Cybercriminals have found a new way to poison trust: by dressing up sophisticated malware as a friendly “ChatGPT desktop app.” Microsoft has now raised the alarm, warning that this fake app isn’t just a cheap knockoff, but a full-blown malware delivery system. The culprit? A stealthy backdoor called PipeMagic, which exploits a Windows zero-day vulnerability (CVE-2025-29824) to spy on victims, steal data, and even deploy ransomware.
For all the nerds, here is how it disguises as a fake ChatgPT. PipeMagic is a plugin-based modular malware that uses a domain hosted on the Microsoft Azure cloud provider to stage the additional components, with the 2025 attacks aimed at Saudi Arabia and Brazil relying on a Microsoft Help Index file (“metafile.mshi”) as a loader. The loader, in turn, unpacks C# code that decrypts and executes embedded shellcode.
Think of PipeMagic as the magician you don’t want at your birthday party. It’s modular, sneaky, and never shows you the trick until it’s too late.
Using encrypted named pipes and in-memory operations, the malware slips under detection systems like a cat sneaking past a sleeping dog. Once inside, it runs a command-and-control show, making your system dance to its tune.
Security researchers discovered that attackers tweaked an open-source ChatGPT project on GitHub, injecting malicious code so that right after launch, a hidden payload bursts into action.
Microsoft traced these attacks back to the cybercrime gang Storm-2460, a name already familiar in ransomware circles. Previously linked to RansomEXX campaigns, the group has now reemerged with PipeMagic as their favorite trick of 2025. Finance, IT, real estate have all been affected by these ransomware attacks, and the victims are all over the globe: U.S., Europe, South America, and the Middle East.
Researchers from Kaspersky and BI.ZONE followed PipeMagic’s journey from Asia to recent outbreaks in Saudi Arabia and Brazil. At its core, the malware abuses the Windows logging driver, CLFS, to burrow deep into systems.
Some of its modules include:
To make matters worse, attackers even hijack legitimate Windows tools like ProcDump, masquerading as dllhost.exe, to steal credentials from LSASS memory. Imagine a burglar wearing your postman’s uniform.
PipeMagic is a Trojan in a suit, hiding behind the trusted brand of AI to win your confidence. Its zero-day exploit and modular design make it as dangerous as it is deceptive. So, the lesson here? Don’t download your “ChatGPT desktop app” from some random corner of the internet.