Researchers have discovered malicious Visual Studio Code (VSCode) extensions that download obfuscated PowerShell payloads to target developers and cryptocurrency projects as part of supply chain attacks.

Researchers at Reversing Labs reported that the malicious extensions first appeared in the VSCode marketplace in October.
“The community was first informed about this campaignin early October and since then, the team has been monitoring it steadily.“.
An additional package targeting the crypto community and part of this campaign was found on NPM.
See also: Fake Bitwarden ads on Facebook push information-stealing Chrome extension
Malicious Visual Studio Code (VSCode) extensions
The campaign includes 18 malicious extensions that primarily target crypto investors and those looking for productivity tools like Zoom.
Researchers identified the following extensions in the VSCode Marketplace:
- EVM.Blockchain-Toolkit
- VoiceMod.VoiceMod
- ZoomVideoCommunications.Zoom
- ZoomINC.Zoom-Workplace
- Ethereum.SoliditySupport
- ZoomWorkspace.Zoom (3 versions)
- ethereumorg.Solidity-Language-for-Ethereum
- VitalikButerin.Solidity-Ethereum (two versions)
- SolidityFoundation.Solidity-Ethereum
- EthereumFoundation.Solidity-Language-for-Ethereum (2 versions)
- SOLIDITY.Solidity-Language
- GavinWood.SolidityLang (2 versions)
- EthereumFoundation.Solidity-for-Ethereum-Language
On npm, the attackers uploaded five versions of the 'etherscancontacthandler' package, which were collectively downloaded 350 times.
To increase the apparent legitimacy of the packages, the attackers added fake reviews and artificially increased the number of installs.
See also: Kimsuky hackers use malicious Chrome extension to steal credentials
ReversingLabs says that all of the malicious VSCode extensions had the same functionality and were designed to download obfuscated second-stage payloads from suspicious domains.
Two of the malicious domains chosen to give a sense of legitimacy are “microsoft-visualstudiocode[.]com” and “captchacdn[.]com”, while others used TLDs such as “.lat” and “.ru”.
At present, the second-stage payloads have not been analyzed, so its functions are unknown.
According to BleepingComputer, the secondary payloads received by these malicious VSCode extensions are obfuscated Windows CMD files that launch a hidden PowerShell command. This command decrypts strings (encrypted with AES) in additional CMD files to install further malicious payloads on the compromised system and execute them.
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The researchers provided a list of malicious packages and VSCode extensions with their SHA1 hashes at the bottom of their report.
See also: Malicious SharePoint notifications distribute Xloader Malware
The discovery of malicious VSCode extensions is a stark reminder of the ongoing threat of cyberattacks to the developer and crypto communities. As the demand for third-party tools and libraries continues to grow, it is important for developers to take the necessary precautions to protect their environment and data from potential attackers. This includes regularly checking the source and reviews of extensions used in their development environment. By staying vigilant, implementing secure coding practices, and regularly performing vulnerability assessments, developers can better defend themselves.
Source: www.bleepingcomputer.com
