MuddyWater

MuddyWater

MuddyWater

What Is MuddyWater?

MuddyWater has been one of the most persistently active Iranian threat actors for nearly a decade. Targeting government agencies, financial institutions, healthcare providers, and technology firms across the Middle East and Africa — and, since early 2025, with increasing urgency across Europe — the group’s defining characteristic is continuous retooling. Every major campaign Group-IB has documented introduced new malware variants, infrastructure configurations, or delivery mechanisms, making static signature-based detection fundamentally unreliable against this actor.

 

Group-IB’s research into MuddyWater covers an unbroken chain of first-party investigation from 2024 through 2026, culminating in the original attribution of Operation Olalampo: a campaign first observed in January 2026 that introduced a Telegram-based command-and-control channel not previously documented in the group’s tradecraft. Between October 2025 and March 2026 alone, Group-IB documented at least three distinct MuddyWater campaigns — each deploying previously undocumented malware variants, and also utilizing commodity malware from the cybercrime ecosystem

 

What makes MuddyWater unusual even for a state-sponsored actor is the aggressive use of all available means to achieve their objectives; they utilize custom malware, open source offensive tools, dual use utilities like RMMs, commodity malware including ransomware. This makes it harder for them to maintain stealth, as they showed a tendency to prioritize rapid operations over stealthy operations – this results in OPSEC mistakes through which we are able to closely track their malicious activities.

 

Key Numbers:

— Active since 2017 — 9+ years of continuous operations

— 48 targeted industry sectors confirmed

— 113 countries with confirmed activity

— 3 distinct campaigns documented between October 2025 and March 2026

— 9 legitimate RMM tools abused for persistent remote access

Known aliases
TEMP.Zagros, Seedworm, Static Kitten, SectorD02, TA450, Boggy Serpens, MERCURY, Mango Sandstorm, Earth Vetala, Mercury, Cobalt Ulster, ATK51, T-APT-14, Yellow Nix
Active since
February 2017
Primary targets
Intelligence gathering and cyberespionage
Target regions

Middle East and Africa (primary), Europe (rapidly expanding since 2025), Global — confirmed operations across 14 regions, 113 countries

Motivation
Cyber espionage, stealing intelligence that’s in Iran’s national interest via phishing campaigns.
Heritage
Iran — attributed to the Iranian Ministry of Intelligence and Security (MOIS)

Signature Attacks

  • Operation Olalampo (January–March 2026

    Targeted multiple organizations across the MENA region; first documented use of a Telegram bot as a C2 channel by MuddyWater. Attributed with high confidence by Group-IB.

  • International espionage phishing campaign (October 2025)

    Global targeting of international organizations using compromised legitimate accounts and NordVPN to obscure operator origins — first evidence of worldwide intelligence collection tasking.

  • European expansion (early–mid 2025)

    Documented surge in MuddyWater infrastructure and targeting across Europe, marking the group's most significant geographic shift in operational history.

Tactics, Techniques, and Procedures

  • The Traditional Playbook (Pre-2026)

    For years, MuddyWater operated with a tradecraft that bordered on predictable, following a recognizable pattern:
    — Targeted spearphishing delivered through PDF attachments or links to legitimate file-sharing platforms.
    — Heavy reliance on legitimate Remote Monitoring and Management (RMM) tools to establish the initial foothold.
    — Hijacking legitimate mailboxes at the first compromised victim and re-launching phishing campaigns from those trusted accounts, weaponizing existing business relationships to reach the real target.
    — Occasional deployment of custom malware where the off-the-shelf playbook alone would not suffice.

  • The 2026 Pivot: Espionage Hidden Behind the Cybercrime Ecosystem

    Across early 2026, MuddyWater has deliberately blurred the line between state-aligned espionage and commodity cybercrime, and the supporting evidence has accumulated at a remarkable pace.
    — Custom malware development continues at a steady cadence — five new families have surfaced in early 2026 alone — and phishing remains the primary delivery mechanism. Recent research has even surfaced a bespoke tool the group uses to streamline phishing email distribution.
    — RMM tools remain part of the kit, but their use has noticeably declined relative to previous years.
    — A noticeable uptick has been observed in attacks against the network perimeter and public-facing systems of target organizations, including vulnerability exploitation attempts and password spraying.
    — The group has openly adopted commodity malware into its operational portfolio, notably Chaos Ransomware-as-a-Service, the Tsundere Node.js botnet, and the Sliver C2 framework.
    — Social engineering tradecraft has matured considerably — MuddyWater now leverages ClickFix, SEO poisoning via GitHub facades, and Microsoft Teams vishing.
    — AI has been adopted into the operational toolkit, supporting various stages of the group's operations.
    — Heavy reliance on PowerShell remains a defining signature, but it is increasingly wrapped in and delivered through Node.js, Deno, and Python loaders.

Key TTPs mapped to
MITRE ATT&CK
Technique ID
T1566.001
Technique Name
Spearphishing Attachment
Tactic
Initial Access
Source
Operation Olalampo, Espionage campaign
Technique ID
T1078
Technique Name
Valid Accounts (compromised mailbox access)
Tactic
Initial Access
Source
Espionage campaign
Technique ID
T1204.002
Technique Name
User Execution: Malicious File
Tactic
Execution
Source
Operation Olalampo, Espionage campaign
Technique ID
T1059.001
Technique Name
PowerShell
Tactic
Execution
Source
Operation Olalampo, Espionage campaign
Technique ID
T1059.001
Technique Name
PowerShell
Tactic
Execution
Source
Operation Olalampo C2 logs
Technique ID
T1059.005
Technique Name
Visual Basic (malicious VBA macros)
Tactic
Execution
Source
Espionage campaign
Technique ID
T1547.001
Technique Name
Registry Run Keys (Winlogon Shell)
Tactic
Persistence
Source
Espionage campaign, Operation Olalampo
Technique ID
T1543.003
Technique Name
Windows Service (MicrosoftVersionUpdater)
Tactic
Persistence
Source
Operation Olalampo
Technique ID
T1053.005
Technique Name
Scheduled Task
Tactic
Persistence
Source
Operation Olalampo
Technique ID
T1574.002
Technique Name
DLL Side-Loading (Fooder loader, FMAPP.exe)
Tactic
Persistence
Source
Infrastructure mapping
Technique ID
T1027
Technique Name
Obfuscated Files or Information (AES-encrypted payloads)
Tactic
Defense Evasion
Source
Espionage campaign
Technique ID
T1027.010
Technique Name
Base64 Command Obfuscation (PowerShell -EncodedCommand)
Tactic
Defense Evasion
Source
Operation Olalampo
Technique ID
T1055
Technique Name
Process Injection (FakeUpdate, Fooder, LiteInject)
Tactic
Defense Evasion
Source
Espionage campaign
Technique ID
T1036
Technique Name
Masquerading (MicrosoftExcelUser.exe, calculator disguise)
Tactic
Defense Evasion
Source
Operation Olalampo
Technique ID
T1090
Technique Name
Proxy (NordVPN; FMAPP SOCKS5 reverse proxy)
Tactic
Defense Evasion
Source
Espionage campaign
Technique ID
T1497
Technique Name
Sandbox Evasion (GhostFetch: RAM, CPU, USB device, mouse movement checks)
Tactic
Defense Evasion
Source
Operation Olalampo
Technique ID
T1497
Technique Name
Sandbox Evasion (GhostFetch: RAM, CPU, USB device, mouse movement checks)
Tactic
Defense Evasion
Source
Operation Olalampo
Technique ID
T1562
Technique Name
Impair Defenses (StealthCache enumerates and reports EDR/AV processes to C2)
Tactic
Defense Evasion
Source
Infrastructure mapping
Technique ID
T1555.003
Technique Name
Credentials from Web Browsers (Chromium_Stealer, HackBrowserData
Tactic
Credential Access
Source
Espionage campaign
Technique ID
T1082
Technique Name
System Information Discovery
Tactic
Discovery
Source
Operation Olalampo
Technique ID
T1087.002
Technique Name
Domain Account Discovery
Tactic
Discovery
Source
Operation Olalampo C2 logs
Technique ID
T1115
Technique Name
Clipboard Data (HTTP_VIP variant)
Tactic
Collection
Source
Operation Olalampo
Technique ID
T1560.001
Technique Name
Archive Collected Data (StealthCache compresses to CacheDump.zip)
Tactic
Collection
Source
Infrastructure mapping
Technique ID
T1102
Technique Name
Web Service (CHAR backdoor uses Telegram bot as C2)
Tactic
Command and Control
Source
Operation Olalampo
Technique ID
T1219
Technique Name
Remote Access Software (AnyDesk, SimpleHelp, PDQ RMM, Action1, ScreenConnect)
Tactic
Command and Control
Source
Operation Olalampo
Technique ID
T1573
Technique Name
Encrypted Channel (BugSleep: AES over TCP; GhostBackDoor: AES over HTTP)
Tactic
Command and Control
Source
Infrastructure mapping
Technique ID
T1041
Technique Name
Exfiltration Over C2 Channel
Tactic
Exfiltration
Source
Espionage campaign, Operation Olalampo
Malware Arsenal
Malware
BugSleep
Type
Backdoor
Description
Custom C/C++ backdoor; executes commands and transfers files via C2; injected into legitimate browser and system processes; supports file upload/download, interactive shell, and persistence task management.
Malware
StealthCache
Type
Backdoor
Description
Advanced backdoor with rich C2 command set; exfiltrates files compressed as CacheDump.zip; enumerates and reports running EDR/AV tools to operator; evades analysis via device-name-keyed decryption.
Malware
Phoenix
Type
Backdoor
Description
Minimalistic backdoor; registers with C2 via /register endpoint; supports interactive shell, file upload/download, and persistence via Winlogon Shell registry modification. Version 4 also uses COM DLL for additional persistence.
Malware
CHAR
Type
Rust backdoor
Description
Rust-based backdoor controlled via Telegram bot C2; supports CMD and PowerShell execution; exhibits signs of AI-assisted development. Introduced in Operation Olalampo (January 2026).
Malware
GhostBackDoor
Type
Backdoor
Description
Sophisticated second-stage backdoor; installs as Windows service; AES-encrypted C2 communications; fragments network traffic across multiple commands to evade detection.
Malware
HTTP_VIP
Type
Downloader / Backdoor
Description
Deploys AnyDesk RMM for remote access; includes domain guardrail to avoid honeypots; newer variant operates as standalone backdoor with interactive shell, file operations, and clipboard capture.
Malware
GhostFetch
Type
Downloader
Description
First-stage downloader with extensive anti-analysis checks (RAM, CPU cores, USB device count, mouse movement, debugger detection); fetches AES-encrypted second-stage payload.
Malware
FakeUpdate
Type
Loader/Injector
Description
Decrypts embedded second-stage payload using AES and injects it into its own process; used to deploy Phoenix backdoor variants
Malware
Fooder
Type
DLL Loader
Description
DLL-based loader for side-loading by a legitimate host process; multi-threading to evade sandbox analysis; decrypts payload at runtime using Windows Crypto APIs.
Malware
CannonRat
Type
Remote Access Trojan
Description
HTTP-based RAT linked to MuddyWater through shared COM DLL artifacts observed in Phoenix v4.
Malware
Chromium_Stealer
Type
Credential Stealer
Description
Disguised as a calculator application; extracts stored login credentials from Chrome, Edge, Opera, and Brave; writes harvested credentials to C:\Users\Public\Downloads\cobe-notes.txt.
Malware
HackBrowserData
Type
Credential Stealer (open-source weaponized)
Description
Malware
FMAPP
Type
Reverse Proxy (open-source weaponized)
Description
SOCKS5 reverse proxy side-loaded via FMAPP.exe; tunnels attacker traffic through compromised hosts.

Expert View

MuddyWater's persistence comes from constant retooling, which means defenders need threat intelligence that tracks how their TTPs evolve across campaigns, not just static IOCs. With adversary-centric attribution you can map each operational shift back to the group's infrastructure and tooling patterns, giving security teams the context to prioritize detections before the next wave of attacks hit.

Mansour Alhmoud
Cyber Intelligence Analyst, Group-IB

Defense Recommendations

  • Deploy email authentication monitoring that flags behavioral anomalies from trusted sender accounts

    not just spoofed addresses. MuddyWater sends phishing from legitimately compromised accounts; SPF/DKIM/DMARC alone will not catch it.

  • Monitor for commercial VPN sessions (NordVPN and similar) accessing corporate mailboxes

    from unexpected geolocations — this is a documented MuddyWater operator access pattern.

  • Implement anomaly detection for Telegram API endpoints

    accessed by non-standard processes — the CHAR backdoor uses Telegram bots as its C2 channel.

  • Ingest MuddyWater IOCs continuously, not as point-in-time snapshots

    Infrastructure rotates frequently; point-in-time IOC lists lose value within days.

  • Audit all deployed RMM tools

    (AnyDesk, SimpleHelp, ScreenConnect, Action1, PDQ RMM) and alert on unauthorized installations or sessions originating from unusual network locations.

  • Build MITRE ATT&CK-aligned detection rules

    for priority techniques T1566 (spear-phishing), T1090 (proxy/VPN abuse), T1102 (web service C2), and T1204 (user execution via social engineering).

FAQ

What is MuddyWater APT?

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MuddyWater APT is an Iranian state-sponsored Advanced Persistent Threat group conducting cyberespionage and intelligence-gathering operations since 2017. It targets government, financial services, healthcare, logistics, science and engineering, and software sectors primarily across the Middle East and Africa, with a documented expansion into Europe since early 2025. The group is attributed to Iran’s Ministry of Intelligence and Security (MOIS) with high confidence by Group-IB.

How does MuddyWater differ from OilRig (APT34)?

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Both are Iranian state-sponsored espionage groups, affiliated with MOIS. But they differ significantly in operational tempo and approach. MuddyWater is characterized by rapid toolkit rotation and broad phishing campaigns using compromised legitimate mailboxes, deploying at least three new malware variants between October 2025 and March 2026. OilRig tends toward more targeted and low profile intrusions with longer development cycles for bespoke implants, and more reliance on vulnerability exploitation. MuddyWater’s geographic reach is also notably broader, with confirmed activity across 113 countries.

What makes MuddyWater's phishing so difficult to detect?

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MuddyWater sends phishing emails from legitimately compromised accounts rather than spoofed addresses. Because the emails originate from authenticated, trusted senders, they pass SPF, DKIM, and DMARC validation. Detection requires monitoring sender behavior anomalies — unusual login times, new client fingerprints, access from unexpected IP ranges — rather than relying on email header validation alone. They also employ good lures, which are often designed for their specific targets, in addition to using legitimate services and programs for initial infection.

What is Operation Olalampo?

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Operation Olalampo is the most recent MuddyWater campaign documented by Group-IB, first observed on 26 January 2026 and attributed with high confidence. It targeted multiple organizations across the MENA region and introduced MuddyWater’s first documented use of a Telegram bot as a command-and-control channel — a significant tradecraft evolution. Group-IB’s monitoring of the Telegram C2 bot provided rare direct visibility into post-exploitation commands, deployed tools, and data collection techniques.

What are the first steps when you suspect a MuddyWater intrusion?

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The order matters — preserve telemetry before you start cleaning up, because fragmented vendor telemetry is the threat actor’s defense and every additional data point materially helps the broader community.

  1. Preserve, don’t wipe. Image the host, snapshot memory, and freeze logs before remediating. Pull EDR telemetry for at least 90 days back — MuddyWater dwell times of weeks are routine.
  2. Identify the initial access vector first. That single decision tells you what stage of the kill chain you’re seeing. Was it an RMM install, a macro-laden Office document, a ClickFix-pasted PowerShell command in the user’s run history, or exploitation of a recently disclosed public-facing CVE?
  3. Hunt the persistence fingerprints. Look for newly created scheduled tasks, services, registry Run keys, and modified Shell Folders\Startup registry redirects.
  4. Check for the credential-staging files. C:\Users\Public\Downloads\lp-notes.txt, ce-notes.txt, cobe-notes.txt, or C:\ProgramData\lopa.txt are smoking guns — their presence means the LP-Notes-family credential dialog has already fired.
  5. Look for sideloaded signed binaries in the wrong place.
  6. Look for unusual files in the Public user directory.
  7. Understanding the context of the attack
  8. None of these steps will be effective without current threat intelligence — knowing which certificates, domains, file paths, and tool families are currently associated with MuddyWater is what turns a generic IR playbook into MuddyWater-specific hunting.

How will MuddyWater evolve over the next 12 months?

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Based on the trajectory observed by Group-IB, MuddyWater’s tradecraft is likely to evolve along several converging lines. The group will lean more heavily on AI-assisted malware development to produce variants that are harder to fingerprint with static signatures and that mutate quickly enough to outpace traditional detection cycles. At the same time, expect a commodity-crimeware overlay to become the default cover for state-aligned operations — using off-the-shelf RATs, loaders, and stealers (often the same toolkits sold on cybercrime forums) to blend espionage activity into the noise of ordinary financially motivated intrusions, making attribution slower and harder. Ransomware and destructive payloads deployed as decoys will grow more convincing, with proper ransom notes, working leak-site infrastructure, and plausible negotiation behavior, so that incident responders waste time treating an espionage breach as a criminal extortion event. Finally, abuse of signed binaries will expand, including misuse of legitimately signed tools from security vendors themselves — EDR components, remote management agents, and forensic utilities — to bypass trust-based controls and turn defenders’ own software supply chain against them.