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A cyber espionage campaign attributed to the XDSpy threat actor has been discovered, exploiting a zero-day vulnerability in Windows shortcut files identified as “ZDI-CAN-25373.” This vulnerability allows attackers to conceal executed commands within specially crafted shortcut files. XDSpy has primarily targeted government entities in Eastern Europe and Russia since its activities became known in 2020. Researchers from HarfangLab found malicious LNK files exploiting this vulnerability in mid-March, revealing issues with how Windows parses LNK files. The infection begins with a ZIP archive containing a malicious LNK file, which triggers a complex Windows shell command to execute malicious components while displaying a decoy document. This command extracts and executes a first-stage malware called “ETDownloader,” which establishes persistence and downloads a second-stage payload known as “XDigo.” The XDigo implant, written in Go, collects sensitive information and employs encryption for data exfiltration. This campaign represents an evolution in XDSpy's tactics, combining zero-day exploitation with advanced multi-stage payloads.