SentinelLABS and QGroup GmbH identified a previously untracked threat cluster, Sandman, targeting telecommunications providers in the Middle East, Western Europe, and the South Asian subcontinent. The intrusion set used a modular backdoor called LuaDream, an unusual malware framework built on LuaJIT, and showed activity consistent with espionage-focused operations. Investigators said the actor stole administrative credentials, used pass-the-hash over NTLM to reach selected workstations, and moved laterally in a restrained manner designed to reduce the chance of detection.
The attackers deployed LuaDream through DLL hijacking, planting a malicious ualapi.dll that was loaded by the Windows Spooler or Fax service. Researchers described LuaDream as a large, actively developed platform with dozens of components, plugin-based extensibility, and support for multiple command-and-control channels including TCP, HTTPS, WebSocket, and QUIC. SentinelLABS said it could not confidently tie Sandman to a known threat actor, but assessed that the combination of sophisticated tooling, infrastructure overlap across victims, and uneven operational tradecraft may point to a private contractor or mercenary-style group.

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In August 2023, the threat cluster dubbed Sandman was observed targeting telecommunications providers in the Middle East, Western Europe, and the South Asian subcontinent in an espionage-focused campaign.
On publication of the report, SentinelLABS and QGroup GmbH publicly identified the Sandman cluster, detailed the LuaJIT-based LuaDream malware framework, and said they could not confidently attribute the activity to a known threat actor.
During the intrusions, Sandman stole administrative credentials, used pass-the-hash over NTLM to move laterally to selected workstations, and deployed the LuaDream backdoor through DLL hijacking using a malicious ualapi.dll loaded by the Windows Spooler or Fax service.
SentinelLABS assessed that development activity related to the LuaDream malware framework may date back to the first half of 2022, indicating the toolkit was likely under construction well before observed intrusions.
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