Operation DragonReturn Deploys DcRAT Against India’s Tax Infrastructure
Threat Actor Intelligence · 4 sources · Updated 4mo ago · First seen Jun 19, 2026

A China-nexus espionage campaign dubbed Operation DragonReturn has targeted India’s tax ecosystem by impersonating the Income Tax Department and distributing a fake filing utility during the AY2026-27 tax season. Researchers said the operation used a lure hosted at govtop[.]one/incometax to deliver a ZIP archive posing as Common_Offline_Utility_ITR-1_to_4_AY2026-27.zip, aiming at taxpayers, tax professionals, corporate finance teams, and government-linked tax infrastructure. Seqrite and Gurucul assessed the activity with medium-to-high confidence as aligned with a China-linked cluster based on infrastructure overlaps, Chinese-language artifacts, and tradecraft similarities to RAT-focused espionage operations active across Asia.
The infection chain deployed DcRAT through multiple stages, using image-based payload concealment in background.jpg, process injection into svchost.exe, AMSI bypass, and fileless execution of a decrypted .NET assembly in memory. Persistence was established through a Windows service named MixedSvc masquerading as “Windows Mixed Reality Service,” while command-and-control traffic was observed over encrypted TLS to 223.26.63.40:2671, with related infrastructure tied to kkxqbh[.]top, 1kkkkddd.com, and additional domains, IPs, and SHA-256 indicators published by Gurucul. Researchers said the operators rotated payloads every 7–10 days, and at least one variant initially showed 0/66 detections on VirusTotal, underscoring the campaign’s emphasis on stealth and intelligence collection.


