Cyber Risks · The Hacker News

Microsoft Details Windows Clipper Malware Campaign Using USB LNK Worm and Tor-Based C2

Summary: Microsoft's Defender Security Research Team disclosed a Windows cryptocurrency clipper campaign called CryptoBandits that has targeted users since February 2026, using a malicious USB LNK file that spreads a worm component and fetches a clipper payload from a remote server. The clipper runs a bundled Tor client through a local SOCKS5 proxy to poll a hidden-service C2 server, checks the clipboard roughly every 500 milliseconds for seed phrases and private keys, substitutes copied wallet addresses, uploads screenshots, and executes attacker-supplied code when the C2 returns an EVAL response.

What you should know: The malware exits when Task Manager is running and needs no installer or exposed IP-based C2, so signature-based defenses and IP blocklists have little to match on. A USB drive that plants document-named LNK files can turn one employee's click into wallet-address substitution and a lightweight backdoor on machines that handle financial workflows.

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Malware
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