Overview

Threat actors are actively exploiting a critical authentication bypass vulnerability in Palo Alto Networks firewalls to gain unauthorized access to corporate environments and deploy Qilin ransomware, according to new findings from Arctic Wolf Labs.

The flaw, tracked as CVE-2026-0257 (CVSS 7.8), impacts the GlobalProtect portal and gateway in PAN-OS. When specific certificate configurations are combined with authentication override cookies, attackers can bypass authentication and establish seemingly legitimate VPN sessions without valid credentials.

Vulnerability Details

CVE Severity Affected Component
CVE-2026-0257 High (CVSS 7.8) PAN-OS GlobalProtect Portal & Gateway

Affected Versions

  • PAN-OS 12.1
  • PAN-OS 11.2
  • PAN-OS 11.1
  • PAN-OS 10.2 (prior to patched builds)
  • Certain Prisma Access releases

Palo Alto Networks has confirmed limited active exploitation in the wild.

Attack Chain

After successfully bypassing authentication and establishing VPN access, attackers rapidly execute post-exploitation activities.

Persistence

Attackers create registry Run keys using a distinctive naming pattern:

*abcdef
*ghijkl
*mnopqr

Pattern:

* + six random lowercase characters

Remote Access Tools Deployed

To maintain access, attackers install legitimate remote administration software:

  • AnyDesk
  • Ngrok
  • LogMeIn

These tools provide multiple fallback access channels.

Credential Theft

Attackers dump credentials from LSASS using:

rundll32.exe comsvcs.dll MiniDump

The output is often disguised as:

*.odt

to evade detection.

Active Directory Compromise

The attackers extract the entire Active Directory database using:

ntdsutil.exe

This enables theft of:

  • Domain credentials
  • Password hashes
  • Service account secrets
  • Administrative accounts

Lateral Movement

Observed techniques include:

  • PsExec
  • Administrative shares (C$)
  • Remote command execution
  • Credential reuse

Additional Indicators

Researchers observed several compromised systems identifying themselves as:

kali

Multiple attacks also originated from overlapping IP addresses used during both:

  • Initial exploitation
  • Subsequent VPN access

This suggests shared infrastructure among Qilin ransomware affiliates.

Data Theft Before Encryption

Some affiliates immediately launch ransomware.

Others perform:

  • Network reconnaissance
  • Large-scale credential harvesting
  • Data exfiltration

Exfiltration Tool

Rclone

Storage Destination

MEGA Cloud Storage

Defense Evasion

Before encryption, attackers frequently:

Disable Microsoft Defender

Set-MpPreference -DisableRealtimeMonitoring $true

Clear Windows Event Logs

A PowerShell script is used to erase:

  • Security logs
  • System logs
  • Application logs
  • All available event channels

This significantly hinders forensic investigations.

Ransomware Deployment

The Qilin payload is commonly staged as:

C:\PerfLogs\win.exe

The PerfLogs directory is often overlooked by security monitoring tools.

Execution requires a password parameter, complicating automated analysis.

Security Recommendations

1. Patch Immediately

Apply vendor fixes for:

  • PAN-OS
  • Prisma Access

Addressing CVE-2026-0257 should be the highest priority.

2. Terminate Active VPN Sessions

After patching:

  • Force logout all GlobalProtect users
  • Revoke existing authentication sessions

3. Rotate Credentials

If compromise is suspected:

  • Reset all domain credentials
  • Rotate service account passwords
  • Reset privileged accounts
  • Rotate the KRBTGT account

4. Monitor PerfLogs

Alert on execution from:

C:\PerfLogs\

especially:

win.exe

5. Centralize Logging

Forward Windows Event Logs to:

  • SIEM
  • Log server
  • Security monitoring platform

to preserve evidence even if local logs are erased.

Key Takeaway

CVE-2026-0257 is being actively weaponized by Qilin ransomware affiliates to bypass VPN authentication, obtain domain-wide access, steal credentials, exfiltrate data, and deploy ransomware. Organizations running vulnerable PAN-OS or Prisma Access deployments should patch immediately, invalidate active VPN sessions, and investigate for signs of compromise.