A China-nexus cyber espionage actor tracked as Fire Ant has expanded a long-running campaign beyond VMware hypervisors to compromise Cisco IOS XR routers, Terminal Access Controller Access-Control System (TACACS) servers, and Linux management hosts used to route, authenticate, and manage high-value networks.

Sygnia, the incident response firm that investigated the intrusion, said the actor turned the compromised routers into collection platforms, capturing network traffic, harvesting credentials, and suppressing the logging and telemetry that defenders rely on to reconstruct an attack.

The firm assessed that the hacker group used its foothold to explore paths to connected high-value environments, including critical infrastructure. However, activity against those networks was limited to scanning and connection attempts rather than confirmed compromise.

Controlling the routers gave the actor a vantage point over traffic moving through trusted network paths, Sygnia said.

"This activity reinforces one of the core observations from the investigation: when a threat actor controls routers, they do not only gain reach. They gain perspective," the firm said.