A newly discovered Android banking malware, named “ToxicPanda,” has been identified as a significant threat to mobile banking users. The malware has already infected over 1,500 Android devices, with most of the compromises reported in Italy, Portugal, and other parts of Europe and Latin America. ToxicPanda’s primary goal is to conduct fraudulent banking transactions through a technique known as on-device fraud (ODF). By using this method, the malware bypasses essential bank security measures, such as identity verification and behavioral detection systems, allowing attackers to perform unauthorized money transfers from compromised devices.
ToxicPanda is believed to be the work of a Chinese-speaking threat actor, sharing many similarities with an earlier malware strain called TgToxic. However, ToxicPanda appears to be a more streamlined version, with certain features from TgToxic removed, such as the Automatic Transfer System (ATS) and obfuscation routines. Despite this, the malware has introduced 33 new commands to harvest a variety of sensitive data from the infected devices. Many of these commands are shared with TgToxic, indicating that the same threat actor or a closely related group is behind both families of malware.
Once installed, ToxicPanda masquerades as popular apps, including Google Chrome and Visa, often distributed via fake app store listings. When users sideload these counterfeit apps, the malware gains elevated permissions through Android’s accessibility services. This enables ToxicPanda to intercept one-time passwords (OTPs) sent via SMS or generated through authenticator apps, effectively bypassing two-factor authentication (2FA) and making it easier for the attackers to complete fraudulent transactions. The malware also allows attackers to remotely control the infected device and carry out money transfers without the victim’s knowledge.
In addition to its core functions, ToxicPanda operates through a command-and-control (C2) panel, which provides real-time access to infected devices. This panel is written in Chinese and enables attackers to view victim information, including device model, location, and status. The malware appears to still be in its early stages of development, as indicated by certain code artifacts like debugging files and dead code. Nevertheless, the malware’s current capabilities still pose a significant threat to banking users, and experts recommend that Android users exercise caution when installing apps and ensure their devices are protected with the latest security updates.
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