20 May 2024

Grandoreiro Banking Trojan Resurfaces: A Comprehensive Threat to Global Financial Institutions

The cyber threat landscape is continuously evolving, with cybercriminals relentlessly developing new strategies to compromise systems and steal sensitive information. Among these evolving threats is the Grandoreiro banking trojan, which has recently resurfaced in a significant global phishing campaign. Targeting over 1,500 banks across more than 60 countries, this Windows-based malware poses a substantial risk to financial institutions worldwide. Despite a concerted law enforcement takedown effort in January 2024 by Brazilian authorities, the operators of Grandoreiro have returned, armed with enhanced capabilities and a broader reach.

This resurgence marks a pivotal moment in the ongoing battle between cybersecurity professionals and cybercriminals. Understanding the mechanisms, enhancements, and strategies employed by Grandoreiro is crucial for defending against its sophisticated attacks. This comprehensive blog will delve into the evolution of Grandoreiro, its attack mechanisms, evasion tactics, persistence strategies, and its novel use of Microsoft Outlook for propagation. By examining these aspects, we aim to equip financial institutions and cybersecurity professionals with the knowledge needed to mitigate this persistent threat.

The Evolution of Grandoreiro

Origin and Initial Focus

Grandoreiro, like many other banking trojans, initially focused on exploiting vulnerabilities within specific regions. Primarily targeting financial institutions in Latin America, Spain, and Portugal, the trojan capitalized on less stringent cybersecurity measures and high rates of digital banking adoption in these areas. Its primary modus operandi involved sophisticated phishing campaigns designed to trick users into divulging sensitive banking information.

The malware's success in these regions can be attributed to its ability to remain undetected while executing complex financial fraud operations. However, as cybersecurity defenses improved and awareness of Grandoreiro increased, the malware's effectiveness began to wane. This prompted the developers to innovate and expand their reach, ultimately leading to the recent global campaign.

New Capabilities and Enhancements

The resurgence of Grandoreiro in 2024 comes with significant enhancements that make it more resilient and effective. Security researchers Golo Mühr and Melissa Frydrych from IBM X-Force have identified several key improvements:

  • Improved String Decryption: This enhancement makes the malware's code more obfuscated and harder to analyze. String decryption improvements mean that cybersecurity tools and analysts face greater challenges in decoding the malware's instructions, thus delaying detection and response.
  • Advanced Domain Generating Algorithm (DGA): The updated DGA allows Grandoreiro to dynamically generate new domain names for its command-and-control (C2) servers. This makes it more difficult for defenders to block communications between the malware and its operators, as the domains change frequently.
  • Exploitation of Microsoft Outlook: One of the most concerning new features is Grandoreiro's ability to leverage Microsoft Outlook on infected systems. By using the Outlook Security Manager tool, the malware can access and manipulate the victim's email account without triggering security alerts, allowing it to spread further through phishing emails sent from the victim's account.

These enhancements indicate ongoing active development by the malware authors, who are continuously refining Grandoreiro to outmaneuver cybersecurity defenses.

Attack Mechanism

Phishing Campaigns

The initial vector for Grandoreiro's attacks is sophisticated phishing campaigns. These campaigns are meticulously crafted to deceive recipients into clicking on malicious links. The emails often impersonate reputable government entities or financial institutions and use social engineering tactics to create a sense of urgency. Common lures include prompts to view an invoice or make a payment, which are designed to exploit the recipient's routine financial activities.

Once the recipient clicks on the link, they are redirected to a seemingly innocuous image of a PDF icon. This deceptive tactic reassures the victim that they are engaging with a legitimate document. However, clicking on the PDF icon initiates the download of a ZIP archive containing the Grandoreiro loader executable.

Evasion Tactics

One of the standout features of Grandoreiro is its sophisticated evasion tactics designed to bypass traditional anti-malware scanning software. The loader within the ZIP archive is artificially inflated to more than 100 MB. This size inflation is a deliberate strategy to evade detection, as many anti-malware solutions have limitations on scanning larger files.

Moreover, once executed, the loader performs a series of checks to determine whether it is running in a sandboxed environment—a common technique used by cybersecurity analysts to study malware behavior in a controlled setting. If the loader detects that it is in such an environment, it terminates its execution to avoid analysis. Additionally, it gathers basic system information and sends it to a C2 server, which helps the malware operators tailor their attacks to the specific victim.

Selective Targeting

Grandoreiro employs a verification process to selectively target systems based on their geographical location and configuration. The malware is programmed to bypass systems geolocated to Russia, Czechia, Poland, and the Netherlands, as well as Windows 7 machines in the U.S. without antivirus protection. This selective targeting indicates a strategic approach by the attackers to focus on regions and systems that are more likely to be vulnerable and less likely to trigger international law enforcement responses.

Persistence and Communication

Establishing Persistence

Upon successful execution, Grandoreiro ensures its persistence on the infected system by modifying the Windows Registry. This step is crucial for maintaining a foothold on the device, allowing the malware to survive system reboots and continue its malicious activities without interruption. By embedding itself deeply within the system, Grandoreiro makes it more challenging for cybersecurity tools and professionals to remove it completely.

Command-and-Control Communication

Grandoreiro's ability to maintain communication with its operators is facilitated by its advanced DGA, which dynamically generates new domain names for its C2 servers. This flexibility allows the malware to establish and re-establish connections with C2 servers, ensuring that it can receive further instructions and updates from the attackers. The C2 communication enables the malware to perform various commands, including:

  • Remote Command Execution: Allowing the attackers to remotely control the infected system and carry out arbitrary operations.
  • File Operations: Enabling the attackers to download, upload, and manipulate files on the compromised system.
  • Special Modes Activation: Triggering specific functionalities designed for particular tasks, such as data exfiltration or further propagation.

Exploiting Microsoft Outlook

Email Propagation

One of the most notable enhancements in the latest version of Grandoreiro is its ability to interact with the local Microsoft Outlook client on infected systems. By using the Outlook Security Manager tool, the malware avoids triggering the Outlook Object Model Guard, which typically raises security alerts when there is unauthorized access to protected objects.

This capability allows Grandoreiro to gather data from the victim's Outlook account and use it to send spam messages to other targets. The use of the victim's legitimate email account makes these phishing emails appear more credible, increasing the likelihood that recipients will fall for the scam and further propagate the malware.

Increased Spam Volume

The ability to use infected victim inboxes for sending spam significantly contributes to the large volume of spam observed from Grandoreiro. This method of propagation not only spreads the malware to new victims but also increases the overall impact of the campaign by amplifying its reach through trusted email channels.

Mitigation Strategies

Strengthening Phishing Defenses

Given that Grandoreiro's primary attack vector is phishing emails, strengthening defenses against phishing is crucial. Organizations should implement robust email filtering solutions that can detect and block phishing attempts. Additionally, educating employees about the dangers of phishing and training them to recognize and report suspicious emails can help reduce the risk of successful attacks.

Enhancing Endpoint Security

Deploying advanced endpoint security solutions that can detect and respond to sophisticated malware like Grandoreiro is essential. These solutions should include capabilities such as behavioral analysis, machine learning-based detection, and automated response actions to quickly isolate and remediate infected systems.

Implementing Network Segmentation

Network segmentation can limit the spread of malware within an organization. By dividing the network into smaller, isolated segments, organizations can prevent an infection on one segment from easily spreading to others. This containment strategy is particularly effective in limiting the impact of malware like Grandoreiro.

Regular Software Updates and Patch Management

Keeping software and systems up to date with the latest security patches is a fundamental practice for mitigating vulnerabilities that malware can exploit. Organizations should establish a comprehensive patch management program to ensure that all systems are regularly updated.

Multi-Factor Authentication (MFA)

Implementing MFA can add an extra layer of security to sensitive systems and accounts. Even if attackers manage to obtain login credentials through phishing, MFA can prevent them from gaining access without the additional authentication factor.

Incident Response Planning

Developing and maintaining an incident response plan is critical for effectively handling malware infections. This plan should outline the steps to be taken in the event of an attack, including containment, eradication, recovery, and communication. Regularly testing and updating the incident response plan can help ensure that the organization is prepared to respond swiftly and effectively to a Grandoreiro infection.


The resurfacing of the Grandoreiro banking trojan represents a formidable challenge for financial institutions worldwide. Despite previous law enforcement efforts to dismantle its operations, the malware has returned with enhanced capabilities and a broader target base, highlighting the persistent and adaptive nature of cyber threats.

At digiALERT, we recognize the critical need for comprehensive cybersecurity strategies to combat sophisticated malware like Grandoreiro. The enhancements in string decryption, domain generating algorithms, and the exploitation of Microsoft Outlook for propagation signify a new level of sophistication that requires equally advanced defense mechanisms.

Financial institutions must adopt a multi-layered approach to cybersecurity, integrating robust phishing defenses, advanced endpoint security solutions, network segmentation, regular software updates, and multi-factor authentication. Additionally, having a well-prepared incident response plan is crucial for mitigating the impact of potential infections.

Staying ahead in the cybersecurity game demands continuous vigilance, proactive measures, and ongoing education for employees about the latest threats and how to counter them. At digiALERT, we are committed to providing the expertise and tools necessary to protect our clients from evolving cyber threats like Grandoreiro. By leveraging our knowledge and resources, financial institutions can strengthen their defenses and ensure the security and integrity of their operations in an increasingly hostile cyber landscape.

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