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Please take note, the vulnerability may arises if:
The CloudFront distribution no longer exists The distribution doesn’t actively serve content for the subdomain The subdomain is listed as an Alternate Domain Name (CNAME) but not backed by a valid origin or certificate
They cant take over the DNS Domain www.app.mysite.com if you own the Domain and manage it but they can create a bucket and use the AWS Static host bucket DNS Name still.
If they have taken over mysite.com then they would have full control of your DNS
In my case I have an A type entry in the DNS specifically for www.app.mysite.com pointing to a CloudFront distribution that points to my bucket called app.mysite.com. I'm intrigued how the hacker was able to bypass this entry and redirect to his bucket. I tried reproducing this takeover with www.lp.mysite.com, that has the same configuration and I wasn't able to take over the subdomain, what leads me to believe he did some extra step that isn't clear to me. This would be a huge security flaw that would compromise anyone that have static sites hosted in AWS and would void any possibility to use this approach in a production environment, that's why I'm trying to figure out what's happening.
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In case I double-checked and the distribution still exists and points out to the CloudFront distribution. In my DNS I only have an A type record pointing to this distribution, there's no CNAME entry for www.app.mysite.com