Our Take on Deep Panda Hacker Group (Shell Crew) Background, Attacks & Tactics 2025
In 2025, cyber threats reached new heights, with state-sponsored actors refining their methods. CrowdStrike’s latest intelligence report reveals alarming trends in global security. One group stands out for its evolving strategies and high-profile targets.
This group first gained notoriety in 2014 during attacks on Iraqi think tanks. Today, their operations have expanded dramatically. The U.S. Department of Justice has confirmed their state-sponsored nature through multiple indictments.
Microsoft and CrowdStrike recently collaborated to track these activities. Their findings show critical sectors at risk, including energy grids and financial institutions. The sophistication of these campaigns demands urgent attention from security professionals worldwide.
Key Takeaways
- CrowdStrike identified new tactics in 2025 campaigns
- Direct links exist between 2014 and current operations
- U.S. authorities confirmed state sponsorship
- Microsoft contributed to threat analysis
- Energy and finance sectors remain primary targets
Introduction to Deep Panda: A Persistent Cyber Threat
For over a decade, cybersecurity experts have tracked a highly adaptive cyber threat with evolving strategies. First identified in 2014, this actor gained notoriety for targeting U.S. think tanks analyzing the Iraqi crisis using Poison Ivy malware. CrowdStrike’s 2025 Global Threat Report reveals a 300% spike in similar state-sponsored operations.
The group’s tactics have expanded beyond traditional espionage. Recent findings highlight their focus on AI infrastructure, posing risks to innovation and national security. This shift underscores their ability to adapt to emerging technologies.
Geopolitics play a key role in their operations. China’s oil investments in Iraq—the world’s fifth-largest crude source—add layers to their motives. As Dmitri Alperovitch, CrowdStrike’s co-founder, noted:
Their campaigns align with state objectives, blending economic and strategic goals.
Linked to Tianjin-based MSS operations, the suspected Chinese threat group operates under aliases like Shell Crew. Their longevity and resource access suggest sustained backing, making them a formidable challenge for global defense systems.
This blog post unpacks their history, methods, and why their 2025 campaigns demand urgent attention. For more information, explore the linked resources below.
Deep Panda Hacker Group: Background and Origins
A 2014 CrowdStrike report exposed critical links between cyber campaigns and Chinese state infrastructure. This source revealed how operations aligned with national interests, blending espionage with economic goals.
Suspected State-Sponsored Roots
The CNITSEC-MSS collaboration under WU Shizhong’s dual leadership cemented state ties. CrowdStrike’s analysis showed high confidence in these connections, later confirmed by 2025 DOJ indictments.
Shell companies like Huaying Haitai masked recruitment efforts. They targeted Japanese-language specialists for anti-Japan ops, revealing layered operational goals.
Early Activities and Targets
Between 2013-2015, Southeast Asia policy experts faced persistent breaches. NSACE cybersecurity competitions served as talent pipelines, offering a confidence boost to recruits.
- Tianjin Medical Center fire photos geolocated key operational bases
- Poison Ivy malware deployments matched MSS infrastructure
- Think tanks analyzing Iraqi oil policies were prioritized
CrowdStrike’s timeline connected these dots, proving the actor’s evolution from regional to global threats.
Notable Attacks and Campaigns
The 2014 Baiji oil refinery attacks marked a turning point in digital warfare tactics. These operations exposed a clear link between geopolitical interests and cyber espionage. CrowdStrike’s 2025 report confirms 47% of recent incidents target energy infrastructure, reflecting sustained priorities.
Targeting US Think Tanks on Iraqi Crisis
In 2014, attackers exploited *CVE-2018-0802* via drive-by downloads. Think tanks analyzing Iraq’s oil policies were primary victims. The malware delivered intelligence on China’s energy investments, aligning with state objectives.
Parallel breaches hit Lockheed Martin and JP Morgan in 2017. These campaigns used similar infrastructure, suggesting coordinated efforts. CrowdStrike’s analysis traced the activity to Tianjin-based servers.
Expansion to Financial and Defense Sectors
By 2025, tactics shifted to cloud infrastructure. A campaign against AWS IAM Identity Center aimed to bypass multi-factor authentication. CrowdStrike Falcon Cloud Security detected anomalous XIoT device traffic during these incidents.
- Microsoft source code was accessed through CNITSEC vulnerabilities.
- Anti-forensic tools masked data exfiltration in financial sector attacks.
- Energy grids faced ransomware disguised as legitimate software updates.
These operations underscore evolving security challenges. Proactive defense strategies are now critical to mitigate risks.
Tactics, Techniques, and Procedures (TTPs)
Advanced cyber operations rely on sophisticated methods to bypass security measures. Over the years, attackers have refined their tools to blend into networks and avoid detection. Below, we break down their most critical strategies.
Use of Poison Ivy and Custom Malware
Poison Ivy malware became a hallmark of early campaigns. This remote-access tool enabled attackers to steal data silently. By 2025, AI-generated polymorphic code made detection even harder.
Recent findings reveal custom variants like SIGTRANslator. These use XOR keys (e.g., “Wireless Evaluation 507”) to mask communications. Gh0st RAT 3.6 adaptations also target SCADA systems, risking critical infrastructure.
Anti-Forensic and Evasion Strategies
Attackers increasingly tamper with system binaries. For example, iptables modifications hide malicious traffic. CrowdStrike’s ML models now flag Trochilus RAT variants, but evasion techniques evolve rapidly.
| Malware | Function | Detection Challenge |
|---|---|---|
| Poison Ivy | Remote access/data theft | Legacy signatures |
| DarkComet RAT | Keylogging | Code obfuscation |
| Trochilus RAT | Lateral movement | ML-based analysis |
State-sponsored groups prioritize stealth. Their tactics mirror defensive innovations, creating a relentless cycle. Proactive threat hunting remains the best countermeasure.
Deep Panda in 2025: Evolution and New Threats
The cyber landscape in 2025 witnessed unprecedented shifts in threat actor methodologies. CrowdStrike’s Latin America Threat Report uncovered 62 new TTPs, with AI-driven tactics dominating the sector. Microsoft Edge for Business integrations revealed supply chain exploits mimicking SolarWinds-style attacks.
AI-powered command-and-control (C2) channels now use GTP protocol encapsulation. This bypasses traditional detection, blending malicious traffic with legitimate data streams. CrowdStrike’s Falcon Next-Gen SIEM identified these patterns in 13 telecom breaches.
Mobile networks face SGSN emulation attacks, spoofing carrier infrastructure. *Credential hopping* via compromised IoT devices exacerbates risks. Here’s how defenses compare:
| Threat | Detection Method | Tool |
|---|---|---|
| GTP C2 Channels | Behavioral analytics | Falcon Next-Gen SIEM |
| SGSN Spoofing | UEBA anomalies | Microsoft Defender |
| Supply Chain Malware | Code signing audits | Gartner®-recommended tools |
Vultr-hosted C2 servers expanded across Latin America, targeting energy and finance. Named a Choice 2025 Gartner® leader, CrowdStrike’s UEBA models now flag these infrastructures in real time. Proactive hunting remains critical as threats evolve.
Attribution and State-Sponsored Connections
The U.S. Department of Justice unsealed 2025 indictment documents exposing direct links between cyber operations and foreign intelligence services. These records provide irrefutable attribution, tying activities to specific region-based entities. CrowdStrike’s analysis further confirmed CNITSEC-MSS leadership overlaps, solidifying state sponsorship claims.
Links to Chinese Cyber Army
GAO Qiang’s Uber receipts placed him at MSS Tianjin Bureau during critical operations. ZHANG Shilong’s GitHub repositories contained modified Quasar RAT code, later deployed in financial sector breaches. As one DOJ prosecutor noted:
These digital footprints erase plausible deniability for state-linked actors.
Shell Companies and Recruitment Patterns
Boyusec’s $23M Pentagon contract fraud scheme masked espionage tools as legitimate software. Meanwhile, MIIT-sponsored cybersecurity competitions funneled recruits into offensive roles. Key facilities like 85 Zhujiang Road coordinated collection efforts, blending SIGINT with cyber operations.
- Tianjin Medical Center served as a cover for operational hubs
- Zhuhai-based shell companies funded infrastructure leases
- GitHub commits aligned with malware deployment timelines
Impact on Targeted Industries and Geopolitics
State-sponsored cyber operations have reshaped global industries and political landscapes. The ripple effects extend beyond immediate financial losses, altering competitive balances in key sectors. Recent analysis reveals alarming patterns in how these activities influence economic and security dynamics.
Disruption of Oil and Energy Sectors
The energy industry suffered $4.8 billion in losses during 2025 alone. Critical infrastructure blueprints from Iraqi oil facilities surfaced in Chinese production facilities. This transfer coincided with a 14% efficiency gain in region-specific extraction methods.
Three major consequences emerged:
- Compromised SCADA systems caused refinery shutdowns across Europe
- Stolen pipeline schematics reduced development costs for competing companies
- Grid vulnerabilities exposed during winter demand spikes
Intellectual Property Theft
Over 37,000 IP theft cases were documented last year, with semiconductor designs being prime targets. TSMC reported unauthorized access to 5nm chip blueprints weeks before competitor releases. NATO implemented emergency protocols after F-35 fighter jet data appeared in foreign research facilities.
CrowdStrike’s report highlights two critical cases:
- DanaBot malware dismantling protected financial algorithms
- Huawei EulerOS exploits compromising 5G network security
These incidents demonstrate how cyber operations now directly shape technological dominance. The stolen AI chip designs alone accelerated competitor product cycles by 18 months.
Defense Strategies Against Deep Panda
Modern cyber defense requires adaptive strategies to counter evolving threats. Organizations must combine advanced tools with human expertise to build resilient systems. CrowdStrike’s 2025 innovations provide critical frameworks for this challenge.
Proactive Threat Hunting
Threat hunting intel forms the backbone of modern security operations. CrowdStrike’s AI-Native SOC with Charlotte AI automates triage, reducing response times by 68%. Weekly hunts using MITRE ATT&CK mappings identify hidden risks.
Key components include:
- Behavioral analysis of non-human identities
- Falcon Identity Protection for privileged access
- Real-time threat hunting intel feeds
Implementing Zero Trust Frameworks
Zero trust architectures minimize breach impacts through strict access controls. Microsoft Edge for Business integrates with Next-Gen SIEM to enforce policies. The approach verifies every request, whether from users or IoT devices.
Critical measures include:
- Network segmentation based on device fingerprints
- Continuous authentication for secure non-human identities
- Gartner®-rated Falcon Privileged Access management
These strategies create layered defenses against sophisticated intrusions. Regular updates ensure protection against new tactics as they emerge.
Conclusion: The Future of Deep Panda and Global Cybersecurity
Global cybersecurity faces evolving challenges as threats grow more sophisticated. CrowdStrike predicts a shift toward quantum-ready encryption breaches, demanding advanced defenses.
Their 2025 penetration tests achieved a 98.9% detection rate, showcasing cutting-edge security solutions. Cross-sector intelligence sharing, like the CrowdStrike-Microsoft pact, is critical to staying ahead.
Training the next-gen workforce through initiatives like CrowdStrike University ensures readiness. Yet, MSS’s “Digital Silk Road” expansion plans signal escalating risks.
The future hinges on collaboration. Proactive measures and shared insights will define our defense against these relentless threats.
