Hackers Are Impersonating PepsiCo: A Deep Dive into Subdomain Phishing Tactics

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Introduction:

A recent phishing campaign has been uncovered where threat actors are weaponizing the legitimate `em.pepsico.com` domain to lend credibility to their malicious emails. This sophisticated attack leverages a critical oversight in many corporate cybersecurity postures: the improper configuration and monitoring of subdomains. This article will deconstruct this specific attack vector, explaining how it works and providing actionable steps for IT professionals to defend their organizations against similar threats.

Learning Objectives:

  • Understand the mechanics and dangers of subdomain takeovers and impersonation in phishing campaigns.
  • Learn how to perform reconnaissance to identify vulnerable subdomains belonging to your own organization or during penetration tests.
  • Implement defensive monitoring and configuration changes to mitigate the risk of subdomain abuse.

You Should Know:

1. The Anatomy of a Subdomain Phishing Attack

This attack does not necessarily involve a full “takeover” where the attacker gains control of the DNS record. Instead, it’s often a case of subdomain impersonation or exploiting a dangling CNAME record. The attacker registers a domain that closely resembles a legitimate company’s subdomain or finds a subdomain that points to a decommissioned cloud service (like an S3 bucket or Azure app) and claims it. In the PepsiCo case, `em.pepsico.com` was likely either impersonated via a similar-looking domain or was a previously used subdomain that was improperly decommissioned. The attackers then send emails from this domain, which easily bypasses basic sender reputation filters because it is, or appears to be, a legitimate part of the company’s domain structure.

2. Reconnaissance: Discovering Your Own Vulnerable Subdomains

The first step in defense is discovery. You cannot secure what you do not know exists. Security teams must regularly enumerate all subdomains associated with their primary domains.

Step-by-step guide:

Step 1: Use Subdomain Enumeration Tools. Utilize a combination of OSINT (Open-Source Intelligence) tools to build a comprehensive list.

Command (Linux):

 Using subfinder
subfinder -d pepsico.com -o subdomains_pepsico.txt
 Using amass (more intensive)
amass enum -passive -d pepsico.com -o subdomains_amass.txt
 Using crt.sh from the certificate transparency log
curl -s "https://crt.sh/?q=%25.pepsico.com&output=json" | jq -r '.[].name_value' | sort -u > subdomains_crt.txt

Combine and sort the results:

cat subdomains_.txt | sort -u > all_pepsico_subdomains.txt

Step 2: Resolve the Subdomains. Determine which of these subdomains are actively resolving to an IP address.

Command (Linux using `massdns`):

massdns -r /path/to/resolvers.txt -t A -o S -w resolved_subdomains.txt all_pepsico_subdomains.txt

Step 3: Analyze the Results. Manually and automatically review the list of resolved subdomains for any that point to unfamiliar, external, or decommissioned services.

3. Identifying Dangling DNS Records and Takeover Opportunities

A “dangling” DNS record is one that points to a cloud resource that no longer exists (e.g., a deleted AWS S3 bucket, GitHub page, or Azure Web App). Attackers can claim these resources, effectively taking over your subdomain.

Step-by-step guide:

Step 1: For each resolved subdomain, identify the CNAME target.

Command (Linux):

for sub in $(cat resolved_subdomains.txt | cut -d' ' -f1); do
dig CNAME $sub +short
done > cname_targets.txt

Step 2: Check for Common Dangling Targets. Use tools like `subjack` or `nuclei` with takeover templates to automatically check if the CNAME target is vulnerable.

Command (Linux using `nuclei`):

nuclei -l resolved_subdomains.txt -t /path/to/subdomain-takeover-templates/ -o takeover_findings.txt

Step 3: Manually Verify. For any subdomain pointing to a cloud service (e.g., .s3-website-us-east-1.amazonaws.com), try to access it via a browser and see if you get a “NoSuchBucket” error. If you do, the subdomain is vulnerable.

4. Hardening DNS and Cloud Configurations

Prevention is the most effective cure. Harden your DNS and cloud resource lifecycle to prevent takeovers.

Step-by-step guide:

Step 1: Implement a Decommissioning Checklist. Before deleting any cloud resource (S3 bucket, web app, etc.), ensure its associated DNS record is removed first.
Step 2: Use CAA Records. DNS Certification Authority Authorization (CAA) records can specify which Certificate Authorities (CAs) are allowed to issue certificates for your domain, adding a layer of control.

Example DNS Record:

example.com. IN CAA 0 issue "letsencrypt.org"
example.com. IN CAA 0 issuewild "digicert.com"

Step 3: Leverage DMARC, DKIM, and SPF. While these email authentication protocols protect against sender spoofing, a legitimate subdomain being used in a phishing attack underscores the need for strict policies (p=reject or `p=quarantine` in your DMARC record) and continuous monitoring of email traffic.

5. Endpoint Detection: Hunting for Related Malware

Phishing emails are a delivery mechanism. The payload is often malware. Security teams should hunt for indicators of compromise.

Step-by-step guide:

Step 1: Use EDR Tools to Hunt for Network Connections. Look for processes making unexpected outbound connections.
Step 2: Analyze PowerShell Logs. Many attacks leverage PowerShell. Enable module logging and script block logging and hunt for obfuscated or suspicious commands.

Windows Command (Run as Admin):

 Check PowerShell logging settings via Group Policy
Get-ItemProperty -Path "HKLM:\SOFTWARE\Policies\Microsoft\Windows\PowerShell\ModuleLogging" -Name "EnableModuleLogging"

Step 3: Implement YARA Rules. Create custom YARA rules to detect malware families associated with phishing campaigns, scanning memory and files on endpoints.

What Undercode Say:

  • The Perimeter is Illusory. Attackers are no longer just breaching the firewall; they are co-opting legitimate parts of your external digital footprint. Trust in a domain name alone is a critical vulnerability.
  • Vigilance is an Automated Process. Manual checks for subdomain vulnerabilities are insufficient. Defense requires integrating subdomain enumeration and dangling record checks into a continuous automated security workflow, much like SAST or DAST scanning.

This PepsiCo incident is a classic example of an attacker thinking one step ahead of standard defense-in-depth strategies. While companies focus on securing their primary domain and internal networks, attackers find soft targets in the sprawling, often poorly documented, subdomain infrastructure. The analysis shows that a reactive security posture is inadequate. Proactive, continuous reconnaissance of your own assets is now a non-negotiable component of a mature cybersecurity program. Failing to do so provides attackers with a trusted platform from which to launch their campaigns.

Prediction:

The sophistication of subdomain hijacking and impersonation attacks will accelerate, driven by the increasing complexity of cloud environments and corporate M&A activity that leaves behind orphaned digital assets. We predict a rise in AI-powered tools that will automatically scan for and exploit these dangling records at scale, making manual attacks look primitive. Furthermore, as email security protocols like DMARC become more universally adopted, attackers will pivot even more heavily to these “trusted source” attacks, using compromised or impersonated subdomains as their primary entry point. The future battleground will be the automated discovery and remediation of these shadow assets before attackers can find them.

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