DNS (Domain Name System) can be exploited by attackers using TXT records to exfiltrate data or execute malicious commands. Attackers leverage TXT records to hide encoded payloads or commands within legitimate-looking DNS responses, enabling data exfiltration, command and control (C2) communication, or even malware execution.

### Key Security Impacts:
- **Data Exfiltration**: Attackers can hide stolen data in TXT records, bypassing traditional security controls.
- **Malware Communication**: TXT records can be used to relay commands to malware, leading to remote execution or other malicious activities.
- **C2 Channel**: Malicious actors can set up Command and Control (C2) channels using DNS, where communication is carried out covertly via TXT records.

### Example Scenario:
An attacker sets up a DNS server and registers a domain. The attacker configures the TXT records to include an encoded payload. When the malware queries the DNS server, it retrieves the payload hidden within the TXT record and executes it, thus completing a successful data exfiltration or remote execution.

This vulnerability poses a significant risk to organizations that do not monitor or restrict DNS traffic adequately.