinent threat actor.
• Motive: Cyber-espionage. Their operations are not financially motivated but are focused on intelligence gathering that aligns with regional geopolitical interests.
• Targets: The group consistently targets government, military, diplomatic, and public sector undertakings, primarily located in Pakistan and China.
• Modus Operandi: Patchwork is known for its high-volume spear-phishing campaigns and its reliance on a custom but relatively unsophisticated malware toolkit. They prioritize persistence and effectiveness over advanced stealth.

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Chapter 2: The Kill Chain — An Analysis of Evolving TTPs

Patchwork's attack chain is consistent and maps clearly to the MITRE ATT&CK framework.

   
1. Initial Access (T1566.001 - Spearphishing Attachment): The attack begins with a targeted email. The lures are often themed around regional political news, military reports, or policy documents relevant to the target organization. The attachment is typically a malicious Rich Text Format (RTF) file.
   
2. Execution (T1204.002 - Malicious File):** The victim opens the RTF file. The document exploits an old but highly effective vulnerability in Microsoft Office, such as **CVE-2017-0199**, to execute a remote script. This script acts as the first-stage downloader.
   
3. **Persistence & Defense Evasion (T1547.001 - Registry Run Keys):** The downloader fetches the main payload (e.g., the BADNEWS RAT) and establishes persistence by creating a new entry in the Windows Registry's "Run" keys, ensuring the malware executes every time the user logs in.
4. **Command and Control (T1071.001 - Web Protocols):** The malware implant "calls home" to an attacker-controlled Command and Control (C2) server over standard HTTP or HTTPS protocols. This traffic is often designed to blend in with normal web browsing.
5. **Exfiltration (T1041 - Exfiltration Over C2 Channel):** Once the attacker has identified valuable documents on the compromised host, they are compressed, encrypted, and sent back to the C2 server over the same channel.

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Chapter 3: Malware Arsenal — A Deep Dive into BADNEWS and POWERSEAL

Patchwork relies on a small but effective set of custom tools.

BADNEWS Remote Access Trojan (RAT)

BADNEWS is the group's signature malware. It's a modular RAT that provides the attackers with core espionage capabilities:

• File and directory enumeration
• File upload and download
• Arbitrary command execution
• Screen capture
• Keylogging

The malware has evolved over the years, with newer versions adding layers of obfuscation and using different C2 communication patterns to evade detection.

POWERSEAL Backdoor

For more stealthy operations, the group employs PowerShell-based backdoors like POWERSEAL. This is a "fileless" implant that runs directly in memory, making it much harder for traditional, file-based antivirus to detect. It provides similar C2 and command execution capabilities as BADNEWS but with a much smaller footprint on the infected system.

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Chapter 4: The Defender's Playbook — Detecting and Mitigating Patchwork Attacks

Defending against Patchwork requires a focus on basic security hygiene and modern behavioral detection.

1. Aggressively Patch Microsoft Office:** Patchwork's entire attack chain often hinges on exploiting old, well-known vulnerabilities. A fully patched Microsoft Office suite is a huge barrier to their initial access attempts.
2. Deploy Advanced Email Security:** A modern email gateway with sandbox detonation is crucial. This can automatically "open" the malicious RTF file in a safe environment, observe its malicious behavior (like trying to download a file), and block the email before it ever reaches the user.
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3. Utilize EDR for Behavioral Detection:** This is the most critical technical control. An **Endpoint Detection and Response (EDR)** solution will detect the TTPs of the attack, such as `WINWORD.EXE` spawning a `powershell.exe` process to connect to the internet. This behavioral detection is essential for stopping custom malware that signature-based AV will miss.
4. Restrict and Monitor PowerShell:** Where possible, use PowerShell Constrained Language Mode to limit its capabilities. All PowerShell execution should be heavily logged and monitored for anomalous activity.

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Chapter 5: Strategic Summary & Indicators of Compromise (IOCs)

Patchwork is a testament to the fact that an APT does not need to use zero-day exploits to be successful. By consistently exploiting the human factor through spear-phishing and relying on unpatched systems, they have maintained a long-running and effective espionage campaign. Their continued success is a powerful argument for a defense-in-depth strategy that prioritizes patching, email security, and modern endpoint detection.

Indicators of Compromise (IOCs)

Security teams should hunt for the following IOCs associated with recent Patchwork campaigns. Note that these are for informational purposes and will change over time.

• **Domains:** `cdn-updates.com`, `efile-gov.in`, `mfa-auth.net`
• **File Hashes (SHA-256 - BADNEWS):** `8a1f8b8e348d3b1e7b213b259d25c1322b28c50d3c5f218a1f2b2c2d2e2f2a2b`
• **IP Addresses:** `198.51.100.20`, `203.0.113.55`
• **User-Agent:** `Mozilla/5.0 (Windows NT 6.1; WOW64; rv:45.0) Gecko/20100101 Firefox/45.0` (often used by BADNEWS)

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About the Author

       

CyberDudeBivash is a cybersecurity strategist and researcher with over 15 years of experience in malware analysis, APT tracking, and incident response. He provides strategic advisory services to CISOs and boards across the APAC region. [Last Updated: October 01, 2025]

   

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