SystemBC: Malware That Turns Vulnerable VPS Into Cybercrime Highways

In the digital world, every vulnerability is an open door. You might think the biggest cybersecurity risks lie in personal devices or your corporate network—but cloud servers have become just as attractive to attackers. That’s where SystemBC enters the scene—a malware that, for years, has fueled a massive proxy network used to mask criminal activity.

At TecnetOne, we’ll break down how this threat operates, why it’s becoming a growing risk for companies like yours, and how you can defend your infrastructure.

What Is SystemBC and How Does It Work?

First discovered in 2019, SystemBC quickly became a favorite tool among cybercriminal groups, including ransomware gangs. Its core function is simple but powerful: it transforms compromised servers into proxy highways for malicious traffic—nodes that attackers use to redirect their communications and mask their true identities.

In essence, if an attacker installs SystemBC on your server, it’s no longer under your control—it becomes a tool for hiding and routing criminal operations.

Worryingly, this isn’t about a few scattered machines. According to researchers at Black Lotus Labs (Lumen Technologies), SystemBC maintains around 1,500 active bots daily—servers riddled with unpatched vulnerabilities, scattered worldwide.

Cybercriminal proxy services using SystemBC network (Source: Black Lotus Labs)

Why Attack Commercial VPS?

You may ask: Why do attackers focus on Virtual Private Servers (VPS) instead of home devices? The answer lies in performance and reliability.

Home devices (like routers or personal PCs) are easier to infect but offer limited bandwidth and uptime. In contrast, VPS from commercial providers offer robust bandwidth, nearly 24/7 availability, and significant processing power—ideal conditions for persistent attack operations.

In fact, nearly 80% of SystemBC’s bots are hosted on major VPS platforms. Some stay infected for over a month without detection—highlighting how easily these servers can go unnoticed in poorly monitored environments.

Malicious Traffic at Scale

One experiment by researchers showed just how much traffic SystemBC can push. A single infected server generated over 16 GB of proxy traffic in just 24 hours.

That’s 10x more than typical residential proxy networks, giving attackers a high-speed data highway for malicious campaigns.

Learn more: The Evolution of Artificial Intelligence Driven Malware

SystemBC’s “Clients”

SystemBC acts as infrastructure for a range of cybercrime services. Its “clients” include:

1. REM Proxy: A criminal proxy service that relies on SystemBC bots for 80% of its backend.

2. VN5Socks (Shopsocks5): A proxy network originating in Vietnam that uses SystemBC-infected servers.

3. A large-scale Russian web scraping operation.

Operators also use SystemBC directly for brute-force attacks on WordPress, aiming to steal credentials and sell access to brokers who inject malicious code.

Vulnerabilities: The Gateway

Attackers don’t pick servers randomly—they target systems with multiple unpatched vulnerabilities. VPS often go long periods without updates, making them easy prey.

On average, each compromised server had 20+ unpatched vulnerabilities, including at least one critical one. In one extreme case, a VPS in Alabama had 161 open flaws, as detected by the Censys intelligence platform.

SystemBC takes advantage of this using automated scripts to rapidly infect and enslave these servers into its criminal network.

VPS bot in SystemBC network with 161 unpatched vulnerabililties (Source: Black Lotus Labs)

Survives Even Law Enforcement Operations

Perhaps the most concerning aspect is SystemBC’s resilience. It has survived international law enforcement takedowns, such as Operation Endgame, which aimed to dismantle various malware droppers.

This proves that SystemBC isn’t some amateur effort—it’s a robust and evolving infrastructure built to withstand pressure from global authorities.

The Technical Modus Operandi

Once a server is compromised, SystemBC downloads a Russian-language script that executes multiple malware binaries simultaneously, enabling:

1. Persistence: If one process is shut down, others remain active.

2. Volume: Maximizes data flow through the infected server.

3. Evasion: Splits activity across processes to make detection harder.

It also uses more than 80 command-and-control (C2) servers, ensuring redundancy and operational resilience.

What This Means for You

SystemBC is a warning sign for any business using VPS or cloud infrastructure. Even if you're not the direct target, a vulnerable server can be:

1. Used to launch attacks on third parties, risking legal consequences or reputational damage.

2. Exploited for brute-force attacks on platforms like WordPress.

3. A gateway to internal data breaches via lateral movement within your network.

In an interconnected digital supply chain, one unpatched VPS can quickly become a company-wide breach.

Read more: How and where do hackers hide their malware code?

How to Protect Against Threats Like SystemBC

At TecnetOne, we recommend the following actions:

1. Patch regularly: Keeping your servers updated is your first and most crucial line of defense.

2. Monitor your VPS: Use EDR (Endpoint Detection & Response) tools to flag unusual activity like sudden traffic spikes.

3. Network segmentation: Prevent a compromised VPS from moving laterally within your network.

4. Run regular audits: Vulnerability scans can help spot issues early before attackers do.

5. Train your team: Misconfigurations and weak credentials are still top attack vectors.

Conclusion

SystemBC isn’t new—but its adaptability and resilience make it one of today’s most dangerous malware threats. By turning vulnerable servers into fast, stealthy cybercrime hubs, it proves that basic security failures can have global implications.

The key takeaway: having cloud infrastructure isn’t enough—you must manage it with a security-first mindset. At TecnetOne, we help you audit your systems, fix vulnerabilities, and build a proactive defense plan that keeps your digital assets safe.

Because in the age of organized cybercrime, prevention is your best protection.