TerminalFix campaign deploys a reverse tunnel through multistage intrusion

Microsoft Threat Intelligence has observed a TerminalFix campaign, a variant of ClickFix, targeting organizations across multiple industries. The campaign uses compromised websites to display a fake Cloudflare CAPTCHA verification overlay that tricks users into copying and executing a malicious PowerShell command. While traditional ClickFix campaigns direct victims to the Windows Run dialog, TerminalFix campaigns apply the same technique but direct users to Windows Terminal or PowerShell instead, increasing the likelihood that complex, multi-line scripts execute successfully. Unlike earlier ClickFix variants that typically deliver a single infostealer, this TerminalFix campaign deploys a sophisticated multi-stage attack chain that combines DLL sideloading, steganographic payload extraction, extensive Active Directory reconnaissance, and a custom reverse-tunnel implant – giving the attacker persistent, network-level proxy access through the compromised host.

Once executed, the PowerShell command masquerades as a Cloudflare verification process while downloading a ZIP archive containing a legitimate binary (LockScreenContentServer.exe) and a malicious DLL (dui70.dll) used for sideloading. The sideloaded DLL drives an elaborate second stage: downloading payloads concealed inside PNG images using steganography, establishing dual persistence through Registry Run keys and scheduled tasks, conducting thorough domain reconnaissance—including domain trust enumeration, domain admin discovery, Active Directory user description harvesting, and targeted server ping sweeps—and ultimately deploying a Python-based reverse-tunnel C2 implant that tunnels arbitrary TCP traffic back through an encrypted WebSocket channel to attacker infrastructure.

This type of intrusion is particularly dangerous because it provides attackers with direct access to an organization’s internal network through the reverse tunnel. The observed reconnaissance and reverse-tunnel capability could enable an attacker to identify and reach additional systems from a compromised host. Microsoft did not observe the downstream actions described below in the analyzed chain. Organizations should treat affected devices as potential network pivot points and investigate for lateral movement and credential exposure. In the hands-on-keyboard phase that typically follows, attackers leverage this access to escalate privileges, disable security controls, exfiltrate sensitive data, and deploy ransomware across the organization. The combination of stealth techniques (DLL sideloading, steganography, hidden folders) and persistent network access make this TerminalFix campaign a serious threat to enterprise environments.

In this blog, we share our detailed analysis of the TerminalFix attack chain – from initial compromise through network tunneling—along with indicators of compromise, detection details, and hunting guidance to help defenders identify and respond to this threat.

Attack chain overview

The TerminalFix campaign follows a multi-stage attack chain that progresses from social engineering through payload delivery, persistence, reconnaissance, and ultimately network tunneling:

1. Initial access via compromised website – A compromised website displays a fake Cloudflare Turnstile CAPTCHA verification overlay. The user is instructed to copy and paste a “verification” command.

2. PowerShell execution – The pasted command runs a disguised PowerShell script that downloads a ZIP archive from attacker infrastructure, extracts it to C:\ProgramData, and silently launches a batch file.

3. DLL sideloading — The batch file executes LockScreenContentServer.exe, a signed legitimate binary, which automatically loads the co-located malicious dui70.dll.

4. Steganographic payload retrieval – The sideloaded DLL executes PowerShell that downloads PNG images from attacker domains, extracts embedded executables and DLL fragments hidden within pixel data, and reassembles them on disk.

5. Persistence – The malware establishes persistence through both HKCU\…\Run registry keys and scheduled tasks that re-execute LockScreenContentServer.exe every 60 minutes.

6. Reconnaissance – Extensive domain discovery is performed: domain trust enumeration, domain admin group membership, Active Directory computer and user enumeration, targeted server pinging, and system information collection in both English and Spanish locales.

7. Command execution loop – A persistent PowerShell file-watch loop monitors a text file for new commands, executes them via Invoke-Expression, and writes results to an output file-, creating a primitive but effective asynchronous command shell.

8. Reverse tunnel deployment – A Python runtime and a custom client.py tunneling implant are downloaded and launched via pythonw.exe with no visible window, establishing a reverse WebSocket tunnel to gitnow[.]dev:443 that gives the attacker full SOCKS-style TCP proxy access through the victim’s network.

Attack chain

1. Initial access: Fake CAPTCHA and the TerminalFix lure

The attack begins when a user visits a compromised website that displays a fake Cloudflare Turnstile verification overlay. The original page is briefly displayed before being replaced by a convincing Cloudflare Turnstile verification overlay. This overlay spoofs the Cloudflare CAPTCHA interface, complete with the Cloudflare logo, “Verify you are human” checkbox, and a spinner animation, tricking users into believing they must complete a verification step to access the site.

When the user interacts with the fake verification prompt, a malicious PowerShell command is silently copied to their clipboard. The on-screen instructions then guide the user to open Windows Terminal or PowerShell and paste the command. The command is carefully crafted to appear legitimate by printing reassuring Cloudflare-themed status messages in color-coded terminal output:

Key Takeaways

• The TerminalFix campaign deploys a reverse tunnel through a multistage intrusion, establishing persistent C2 access to compromised systems.
• Organizations should monitor for outbound SSH and tunneling connections that may indicate reverse tunnel establishment by attackers.
• Organizations should review the full article for complete details and implement relevant security measures.