Mobile Threat Landscape Report

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2019

MOBILE THREAT
LANDSCAPE
REPORT

A COMPREHENSIVE
REVIEW OF MOBILE
MALWARE TRENDS
MOBILE THREAT LANDSCAPE REPORT 2
A COMPREHENSIVE REVIEW OF 2019 MOBILE MALWARE TRENDS

TABLE OF CONTENTS
3 INTRODUCTION 22 TARGETED ADVERSARY GROUPS
23 THREAT OUTLOOK
4 KEY FINDINGS IN THIS REPORT 23 Mobile Device Security
23 Infection Vectors

5 MOBILE MALWARE OVERVIEW 24 Evolving Threat Classes


24 Remote Access Tools

6 TYPES OF MOBILE MALWARE 25 Banking Trojans

6 REMOTE ACCESS TOOLS 25 Access Facilitation

7 SPOUSEWARE / STALKERWARE 26 Ransomware

9 BANKING TROJANS 27 Cryptomining

10 MOBILE RANSOMWARE 27 Geographic Variations in the Threat


Landscape
11 CRYPTOMINING MALWARE
12 ADVERTISING CLICK FRAUD 29 Insider Threat / Accidental Exposure

13 DISTRIBUTION MECHANISMS 30 RECOMMENDATIONS


13 TROJAN APPLICATIONS
13 App Store Distribution 32 ABOUT CROWDSTRIKE
15 Phishing-Enabled Distribution
16 Distribution via Compromised Websites
16 Distribution via Compromised Operating
System Images

17 Compromised Source Code


17 Software Exploitation
18 Loss of Physical Control

19 USERS OF MOBILE MALWARE


19 DEPLOYMENT MOTIVATIONS
19 Financial Gain
19 Banking Trojans
20 Intelligence Gathering
21 Disruption
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INTRODUCTION

In recent years, computing has become commoditized to the extent that


mobile devices are increasingly prevalent and have become a key part of
As a result of changes in
their owner’s daily lives, supporting both business and personal activities —
the way people use and
including email access, banking and authentication. The adoption of these
protect their devices,
devices is particularly high in geographic regions such as Latin America,
malicious actors have
where they provide a more convenient and cost-effective route to obtaining
increasingly sought to
this functionality versus desktop computing. The traditional computing
diversify the way they
landscape has also changed during this time; significant adoption of
attempt to compromise
cloud-based services has decentralized data storage, and a drive towards
their targets and achieve
securing mobile devices against misuse has resulted in a marked increase
their objectives.
in the deployment of traditional and next-generation antivirus solutions
to combat malware-based threats. This approach to defensive security
has also been augmented by the introduction of endpoint solutions that
provide granular insight into malicious activity through the generation and
investigation of high-resolution device telemetry.

As a result of changes in the way people use and protect their devices,
malicious actors have increasingly sought to diversify the way they attempt
to compromise their targets and achieve their objectives. This diversification
includes the development of malware for mobile devices, which often do not
have access to the same level of security monitoring as desktop computers
and servers. In fact, the successful compromise of mobile devices provides
more extensive access to large amounts of personal data, as they often
aggregate multiple data sources (such as email accounts) along with
mechanisms for authenticating with other services as part of two-factor
authentication (2FA) capability. Furthermore, many devices can also provide
the geographic location of their owners through access to global positioning
service (GPS) hardware and cell tower information. This density of personal
information offers an attractive target to a range of adversaries, leading to
an uptick in both targeted and commercial mobile malware families.

This report provides an overview of the key types of mobile malware


observed so far in 2019, along with their typical deployment mechanisms.
It also identifies how and why certain adversary groups and unaffiliated
criminal actors are targeting mobile devices for intelligence and financial
gain, and assesses the potential for future changes in this threat landscape.
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KEY FINDINGS IN THIS REPORT

1 The targeting of mobile platforms is increasingly being adopted


by a range of criminal and targeted intrusion adversaries.

2
 alware targeting mobile banking is likely to remain prolific,
M
supported by an active underground industry of developers operating
mobile “malware-as-a-service” subscription models to complement
their desktop offerings.

3
Targeted adversary groups continue to develop mobile malware
variants, typically as ports of established malware families.
Development capability has proliferated to less-skilled groups due
to the accessibility of proof-of-concept mobile malware variants.

4
Mobile malware running on the Android operating system is the most
prevalent at this time, driven by the ease of installing new
applications from third-party sources.

5
The current maturity level of mobile security solutions lags behind
that of traditional platforms, leading to longer potential attacker dwell
times on compromised mobile devices.
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MOBILE MALWARE OVERVIEW


Much like malware families developed for traditional desktop computing
platforms, mobile malware can take a variety of forms depending on the
capabilities and motivations of the developer and those deploying the malware.
While some state-aligned actors may seek to establish long-term persistence
on a device to gather intelligence on a target over a period of time, criminally-
minded groups develop malware to intercept banking credentials in order to
provide a quick route to financial gain. Meanwhile, less sophisticated criminal
actors may seek to repurpose existing revenue generation models such as
ransomware and cryptomining, although often with limited results.

Despite the wide variety of mobile malware families observed in the wild, most
can be categorized into one of five major types, as defined below. While some
actor motivations are obvious, based on the capabilities of the tools they
deploy, further discussion on the typical objectives of threat actor classes is
provided in the Users of Mobile Malware section of this report.
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TYPES OF MOBILE MALWARE

REMOTE ACCESS TOOLS


Remote Access Tools (RATs) represent the most comprehensive threat to
mobile devices due to their broad functionality and extensibility. They typically
Despite the wide variety
enable extensive access to data from infected victim devices and are often
of mobile malware
used for intelligence collection. The data that is retrievable using mobile RATs
families observed in
often far exceeds the fidelity that could be obtained using traditional RATs
the wild, most can be
targeting desktop computers, primarily due to the easy access to hardware
categorized into one of
that is standard on most modern mobile devices, such as microphones,
five major types.
cameras, and GPS chipsets. Typical features provided by mobile RATs include:


Listing of device information such as manufacturer, model, operating system
version, and International Mobile Equipment Identity (IMEI)/International
Mobile Subscriber Identity (IMSI) numbers, which can be used to uniquely
identify the device and associated user

Listing of installed applications

Retrieval of device call history

Retrieval of contact information from the device address book

Retrieval of web browsing history and bookmarks

Collection of short messaging service (SMS) data


Sending SMS messages for command and control (C2) exfiltration
or propagation


Enabling GPS logging and the transmission of device location according
to GPS values

Capture of an active screen via a screenshot

Enabling front and rear facing cameras to capture images and videos

Enabling the microphone to capture ambient sound using device


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Some of this functionality can have multiple uses. For example, the interception
of SMS messages can be used either for general information gathering, or as
a way to intercept 2FA tokens sent using this service in order to compromise
external services.

The majority of mobile RATs used by targeted adversary groups for intelligence
collection purposes are custom-developed, and are often a variant of malware
families deployed against desktop computers. However, there is also an
active market for commercial RAT offerings that provide a similar range of
capabilities aimed at a wider group of paying customers. Some of these tools
are offered on criminal forums for a recurring fee, often with support contracts,
although this class of malware is typically used to enable financially motivated
information collection. In these cases, the RAT may also provide plugins that
create web page “overlays” to intercept user credentials, usually for online
banking services. This functionality is detailed further in the Banking Trojans
section of this report.

SPOUSEWARE / STALKERWARE
In addition to the proliferation of mobile malware for sale on criminal forums, “legal” commercial spyware puts RAT
functionality into the hands of the public, to be used wherever someone has physical access to the mobile device.
This surveillance software is also referred to as “spouseware” or “stalkerware,” due to its frequent use against
personal contacts. It significantly lowers the barrier to entry for deploying malicious software and should
be considered part of any mobile device threat model.

On the opposite end of the market, several commercial entities have created
sophisticated mobile RATs that are supported by professional device
exploitation operations and C2 infrastructure administration services. Apart
from the full operational management chain, what distinguishes these
companies from other mobile RAT developers is their continual maintenance
and patching of their malware, as well as producing variants written for
non-Android operating systems such as Apple iOS. While the Apple mobile
ecosystem is not immune to malicious software, there are barriers to the
development and deployment of potentially malicious software that complicate
the typical deployment techniques (detailed further in Distribution Mechanisms)
often employed to install Android-based RATs. However, remote software
exploits or physical access to the devices is often required to install these
RATs, which in turn significantly increases the cost of deployment.
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The high cost of developing and running such operations make these
capabilities best suited for nation-state customers. This comes at an obvious
financial benefit to the companies offering the services, as well as providing a
level of state-sanctioned acceptance that allows them to operate with relative
freedom outside of certain legal constraints. Examples of mobile RATs offered
by such companies include:

Table 1.
Example of Commercial Mobile RAT Offerings

Assessed
Company RAT Name OS Compatibility
Release Date
Android, iOS, Windows
Remote Control
Hacking Team Mobile, BlackBerry, 2009
System (RCS)
Symbian

Android, iOS, Windows


Gamma Group FinFisher 2011
Mobile, BlackBerry

NSO Group Pegasus iPhone* 2016

DarkMatter Karma iPhone* 2016

(* publicly identified capability, may not be exhaustive)

Although some deployment operations of this type may involve using zero-
day exploits to silently install their malware on target devices, some groups
also take the more traditional route of packaging their malware to make it
seem legitimate. For example, the group responsible for the Exodus malware
took extensive steps to register with Apple as an enterprise developer, using
the identity of a possible cover company called Connexxa S.R.L., allowing
them to distribute a version of their malware for iOS devices.

While these high-end commercial RATs are likely to be deployed only in


limited circumstances against targets that their customers consider high
value, the sophisticated nature of such operations is worth considering as
part of an overall threat model.

Finally, there are mobile RATs that are offered free-of-charge to the public at
large. Many of these have been published allegedly for educational purposes
or to enable “adversary simulation,” but as they are often provided with a
full suite of tools to assist in “Trojanizing” existing mobile applications and
controlling infected machines, they are also an attractive proposition for low-
skilled attackers to use in active campaigns. For example, AndroRAT provides
a “binder” that automatically includes malicious code in user-provided,
legitimate Android Package (APK) files such as WhatsApp, which can then be
sent to targets in a variety of ways.
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Figure 1.
AndroRAT Client GUI

These RATs also assist malicious actors in the development of their own
capabilities, as the source code is either freely offered or easily recovered
using decompilation processes. The recovered code base can then be
adapted or extended to suit a malware developer’s requirements, as well as
modified to evade antivirus detection — for instance, the STATIC KITTEN
adversary has used AndroRAT as a basis for early versions of their mobile
malware capability. These freely available mobile RATs have been able to
jump-start an industry of campaigns against a broad spectrum of targets and
spurred by a variety of motivations.

BANKING TROJANS
Banking Trojans are a popular subset of mobile malware that specifically target
mobile banking services for financial gain. In recent years, the enthusiastic
adoption of mobile devices and their ability to deliver banking services has
made them attractive targets for criminal groups.

The Trojans are often distributed disguised as a legitimate application, while


also embedding additional functionality that enables the interception of user
credentials and 2FA tokens sent to the device. Many of the banking Trojans
available on criminal forums offer a range of features as plugins, which are
available depending on the package purchased. Most of them function
effectively as standalone RATs.
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The primary use of most banking Trojans is to deploy “overlays” that are
shown on the user’s screen when they attempt to access mobile banking
services on their devices. These overlays place invisible input boxes over
legitimate logon panels in order to intercept, log and then pass on user
credentials to the real banking service to maintain expected functionality. The
developers of these Trojans will often add compatibility for additional banking
services or provide updates to existing overlays if the targeted applications
change their layout; this in itself is a revenue-generating process, as the
developers charge a recurring fee for access to updated overlays, motivating
them to continue supporting their tools over extended periods of time.

In order to subvert additional security measures such as the implementation


of 2FA as part of banking service authentication processes, banking Trojans
were developed with the ability to intercept tokens sent by the bank as SMS
messages, ultimately relaying them to a C2 server. This process is supported
by an automated backend system that immediately authenticates with the
bank using the stolen credentials and token, thereby giving the attacker
access to the account. While this functionality can be performed exclusively
on the mobile device, due to the prevalence of mobile banking, variants of
malware such as SpyEye were performing SMS interception for this purpose
in 2011 and earlier. In these cases, an infected desktop machine could attempt
to infect mobile devices owned by the target. This was done by displaying
injected web page content with links to a malicious APK that would then work
in conjunction with SpyEye to intercept 2FA tokens, even though the majority
of the banking activity was occurring on the desktop.

Recent evolutions of the capabilities exhibited by banking Trojans include


more sophisticated ways of performing overlays, in an attempt to avoid
detection by source code analysis procedures and application sandboxing
undertaken by application store owners and security companies. For example,
the Gustuff Android banking Trojan attempts to actively coerce victims into
entering their banking credentials by sending fake push notifications that
display a phishing page when clicked. It then uses Android’s accessibility
features to intercept credentials input through the virtual keyboard.

MOBILE RANSOMWARE
Ransomware is malicious software that seeks to deny victims the full use
of their computing devices and/or data until a ransom has been paid to the
attacker, typically using a digital currency. The majority of ransomware strains
targeting desktop machines operate by encrypting data files found on the
hard drive, and preventing access to a user’s documents, photographs, and
other media files. As with other classes of criminal malware, the concept
of ransomware has been replicated within the mobile environment to take
advantage of the wide adoption of mobile devices.
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While some mobile ransomware families attempt a file encryption process


similar to desktop versions, this strategy often fails. This is due to the
prevalence of cloud storage for files on these devices, as well as limitations
on the speed of encryption created by mobile CPUs and battery life. Instead,
it is far more common for ransomware authors to “lock” the device by using
their malware to display a message and not accept any further input until
the correct access code has been provided. The access codes are provided
when the victim pays a ransom, which is similar to the way traditional
ransomware operates.

Mobile ransomware is often distributed through dropper Trojans that can


be used to quickly package up a standard ransomware code base in large
numbers of malicious application files. These files can then be repeatedly
uploaded to app stores in an attempt to infect the maximum number of
victims in a single campaign. This makes detection via traditional antivirus
mechanisms more challenging, as these files need to be inspected thoroughly
to determine their true purpose.

CRYPTOMINING MALWARE
A further adoption of traditional revenue generation schemes applied to
mobile devices is the introduction of cryptomining. This involves the covert
execution of calculations that generate digital money (cryptocurrency) for
the malicious actor. Cryptomining can be performed either directly through
Trojan code hidden in otherwise legitimate-looking applications, or via
JavaScript code executed using the device’s web browser. In both cases,
Trojanized applications have been observed on the Google Play store that
embed cross-platform mining frameworks, such as CoinMiner and Coinhive,
to generate Monero currency without the knowledge of the user. It’s worth
noting that cryptomining via mobile devices is inefficient due to the reliance
on battery power, which is rapidly consumed by the calculations performed
by the device, as well as the lack of algorithm optimization for mobile central
processing units (CPUs). However, the vast number of potential victim devices
available may still represent an attractive target to less skilled malware
developers.

The result of being compromised by cryptomining malware is likely to be


most acutely observed through the slower performance of a mobile device
as it conducts the required calculations, and it may also cause devices to fail
due to extended periods of high CPU use. A secondary effect may also be
observed through the increase in device battery usage, which reduces the
life of a single charge and the overall lifespan of the device through more
frequent discharge/charge cycles.

Early attempts at performing cryptomining on mobile devices were first


seen around 2014 in the LepriCon malware family, although activity has
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appeared to have peaked between 2017 and 2018, correlating with record
highs in the valuation of digital currencies. While the profit generated by this
class of malware is likely to have been reduced due to an overall downturn
in the current trading rate of the major digital currency such as Monero,
CrowdStrike® Intelligence assesses that Trojanized mobile applications will
continue to embed cryptomining code due to the relatively low development
requirements and risk incurred by the malware authors.

ADVERTISING CLICK FRAUD


Another class of mobile malware is observed through the distribution of tools
designed to accomplish advertising click fraud, in which devices are hijacked
to perform fake clicks on ads in order to generate income for the criminal
actor. This activity represents a potentially lucrative stream of income; in
2016, the World Federation of Advertisers estimated that this type of fraud
could total up to $50 billion by 2025.

The click fraud process is enabled through the creation of hidden HTTP
requests to specific advertising resources associated with the actor. Although
this technique is a reimplementation of activity seen on desktop devices for
many years, the large potential installed base and geographic distribution of
mobile devices can provide extra challenges for companies looking to detect
this type of fraud using statistical analysis methods.

While malware designed to perform click fraud may not represent an obvious
or direct threat to the owner of the device, the procedure can cause financial
loss because of the use of mobile data required to load the link and the
subsequent landing pages required to register the advertising impression for
payment. A second-order effect may be the increase in device battery usage
similar to that which occurs with cryptomining malware.

As with the other classes of mobile malware discussed in this section,


click fraud malware also represents a potential future threat as it can be
repurposed easily to perform other functions. For example, click fraud
malware for the Android OS was observed being repurposed to conduct
distributed denial of service (DDoS) attacks through the modification of
target URLs and the frequency of the requests. The power of such DDoS
botnets may be limited by mobile device bandwidth and battery life, although
the malware is likely to infect devices for longer periods of time due to the
limited range of available antivirus tools.
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DISTRIBUTION MECHANISMS

Mobile malware can be installed on target devices using a number of different


mechanisms, although most variants ultimately take the form of some kind of
Trojan application that the user is persuaded to install. This can be passive,
More sophisticated such as appearing like an attractive application such as a game or utility, or it
malicious actors may seek can be a more active approach triggered by a phishing attack that leads the
to develop and deploy victim to install the malware.
exploits against mobile
software that allow them to However, there are exceptions to this rule: More sophisticated malicious
install malware without user actors may seek to develop and deploy exploits against mobile software that
interaction or awareness. allow them to install malware without user interaction or awareness. This
approach subverts typical security advice, which would normally minimize the
risk of infection by ensuring that users only install applications from trusted
sources.

TROJAN APPLICATIONS
APP STORE DISTRIBUTION
The simplest Trojan distribution technique uses the offer of free tools or
popular, legitimate applications as carriers for the malware. These Trojans
are uploaded to app stores in large numbers to take advantage of volume
distribution in much the same way that spammers rely on a small percentage
of respondents from the millions of emails they send in each run. Some
of these campaigns can result in vast numbers of installs, which is further
amplified by applications that are prominently featured in stores. Often
this is due to algorithms that select popular or trending software for wider
user consideration. In one example disclosed by a security researcher, 13
applications created by a developer called “Luiz O Pinto” were downloaded
over 560,000 times after they were added to the Google Play store. While
they purported to be driving simulation games, when opened, they instead
downloaded an additional APK (Android package) to display advertisements
to the user each time the device was unlocked.
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Figure 2.
Luiz O Pinto Malware Featured in Google Play Store

(Source: Lukas Stefanko)

While the previous example contained no legitimate functionality, malware


authors are able to easily decompile legitimate applications and add code to
perform malicious actions alongside the normal functionality. To the casual
user, the recompiled apps are often indistinguishable from the originals.
Typically, they are added to app stores using slight variations of the legitimate
developer’s name to further establish some credibility with users. When this
occurs with enough frequency, inadvertent installations of these Trojan apps
on mobile devices are inevitable.

Official app stores for the two most popular mobile operating systems —
Google Android and Apple iOS — take slightly different approaches to their
developer verification and application submission processes, leading to
different levels of risk that a user might download a Trojan app. While Apple
requires developers to register in order to submit their applications to the
App Store (including paying a fee), the open source nature of Android is far
less restrictive about who can develop for their platform and be featured in
the Google Play store. This has prompted a larger volume of submitted apps,
increasing the complexity of a detailed verification process in comparison
with Apple’s offering.

Although Apple appears to employ a more stringent approach to investigating


apps for malicious intent, occasionally, malware gets submitted successfully
and made available for download via the company's app store, at least for a
period of time. For example, a Mac OSX Trojan, in the form of a paid-for app
on the Mac App Store called Adware Doctor, was discovered in July 2018
by a security researcher. It was also determined that the app collected and
exfiltrated the web browsing history on infected machines. While this particular
malware targeted desktop machines, the approval process for mobile apps
is largely the same and therefore demonstrates that apps that could be
considered malware still have the potential to be downloaded by the public.
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A further risk posed to Android users is the availability of third-party app


stores that primarily rely on user reviews — which can be easily manipulated
— as the primary mechanism for verifying whether an app is trustworthy. In
addition, users may take advantage of the ability to load APK files directly on
a mobile device without having to use an app store at all. This paves the way
for malicious actors to distribute their Trojan software outside the Google
Play app store ecosystem.

PHISHING-ENABLED DISTRIBUTION
A popular method for coercing users into installing malicious applications is to
send them links to APK files hosted on attacker-controlled websites, normally
achieved through either SMS or email spam messages sent to large groups
of targets. Figure 3 shows how operators of the banking Trojan Exobot have
distributed links to the fake mobile banking app that enables website overlays
and credential stealing on infected devices.

Figure 3.
Exobot SMS Phishing Infection Chain
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Recently, a new version of the MoqHao malware was distributed using


SMS spam messages primarily targeting Japanese and South Korean
users. Android users were prompted to install a malicious APK from an
actor-controlled website. The malware would act as an information stealer
to collect SMS messages and audio from an enabled microphone. The
adversary approached the targeting of iOS devices in a different way
because the devices only allow applications to be installed from the official
Apple App Store. Instead of deploying malware to the device, the users were
shown a phishing page that profiled their devices and attempted to obtain
Apple ID credentials.

DISTRIBUTION VIA COMPROMISED WEBSITES


In more targeted operations, the dissemination of mobile malware may be
facilitated through the compromise of a legitimate website that is then used
to host a malicious app. This approach lends an additional layer of legitimacy
to the campaign, as potential victims are unlikely to assume that a known
website is attempting to compromise their mobile devices. For example,
CrowdStrike Intelligence analysis of a mobile malware family, likely developed
by the threat actor STATIC KITTEN, suggests that the Turkish NGO website
setav.org was used to propagate mobile malware as part of a spreading
mechanism delivered to additional targets via SMS.

Although this methodology still relies on installation of an application without


using an app store (therefore excluding iOS devices), it may still be successful
in campaigns where the actor may already know the device usage patterns of
their targets.

DISTRIBUTION VIA COMPROMISED OPERATING SYSTEM IMAGES


An alternative to app store deployment of mobile malware is the distribution
of Trojan applications through their inclusion in custom operating system
(OS) images. On platforms that allow device manufacturers to load their own
OS version images at the point of distribution, there is a risk that Trojan apps
may be included as part of standard distributions that are installed by default
on new phones.
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COMPROMISED SOURCE CODE


Legitimate applications can also be Trojanized by a malicious actor without
the knowledge of the original developer. A malware strain dubbed SimBad
was estimated to have been installed 150 million times during 2018 in
an operation that involved the compromise of the RXDrioder Software
Development Kit (SDK) used by a number of legitimate developers to create
applications that with each build include malicious code in the app package.

Sometimes this approach can be even more subtle. CrowdStrike Intelligence


has previously reported on a FANCY BEAR operation to compromise users of
an application designed to facilitate secure communications between groups
of people on military service in Ukraine. Given that the application was only
distributed to a limited number of individuals, it is likely that the adversary
gained access to the developer’s computer in order to retrieve source code,
so that it could be modified prior to redistribution. The act of redistribution
was performed using emails spoofed to look like they came from the original
developer, which instructed the recipients to install a new version of the app
from an attached file.

SOFTWARE EXPLOITATION
While the distribution of Trojan applications is the most common form of
deployment mechanism for mobile malware, there are limited circumstances
where a malicious actor may develop or procure remote exploits for typical
software installed on target devices, and then use them to install their
payloads without user interaction. An example uncovered in May 2019 was
the disclosure of a vulnerability in the WhatsApp chat application (designated
identifier CVE-2019-3568) that enabled attackers to gain remote code
execution on target devices through a specially crafted series of secure
real-time transport protocol (SRTCP) packets. When successfully executed,
this could facilitate the download and installation of malware without the
user’s awareness or consent. Although exploits of this class are relatively
rare compared to the larger attack surface seen on desktop machines
and servers, their existence demonstrates that even strict adherence to
not downloading untrusted applications may not be sufficient to avoid
compromise for certain classes of targets.
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Software exploits are also frequently used by malware in a post-installation


phase to escalate privileges to a level that allows actors to collect information
from the target device and perform other malicious actions. Even though
malicious actors may seek to develop privilege escalation exploits themselves,
they may also take advantage of a significant community of researchers who
identify and publish these techniques to enable individuals to “root” their own
devices so that they can load custom OS images. While details of privilege
escalation exploits and techniques are too numerous to list in this report, their
existence underscores the importance of keeping mobile software, and the
operating systems it runs on, up to date with security patches at all times.

LOSS OF PHYSICAL CONTROL


Most of the deployment mechanisms described above involve compromise that
occurs while the device is in the possession of the user, whether this is through
user interaction or remote exploitation. However, there may be situations where
a malicious actor seeks to leverage a period of time when the device is not in
the possession of the user. Scenarios such as monitoring software installed by
authorities during a border transit, or a device left unattended in a hotel (a so-
called “evil maid” attack), are likely to occur only in very specific situations, but
could still arise depending on the value of the target.

While device compromise through a lack of physical control of the device is


an unlikely scenario in many cases, it may still be applicable to individuals or
organizations travelling to hostile areas. This class of threat may potentially
be avoided through the use of PINs or passwords (unless these are obtained
through coercion or through passive monitoring via video surveillance or
traditional “shoulder surfing” techniques) in some situations, or through the
use of completely clean devices that only carry the minimum of data and are
completely reset to their original settings once the user has returned.
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USERS OF MOBILE MALWARE

So far, this report has focused on typical types of mobile malware and how
they may be placed on a victim’s device — describing the “what” of the
current threat landscape. The following section addresses some of the
aspects of “why” mobile malware is used and “who” are some of the notable
users of these capabilities. Of course, while it is not possible to fully define
every possible use case and threat actor currently operating within this attack
class or seeking to develop similar capabilities, this section examines some
notable cases that demonstrate the threat to mobile devices and their users.

DEPLOYMENT MOTIVATIONS
FINANCIAL GAIN
Arguably the most prevalent use case for the development and deployment
of mobile malware is to facilitate financial gain on the part of the criminal
actor. At the lowest end, passive revenue generation via cryptomining or ad
fraud may have only a minor impact on infected devices through increased
mobile data usage and battery power consumption. However, the adoption
and growth of mobile banking has made these devices an attractive and
valuable target for criminals, who have built whole operational frameworks to
automate accessing victims’ online bank accounts and transferring funds to
other accounts under their control.

BANKING TROJANS
There is a wide range of mobile malware designed to capture banking credentials to facilitate theft, with additional
families being offered for sale on criminal forums on a regular basis. In late March 2019, a new malware family
called Gustuff began being distributed to targets in Australia via an SMS spam campaign. Gustuff gets victims to
enter their credentials by triggering push notifications sent by the fake banking app, and using a mechanism called
automatic transfer system (ATS) to pass captured credentials on to the legitimate applications afterwards. At the
time of this writing, overlays for over 100 financial institutions in the U.S., Australia, Poland, India and Germany are
provided by the malware.
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The profitability of this style of campaign has triggered a security “arms


race” in much the same manner as has been observed in the traditional
computing sector, where each feature added by the banks is systematically
evaluated by malware authors in order to build work-arounds. For example,
simple credential phishing pages became less effective as dedicated mobile
applications were introduced, leading to the development of malware that can
display custom overlays to intercept credentials whenever the targeted apps
are opened.

Mobile devices have also been adopted as part of the security landscape by
acting as the second factor in 2FA schemes used to secure services such
as banking and email accounts. This approach causes additional challenges
for credential interception malware installed on desktop machines. Therefore
malware authors have begun targeting the mobile devices to collect 2FA
tokens produced as part of challenge-response authentication protocols.

Of all the technical implementations of 2FA token transmission, the


interception of tokens sent using SMS appears to be the most prevalent,
where mobile malware monitors for incoming messages and forwards
them to the attacker. Online services have now begun to adopt other 2FA
mechanisms due to insecurities in SMS, such as the ease with which inbound
challenge messages can be spoofed and message interception attacks
against the Signalling System 7 (SS7) telecommunications standard. As
a response, mobile malware has also adapted to collect these tokens in
different ways. An example of this is demonstrated by the Bankosy Android
banking malware, which overcame interception challenges caused by 2FA
tokens being sent in voice calls by configuring target devices to set up call-
forwarding to an attacker-controlled number so that they could be monitored
and used without the user’s awareness. In the future, it is likely that attackers
will implement further mechanisms for gaining account access, such as
automatically clicking one-tap authentication challenges generated by recent
2FA implementations.

The highly-centralized nature of user communications on one device — such


as email account data — also provides criminals with further opportunities for
account takeovers, which can be monetized in a number of ways.

INTELLIGENCE GATHERING
As previously discussed, the installation of RAT malware on mobile devices
provides access to a large amount of high-resolution victim data, including
but not limited to:

Device information
Contact information
Email/message contents
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Arbitrary file contents


Image data from on-board cameras and screen displays
Audio data from on-board microphones
Geographic location via GPS and cell tower telemetry

In its totality, this range of information could be of significant value to a


number of classes of malicious actors who seek to collect information on
a target over a period of time. While the exact data to be extracted will
vary depending on the origin of the threat actor (e.g., nation-state or state-
aligned, law enforcement, private investigators, or even users of so-called
“spouseware”), it is likely that many of these sources of information will be
exploited during mobile malware campaigns.

Such tools may also be used to facilitate further monitoring of victims using
external collection capabilities. For example, 2FA tokens may be intercepted
to provide remote access to cloud-based services such as email accounts,
while access to IMEI and IMSI numbers could potentially allow for alternative
target correlation and data collection using indigenous signals intelligence
(SIGINT) programs operated by sophisticated state actors.

DISRUPTION
Another use case for mobile malware could be to support an operation that
seeks to disrupt business operations as part of a wider attack against a
company or sector. During targeted ransomware attacks against traditional
computing assets, for example, companies may fall back to using mobile
devices with email and document data stored on cloud services in order to
maintain a level of business continuity. While the scenario is hypothetical at
the time of this writing, it is possible that adversaries may seek to incorporate
pseudo-ransomware that implements PIN-lock techniques alongside
ransomware targeting traditional computing devices, to amplify the effect of
the attack, whether it is financially or politically motivated.

It is worth noting that successful disruption attacks typically benefit


from maximum coverage of infected hosts along with a short period
of time to encrypt or otherwise disable the devices. Spreading mobile
pseudo-ransomware may be possible using targeted phishing attacks for
deployment, with a waiting period before the payload is triggered. It is also
conceivable that adversary access to corporate mobile device management
(MDM) or mobile application management (MAM) systems could allow
them to push out over-the-air (OTA) updates that install the malware on
each corporate device at the same time. An example of the use of this
deployment methodology was identified in July 2018 as part of a highly
targeted attack against a small number of targets in India. In this case, the
targeted iPhone devices were enrolled to use an attacker-controlled MDM
server, which was then used to push malware-infected versions of legitimate
apps, such as WhatsApp and Telegram.
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TARGETED ADVERSARY GROUPS


CrowdStrike Intelligence tracks a number of targeted intrusion adversaries
that have begun developing mobile malware as part of their overall
operational tool kit. Often these implementations are mobile ports of
malware originally developed for desktop computers, and therefore share
commonalities including general capabilities and C2 protocols. This
adoption of such variants is indicative of the recognition that the shift in
user computing towards mobile devices provides a number of benefits to
intelligence collection, and is likely to continue as a trend. Table 2 summarizes
some of the known targeted mobile malware variants tracked in recent years.

Table 2.
Examples of Targeted Adversary Mobile Malware

Earliest
Actor Malware Observed Targeting Motivation
Date
Targeting of military forces in
FANCY BEAR X-Agent variant 2013
regional conflict areas

Targeting of individuals in CIS


BARBARIAN
BERSERK BEAR 2014 countries for counter-terrorism
variant
purposes

Unknown PANDA
Targeting of protestors
with possible
Unnamed Android associated with the Umbrella
connections to 2014
and iOS malware Revolution/Occupy Central
Ministry of State
movements in Hong Kong
Security (MSS)

Targeting of North Korean


RICOCHET
Cumulonimbus 2017 defectors and journalists in
CHOLLIMA
Republic of Korea

Targeting of individuals in the


LABYRINTH Republic of Korea, possibly
Manup 2018
CHOLLIMA relating to government or
military sectors

LABYRINTH Targeting of individuals in


Hawup variant 2016
CHOLLIMA Republic of Korea

STATIC KITTEN TitanRAT 2018 Targeting in Middle East region

Targeting of individuals in the


VICEROY TIGER KnSpy 2018
disputed Kashmir region

MYTHIC Unnamed Android Likely targeting of India-based


2016
LEOPARD malware individuals

DEADEYE Targeting of Syrian opposition


ChatSecureRAT 2016
JACKAL forces

EXTREME Unnamed Android


2016 Targeting of Israeli citizens
JACKAL malware
MOBILE THREAT LANDSCAPE REPORT 23
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THREAT OUTLOOK
MOBILE DEVICE SECURITY
The initial development and increased distribution of mobile malware in
recent years appears as a tacit acknowledgement by a range of malicious
actors of not only the general shift in user computing, but also the utility of
mobile devices as a source of intelligence or financial gain. As with malware
designed to target desktop machines, there is a continual battle between
defenders and attackers seeking to maintain or subvert the security of these
devices. This has resulted in an ever-increasing set of malware capabilities
that have been developed to ensure that malicious actors can continue to
achieve their objectives.

Despite some similarities between the implementation and goals of


desktop and mobile malware, the security landscapes they operate in
are very different. While desktop computing has benefited from years
of development in commercial and open-source malware research and
detection, the current state of defensive technology in the mobile space
is less mature; although mobile malware is researched by the security
community, detection methodologies that can be employed by the user —
such as antivirus monitoring — are currently more limited in comparison.
This factor is particularly acute in the Apple ecosystem, where software
access to operating system internals is extremely limited, thereby preventing
comparable introspection in ways that could identify malware running on
these devices. As such, most security vendors focus on creating apps that
attempt to prevent access to malicious web content via hooks provided by
the operating system, although these tools will fail to detect malware installed
using remote exploits, for example.

Furthermore, the increase in the adoption of filesystem encryption on mobile


devices has made post-exploitation forensic analysis more challenging. In
addition, the nature of mobile communications often means that centralized
network monitoring strategies are likely to miss C2 messages sent by mobile
malware, unless the host devices are connected to corporate networks.
Therefore, mobile devices infected with malware are likely to remain
undetected for longer periods of time, increasing the window of opportunity
for attackers.

INFECTION VECTORS
While the loading of malicious applications from untrusted sources is likely
to remain the most prevalent source of infection in the mobile threat space,
this mechanism typically relies on targeting devices that allow this type of
installation process. Mobile operating systems that do not allow installation
from outside their application store ecosystems need to be “jailbroken” by
their users before they are able to accept third-party apps. This severely
limits the availability of targets susceptible to such attacks.
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As a solution to this challenge, adversary use of malicious MDM servers to


install malware payloads is likely to become a more popular infection vector
CrowdStrike Intelligence
over time, particularly as these facilities can command significant control
assesses that they are
over the mobile devices. While there are still hurdles to overcome regarding
likely to see further
the registration of target devices with the malicious server, a combination of
porting of traditional
social engineering techniques may be used to achieve this goal.
targeted malware families
to mobile platforms
It is unlikely that there will be a significant increase in the use of fully remote,
in order to aid the
non-interactive software exploits to install mobile malware in the near
intelligence gathering
future, primarily due to their relative rarity and corresponding value in the
process, particularly
exploit broker community. This vector will therefore continue to be used
by actors who require
selectively as part of targeted operations instead of across a broader range
tracking their victim’s
of campaigns.
physical location via GPS
telemetry, or who focus
on specific geographic
regions.
EVOLVING THREAT CLASSES
In this report, several mobile malware threat classes have been defined
and their deployment motivations discussed within the context of their
capabilities. While many of these threats are simply variants of traditional
security threats that have been extended into the mobile computing space,
the opportunities they present to malicious actors are likely to have an impact
on the way they evolve in future.

REMOTE ACCESS TOOLS


An ever-increasing scrutiny of desktop machines by security products is likely
to lead to further investment in the development of mobile RATs, particularly
by targeted threat actors who seek to maintain access to their victims for
extended periods of time. To this end, CrowdStrike Intelligence assesses
that they are likely to see further porting of traditional targeted malware
families to mobile platforms in order to aid the intelligence gathering process,
particularly by actors who require tracking their victim’s physical location via
GPS telemetry, or who focus on specific geographic regions. State actors
with SIGINT collection missions are also likely to invest in the creation of
mobile malware as a solution to the increased adoption of encrypted network
communications across email, web, and messaging services, as access
to a mobile endpoint will provide opportunities to subvert this trend. This
is likely to be particularly prevalent in Middle Eastern countries where the
commonplace deployment of ISP-level traffic monitoring hardware may be
defeated through the use of application-level encryption.
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Outside of state actor development of mobile malware, sophisticated


commercial developers are also likely to continue to develop mobile
monitoring solutions as part of their portfolios, due to the lucrative contracts
associated with their sale. This development has continued despite the
compromise of two vendors of such RATs (Gamma Group and Hacking Team)
between 2014 and 2015 by the hacktivist Phineas Fisher, where extensive
details of their portfolios and tool capabilities were published publicly.

Criminal actors are also unlikely to reduce their development of mobile RATs
in the future, due to the financial opportunities they continue to present.
While the facilitation of banking theft is an obvious motivation, data collection
provided to an attacker through the interception of email credentials can yield
numerous benefits, including the takeover of third-party accounts. In addition,
many developers of criminal RATs tend to operate at a lower level of personal
risk, as they merely offer malware for rent through subscription processes
instead of leveraging the tools themselves.

BANKING TROJANS
The vibrant development community built around the creation and sale of
mobile banking Trojans shows no sign of slowing down, as the potential
benefit from successful infections can be particularly lucrative. As with many
criminal enterprises, most operational complexities and security issues
stem from the process of transferring and laundering money so that the
identity of the thieves remains unknown. However, the majority of banking
Trojan developers offset this risk by selling their capabilities via subscription.
These subscriptions are maintained through the continual development and
improvement of banking app overlays, ensuring that their customer base
continues to invest in capabilities that allow them to maintain access to a
wide pool of potential targets. While some Trojans may fall out of favor or be
removed from public sale (such as Red Alert Bot), CrowdStrike Intelligence
frequently observes new families being introduced in underground criminal
forums, and it assesses that this process will continue into the future.

ACCESS FACILITATION
The adoption of mobile devices as a second factor in 2FA schemes has
marked them as a new target of opportunity for malicious actors who seek
to gain access to accounts and services protected by these mechanisms.
Although the ever-present nature of mobile devices offers greater
convenience to users when compared to legacy 2FA tokens, built-in network
connectivity dramatically increases their attack surface. As more corporate
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environments implement 2FA to protect access to services from external


connections, it is likely that specific mobile malware designed to subvert
these protections for targeted operations will be observed in future.

Malware designed to intercept tokens transmitted via SMS or voice and


mobile components of desktop malware are already common. In addition,
screenshot capture capabilities implemented by many RATs could easily
be leveraged to copy visual output from on-device 2FA authenticators
generating time-based one-time passwords (TOTP), and then pass the
credentials to an attacker before they expire. A combination of attacks may
also be used to trick users into opening their authenticator app to enable
this process, such as using installed malware to send fake push notifications
claiming to be issued in response to an authentication challenge.

Other 2FA implementations such as Duo Mobile offer a “one-tap


authentication” mechanism that triggers in response to an authentication
event pushed from an external service, allowing the user to approve or deny
requests sent to their mobile devices. While CrowdStrike Intelligence has not
yet observed malware targeting such a mechanism, it is possible that auto-
click functionality already demonstrated in many mobile malware families may
be used to automatically approve malicious connections to a service without
the user’s knowledge.

RANSOMWARE
Mobile ransomware is relatively easy to implement and therefore provides
malicious actors with opportunities for financial gain with a minimal outlay of
resources. The majority of mobile ransomware strains are likely to be PIN-lock
variants that prevent access to the device without payment, as opposed to
crypto-ransomware that encrypts files on a device.

Although many ransomware variants target single users, there are indications
that the model may also be adopted by organized criminal actors, possibly
in response to customer or affiliate requirements. For example, PINCHY
SPIDER’s recruitment of an APK reverse engineer, along with individuals
skilled in lateral propagation techniques, suggest that they may be seeking
to adapt their services to target corporate environments, possibly including
mobile platforms.

Previous observations of ransomware being used as a cover for disruption


campaigns in the traditional computing sector indicate that malicious actors
may attempt to apply this approach to mobile devices, as well. While there
are several hurdles to overcome in this style of operation, such as the ability
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to self-spread easily among connected devices, an effort to achieve total


business disruption may be considered by particularly motivated actors in
some circumstances.

CRYPTOMINING
Due to the low-revenue nature of cryptomining on non-specialized mobile
CPU hardware, this threat class was likely to have been a reasonable source
of criminal income only during periods where cryptocurrency valuations were
Previous observations of at the peaks — observed between 2017 and 2018. The subsequent crash in a
ransomware being used number of digital currency markets has reduced the overall value in operating
as a cover for disruption such campaigns; this is evidenced by the discontinuation of the CoinHive
campaigns in the traditional mineware service in February 2019 due to profitability issues. Although it is
computing sector indicate likely that some lower skilled malicious actors will continue to operate in this
that malicious actors space by creating margins on the basis of large malware install bases, it is
may attempt to apply this unlikely to represent a significant threat in the overall mobile landscape.
approach to mobile devices,
as well. Despite this, cryptomining performed by some legitimate applications as an
alternative to including advertisements or requiring an outright purchase may
still continue, although this approach is harder to categorize as malware in a
traditional sense.

GEOGRAPHIC VARIATIONS IN THE THREAT LANDSCAPE


In the future, different mobile malware threats are likely to disproportionately
affect some regions more than others. For example, Latin American countries
have a high reliance on mobile devices across the general population, as they
are a more cost-effective mechanism for personal computing. As such, a
larger proportion of users are likely to conduct some degree of banking using
these devices, presenting an attractive developing market for criminal groups.
While it could be argued that access to bank accounts on a per-infection
basis may be higher in other regions, the prevalence of mobile banking in
Latin American countries is favorable for actors who rely on a “numbers
game” for profitability.

As previously discussed in this report, the security postures and policies of


the major mobile operating systems have implications that define the threats
they face, the likelihood and mechanisms of infection, and the capabilities
malware can leverage once installed. Regional variations in purchasing habits
will therefore have some bearing on the type of mobile malware targeting
specific users. For example, although Android is the most prevalent operating
system in most markets, the significant majority it holds in the Asian and
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South American regions (reflected by Samsung’s market penetration)


suggests that most malware targeting users in those regions will be authored
for the Android platform.

There is near domination of the market between Google Android and Apple
iOS platforms, therefore it is likely that almost all malware will be designed
to operate on one of these two operating systems, despite some malware
supporting Windows Mobile and the defunct RIM/Blackberry OS. While
some of these variants are likely to be highly targeted commercial malware
designed to cover a portfolio of targets, including those in emerging markets,
the economics of software development and return-on-investment for
malware authors suggest this approach will stay consistent for some time.

Aside from socioeconomic factors defining the adoption of mobile computing,


political and commercial factors may also contribute to an uneven security
landscape. The addition of Huawei, the Chinese telecommunications
manufacturer, to the May 2019 U.S. executive order barring U.S. firms from
conducting business with companies that threaten national security may have
future implications for the security of devices produced by that company.
This inclusion resulted in Google suspending all business with Huawei
requiring the transfer of software and technical services, including their
access to updates for Google’s version of the Android operating system.
Although a Google spokesperson claimed that users of Huawei devices
would still have access to Google applications and updates, the hardware
manufacturer will currently have to rely on the open-source version of the
operating system, which may increase their vulnerability to software flaws
and decrease the cadence of critical security updates. This change is likely
to disproportionately affect mobile device owners in Europe, where Huawei
has significant market penetration, as compared to the North American
market where the manufacturer’s devices can only be purchased directly
from vendors without subsidies offered by U.S. telecommunication providers.
As the majority of U.S. consumers procure their mobile phones through
carrier plans, the distribution of Huawei devices is much lower in this market.
However, it remains to be seen whether this executive order will significantly
impact the security of Huawei devices in comparison with Google-supported
competitors.

Geopolitical issues could also be exploited by malicious actors to distribute


mobile malware, potentially compromising large numbers of victims by
leveraging fear to trick individuals into installing the Trojan application.
For example, in August 2018 actors suspected to be affiliated with the
Palestinian group Hamas released an application containing malicious
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functionality that mimicked a genuine application used to alert Israelis of


incoming rocket attacks. The release of the malicious application, IsraelAlert,
was timed to coincide with escalating tensions between the two countries,
thereby increasing the chances that unwitting victims would install the fake
application. To see an image of the fake application next to the genuine alert
app, go to the Ynet news article, "Hamas launches fake app to hack Israeli cell
phones."

INSIDER THREAT / ACCIDENTAL EXPOSURE


In addition to mobile malware, organizations need to be vigilant against any
malicious or unintentional transfers of sensitive data. According to a Ponemon
study, 50 percent of organizations have had an incident involving an insider
threat or accidental exposure of corporate data using a mobile device. The
ability to monitor mobile app behavior is critical to not only identifying mobile
malware, but also identifying and preventing attempts to exfiltrate sensitive
data via potentially risky user interactions — such as cut and paste, taking
screenshots and videos, or storing data in an unauthorized network location.
Consider implementing tools to enable security teams to proactively hunt
for threats on mobile devices and search through telemetry such as mobile
network activity, clipboard actions and peripheral connections to identify
anomalous and malicious actions.
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RECOMMENDATIONS

The ubiquitous, global use of mobile devices and the amount of corporate
data so many of them hold mean that mobile threats will continue to
proliferate. Just as certainly, both nation-state and eCrime groups
Flaws in operating system will continue to innovate and refine their mobile attacks to evade your
software can be exploited organization’s security defenses. CrowdStrike recommends that all
by malicious actors to organizations consider the following measures to help better secure the
install mobile malware mobile devices connecting to sensitive corporate data every day:
and escalate operating
privileges to obtain 1. Download applications from trusted sources such as official app
greater access to data and stores: The majority of mobile malware is distributed from third-party
capabilities on the device. sources that do not perform comprehensive checks of the applications
they provide. This provides opportunities for malicious actors to include
unwanted code contained within Trojanized applications. Official sources
such as the Apple App Store and Google Play Store provide some level
of verification on the apps they provide, limiting the risk of exposure to
mobile malware. However, numerous instances of malware have still been
distributed via these official channels, even though apps were subjected
to checks, and users need to be wary of the applications they download;
gaming and mobile banking applications are particularly popular carriers
of malicious code.

2. Be on the lookout for phishing messages: Users should be wary of


messages being delivered by SMS or email that prompt them to install
applications from untrusted sources, because this mechanism is often
used by attackers to trick their targets into installing mobile malware.

3. Regularly apply security patches to mobile operating systems and


installed applications: Flaws in operating system software can be
exploited by malicious actors to install mobile malware and escalate
operating privileges to obtain greater access to data and capabilities on
the device. In response, vendors will identify vulnerabilities and develop
patches to secure devices from exploitation. These patches should be
installed at the earliest opportunity to reduce the risk of exposure.
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4. Establish security around solid MDM processes: Corporate


management of mobile devices can provide protection against mobile
malware by restricting which applications can be installed, and allowing
for the automatic deployment of security patches. However, this
capability can also provide opportunities to an attacker, who may be
able to leverage their own MDM servers to deploy malware. That’s why
organizations should lock down their corporate devices to ensure they
are unable to communicate with untrusted MDM servers, and establish
user security training to minimize the risk that phishing techniques
could be used to trick them into enrolling manually with a rogue server.
Servers running MDM software for the organization should also be heavily
monitored using endpoint protection, to ensure they are not compromised
from within the network and used to push out malicious updates to mobile
devices.

5. Evaluate mobile endpoint detection and response solutions: Solutions


such as CrowdStrike Falcon for Mobile™ take a visibility-first approach
to mobile security, eliminating blind spots that lead to breaches. Security
teams can see activity generated by Android and iOS enterprise apps,
gaining deeper insight into their behavior and enabling threat hunting and
rapid incident investigation. Learn more about Falcon for Mobile.

6. Maintain physical security of physical devices: Enabling strong


passwords, or biometric authentication measures such as fingerprint or
facial identification, in addition to ensuring that mobile devices are not
left unattended, can reduce the risk that a malicious actor may be able to
install malware manually during so-called “evil maid” attacks.
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ABOUT CROWDSTRIKE
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the cloud era with an endpoint protection platform built from the ground up
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offers real-time protection and visibility across the enterprise, preventing
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With CrowdStrike, customers benefit from better protection, better


performance and immediate time-to-value delivered by the cloud-native
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