Cyberattacks are becoming increasingly advanced, exploiting system vulnerabilities to cause immense damage. One particularly alarming digital threat currently targeting Cisco IOS XE devices is the malicious implant known as BADCANDY. This threat has prompted the Australian Signals Directorate (ASD) to issue warnings due to its active exploitation of a critical vulnerability identified as CVE-2023-20198.
The Background of CVE-2023-20198
Ranked with a perfect CVSS score of 10.0, the CVE-2023-20198 vulnerability is incredibly severe. It enables remote, unauthenticated attackers to create high-privilege accounts on affected systems. Once such an account is in place, these attackers gain complete control over the compromised devices. Since late 2023, this vulnerability has been actively exploited, especially by state-sponsored groups like Salt Typhoon, reportedly affiliated with China. These attacks jeopardize critical infrastructures, including telecommunications networks, causing widespread concern.
What Makes BADCANDY Unique?
BADCANDY is an advanced web shell developed using Lua. Though it is stealthy and powerful, it does have one significant limitation—it does not persist after a device is restarted. However, if the targeted device remains unpatched or vulnerable, attackers can quickly reinfect it. Beginning in October 2023, cybersecurity experts identified multiple iterations of BADCANDY, with attacks projected to escalate further in 2024 and 2025. Australia, in particular, has seen a growing number of incidents.
Attackers’ Methodology
Hackers utilizing BADCANDY adopt sophisticated techniques to conceal their activities. For example, they often apply a temporary patch to the compromised device, masking the exploit and delaying its detection. Moreover, attackers monitor their targets to identify when the implant is removed, enabling them to rapidly reinfect the system. Such tactics highlight their adaptive and persistent approach, making the threat particularly challenging to counter.
ASD’s Recommended Actions
To mitigate the risks posed by BADCANDY, the Australian Signals Directorate has provided the following recommendations:
- Immediately apply Cisco’s patches for CVE-2023-20198 to close the vulnerability.
- Restrict public exposure of the web user interface.
- Follow Cisco’s best practices for hardening systems and improving security configurations.
Organizations are also advised to conduct a thorough review of their systems. This includes:
- Identifying and eliminating unauthorized administrative accounts.
- Inspecting for unknown tunnel interfaces that may hint at suspicious activity.
- Analyzing logs for any evidence of unauthorized alterations.
Strategic Implications for Businesses
The BADCANDY threat underscores the critical necessity for robust cybersecurity measures across enterprises. Beyond implementing technical solutions, businesses must adopt a proactive approach, including continuous monitoring of network configurations and collaborating with cybersecurity experts. Organizations such as Lynx Intel can offer valuable intelligence and support to strengthen defenses against emerging threats.
Conclusion
BADCANDY exemplifies the ever-evolving nature of digital threats in today’s cyber landscape. Addressing these challenges requires a combination of immediate action—such as applying patches—and long-term strategies, including constant vigilance and holistic cybersecurity planning. At Lynx Intel, we specialize in providing advanced intelligence and security solutions to protect your assets and keep your systems secure. With the stakes higher than ever, staying ahead is not just an option; it’s an imperative.

