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July 4, 2024

A Busy Agenda: Darktrace’s Detection of Qilin Ransomware-as-a-Service Operator

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04
Jul 2024
This blog examines the tactics, techniques and procedures associated with the notorious Ransomware-as-a-Service operator Qilin. Darktrace’s Threat Research team investigated several examples of Qilin actors targeting Darktrace customers between 2022 and 2024.

Qilin ransomware has recently dominated discussions across the cyber security landscape following its deployment in an attack on Synnovis, a UK-based medical laboratory company. The ransomware attack ultimately affected patient services at multiple National Health Service (NHS) hospitals that rely on Synnovis diagnostic and pathology services. Qilin’s origins, however, date back further to October 2022 when the group was observed seemingly posting leaked data from its first known victim on its Dedicated Leak Site (DLS) under the name Agenda[1].

The Darktrace Threat Research team investigated network artifacts related to Qilin and identified three probable cases of the ransomware across the Darktrace customer base between June 2022 and May 2024.

Qilin Ransomware-as-a-Service Operator

Qilin operates as a Ransomware-as-a-Service (RaaS) that employs double extortion tactics, whereby harvested data is exfiltrated and threatened of publication on the group's DLS, which is hosted on Tor. Qilin ransomware has samples written in both the Golang and Rust programming languages, making it compilable with various operating systems, and is highly customizable. When building Qilin ransomware variants to be used on their target(s), affiliates can configure settings such as the encryption mode (i.e., skip-step, percent, and speed), the file extension being appended, files, extensions and directories to be skipped during the encryption, and the processes and services to be terminated, among others[1] [2].  

Trend Micro analysts, who were the first to discover Qilin samples in August 2022, when the name "Agenda" was still used in ransom notes, found that each analyzed sample was customized for the intended victims and that "unique company IDs were used as extensions of encrypted files" [3]. This information is configurable from within the Qilin's affiliate panel's 'Targets' section, shown below. The panel's background image features the eponym Chinese legendary chimerical creature Qilin (pronounced “Ke Lin”). Despite this Chinese mythology reference, Russian language was observed being used by a Qilin operator in an underground forum post aimed at hiring affiliates and advertising their RaaS operation[2].

Figure 1: Qilin ransomware’s affiliate panel.

Qilin's RaaS program purportedly has an attractive affiliates' payment structure, with affiliates allegedly able to earn 80% of ransom payments of USD 3m or less and 85% for payments above that figure[2], making it a possibly appealing option in the RaaS ecosystem.  Publication of stolen data and ransom payment negotiations are purportedly handled by Qilin operators. Qilin affiliates have been known to target companies located around the world and within a variety of industries, including critical sectors such as healthcare and energy.

As Qilin is a RaaS operation, the choice of targets does not necessarily reflect Qilin operators' intentions, but rather that of its affiliates.  Similarly, the tactics, techniques, procedures (TTPs) and indicators of compromise (IoC) identified by Darktrace are associated with the given affiliate deploying Qilin ransomware for their own purpose, rather than TTPs and IoCs of the Qilin group. Likewise, initial vectors of infection may vary from affiliate to affiliate. Previous studies show that initial access to networks were gained via spear phishing emails or by leveraging exposed applications and interfaces.

Differences have been observed in terms of data exfiltration and potential C2 external endpoints, suggesting the below investigations are not all related to the same group or actor(s).

Darktrace’s Threat Research Investigation

June 2022

Darktrace first detected an instance of Qilin ransomware back in June 2022, when an attacker was observed successfully accessing a customer’s Virtual Private Network (VPN) and compromising an administrative account, before using RDP to gain access to the customer’s Microsoft System Center Configuration Manager (SCCM) server

From there, an attack against the customer's VMware ESXi hosts was launched. Fortunately, a reboot of their virtual machines (VM) caught the attention of the security team who further uncovered that custom profiles had been created and remote scripts executed to change root passwords on their VM hosts. Three accounts were found to have been compromised and three systems encrypted by ransomware.  

Unfortunately, Darktrace was not configured to monitor the affected subnets at the time of the attack. Despite this, the customer was able to work directly with Darktrace analysts via the Ask the Expert (ATE) service to add the subnets in question to Darktrace’s visibility, allowing it to monitor for any further unusual behavior.

Once visibility over the compromised SCCM server was established, Darktrace observed a series of unusual network scanning activities and the use of Kali (a Linux distribution designed for digital forensics and penetration testing). Furthermore, the server was observed making connections to multiple rare external hosts, many using the “[.]ru” Top Level Domain (TLD). One of the external destinations the server was attempting to connect was found to be related to SystemBC, a malware that turns infected hosts into SOCKS5 proxy bots and provides command-and-control (C2) functionality.

Additionally, the server was observed making external connections over ports 993 and 143 (typically associated with the use of the Interactive Message Access Protocol (IMAP) to multiple rare external endpoints. This was likely due to the presence of Tofsee malware on the device.

After the compromise had been contained, Darktrace identified several ransom notes following the naming convention “README-RECOVER-<extension/company_id>.txt”” on the network. This naming convention, as well as the similar “<company_id>-RECOVER-README.txt” have been referenced by open-source intelligence (OSINT) providers as associated with Qilin ransom notes[5] [6] [7].

April 2023

The next case of Qilin ransomware observed by Darktrace took place in April 2023 on the network of a customer in the manufacturing sector in APAC. Unfortunately for the customer in this instance, Darktrace RESPOND™ was not active on their environment and no autonomous response actions were taken to contain the compromise.

Over the course of two days, Darktrace identified a wide range of malicious activity ranging from extensive initial scanning and lateral movement attempts to the writing of ransom notes that followed the aforementioned naming convention (i.e., “README-RECOVER-<extension/company_id>.txt”).

Darktrace observed two affected devices attempting to move laterally through the SMB, DCE-RPC and RDP network protocols. Default credentials (e.g., UserName, admin, administrator) were also observed in the large volumes of SMB sessions initiated by these devices. One of the target devices of these SMB connections was a domain controller, which was subsequently seen making suspicious WMI requests to multiple devices over DCE-RPC and enumerating SMB shares by binding to the ‘server service’ (srvsvc) named pipe to a high number of internal devices within a short time frame. The domain controller was further detected establishing an anomalously high number of connections to several internal devices, notably using the RDP administrative protocol via a default admin cookie.  

Repeated connections over the HTTP and SSL protocol to multiple newly observed IPs located in the 184.168.123.0/24 range were observed, indicating C2 connectivity.  WebDAV user agent and a JA3 fingerprint potentially associated with Cobalt Strike were notably observed in these connections. A few hours later, Darktrace detected additional suspicious external connections, this time to IPs associated with the MEGA cloud storage solution. Storage solutions such as MEGA are often abused by attackers to host stolen data post exfiltration. In this case, the endpoints were all rare for the network, suggesting this solution was not commonly used by legitimate users. Around 30 GB of data was exfiltrated over the SSL protocol.

Darktrace did not observe any encryption-related activity on this customer’s network, suggesting that encryption may have taken place locally or within network segments not monitored by Darktrace.

May 2024

The most recent instance of Qilin observed by Darktrace took place in May 2024 and involved a customer in the US. In this case, Darktrace initially detected affected devices using unusual administrative and default credentials, before additional internal systems were observed making extensive suspicious DCE-RPC requests to a range of internal locations, performing network scanning, making unusual internal RDP connections, and transferring suspicious executable files like 'a157496.exe' and '83b87b2.exe'.  SMB writes of the file "LSM_API_service" were also observed, activity which was considered 100% unusual by Darktrace; this is an RPC service that can be abused to enumerate logged-in users and steal their tokens. Various repeated connections likely representative of C2 communications were detected via both HTTP and SSL to rare external endpoints linked in OSINT to Cobalt Strike use. During these connections, HTTP GET requests for the following URIs were observed:

/asdffHTTPS

/asdfgdf

/asdfgHTTP

/download/sihost64.dll

Notably, this included a GET request a DLL file named "sihost64.dll" from a domain controller using PowerShell.  

Over 102 GB of data may have been transferred to another previously unseen endpoint, 194.165.16[.]13, via the unencrypted File Transfer Protocol (FTP). Additionally, many non-FTP connections to the endpoint could be observed, over which more than 783 GB of data was exfiltrated. Regarding file encryption activity, a wide range of destination devices and shares were targeted.

Figure 2: Advanced Search graph displaying the total volume of data transferred over FTP to a malicious IP.

During investigations, Darktrace’s Threat Research team identified an additional customer, also based in the United States, where similar data exfiltration activity was observed in April 2024. Although no indications of ransomware encryption were detected on the network, multiple similarities were observed with the case discussed just prior. Notably, the same exfiltration IP and protocol (194.165.16[.]13 and FTP, respectively) were identified in both cases. Additional HTTP connectivity was further observed to another IP using a self-signed certificate (i.e., CN=ne[.]com,OU=key operations,O=1000,L=,ST=,C=KM) located within the same ASN (i.e., AS48721 Flyservers S.A.). Some of the URIs seen in the GET requests made to this endpoint were the same as identified in that same previous case.

Information regarding another device also making repeated connections to the same IP was described in the second event of the same Cyber AI Analyst incident. Following this C2 connectivity, network scanning was observed from a compromised domain controller, followed by additional reconnaissance and lateral movement over the DCE-RPC and SMB protocols. Darktrace again observed SMB writes of the file "LSM_API_service", as in the previous case, activity which was also considered 100% unusual for the network. These similarities suggest the same actor or affiliate may have been responsible for activity observed, even though no encryption was observed in the latter case.

Figure 3: First event of the Cyber AI Analyst investigation following the compromise activity.

According to researchers at Microsoft, some of the IoCs observed on both affected accounts are associated with Pistachio Tempest, a threat actor reportedly associated with ransomware distribution. The Microsoft threat actor naming convention uses the term "tempest" to reference criminal organizations with motivations of financial gain that are not associated with high confidence to a known non-nation state or commercial entity. While Pistachio Tempest’s TTPs have changed over time, their key elements still involve ransomware, exfiltration, and extortion. Once they've gained access to an environment, Pistachio Tempest typically utilizes additional tools to complement their use of Cobalt Strike; this includes the use of the SystemBC RAT and the SliverC2 framework, respectively. It has also been reported that Pistacho Tempest has experimented with various RaaS offerings, which recently included Qilin ransomware[4].

Conclusion

Qilin is a RaaS group that has gained notoriety recently due to high-profile attacks perpetrated by its affiliates. Despite this, the group likely includes affiliates and actors who were previously associated with other ransomware groups. These individuals bring their own modus operandi and utilize both known and novel TTPs and IoCs that differ from one attack to another.

Darktrace’s anomaly-based technology is inherently threat-agnostic, treating all RaaS variants equally regardless of the attackers’ tools and infrastructure. Deviations from a device’s ‘learned’ pattern of behavior during an attack enable Darktrace to detect and contain potentially disruptive ransomware attacks.

Credit to: Alexandra Sentenac, Emma Foulger, Justin Torres, Min Kim, Signe Zaharka for their contributions.

References

[1] https://www.sentinelone.com/anthology/agenda-qilin/  

[2] https://www.group-ib.com/blog/qilin-ransomware/

[3] https://www.trendmicro.com/en_us/research/22/h/new-golang-ransomware-agenda-customizes-attacks.html

[4] https://www.microsoft.com/en-us/security/security-insider/pistachio-tempest

[5] https://www.trendmicro.com/en_us/research/22/h/new-golang-ransomware-agenda-customizes-attacks.html

[6] https://www.bleepingcomputer.com/forums/t/790240/agenda-qilin-ransomware-id-random-10-char;-recover-readmetxt-support/

[7] https://github.com/threatlabz/ransomware_notes/tree/main/qilin

Darktrace Model Detections

Internal Reconnaissance

Device / Suspicious SMB Scanning Activity

Device / Network Scan

Device / RDP Scan

Device / ICMP Address Scan

Device / Suspicious Network Scan Activity

Anomalous Connection / SMB Enumeration

Device / New or Uncommon WMI Activity

Device / Attack and Recon Tools

Lateral Movement

Device / SMB Session Brute Force (Admin)

Device / Large Number of Model Breaches from Critical Network Device

Device / Multiple Lateral Movement Model Breaches

Anomalous Connection / Unusual Admin RDP Session

Device / SMB Lateral Movement

Compliance / SMB Drive Write

Anomalous Connection / New or Uncommon Service Control

Anomalous Connection / Anomalous DRSGetNCChanges Operation

Anomalous Server Activity / Domain Controller Initiated to Client

User / New Admin Credentials on Client

C2 Communication

Anomalous Server Activity / Outgoing from Server

Anomalous Connection / Multiple Connections to New External TCP Port

Anomalous Connection / Anomalous SSL without SNI to New External

Anomalous Connection / Rare External SSL Self-Signed

Device / Increased External Connectivity

Unusual Activity / Unusual External Activity

Compromise / New or Repeated to Unusual SSL Port

Anomalous Connection / Multiple Failed Connections to Rare Endpoint

Device / Suspicious Domain

Device / Increased External Connectivity

Compromise / Sustained SSL or HTTP Increase

Compromise / Botnet C2 Behaviour

Anomalous Connection / POST to PHP on New External Host

Anomalous Connection / Multiple HTTP POSTs to Rare Hostname

Anomalous File / EXE from Rare External Location

Exfiltration

Unusual Activity / Enhanced Unusual External Data Transfer

Anomalous Connection / Data Sent to Rare Domain

Unusual Activity / Unusual External Data Transfer

Anomalous Connection / Uncommon 1 GiB Outbound

Unusual Activity / Unusual External Data to New Endpoint

Compliance / FTP / Unusual Outbound FTP

File Encryption

Compromise / Ransomware / Suspicious SMB Activity

Anomalous Connection / Sustained MIME Type Conversion

Anomalous File / Internal / Additional Extension Appended to SMB File

Compromise / Ransomware / Possible Ransom Note Write

Compromise / Ransomware / Possible Ransom Note Read

Anomalous Connection / Suspicious Read Write Ratio

IoC List

IoC – Type – Description + Confidence

93.115.25[.]139 IP C2 Server, likely associated with SystemBC

194.165.16[.]13 IP Probable Exfiltration Server

91.238.181[.]230 IP C2 Server, likely associated with Cobalt Strike

ikea0[.]com Hostname C2 Server, likely associated with Cobalt Strike

lebondogicoin[.]com Hostname C2 Server, likely associated with Cobalt Strike

184.168.123[.]220 IP Possible C2 Infrastructure

184.168.123[.]219 IP Possible C2 Infrastructure

184.168.123[.]236 IP Possible C2 Infrastructure

184.168.123[.]241 IP Possible C2 Infrastructure

184.168.123[.]247 IP Possible C2 Infrastructure

184.168.123[.]251 IP Possible C2 Infrastructure

184.168.123[.]252 IP Possible C2 Infrastructure

184.168.123[.]229 IP Possible C2 Infrastructure

184.168.123[.]246 IP Possible C2 Infrastructure

184.168.123[.]230 IP Possible C2 Infrastructure

gfs440n010.userstorage.me ga.co[.]nz Hostname Possible Exfiltration Server. Not inherently malicious; associated with MEGA file storage.

gfs440n010.userstorage.me ga.co[.]nz Hostname Possible Exfiltration Server. Not inherently malicious; associated with MEGA file storage.

Inside the SOC
Darktrace cyber analysts are world-class experts in threat intelligence, threat hunting and incident response, and provide 24/7 SOC support to thousands of Darktrace customers around the globe. Inside the SOC is exclusively authored by these experts, providing analysis of cyber incidents and threat trends, based on real-world experience in the field.
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Alexandra Sentenac
Cyber Analyst
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November 19, 2024

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Darktrace Leading the Future of Network Detection and Response with Recognition from KuppingerCole

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KuppingerCole has recognized Darktrace as an overall Leader, Product Leader, Market Leader and Innovation Leader in the KuppingerCole Leadership Compass: Network Detection and Response (2024).

With the perimeter all but dissolved, Network Detection and Response (NDR) tools are quickly becoming a critical component of the security stack, as the main tool to span the modern network. NDRs connect on-premises infrastructure to cloud, remote workers, identities, SaaS applications, and IoT/OT – something not available to EDR that requires agents and isolates visibility to individual devices.

KuppingerCole Analysts AG designated Darktrace an ‘Overall Leader’ position because of our continual innovation around user-led security. Self-Learning AI together with automated triage through Cyber AI Analyst and real-time autonomous response actions have been instrumental to security teams in stopping potential threats before they become a breach. With this time saved, Darktrace is leading beyond reactive security to truly harden a network, allowing the team to spend more time in preventive security measures.

Network Detection and Response protects where others fail to reach

NDR solutions operate at the network level, deploying inside or parallel to your network to ingest raw traffic via virtual or physical sensors. This gives them unprecedented potential to identify anomalies and possible breaches in any network - far beyond simple on-prem, into dynamic virtual environments, cloud or hybrid networks, cloud applications, and even remote devices accessing the corporate network via ZTNA or VPN.

Rather than looking at processes level data, NDR can detect the lateral movement of an adversary across multiple assets by analyzing network traffic patterns which endpoint solutions may not be able to identify [1]. In the face of a growing, complex environment, organizations large and small, will benefit from using NDRs either in conjunction, or as the foundation for, their Extended Detection and Response (XDR) for a unified view that improves their overall threat detection, ease of investigation and faster response times.

Today's NDR solutions are expected to include advanced ML and artificial intelligence (AI) algorithms [1]

Traditional IDS & IPS systems are labor intensive, requiring continuous rule creation, outdated signature maintenance, and manual monitoring for false positives or incorrect actions. This is no longer viable against a higher volume and changing landscape, making NDR the natural network tool to level against these evolutions. The role of AI in NDRs is designed to meet this challenge, “to reduce both the labor need for analysis and false positives, as well as add value by improving anomaly detection and overall security posture” .

Celebrating success in leadership and innovation

Darktrace is proud to have been recognized as an NDR “Overall Leader” in KuppingerCole Analyst AG’s Leadership Compass. The report gave further recognition to Darktrace as a ‘Product Leader”, “Innovation Leader” and “Market Leader”.

Maximum scores were received for core product categories, in addition to market presence and financial strength. Particular attention was directed to our innovation. This year has seen several NDR updates via Darktrace’s ActiveAI Security Platform version 6.2 which has enhanced investigation workflows and provided new AI transparency within the toolset.

Positive scores were also received for Darktrace’s deployment ecosystem and surrounding support, minimizing the need for extraneous integrations through a unique platform architecture that connects with over 90 other vendors.

High Scores received in Darktrace’s KuppingerCole Spider Chart across Core NDR capability areas
Figure 1: High Scores received in Darktrace’s KuppingerCole Spider Chart across Core NDR capability areas

Darktrace’s pioneering AI approach sets it apart

Darktrace / NETWORK’s approach is fundamentally different to other NDRs. Continual anomaly-based detection (our Self-Learning AI), understands what is normal across each of your network entities, and then examines deviations from these behaviors rather than needing to apply static rules or ML to adversary techniques. As a result, Darktrace / NETWORK can focus on surfacing the novel threats that cannot be anticipated, whilst our proactive solutions expose gaps that can be exploited and reduce the risk of known threats.    

Across the millions of possible network events that may occur, Darktrace’s Cyber AI Analyst reduces that manual workload for SOC teams by presenting only what is most important in complete collated incidents. This accelerates SOC Level 2 analyses of incidents by 10x2, giving time back, first for any necessary response and then for preventive workflows.

Finally, when incidents begin to escalate, Darktrace can natively (or via third-party) autonomously respond and take precise actions based on a contextual understanding of both the affected assets and incident in question so that threats can be disarmed without impacting wider operations.

Within the KuppingerCole report, several standout strengths were listed:

  • Cyber AI Analyst was celebrated as a core differentiator, enhancing both visibility and investigation into critical network issues and allowing a faster response.
  • Darktrace / NETWORK was singled for its user benefits. Both a clear interface for analysts with advanced filtering and analytical tools, and efficient role-based access control (RBAC) and configuration options for administrators.
  • At the product level, Darktrace was recognized for complete network traffic analysis (NTA) capabilities allowing extensive analysis into components like application use/type, fingerprinting, source/destination communication, in addition to comprehensive protocol support across a range of network device types from IT, OT, IoT and mobiles and detailed MITRE ATT&CK mapping.
  • Finally, at the heart of it, Darktrace’s innovation was highlighted in relation to its intrinsic Self Learning AI, utilizing multiple layers of deep learning, neural networks, LLMs, NLP, Generative AI and more to understand network activity and filter it for what’s critical on an individual customer level.

Going beyond reactive security

Darktrace’s visibility and AI-enabled detection, investigation and response enable security teams to focus on hardening gaps in their network through contextual relevance & priority. Darktrace / NETWORK explicitly gives time back to security teams allowing them to focus on the bigger strategic and governance workflows that sometimes get overlooked. This is enabled through proactive solutions intrinsically connected to our NDR:

  • Darktrace / Proactive Exposure Management, which looks beyond just CVE risks to instead discover, prioritize and validate risks by business impact and how to mobilize against them early, to reduce the number of real threats security teams face.
  • Darktrace / Incident Readiness & Recovery, a solution rather than service-based approach to incident response (IR) that lets teams respond in the best way to each incident and proactively test their familiarity and effectiveness of IR workflows with sophisticated incident simulations involving their own analysts and assets.

Together, these solutions allow Darktrace / NETWORK to go beyond the traditional NDR and shift teams to a more hardened and proactive state.

Putting customers first

Customers continue to sit at the forefront of Darktrace R&D, with their emerging needs and pain points being the direct inspiration for our continued innovation.

This year Darktrace / NETWORK has protected thousands of customers against the latest attacks, from data exfil and destruction, to unapproved privilege escalation and ransomware including strains like Medusa, Qilin and AlphV BlackCat.

In each instance, Darktrace / NETWORK was able to provide a holistic lens of the anomalies present in their traffic, collated those that were important, and either responded or gave teams the ability to take targeted actions against their threats – even when adversaries pivoted. In one example of a Gootloader compromise, Darktrace ensured a SOC went from detection to recovery within 5 days, 92.8% faster than the average containment time of 69 days.

Results like these, focused on user-led security, have secured Darktrace’s position within the latest NDR Leadership Compass.

To find out more about what makes Darktrace / NETWORK special, read the full KuppingerCole report.

References

[1] Osman Celik, KuppingerCole Leadership Compass:Network Detection and Response (2024)

[2] Darktrace's AI Analyst customer fleet data

[3] https://www.ibm.com/reports/data-breach

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Gabriel Few-Wiegratz
Product Marketing Manager

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November 1, 2024

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Inside the SOC

Phishing and Persistence: Darktrace’s Role in Defending Against a Sophisticated Account Takeover

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The exploitation of SaaS platforms

As businesses continue to grow and evolve, the need for sharing ideas through productivity and cloud Software-as-a-Service (SaaS) platforms is becoming increasingly crucial. However, these platforms have also become prime targets for cyber attackers.

Threat actors often exploit these widely-used services to gain unauthorized access, steal sensitive information, and disrupt business operations. The growing reliance on SaaS platforms makes them attractive entry points for cybercriminals, who use sophisticated techniques such as phishing, social engineering, and malware to compromise these systems.

Services like Microsoft 365 are regularly targeted by threat actors looking for an entry point into an organization’s environment to carry out malicious activities. Securing these platforms is crucial to protect business data and ensure operational continuity.

Darktrace / EMAIL detection of the phishing attack

In a recent case, Darktrace observed a customer in the manufacturing sector receiving a phishing email that led to a threat actor logging in and creating an email rule. Threat actors often create email rules to move emails to their inbox, avoiding detection. Additionally, Darktrace detected a spoofed domain registered by the threat actor. Despite already having access to the customer’s SaaS account, the actor seemingly registered this domain to maintain persistence on the network, allowing them to communicate with the spoofed domain and conduct further malicious activity.

Darktrace / EMAIL can help prevent compromises like this one by blocking suspicious emails as soon as they are identified. Darktrace’s AI-driven email detection and response recognizes anomalies that might indicate phishing attempts and applies mitigative actions autonomously to prevent the escalation of an attack.

Unfortunately, in this case, Darktrace was not configured in Autonomous Response mode at the time of the attack, meaning actions had to be manually applied by the customer’s security team. Had it been fully enabled, it would have held the emails, preventing them from reaching the intended recipient and stopping the attack at its inception.

However, Darktrace’s Managed Threat Detection alerted the Security Operations Center (SOC) team to the compromise, enabling them to thoroughly investigate the incident and notify the customer before further damage could occur.

The Managed Threat Detection service continuously monitors customer networks for suspicious activities that may indicate an emerging threat. When such activities are detected, alerts are sent to Darktrace’s expert Cyber Analysts for triage, significantly speeding up the remediation process.

Attack Overview

On May 2, 2024, Darktrace detected a threat actor targeting a customer in the manufacturing sector then an unusual login to their SaaS environment was observed prior to the creation of a new email rule.

Darktrace immediately identified the login as suspicious due to the rarity of the source IP (31.222.254[.]27) and ASN, coupled with the absence of multi-factor authentication (MFA), which was typically required for this account.

The new email rule was intended to mark emails as read and moved to the ‘Conversation History’ folder for inbound emails from a specific domain. The rule was named “….,,,”, likely the attacker attempting to setup their new rule with an unnoteworthy name to ensure it would not be noticed by the account’s legitimate owner. Likewise, by moving emails from a specific domain to ‘Conversation History’, a folder that is rarely used by most users, any phishing emails sent by that domain would remain undetected by the user.

Darktrace’s detection of the unusual SaaS login and subsequent creation of the new email rule “….,,,”.
Figure 1: Darktrace’s detection of the unusual SaaS login and subsequent creation of the new email rule “….,,,”.

The domain in question was identified as being newly registered and an example of a typosquat domain. Typosquatting involves registering new domains with intentional misspelling designed to convince users to visit fake, and often malicious, websites. This technique is often used in phishing campaigns to create a sense of legitimacy and trust and deceive users into providing sensitive information. In this case, the suspicious domain closely resembled several of the customer’s internal domains, indicating an attempt to impersonate the organization’s legitimate internal sites to gain the target’s trust. Furthermore, the creation of this lookalike domain suggests that the attack was highly targeted at this specific customer.

Interestingly, the threat actor registered this spoofed domain despite already having account access. This was likely intended to ensure persistence on the network without having to launch additional phishing attacks. Such use of spoofed domain could allow an attacker to maintain a foothold in their target network and escalate their malicious activities without having to regain access to the account. This persistence can be used for various purposes, including data exfiltration, spreading malware, or launching further attacks.

Following this, Darktrace detected a highly anomalous email being sent to the customer’s account from the same location as the initial unsual SaaS login. Darktrace’s anomaly-based detection is able to identify threats that human security teams and traditional signature-based methods might miss. By analyzing the expected behavior of network users, Darktrace can recognize the subtle deviations from the norm that may indicate malicious activity. Unfortunately, in this instance, without Darktrace’s Autonomous Response capability enabled, the phishing email was able to successfully reach the recipient. While Darktrace / EMAIL did suggest that the email should be held from the recipients inbox, the customer was required to manually approve it.

Despite this, the Darktrace SOC team were still able to support the customer as they were subscribed to the Managed Threat Detection service. Following the detection of the highlight anomalous activity surrounding this compromise, namely the unusual SaaS login followed by a new email rule, an alert was sent to the Darktrace SOC for immediate triage, who then contacted the customer directly urging immediate action.

Conclusion

This case underscores the need to secure SaaS platforms like Microsoft 365 against sophisticated cyber threats. As businesses increasingly rely on these platforms, they become prime targets for attackers seeking unauthorized access and disruption.

Darktrace’s anomaly-based detection and response capabilities are crucial in identifying and mitigating such threats. In this instance, Darktrace detected a phishing email that led to a threat actor logging in and creating a suspicious email rule. The actor also registered a spoofed domain to maintain persistence on the network.

Darktrace / EMAIL, with its AI-driven detection and analysis, can block suspicious emails before they reach the intended recipient, preventing attacks at their inception. Meanwhile, Darktrace’s SOC team promptly investigated the activity and alerted the customer to the compromise, enabling them to take immediate action to remediate the issue and prevent any further damage.

Credit to Vivek Rajan (Cyber Security Analyst) and Ryan Traill (Threat Content Lead).

Appendices

Darktrace Model Detections

  • SaaS / Access / Unusual External Source for SaaS Credential Use
  • SaaS / Compromise / Login From Rare Endpoint While User Is Active
  • SaaS / Resource / Unusual Access to Delegated Resource by Non Owner
  • SaaS / Email Nexus / Unusual Login Location Following Sender Spoof
  • Compliance / Anomalous New Email Rule
  • SaaS / Compromise / Unusual Login and New Email Rule

Indicators of Compromise (IoCs)

IoC - Type - Description + Confidence

31.222.254[.]27 – IP -  Suspicious Login Endpoint

MITRE ATT&CK Mapping

Tactic – Technqiue – Sub-technique of (if applicable)

Cloud Accounts - DEFENSE EVASION, PERSISTENCE, PRIVILEGE ESCALATION, INITIAL ACCESS - T1078.004 - T1078

Cloud Service Dashboard – DISCOVERY - T1538

Compromise Accounts - RESOURCE DEVELOPMENT - T1586

Steal Web Session Cookie - CREDENTIAL ACCESS - T1539

Outlook Rules – PERSISTENCE - T1137.005 - T1137

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About the author
Vivek Rajan
Cyber Analyst
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