London Daily

Focus on the big picture.
Friday, Jun 20, 2025

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 2 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
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
Iranian Military Officers Reportedly Seek Contact with Reza Pahlavi, Signal Intent to Defect
FBI and Senate Investigate Allegations of Chinese Plot to Influence the 2020 Election in Biden’s Favor Using Fake U.S. Driver’s Licenses
Vietnam Emerges as Luxury Yacht Destination for Ultra‑Rich
Plans to Sell Dutch Embassy in Bangkok Face Local Opposition
China's Iranian Oil Imports Face Disruption Amid Escalating Middle East Tensions
Trump's $5 Million 'Trump Card' Visa Program Draws Nearly 70,000 Applicants
DGCA Finds No Major Safety Concerns in Air India's Boeing 787 Fleet
Airlines Reroute Flights Amid Expanding Middle East Conflict Zones
Elon Musk's xAI Seeks $9.3 Billion in Funding Amid AI Expansion
Trump Demands Iran's Unconditional Surrender Amid Escalating Conflict
Israeli Airstrike Targets Iranian State TV in Central Tehran
President Trump is leaving the G7 summit early and has ordered the National Security Council to the Situation Room
Taiwan Imposes Export Ban on Chips to Huawei and SMIC
Israel has just announced plans to strike Tehran again, and in response, Trump has urged people to evacuate
Netanyahu Signals Potential Regime Change in Iran
Juncker Criticizes EU Inaction on Trump Tariffs
EU Proposes Ban on New Russian Gas Contracts
Analysts Warn Iran May Resort to Unconventional Warfare
Iranian Regime Faces Existential Threat Amid Conflict
Energy Infrastructure Becomes War Zone in Middle East
UK Home Secretary Apologizes Over Child Grooming Failures
Trump Organization Launches 5G Mobile Network and Golden Handset
Towcester Hosts 2025 English Greyhound Derby Amid Industry Scrutiny
Gary Oldman and David Beckham Knighted in King's Birthday Honours
Over 30,000 Lightning Strikes Recorded Across UK During Overnight Storms
Princess of Wales Returns to Public Duties at Trooping the Colour
Red Arrows Use Sustainable Fuel in Historic Trooping the Colour Flypast
Former Welsh First Minister Addresses Unionist Concerns Over Irish Language
Iran Signals Openness to Nuclear Negotiations Amid Ongoing Regional Tensions
France Bars Israeli Arms Companies from Paris Defense Expo
King Charles Leads Tribute to Air India Crash Victims at Trooping the Colour
Jack Pitchford Embarks on 200-Mile Walk to Support Stem Cell Charity
Surrey Hikers Take on Challenge of Climbing 11 Peaks in a Single Day
UK Deploys RAF Jets to Middle East Amid Israel-Iran Tensions
Two Skydivers Die in 'Tragic Accident' at Devon Airfield
Sainsbury's and Morrisons Accused of Displaying Prohibited Tobacco Ads
UK Launches National Inquiry into Grooming Gangs
Families Seek Closure After Air India Crash
Gold Emerges as Global Safe Haven Amid Uncertainty
Trump Reports $57 Million Earnings from Crypto Venture
Trump's Military Parade Sparks Concerns Over Authoritarianism
Nationwide 'No Kings' Protests Challenge Trump's Leadership
UK Deploys Jets to Middle East Amid Rising Tensions
Trump's Anti-War Stance Tested Amid Israel-Iran Conflict
Germany Holds First Veterans Celebration Since WWII
U.S. Health Secretary Dismisses CDC Vaccine Advisory Committee
Minnesota Lawmaker Melissa Hortman and Husband Killed in Targeted Attack; Senator John Hoffman and Wife Injured
Exiled Iranian Prince Reza Pahlavi Urges Overthrow of Khamenei Regime
×