Chinese 'Infrastructure Laundering' Abuses AWS, Microsoft CloudChinese 'Infrastructure Laundering' Abuses AWS, Microsoft Cloud

Researchers have linked the China-based Funnull content delivery network (CDN) to a malicious practice they've dubbed "infrastructure laundering," in which threat actors exploit mainstream hosting providers such as Amazon Web Services (AWS) and Microsoft Azure. The activity involves threat actors operating "hosting companies" that rent IP addresses from these providers and then map them to their criminal websites.

Researchers from Silent Push discovered the practice when they noticed that AWS and Microsoft Azure cloud hosting services are "often seen in large-scale use by threat actors," according to the recently published report. Further investigation led them to the discovery that Funnull CDN, a Chinese company that already has raised suspicions for other malicious activity, has been using this tactic to host a network of scam websites.

Funnull has rented more than 1,200 IPs from AWS and nearly 200 IPs from Microsoft, according to Silent Push. While these have nearly all been taken down as of this writing, the company continuously acquires new IPs every few weeks, using them and then dumping them before defenders can identify the malicious activity.

"While providers are consistently banning specific IP addresses used by the Funnull CDN, the pace is unfortunately not fast enough to keep up with processes being used to acquire the IPs," according to the report.

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The tactic is complicated to defend against because it blends malicious activities with legitimate Web traffic, making it difficult for hosting providers to block access without creating a disruption for legitimate users, one security expert notes.

"By utilizing major providers, the bad actors make it much tougher for organizations to block IP ranges because those major providers may also be providing legitimate IP addresses for important Web services," observes Erich Kron, a security awareness advocate at cybersecurity company KnowBe4. "This precludes the ability to block large chunks of addresses easily."

Running Multiple Scams

Funnull CDN hosts more than 200,000 unique hostnames — approximately 95% of which are generated through domain generation algorithms (DGAs) — linked to "illicit activities such as investment scams and fake trading applications," according to the report.

"Moreover, these activities are directly associated with money laundering as a service on shell gambling websites that abuse the trademarks of a dozen popular casino brands and which are available online today," according to the report.

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The activity uncovered by Silent Push is not the first time Funnull CDN has been tied to suspicious activity. Last year, the company purchased a domain, polyfill[.]io, that more than 100,000 websites use to deliver JavaScript code. Soon after, it was found being used as a conduit for a supply chain attack that used dynamically generated payloads, redirected users to pornographic and sports-betting sites, and could potentially lead to data theft, clickjacking, or other attacks.

At its peak in 2022, Funnull CDN's investment scam infrastructure had thousands of active domains, according to Silent Push. In 2024 that portfolio was more "modest" but still had some active sites, including cmegrouphkpd[.]info, which recently went offline but for the past two years had hosted a fake trading platform abusing CME Group's brand and logo.

Is "Laundering" a Misnomer?

AWS has made a public response to the findings in the report, verifying some of them and taking issue with others. The company said before it received Silent Push's report, it was "already aware of the activity" and was actively suspending the fraudulently acquired accounts linked to Funnull CDN's malicious activity.

"All accounts known to be linked to the activity are suspended," according to an AWS statement included in the Silent Push report. "We can confirm that there is no current risk from this activity, and no customer action is required."

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AWS also noted that the term "infrastructure laundering" to describe the activity is a misnomer, since it doesn't involve making illicit activity "clean."

"By using that phrase, the report insinuates that AWS is the intermediary to make the abusive activity appear legitimate and thereby harder to detect or block," the company said. "That’s incorrect."

AWS did not immediately respond to a request for comment from Dark Reading.

A Microsoft spokesperson told Dark Reading the tech giant is looking into the activity described in the report. Meanwhile, Silent Push will continue to investigate related activity from Funnull CDN and other threat actors, and will provide updates when appropriate, it said.

Businesses need to review their cloud accounts to avoid getting caught up in the activity, too. KnowBe4's Kron suggests that threat actors aren't likely to set up an account with a mainstream cloud provider with their own information; instead, they are probably using stolen accounts. These account takeovers, in turn, likely involve the use of stolen or cracked credentials, making the use of multifactor authentication (MFA) another potential way to mitigate this type of activity, he says.

Kron adds: "Organizations should review the accounts with access, audit transactions, and educate people on how to spot potential malicious activity within their cloud accounts."