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CopyCat still lingers on Android devices

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Check Point researchers have identified mobile malware that infected 14-million Android devices, rooting approximately 8-million of them, and earning hackers about $1,5-million in fake advertising revenue in two months.
The malware, dubbed CopyCat by Check Point mobile threat researchers, uses a novel technique to generate and steal ad revenues. While CopyCat infected users mainly in southeast Asia, it also spread to more than 280 000 Android users in the US.
CopyCat is fully-developed malware with vast capabilities, including rooting devices, establishing persistency, and injecting code into Zygote — a daemon responsible for launching apps in the Android operating system – that allows the malware to control any activity on the device.
Researchers first encountered the malware when it attacked devices at a business protected by Check Point SandBlast Mobile. Check Point retrieved information from the malware’s Command and Control servers, and conducted a full reverse engineering of its inner workings.
The CopyCat campaign reached its peak between April and May 2016. Researchers believe the campaign spread via popular apps, repackaged with the malware and downloaded from third party app stores, as well as phishing scams. There was no evidence that CopyCat was distributed on Google Play.
In March 2017, Check Point informed Google about the CopyCat campaign and how the malware operated. According to Google, they were able to quell the campaign, and the current number of infected devices is far lower than it was at the time of the campaign’s peak.
However, devices infected by CopyCat may still be affected by the even today.
CopyCat conducts various forms of advertising fraud, similar to previous malware like Gooligan, DressCode, and Skinner. Upon infection, CopyCat first roots the user’s device, allowing the attackers to gain full control of the device, and essentially leaving the user defenseless.
CopyCat then injects code into the Zygote app launching process, allowing the attackers to receive revenues by getting credit for fraudulently installing apps by substituting the real referrer’s ID with their own.
In addition, CopyCat abuses the Zygote process to display fraudulent ads while hiding their origin, making it difficult for the users to understand what’s causing the ads to pop-up on their screens.
CopyCat also installs fraudulent apps directly to the device, using a separate module. These activities generate large amounts of profits for the creators of CopyCat, given the large number of devices infected by the malware.
The preponderance of malware focused on skimming profit from the ad industry, and the ingenious technical approaches deployed, indicate just how lucrative it is for cybercriminals to engage in adware campaigns. But adware poses a significant threat to users and businesses, including:
* Theft of sensitive information – Some adware, such as Gooligan, steal sensitive information from their victims, which can later be sold to third parties.
* Device rooting or jailbreaking – Adware frequently roots or jailbreaks devices, thereby breaking the built-in security mechanisms of Android or iOS, leaving victims defenseless to even the lowest level kind of hacks.
* Evolving attack objectives – The bad guys behind adware campaigns may refocus their attacks, spreading different types of malware to rooted or jailbroken devices, or use them to create Denial of Service attacks.
* Code sharing with hacking community – The sophisticated capabilities developed by adware developers can be adopted by other malware developers, and used to commit bigger crimes, as witnessed in the Vault 7 leak.