What Is Fileless Malware? Explained | DNSFilter

What is Fileless Malware?

Fileless malware is a type of cyberattack that executes malicious code directly in a device’s memory instead of installing traditional files on disk. Unlike conventional malware that depends on executable files or attachments, fileless malware leverages legitimate system tools such as PowerShell, Windows Management Instrumentation (WMI), or registry scripts to perform its actions.

Because it operates entirely in memory, this form of malware leaves minimal traces, making it far more difficult for signature-based antivirus software to detect. It’s a core technique in “living-off-the-land” (LotL) attacks, where adversaries weaponize built-in administrative utilities to blend in with normal system operations. Today, fileless malware is commonly used by advanced persistent threat (APT) actors, ransomware operators, and cybercriminals seeking stealthy persistence and rapid exploitation.

How Fileless Malware Works

Fileless malware functions by abusing trusted system components already present in the operating system. Rather than saving malicious files, it injects or executes code directly in memory—often through PowerShell commands, WMI scripts, or macros hidden in documents. Once triggered, the malware performs its operations using the same processes legitimate administrators rely on, making detection exceptionally difficult.

A typical attack progresses through several key stages:

1. Initial Access: Attackers gain entry through phishing emails, drive-by downloads, or browser exploits.
   
   
2. Execution: Malicious code runs through a legitimate system process like PowerShell or rundll32.exe.
   
   
3. Persistence: The malware hides commands in the Windows registry or schedules recurring tasks to reinitiate activity.
   
   
4. Payload Delivery: Attackers steal data, escalate privileges, or deploy ransomware through memory-based payloads.

Because the malicious code resides in volatile memory, it often disappears when the system restarts, unless persistence mechanisms are in place.

Types of Fileless Malware

Fileless malware takes multiple forms, each designed to exploit trusted system components in unique ways. Whether through scripts, registry manipulation, or process injection, these variants all share the same goal: To use what’s already present in the operating system to execute malicious actions while staying hidden from detection.

• Script-Based Attacks: These rely on PowerShell, VBScript, or batch scripts that run directly in memory, allowing attackers to execute malicious commands without creating files on disk.
  
  
• Registry-Resident Malware: This type stores its payloads or encoded commands within the Windows registry, enabling persistence and execution without leaving behind traditional file artifacts.
  
  
• WMI (Windows Management Instrumentation) Exploits: Attackers abuse WMI to launch code and maintain persistence across reboots, blending seamlessly into legitimate administrative processes.
  
  
• Living-off-the-Land Binaries (LoLBins): These attacks misuse built-in system executables, such as rundll32.exe, mshta.exe, or certutil.exe, to perform malicious actions under the guise of trusted programs.
  
  
• Memory-Injected Payloads: In this method, attackers inject malicious code directly into the memory space of legitimate processes like explorer.exe or web browsers, enabling stealthy execution and evasion of endpoint defenses.

Causes and Motivations Behind Fileless Malware

Attackers increasingly rely on fileless methods because they combine stealth, speed, and flexibility. These attacks are harder to detect, execute faster than traditional malware, and require no downloaded payloads. Key motivations include:

• Stealth: By avoiding file creation, attackers evade antivirus tools that depend on scanning storage.
  
  
• Speed: Code executed directly in memory acts instantly, allowing rapid compromise.
  
  
• Persistence: Malicious instructions can hide within the registry or scheduled tasks, surviving restarts.
  
  
• Flexibility: Attackers can adapt techniques for phishing, web-based exploits, or command-line abuse.
  
  
• Low Forensic Visibility: With minimal artifacts left behind, post-incident analysis becomes more complex and costly.

This blend of invisibility and operational efficiency makes fileless malware an attractive option for both state-sponsored and financially motivated attackers.

Effects of Fileless Malware

The consequences of fileless malware are severe, especially in enterprise environments where legitimate tools are widely used. Common impacts include:

• Credential Theft: Attackers scrape login data from memory to access internal systems or cloud services.
  
  
• Unauthorized Access: Compromised credentials or remote code execution can open entire networks to exploitation.
  
  
• Ransomware Deployment: Fileless attacks often serve as precursors to ransomware payloads or spyware implants.
  
  
• Incident Response Costs: Remediation requires advanced memory analysis, driving up investigation time and expense.
  
  
• Erosion of Trust: Because attackers exploit standard admin tools, organizations must tighten oversight of legitimate system activity.

Fileless attacks often bypass traditional antivirus, firewall, or EDR layers until behavioral or DNS-level detection identifies anomalies in command execution or outbound communication.

Compare to File-Based Malware

Traditional malware leaves behind identifiable files or registry keys, while fileless malware hides within legitimate system processes, performing malicious actions without leaving a physical footprint.

Examples of Fileless Malware

Real-World Examples

• Lumma Stealer fake CAPTCHA campaign: An MSP using DNSFilter discovered malicious domains in their logs that attempted to deliver script-based payloads. These domains were blocked before the payload execution, demonstrating how DNS-layer filtering can help catch and stop fileless threats. Read the case study.
  
  
• Emotet (variant): Originally a banking trojan, later versions evolved to execute malicious PowerShell commands in memory, avoiding disk detection.
  
  
• Cobalt Strike: A legitimate red-team tool frequently pirated and repurposed by attackers for fileless payload delivery and post-exploitation operations.

Other examples include advanced persistent threat (APT) campaigns using WMI for covert persistence and ransomware groups that embed payloads directly in memory to evade endpoint defenses.

Related Terms

• Malware
• Phishing
• Content Filtering
  
• DNS Filtering
• Zero-Day Attack

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