What this method improves upon the 'random USB stick' attack is that it is far easier to switch out somebody's Lightning cable than somebody's USB stick without them noticing, as (a) people are more likely to own and use a Lightning cable than a USB stick nowadays and (b) it would much more difficult to find a matching, compromised copy of whatever particular USB stick the target is using, even if you had to the time to first do reconnaissance.
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I frequently plug in things into the USB ports of my computer ... to merely charge them. Why buy an extra charger when your already have a couple of USB ports directly on your desk?
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What capabilities the malware in this cable actually has is unclear, in particular how autonomous it can operate. If it really can get into a Terminal window, it might also be able to extra the WiFi password or just connect to any server from the command line directly (I don't think you need any local password to run the SSH command in the Terminal).