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Mustang Panda, a Chinese state-sponsored hacking group, has upgraded its malware toolkit with the TONESHELL backdoor and PlugX malware, incorporating advanced evasion techniques and enhanced encryption to evade detection. Active since 2012, the group targets government and diplomatic entities in Southeast Asia and Europe, employing sophisticated methods like process hollowing for code injection. Security experts advise implementing multi-layered defense strategies to mitigate the risks posed by Mustang Panda's ongoing cyber espionage campaigns.