Lazarus Group Exploits Windows Kernel Zero-Day CVE-2026-68820 to Deploy FudModule Rootkit

The North Korean Lazarus APT group has been actively exploiting a zero-day vulnerability in the Windows kernel to escalate privileges to SYSTEM level and install the FudModule rootkit. The flaw, tracked as CVE-2026-68820, resides in the afd.sys driver responsible for network functions and socket management. Microsoft released a patch for the issue on August 11. The attacks form part of the ongoing Operation Dream Job campaign, which uses fake job offers to target professionals in defense, aerospace, and aviation sectors. Victims in Brazil, Europe, and India are tricked into opening malicious PDF viewers or prepared files that deliver the MISTPEN downloader. Once initial access is obtained, the zero-day exploit elevates privileges, allowing FudModule to tamper with Windows telemetry and weaken EDR solutions as well as Smart App Control.

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The North Korean Lazarus group is actively exploiting a zero-day vulnerability in the Windows kernel to obtain SYSTEM privileges and deploy the FudModule rootkit. The flaw, identified as CVE-2026-68820, was patched by Microsoft on 11 August.

The vulnerability affects afd.sys, the driver that handles network functions and socket management in Windows. Exploitation requires the attacker to already possess the ability to execute code with limited privileges on the target machine. From that position, the bug enables escalation to SYSTEM rights, granting extensive control over the operating system.

The campaign is part of Operation Dream Job, a long-running espionage operation that relies on fabricated job offers aimed at specialists in defense, aerospace, and aviation. Activity has been observed in Brazil, Europe, and India. Targets are lured into opening tampered PDF viewers or specially crafted files.

The attack chain begins with the MISTPEN downloader, which gathers basic system information before delivering the zero-day exploit. After privilege escalation, FudModule interferes with Windows telemetry mechanisms and reduces visibility for EDR solutions. The latest variant can also manipulate Smart App Control to further weaken additional protections.

Organizations are advised to apply the August Windows security updates immediately and to strengthen monitoring of files associated with fake employment opportunities.

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