Mustang Panda’s New LOTUSLITE Variant Targets India Banks, South Korea Policy Circles

Mustang Panda’s New LOTUSLITE Variant Targets India Banks, South Korea Policy Circles Ravie LakshmananApr 22, 2026Cyber Espionage / Malware Cybersecurity researchers have discovered a new variant of a known malware called LOTUSLITE that's distributed via a theme related to India's banking sector. "The backdoor communicates with a dynamic DNS-based command-and-control server over HTTPS and supports remote shell access, file operations, and session management, indicating a continued espionage-focused capability set rather than financially motivated objectives," Acronis researchers Subhajeet Singha and Santiago Pontiroli said in an analysis. The use of LOTUSLITE was previously observed in spear-phishing attacks targeting U.S. government and policy entities using decoys associated with the geopolitical developments between the U.S. and Venezuela. The activity was attributed with medium confidence to a Chinese nation-state group tracked as Mustang Panda. The latest activity flagged by Acronis involves deploying an evolved version of LOTUSLITE that demonstrates "incremental improvements" over its predecessor, indicating that the malware is being actively maintained and refined by its operators. The deviation from the prior attack wave relates to a geographic pivot that focuses mainly on the banking sector of India, while keeping the rest of the operational playbook mostly intact. The starting point of the attack is a Compiled HTML (CHM) file embedding the malicious payloads – a legitimate executable and a rogue DLL – along with an HTML page that contains a pop-up which prompts the user to click "Yes." This step is designed to silently retrieve and execute a JavaScript malware from a remote server ("cosmosmusic[.]com"), whose primary responsibility is to extract and run the malware contained inside the CHM file using DLL side-loading. The DLL ("dnx.onecore.dll") is an updated version of LOTUSLITE that communicates with the domain "editor.gleeze[.]com" to receive commands and exfiltrate data of interest. Further analysis of the campaign has uncovered similar artifacts designed to target South Korean entities, specifically individuals within the policy and diplomatic community. "We believe that the group had been targeting certain entities belonging to the South Korean and U.S. diplomatic and policy communities, specifically those involved in Korean peninsula affairs, North Korea policy discussions and Indo-Pacific security dialogues," Acronis said. "What stands out is the broadening of the group's targeting, from U.S. government entities with geopolitical lures, to India's banking sector through implants embedded with HDFC Bank references and pop-ups masquerading as legitimate banking software, and now to South Korean and U.S. policy circles through the impersonation of a prominent figure in Korean peninsula diplomacy, delivered via spoofed Gmail accounts and Google Drive staging." Found this article interesting? Follow us on Google News, Twitter and LinkedIn to read more exclusive content we post. SHARE     Tweet Share Share SHARE  Acronis, banking security, cyber espionage, cybersecurity, DLL side-loading, Malware, Phishing, Threat Intelligence Trending News Cisco Patches Four Critical Identity Services, Webex Flaws Enabling Code Execution Vercel Breach Tied to Context AI Hack Exposes Limited Customer Credentials Why Threat Intelligence Is the Missing Link in CTEM Prioritization and Validation Your MTTD Looks Great. Your Post-Alert Gap Doesn't n8n Webhooks Abused Since October 2025 to Deliver Malware via Phishing Emails Microsoft Issues Patches for SharePoint Zero-Day and 168 Other New Vulnerabilities Mirax Android RAT Turns Devices into SOCKS5 Proxies, Reaching 220,000 via Meta Ads 108 Malicious Chrome Extensions Steal Google and Telegram Data, Affecting 20,000 Users OpenAI Launches GPT-5.4-Cyber with Expanded Access for Security Teams The Hidden Security Risks of Shadow AI in Enterprises Apache ActiveMQ CVE-2026-34197 Added to CISA KEV Amid Active Exploitation Three Microsoft Defender Zero-Days Actively Exploited; Two Still Unpatched Anthropic MCP Design Vulnerability Enables RCE, Threatening AI Supply Chain New PHP Composer Flaws Enable Arbitrary Command Execution — Patches Released Why Security Leaders Are Layering Email Defense on Top of Secure Email Gateways Actively Exploited nginx-ui Flaw (CVE-2026-33032) Enables Full Nginx Server Takeover Load More ▼ Popular Resources Discover Key AI Security Gaps CISOs Face in 2026 Automate Alert Triage and Investigations Across Every Threat Fix Rising Application Security Risks Driven by AI Development How to Identify Risky Browser Extensions in Your Organization