Zero Trust Weekly: Legal fallout of breaches & Android malware gets smarter
ThreatLocker: Zero Trust Weekly

This week in Zero Trust

Here are your weekly tips to stay ahead of cyber threats.

Estimated reading time: 5-6 minutes

 

In this issue

  • Financial services under growing ransomware pressure: Banks, credit unions, and lenders are facing heightened legal pressure to prove oversights over third-party vendors.
  • Source code theft tests insider risk defenses: Threats to high-value intellectual property do not only come from hackers breaking in.
  • Business disruption follows hacked email: One deleted Gmail account disrupted an entire business.
  • Threats you need to know: Android malware is merging capabilities and becoming stealthier.
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From the CEO

Prepare for faster ransomware deployment

 

"Attackers used to spend days or weeks inside a network before launching ransomware. Now[...]they are striking faster, sometimes encrypting data within minutes of gaining access.

 

Limiting access to admin tools like PowerShell, blocking internet access from servers, or restricting certain programs can buy security teams valuable time to act." - Danny Jenkins, ThreatLocker CEO & co-founder 

From the ThreatLocker blog

How access misuse is driving legal, operational, and business-ending risk

 

Third-party breaches are becoming major legal liabilities

  • What you need to know: Ransomware-related lawsuits against financial institutions are increasing, often stemming from attacks that exploit third-party vendors, a risk that is present across all industries. Attackers target organizations that hold identity-grade customer data, and courts are placing greater scrutiny on vendor oversight and the timeliness of breach disclosures.
  • Why it matters: Any organization that stores personal data—whether customer or employee—can face litigation if that data is leaked. Courts will examine both your security practices and also how you assess your vendors and how quickly and clearly you notify affected parties.
  • Key takeaways: Shared vendors are shared vulnerabilities. Do your due diligence when selecting vendors and monitoring their security posture. Clarity and speed in your breach communications are a spotlight issue in legal matters, and strong recordkeeping and incident response actions can be your best defense. 

Insider risk moves from policy issue to criminal exposure

  • What you need to know: A federal case involving the theft of proprietary source code by a trusted developer at Headlands Technologies highlights how insider misuse of privileged access can escalate into criminal exposure. Courts and prosecutors are scrutinizing whether companies had real technical controls, auditability, and access boundaries in place to prevent misuse, not just written policies.
  • Why it matters: Insiders with broad access to sensitive intellectual property are among the more difficult threats to detect and defend against. Insufficient monitoring, logging, and offboarding can leave an organization exposed even after an employee leaves the company. The strength of technical controls and evidence trails is just as crucial as written policy. 
  • Key takeaways: Review privileged permissions regularly and clearly document what data is sensitive and why. Detailed logging and traceable activity records are essential for both early detection and incident investigation and can prove decisive if actions are later challenged.

Account takeovers can erase a business

  • What you need to know: Grow Universe (operating as Café Melo) relied on a single Gmail account to run its daily operations. After a series of sudden security changes, that inbox was permanently deleted. Years of contracts, customer communications, and vendor relationships disappeared with it, effectively cutting off the company’s ability to operate. What initially appeared to be an external hack has shifted as courts recently cleared the way to identify a person who allegedly had legitimate access and then changed recovery details before deleting the account. 
  • Why it matters: Many businesses rely on a handful of cloud accounts to run day-to-day operations, and if those accounts lack strong protections or clear ownership, a single compromise (whether from an attacker or an insider), can cause immediate business paralysis and in the case of many small businesses, closure. 
  • Key takeaways: Legitimate access does not equal authorized action, and single-account dependency is a major risk. For small businesses, a single cyberattack can be the end of the business. It's crucial that these organizations enable MFA and enforce least privilege access to critical accounts. 

Threats you need to know

Android threats are evolving beyond simple malware

  1. Android malware merges droppers, SMS theft, and RATs 
    • What you need to know: Threat actors are scaling Android attacks by combining droppers, SMS theft, and RATs into a single campaign. One example is Wonderland (WretchedCat) which uses seemingly legitimate apps to deploy encrypted payloads, even offline. Once installed, it can steal SMS messages and one-time-passwords, hijack Telegram accounts for lateral spread, and enable real-time command and control for financial fraud. 
    • Why it matters: Android malware has evolved from basic SMS stealers into mature criminal enterprises with resilient, automated infrastructure. These campaigns bypass traditional defenses by abusing sideloading, trusted brands, and social platforms. The result is large-scale, low-effort mobile fraud that's harder to detect, spreads faster, and is increasingly capable of surveillance, credential theft, and direct financial theft.
    • Key takeaways: Droppers have become the default method for deploying payload post-installation. Telegram is a critical attack surface used for C2, distribution, and automated malware builds, and malware-as-a-service continues to lower the bar, enabling less-skilled threat actors to run advanced campaigns.
  2. A new breed of Android spyware with unprecedented control 
    • What you need to know: ClayRat is a highly sophisticated Android spyware strain that grants attackers near-total control over infected devices. It spreads via phishing websites, fraudulent domains, and cloud storage links while masquerading as legitimate apps to evade suspicion. 
    • Why it matters: Modern Android malware is moving beyond data theft into full device manipulation. ClayRat exploits accessibility features to disable Google Play Protect, bypass security, and remain active with no visible signs of compromise. This level of control turns your smartphone into a long-term surveillance and manipulation tool often without you realizing. 
    • Key takeaways: Android spyware continues to become stealthier, more persistent, and harder to remove, further raising the bar for mobile security awareness and defensive controls.

Live webinars with Zero Trust experts

Practical Zero Trust implementation

 

Watch now: Five strategies to secure Windows Servers

 

Business environments extend beyond on-premises networks, encompassing cloud apps, SaaS & PaaS solutions, remote workers, and off-site infrastructure. It is critical that you address both internal and external resources.

 

What you will learn:

  • How to protect commonly exploited ports and services.
  • Which policies you need to get started.
  • How to build a multi-layered approach to securing your servers.

Watch now: Policy hygiene and standardization

 

A key tenet of having a secure environment is proper policy hygiene. This means regularly reviewing and removing unused policies. Follow along to learn how policy standardization is critical to your security.

 

Steps to take:

  • Promote policies to the group or organization level if used across your environment.
  • Ensure that USB storage device policies are applied across your organization.
  • Block Telnet.
ThreatLocker Zero Trust World 2026, Orlando, FL, March 4-6

The one event that arms you with the tactics cybercriminals hope you never learn.

 

ThreatLocker is bringing the brightest cybersecurity professionals and special guests together for the sixth year in a row to provide education, training, and networking for IT professionals.

 

Don’t miss out on this exciting, interactive three-day event dedicated to hands-on cybersecurity training, expert insights, and more.

Register now with code ZTWWEEKLY26 to save $200

"My favorite reason to come to Zero Trust World is it's a great mix of content between higher level presentations geared more towards an executive audience but also the in the weeds and in-depth hacking sessions so there's content geared towards anybody regardless of either their experience level or their seniority within an organization."

-Jack Thompson, Director of Information Security, Indianapolis Colts 

Cyber Hero Frontline, a magazine by ThreatLocker

Read more about:

  • The Middle East's digital vanguard: Dubai is where technical ambition meets a strategic edge.
  • USB security without friction: Fight exfiltration attacks with smart limits.
  • Inside DORA: Rewriting the EU resilience rulebook.

Read it online or have a print copy mailed to you (or a friend!) at no charge. 

Read Cyber Hero Frontline
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