London Daily

Focus on the big picture.
Monday, Jul 13, 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
United Kingdom Financial Markets Monitor Business Response to Economic Policy Changes
Scottish Renewable Energy Expansion Highlights Need for Faster Grid Development
Wales and Regions Strengthen Focus on Economic Development Through Tourism and Investment
Retail Industry Warns High Street Businesses Remain Under Pressure
Police Chiefs Highlight Growing Challenges Managing Protests and Public Order
Agriculture Leaders Seek Clarity on Post-Brexit Farming Support and Environmental Rules
Transport Unions Warn of Further Industrial Action Over Pay and Working Conditions
Welsh Tourism Sector Reports Strong Growth Driven by Domestic and International Visitors
National Infrastructure Review Gains Support as Leaders Seek Faster Project Delivery
Financial Markets Assess Impact of United Kingdom Corporate Tax Policy Changes
Northern Ireland Assembly Debates Cross-Border Trade and Infrastructure Cooperation Plans
Government Opens Consultations on Housing Reform and Planning System Changes
Scottish Government Faces Pressure to Accelerate Offshore Wind and Grid Expansion
National Energy System Operator Warns Grid Investment Is Needed for Future Electricity Demand Growth
United Kingdom Research Council Invests in Artificial Intelligence and Biotechnology Innovation Hubs
United Kingdom Expands Oversight of Skilled Worker Visa Sponsors Amid Migration Debate
Cross-Party MPs Call for National Infrastructure Strategy Review to Accelerate Economic Growth
Prime Minister Announces One Billion Pound NHS Funding Package Ahead of Winter Pressures
Bank of England Signals Cautious Approach to Interest Rates as Inflation Remains Above Forecasts
World Cup Visitors Turn American Big-Box Stores Into Souvenir Stops
Netflix Weighs Always-On Channels, Bundles and Short-Form Video
Passenger Is Pulled Partly Outside Ryanair Jet After Window Fails Mid-Flight
Innovation-led growth strategy
Public service reform pressure
Defence and industrial security
Labour leadership transition and economic reset
Northern England Pushes for Greater Influence in Britain’s Future Economic Model
UK Technology Strategy Focuses on Life Sciences, Digital Innovation and Research Investment
Britain and United States Maintain Focus on Pharmaceuticals Cooperation and Industrial Growth
UK Public Services Face Continued Pressure as Government Promises Visible Improvements
Regional Economic Power Becomes Key Theme in Britain’s Next Political Phase
Britain Expands Support for Small Businesses as Firms Seek Better Access to Finance
UK Economy Remains Central Political Challenge as Cost of Living and Growth Concerns Persist
National Health Service Introduces New Workplace Reviews to Improve Conditions for Healthcare Staff
UK Life Sciences Sector Secures More Than Three Billion Pounds in Investment to Support Innovation
Britain Strengthens Defence Strategy as Security Concerns Reshape Military and Industrial Policy
Andy Burnham Promises Stronger UK Defence Industry and Expanded Domestic Production
UK Government Faces Difficult Spending Choices as Labour Leadership Transition Approaches
Rachel Reeves Warns Andy Burnham of Immediate Economic Challenges After Expected Leadership Change
Andy Burnham Prepares to Lead UK Government With Plans for Regional Power Shift and Economic Reset
Government Creates Emergency Support Scheme for Financially Struggling Universities
United Kingdom Replaces Traditional Farm Subsidies With Payments Linked to Environmental Performance
National Grid Reports First Week of Electricity Generation Without Fossil Fuels
United Kingdom Financial Regulator Introduces Tougher Capital Rules for Cryptocurrency Exchanges
Belfast Harbour Expands Operations to Attract Investment Through United Kingdom and European Union Market Access
Scottish Government Threatens Legal Challenge Over Westminster Cuts to North Sea Transition Funding
United Kingdom Accelerates Trans-Pennine High-Speed Rail Project Linking Northern Cities
United Kingdom Secures Ten Billion Pound Investment for Cambridge Quantum Computing Campus
Port Talbot Steelworks Wins Support for Green Hydrogen Transition and Protection of Industrial Jobs
United Kingdom Sends Royal Navy Carrier Strike Group to Indo-Pacific as Regional Security Focus Expands
×