London Daily

Focus on the big picture.
Tuesday, Jun 23, 2026

Password manager Passwordstate hacked to deploy malware on customer systems

Password manager Passwordstate hacked to deploy malware on customer systems

A mysterious threat actor has compromised the update mechanism of enterprise password manager application Passwordstate and deployed malware on its users' devices, most of which are enterprise customers.

A mysterious threat actor has compromised the update mechanism of enterprise password manager application Passwordstate and deployed malware on its users’ devices, most of which are enterprise customers.

Click Studios, the Australian software firm behind Passwordstate, has notified its 29,000 customers earlier today via email.

According to a copy of the company’s communications, obtained by Polish tech news site Niebezpiecznik, the malware-laced update was live for 28 hours between April 20, 20:33 UTC and April 22, 00:30 UTC.


Danish security firm CSIS, which dealt with the aftermath of this supply chain attack, published today an analysis of the attacker’s malware. The security firm said the threat actor forced the Passwordstate apps to download an additional ZIP file named “Passwordstate_upgrade.zip” that contained a DLL file named “moserware.secretsplitter.dll.” After installation, this DLL file would ping a remote command and control server, from where it would request new commands and retrieve additional payloads.

While initially it was unknown what attackers collected from infected systems, in two updates [PDF, PDF] published after this article went live, Click Studios said the malware collected the following information and sent it back to its command and control server:

Computer Name, User Name, Domain Name, Current Process Name, Current Process Id, All running Processes name and ID, All running services name, Display name and status, Passwordstate instance’s Proxy Server Address, Username and Password

In other words, the password store was taken. According to the Australian company, the following information is typically included in the password table:

Title, UserName, Description, GenericField1, GenericField2, GenericField3, Notes, URL, Password

Although the company said “there is no evidence of encryption keys or database connection strings” were taken, Juan Andres Guerrero-Saade, Principal Threat Researcher at SentinelOne, pointed out on Twitter, that there are tools currently available that can decrypt the Passwordstate vaults and recover cleartext passwords.

Click Studios released a hotfix package [ZIP] that would help customers remove the attacker’s malware, which the company named Moserware. [instructions are in the image above]

Click Studios said the hack took place after a threat actor compromised the “In-Place Upgrade functionality” of a CDN network not controlled by Click Studios. Only the company’s Windows client appears to have been modified to add malware in the attack.

29,000 companies now have to rotate passwords


In the aftermath of this security breach, the Australian firm has told customers to change all the passwords they stored inside compromised Passwordstate password managers as soon as possible.

Since this is a password manager is sold primarily in bulk to enterprises, to whom it is advertised as an on-premises system, changing passwords won’t involve just email and website accounts, but also passwords for internal gear such as firewalls, VPNs, switches, routers, network gateways, and others, which many employees would most likely have saved inside the app thinking it was a secure local storage system.

“This is a real annoying breach,” William Thomas, a malware analyst at UK security firm Cyjax, told The Record. “Imagine having to change all your passwords for each device on the network, on a Friday.”

Several network administrators have told The Record on Friday that they had to work over the weekend to change the passwords of all their IT inventory as a result of the breach. Many companies also intend to activate incident response plans to check logs for unauthorized access as a result of this incident as well, resulting in many overtime hours for their already swamped security personnel.

Comments

Darth Neo 3 year ago
This is hardly relevant. The event happened in 2021 and the vendor identified and took action within 28hrs. They have subsequently made major improvements to their software, including removing the previous method of updating. The issue affected Build 9117 and they are now on release 9823. I have to question the reasoning on reporting news that is over 2 years old and has been resolved promptly by the vendor.

Newsletter

Related Articles

0:00
0:00
Close
Taxpayer Support Grows for Higher Digital Levies on Multinational Tech Companies
Bank of England Signals Caution Over Inflation Despite Easing Energy Prices
Lloyds Banking Group Expands Artificial Intelligence Hiring Amid Sector-Wide Automation Shift
Film Producer Corporate Collapse Leaves Creditors Facing Unrecoverable Losses
UK Ten-Year Brexit Anniversary Highlights Ongoing Political and Economic Uncertainty
Nottingham Maternity Scandal Inquiry Reveals Systemic Failings in NHS Care
Met Office Heatwave Prompts Public Health Warnings Across United Kingdom
Concerns Rise Over Fiscal Stability as Political Uncertainty Weighs on UK Borrowing Costs
UK Taxpayers Back Higher Digital Taxes on Global Technology Firms, Survey Shows
Bank of England Holds Interest Rates Steady Amid Persistent Services Inflation
Reform UK and Opposition Leaders Call for General Election Following Starmer’s Departure
Ten Years After Brexit Referendum, UK Faces Ongoing Political Fragmentation and Economic Debate
Nottingham University Hospitals Maternity Inquiry Exposes Severe NHS Failures
Met Office Issues Heat Health Alerts as United Kingdom Faces Record-Breaking Temperatures
Andy Burnham Emerges as Front-Runner for Labour Leadership After Starmer’s Resignation
Keir Starmer Resigns as UK Enters New Phase of Political Leadership Transition
UK Expands Alcohol Ban Enforcement Using Tagging Technology Ahead of World Cup
UK Invests £50 Million in Critical Minerals Supply Chain Security
UK Appoints Special Envoy on Preventing Sexual Violence in Conflict
UK Introduces Fines for Landlords of Unsafe Rental Properties
Reform UK Leads Opinion Polls as Immigration Debate Reshapes UK Politics
Police Investigate Edinburgh Attacks as Potential Hate Crimes
King Charles to Publish Personal Tax and Royal Household Financial Records
Nottingham University Hospitals Maternity Inquiry Report Set for Publication
Heat-Health Alerts Issued Across London and Southern England Amid Rising Temperatures
UK Economy Shows Pressure From Middle East Conflict Despite Modest Growth
Brexit Anniversary Reignites Debate Over UK Economic and Political Direction
UK Parliament Continues Legislative Work Amid Leadership Transition
Financial Markets Hold Steady After UK Leadership Shake-Up
Andy Burnham Enters Labour Leadership Race With Strong Parliamentary Backing
Keir Starmer Resigns as UK Prime Minister After Two Years in Office
Reform UK MP Lee Anderson to Raise Pension Concerns Over British Coal Staff Superannuation Scheme
UK Parliament to Debate Newborn Screening for Spinal Muscular Atrophy Following Public Petition
Met Office Warns of Water Safety Risks During Heatwave as Temperatures Peak in England
Treasury Increases Mileage Allowance Payments for 2026–27 Tax Year to 55 Pence Per Mile
UK Government Raises Electricity Generator Levy to 55 Percent in New Revenue Measure
House of Lords Moves Financial Services and Markets Bill to Committee Stage Amid Regulatory Scrutiny
Westminster Hall to Debate Petition on Pro-Israel Influence in UK Politics
UK Parliament Prepares for Estimates Days Debates as Backbench Business Schedule Approved
Armed Forces Bill Nears Final Stages in UK House of Commons With Military Justice Reforms
Donald Trump Comments on UK Political Situation, Citing Immigration and Energy Policy Concerns
Andy Burnham By-Election Victory Fuels Speculation Over Potential Labour Leadership Contest
UK Economy Shows Resilience but Faces Headwinds from Middle East Tensions, UK Finance Says
UK Parliament Opens Week of Debates on Net Zero, Security and Armed Forces Reform
Met Office Issues Amber Extreme Heat Warning as Temperatures Expected to Reach 35C Across England and Wales
Prime Minister Keir Starmer Faces Mounting Leadership Pressure After Makerfield By-Election Defeat
London Hotel Wins World’s Best Afternoon Tea Award at International Hospitality Guide La Liste
Court of Appeal Rules in Favour of Competition and Markets Authority in Phenytoin Drug Case
Chichester Waste Site Suspended After Environment Agency Finds Serious Fire and Pollution Risks
UK Appoints Chris Elmore as Special Envoy on Preventing Sexual Violence in Conflict
×