The newly discovered 'Madi' attack is reportedly an active infiltration campaign that has been targeting businesses and works by infecting its targets networks with a malicious Trojan.
The Trojan is reportedly delivered using a number of social engineering schemes like infected email and social media messages that are designed specifically for the target.
Kaspersky Lab and Seculert claim that despite only being active for roughly eight months the malware has already claimed over 800 victims in Iran, Israel and other countries across the globe.
The vendors claim that the majority of Madi's victims are business people working on Iranian and Israeli critical infrastructure projects, Israeli financial institutions, Middle Eastern engineering students and numerous government agencies communicating in the Middle East.
"While the malware and infrastructure is very basic compared to other similar projects, the Madi attackers have been able to conduct a sustained surveillance operation against high-profile victims," said Kaspersky Lab senior malware researcher Nicolas Brulez.
"Perhaps the amateurish and rudimentary approach helped the operation fly under the radar and evade detection."
While not as complex as the infamous Flame malware, the Trojan reportedly shares many its espionage capabilities.
This includes letting hackers remotely steal sensitive files from infected Windows computers, monitor sensitive communications such as email and instant messages, record audio, log keystrokes, and take screenshots of victims' activities.
Kaspersky claims Madi has already stolen gigabytes of data from its victims' computers.
The origin of the Trojan is currently unknown though vendors have hinted it may be the latest government funded cyber attack uncovered this year.
Prior to it numerous attacks like Stuxnet have been revealed to have been linked to state actors.
In the UK, MPs have recently released a security paper warning that the UK government will have to begin developing similar cyber weapons in order to protect itself from hostile nations and groups.
However, firms have cautioned this approach could harm ordinary users of the web that get caught in the digital crossfire.
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