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Step 2: How did they get access to AWS? With code execution on the developer's workstation they were able to exfiltrate AWS keys and use them locally. Let's comment on the IP/VPN setup first.

If you have C2 on a developer's workstation you have two choices when it comes to creds. You can either use them FROM the compromised workstation, OR you can exfiltrate creds and use them remotely. Using them from the workstation has several advantages...

particularly, you originate from an IP address already known to that organization. It looks like regular activity. It also protects you from the risk of impossible travel. It's weird if the dev is using the keys from New York and then 5 seconds later those same keys are in London