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ToxicPanda

ToxicPanda is a banking trojan that emerged in late 2024, representing the geographic expansion of Chinese-speaking threat actors from Southeast Asian targets into European and Latin American financial institutions. Cleafy first identified the family in October 2024, initially associating it with TgToxic before determining it was a distinct, stripped-down variant with its own command set. Despite being in early development, the botnet grew rapidly to over 1,500 infected devices, with Italy accounting for more than half of all infections.

Overview

Attribute Details
First Seen October 2024
Last Seen Active (ongoing campaigns)
Status Active, in early development, rapidly expanding
Type Banking trojan
Attribution Chinese-speaking threat actor(s), likely connected to TgToxic operators
Aliases TgToxic variant
Predecessor TgToxic (originally targeting Southeast Asia)

Vendor Names

Vendor Name
Cleafy ToxicPanda
ThreatFabric ToxicPanda
Trend Micro TgToxic / AndroidOS_TgToxic
Intel 471 TgToxic
ESET Android/Spy.Banker.TgToxic
Kaspersky HEUR:Trojan-Banker.AndroidOS.TgToxic
BitSight ToxicPanda

Origin and Lineage

ToxicPanda descends from TgToxic, an Android banking trojan that Trend Micro first documented in February 2023. TgToxic originally targeted users in Taiwan, Thailand, and Indonesia, focusing on cryptocurrency wallets and regional banking apps. Its distinguishing characteristic was abuse of the Easyclick legitimate test automation framework to script UI interactions for automated fraud.

Cleafy's analysis determined that ToxicPanda shares 61 commands with TgToxic, confirming the same threat actor or close affiliates are behind both families. ToxicPanda is a stripped-down version of its predecessor: it removes TgToxic's Automatic Transfer System (ATS), Easyclick framework integration, and obfuscation routines, while introducing 33 new commands of its own. This simplification suggests the actors rebuilt the trojan for a new target region, prioritizing manual On-Device Fraud over TgToxic's automation.

Intel 471 later tracked continued evolution of the TgToxic family in parallel, with updates adding domain generation algorithms (DGA) and dead drop resolvers using community forum profiles for C2 resilience.

Distribution

ToxicPanda's distribution methods target individual banking customers through standard social engineering.

Vector Details
Fake app pages Phishing sites mimicking Google Play or official bank app download pages
Sideloading lures Social engineering to convince victims to install APKs outside official stores
Third-party app stores APKs uploaded to unofficial Android markets

Cleafy noted that the distribution infrastructure appears less mature than established European MaaS operations, consistent with a threat actor expanding into an unfamiliar geographic region.

Capabilities

ToxicPanda focuses on manual On-Device Fraud (ODF) via accessibility, giving operators direct control of the victim device for real-time transaction manipulation.

Capability Implementation
On-Device Fraud (ODF) Remote account takeover directly on the infected device via accessibility service
OTP interception Intercepts one-time passwords from SMS and authenticator apps, bypassing 2FA
Overlay attacks Credential phishing via overlay injection over target banking apps
Remote control Manual device interaction through accessibility for navigating banking apps
SMS interception Read and forward SMS messages for OTP capture
App listing Enumerate installed applications to identify targets
Device info collection Exfiltrate device fingerprint, SIM info, installed apps
Screenshot capture Capture device screen state during fraud operations

Comparison to TgToxic

Feature TgToxic ToxicPanda
ATS (Automated Transfer System) Present Removed
Easyclick automation Present Removed
Obfuscation routines Present Removed
Manual ODF Limited Primary fraud method
Shared commands 61 61
New commands N/A 33
Target region Southeast Asia Europe, Latin America

The removal of ATS and automation in favor of manual ODF indicates the operators are adapting to European banking security controls, which more aggressively detect automated transaction patterns. Manual fraud via remote access is harder for anti-fraud systems to distinguish from legitimate user behavior.

Technical Details

Accessibility Abuse

ToxicPanda's On-Device Fraud relies entirely on Android's accessibility service:

  1. Victim grants accessibility permission after social engineering
  2. Malware auto-grants additional permissions (SMS, phone)
  3. Operators connect to the device for interactive sessions
  4. Accessibility actions navigate banking apps, initiate transfers, and approve transactions
  5. OTP codes intercepted from SMS or captured from notification bar

C2 Communication

ToxicPanda uses HTTP-based communication with its C2 infrastructure:

  • Bot registers with device fingerprint on infection
  • Retrieves target app list and configuration
  • Operators issue commands for interactive fraud sessions
  • Stolen credentials and OTPs exfiltrated to C2

TgToxic C2 Evolution (Parallel Development)

While ToxicPanda uses relatively straightforward C2, the parent TgToxic family has evolved its infrastructure significantly. Intel 471 documented three phases:

Phase Technique Details
Phase 1 Hardcoded domains C2 addresses embedded in malware configuration
Phase 2 Dead drop resolvers Encrypted C2 addresses hidden in Atlassian community forum user profiles; malware selects a forum URL from configuration, retrieves the profile, and decrypts the C2 address
Phase 3 DGA Domain generation algorithm creates dynamic C2 domains, discovered in December 2024 samples

The dead drop resolver technique extends sample lifespan: as long as the forum profile remains active, the C2 can be rotated without updating the malware. The DGA further increases resilience by generating multiple candidate domains that can be registered on demand.

Anti-Analysis

Technique Method
Emulator detection Enhanced hardware and sensor checks in TgToxic variants
Minimal obfuscation ToxicPanda specifically strips obfuscation, suggesting rapid deployment was prioritized over stealth
Dynamic C2 Parent TgToxic uses DGA and dead drop resolvers for infrastructure resilience

Target Regions and Financial Institutions

ToxicPanda represents a notable geographic pivot, with Chinese-speaking actors targeting European and Latin American banks for the first time.

Region Share of Infections Details
Italy 56.8% Largest concentration of infected devices, multiple Italian banks targeted
Portugal 18.7% Second-largest infection base
Hong Kong 4.6% Possible holdover from original TgToxic targeting
Spain 3.9% Spanish banking institutions
Peru 3.4% Latin American expansion

Cleafy identified 16 targeted banking institutions across these regions. BitSight's 2025 follow-up study showed the botnet continuing to grow, with Portugal and Spain becoming primary targets and the total device count more than doubling.

The Chinese-speaking attribution is unusual for banking fraud operations targeting Europe and Latin America, a space traditionally dominated by Russian-speaking and Eastern European actors. This expansion suggests either a deliberate market entry by the TgToxic operators or a sale/sharing of the codebase with actors operating in these regions.

Notable Campaigns

July 2022: Trend Micro first documents TgToxic targeting users in Taiwan, Thailand, and Indonesia via fake cryptocurrency and banking apps, using the Easyclick automation framework for credential theft and automated transactions.

October 2024: Cleafy identifies ToxicPanda as an anomalous campaign initially attributed to TgToxic. Analysis reveals significant code differences, and Cleafy begins tracking it as a separate family. Over 1,500 infected devices identified across Italy, Portugal, Spain, Hong Kong, and Peru.

November 2024: ToxicPanda receives broad coverage following Cleafy's publication. Security researchers note the unusual Chinese-speaking attribution for a European-focused banking trojan and the stripped-down nature compared to TgToxic.

December 2024: Intel 471 discovers TgToxic variants incorporating DGA for C2 resilience, representing the third generation of C2 evasion techniques after hardcoded domains and dead drop resolvers.

Early 2025: BitSight TRACE research reports the botnet has more than doubled in size, with Portugal and Spain overtaking Italy as primary infection targets. The geographic distribution continues to shift as the operators expand their European footprint.

References