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Hives & Frankensteins: The Half-Year Threat Report

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13
Sep 2023
13
Sep 2023
Darktrace's first comprehensive report on the threats faced by businesses examines the trends our threat team saw in the first half of 2023.

At Darktrace, we do threat intelligence differently.

Rather than examining the patterns of previous attacks to identify threats, Darktrace’s Self-Learning AI understands the normal pattern of life for each of our customers so it can quickly identify the abnormal - anomalies and behaviors that can indicate known and unknown threats.

Our unique approach, which is focused on using AI to detect anomalies and behavioral patterns, enables us to mitigate threats that may not have even been publicly attributed yet. Once Darktrace has successfully detected and contained a threat, the work of our Threat Intelligence team, a group of talented analysts located all over the world, begins. We map these mitigated cases against some of the more publicly attributed threats within the threat intelligence community and identify trends and themes that are valuable to share more broadly.

We’ve been pulling together insights from the Darktrace Security Operations Center (SOC) as well as from across our customer fleet for some time and we regularly share them on our Inside the SOC blog. Now for the first time, we’re bringing you a comprehensive report that outlines our key findings, trends and insights into some of the top cyber threats facing businesses in the first half of 2023.

The Darktrace team assessed a wide variety of threats during the first half of 2023. While some of these threats were identified as emerging or novel exploits, the majority were identified, known tooling, and many of these threats were identified as campaign-like activity targeting multiple customers. A few top takeaways from the report include:

RaaS on the Rise

Ransomware-as-a-Service (RaaS) and Malware-as-a-Service (MaaS) are the most consistently identified and mitigated threats against Darktrace customers and the most likely to affect organizations throughout the rest of 2023 and likely into 2024.

One of the most prolific forms of ransomware-as-a-service during the last 12 months has been Hive ransomware. While the customizable nature of RaaS means there’s no one way the attacks are distributed, Darktrace DETECT™ has observed several general trends which indicated a Hive ransomware attack could be in progress, including initial access via phishing emails, or through exploiting unpatched security vulnerabilities in Microsoft Exchange, before exploiting legitimate tools to move laterally around the network with the aim of exfiltrating and encrypting as much data as possible.

These Hive network intrusions – and many other MaaS and RaaS attacks - are often complimented with readily available tools – including legitimate security testing tools like CobaltStrike and other applications. This ‘Frankenstein’ approach will very likely increase, as use of open-source code and the growth of the MaaS marketplace continues, especially if attempts to hide malicious activity within every day applications and software continues.

Anomalous Activity Across Industries

Darktrace’s Cyber AI Analyst, part of Darktrace DETECT, observed several key anomalous activity trends in the first half of the year. Beaconing was the most observed pattern of activity observed by Cyber AI Analyst between January and June 2023, which is indicative of Command and Control activity.

Darktrace Cyber AI Analyst also observed more patterns of activities from customers in the manufacturing sector than any other sector in the first half, this was followed closely by theInformation and Communication sector, Financial and Insurance sector, Human Health and Social Work sector, and the Education sector.

What’s Next: Our Predictions

Lowering the Barrier to Entry: The growing malware-as-a-service market is providing even low-level cyber criminals with the tools necessary to deploy highly customizable attacks. This is leading to challenges for defenders who might be working to specific playbooks and creating large gaps in their security posture – especially if the attacker is exploiting legitimate, everyday applications and tools to help conduct attacks.

Cascading Supply Chain Attacks: With a widening pool of supply chains enabled by interconnective and adaptable technology, there will likely be a continuation of cascading supply chain attacks, like the 3CX supply chain attack reported earlier this year, whether by design or due to accidental spread of tainted technology.

Increasing Cloud Threats: The shift towards cloud infrastructure is making ‘simply logging in’ hacks easier, creating additional risks across entire supply chains. Sensitive information which would have been previously only stored on-premises is now accessible via common working tools, which can be accessed from anywhere – and attackers know it. As organizations are still largely reliant on passwords to access SaaS and cloud applications, it is very likely cloud-focused identity targeting will continue to be a significant attack vector.

At Darktrace, our mission is to free the world from cyber disruption. That mission has never been more important as the volume of unique attacks is poised to grow and the barrier to entry for threat actors gets lower due to widespread access to AI, automation and as-a-service threat markets. For the last 10 years, Darktrace has used its Self-Learning AI to detect anomalies and analyze behavior to stay ahead of attacks that have yet to be publicly attributed. We hope that these insights, which were detected by Darktrace and combined with analysis from our Threat Intelligence team, offer insights to help you keep your business safe in 2023 and beyond.  

Download the full report here: https://darktrace.com/resources/first-6-half-year-threat-report

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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Hanah Darley
Director of Threat Research
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Customer Blog: Community Housing Limited Enhancing Incident Response

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04
Mar 2024

About Community Housing Limited

Community Housing Limited is a non-profit organization based in Australia that focuses on providing affordable, long-term housing and creating employment opportunities where possible. We give people the security of having a home so that they can focus on other essential pathways. As such, we are responsible for sensitive information on our clients.

As part of our commitment to strengthening our cyber security, we sought to simplify and unify our incident response plans and equip our engineers and desktop support teams with all the information we need at our fingertips.

Why Community Housing Limited chose Darktrace

Our team hoped to achieve a response procedure that allowed us to have oversight over any potential security risks, even cases that don’t overtly seem like a security risk. For example, an incident could start as a payroll issue and end up in the hands of HR, instead of surfacing as a security problem. In this case, our security team has no way of knowing the real number of events or how the threat had actually started and played out, making incident response and mitigation even more challenging.

We were already a customer of Darktrace’s autonomous threat detection, attack intervention, and attack surface management capabilities, and decided to add Darktrace for AI-assisted incident response and AI cyber-attack simulation.

AI-generated playbooks save time during incident response

I wanted to reduce the time and resources it took our security team to appropriately respond to a threat. Darktrace automates several steps of the recovery process to accelerate the rate of incident response by using AI that learns the granular details of the specific organization, building a dynamic understanding of the devices, connections, and user behaviors that make up the normal “pattern of life.”  

The AI then uses this understanding to create bespoke, AI-generated incident response playbooks that leverage an evolving understanding of our organization to determine recovery steps that are tailored not only to the specific incident but also to our unique environment.

For my security team, this means having access to all the information we need to respond to a threat. When running through an incident, rather than going to different places to synthesize relevant information, which takes up valuable resources and time, we can speed up its remediation with Darktrace.  

The playbooks created by Darktrace help lower the technical skills required to respond to incidents by elevating the workload of the staff, tripling our capacity for incident response.

Realistic attack simulations upskill teams while saving resources

We have differing levels of experience on the team which means some members know exactly what to do during incident response while others are slower and need more guidance. Thus, we have to either outsource skilled security professionals or add a security solution that could lower the technical skills bar.

You don’t want to be second guessing and searching for the right move – it’s urgent – there should be certainty. Our goal with running attack simulations is to test and train our team's response capabilities in a “realistic” scenario. But this takes considerable time to plan and execute or can be expensive if outsourced, which can be a challenge for organizations short on resources. 

Darktrace provides AI-assisted incident response and cyber-attack simulation using AI that understands the organization to run simulations that effectively map onto the real digital environment and the assets within it, providing training for actual incidents.

It is one thing to sit together in a meeting and discuss various outcomes of a cyber-attack, talking through the best response strategies. It is a huge benefit being able to run attack simulations that emulate real-world scenarios.

Our team can now see how an incident would play out over several days to resemble a real-world scenario or it can play through the simulation quickly to ascertain outcomes immediately. It then uses these insights to strengthen its technology, processes, and training.

AI-Powered Incident Response

Darktrace helps my security team save resources and upskill staff using AI to generate bespoke playbooks and run realistic simulations. Its real-time understanding of our business ensures incident preparedness and incident response are tailored to not only the specific threat in question, but also to the contextual infrastructure of the organization.  

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Jamie Woodland
Head of Technology at Community Housing Limited

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Beyond DMARC: Navigating the Gaps in Email Security

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29
Feb 2024

Email threat landscape  

Email has consistently ranked among the most targeted attack vectors, given its ubiquity and criticality to business operations. From September to December 2023, 10.4 million phishing emails were detected across Darktrace’s customer fleet demonstrating the frequency of attempted email-based attacks.

Businesses are searching for ways to harden their email security posture alongside email providers who are aiming to reduce malicious emails traversing their infrastructure, affecting their clients. Domain-based Message Authentication (DMARC) is a useful industry-wide protocol organizations can leverage to move towards these goals.  

What is DMARC?

DMARC is an email authentication protocol designed to enhance the security of email communication.

Major email service providers Google and Yahoo recently made the protocol mandatory for bulk senders in an effort to make inboxes safer worldwide. The new requirements demonstrate an increasing need for a standardized solution as misconfigured or nonexistent authentication systems continue to allow threat actors to evade detection and leverage the legitimate reputation of third parties.  

DMARC is a powerful tool that allows email administrators to confidently identify and stop certain spoofed emails; however, more organizations must implement the standard for it to reach its full potential. The success and effectiveness of DMARC is dependent on broad adoption of the standard – by organizations of all sizes.  

How does DMARC work?

DMARC builds on two key authentication technologies, Sender Policy Framework (SPF) and DomainKeys Identified Mail (DKIM) and helps to significantly improve their ability to prevent domain spoofing. SPF verifies that a sender’s IP address is authorized to send emails on behalf of a particular domain and DKIM ensures integrity of email content by providing a verifiable digital signature.  

DMARC adds to this by allowing domain owners to publish policies that set expectations for how SPF and DKIM verification checks relate to email addresses presented to users and whose authenticity the receiving mail server is looking to establish.  

These policies work in tandem to help authenticate email senders by verifying the emails are from the domain they say they are, working to prevent domain spoofing attacks. Key benefits of DMARC include:

  1. Phishing protection DMARC protects against direct domain spoofing in which a threat actor impersonates a legitimate domain, a common phishing technique threat actors use to trick employees to obtain sensitive information such as privileged credentials, bank information, etc.  
  2. Improving brand reputation: As DMARC helps to prevent impersonation of domains, it stands to maintain and increase an organization’s brand reputation. Additionally, as organizational reputation improves, so will the deliverability of emails.
  3. Increased visibility: DMARC provides enhanced visibility into email communication channels, including reports of all emails sent on behalf of your domain. This allows security teams to identify shadow-IT and any unauthorized parties using their domain.

Understanding DMARC’s Limitations

DMARC is often positioned as a way for organizations to ‘solve’ their email security problems, however, 65% of the phishing emails observed by Darktrace successfully passed DMARC verification, indicating that a significant number of threat actors are capable of manipulating email security and authentication systems in their exploits. While DMARC is a valuable tool in the fight against email-based attacks, the evolving threat landscape demands a closer look at its limitations.  

As threat actors continue to innovate, improving their stealth and evasion tactics, the number of attacks with valid DMARC authentication will only continue to increase in volume and sophistication. These can include:

  1. Phishing attacks that leverage non-spoofed domains: DMARC allows an organization to protect the domains that they own, preventing threat actors from being able to send phishing emails from their domains. However, threat actors will often create and use ‘look-a-like’ domains that closely resemble an organization’s domain to dupe users. 3% of the phishing emails identified by Darktrace utilized newly created domains, demonstrating shifting tactics.  
  2. Email Account Takeovers: If a threat actor gains access to a user’s email account through other social engineering means such as credential stuffing, they can then send phishing emails from the legitimate domain to pursue further attacks. Even though these emails are malicious, DMARC would not identify them as such because they are coming from an authorized domain or sender.  

Organizations must also ensure their inbound analysis of emails is not skewed by successful DMARC authentication. Security teams cannot inherently trust emails that pass DMARC, because the source cannot always be legitimized, like in the event of an account takeover. If a threat actor gains access to an authenticated email account, emails sent by the threat actor from that account will pass DMARC – however the contents of that email may be malicious. Sender behavior must be continuously evaluated and vetted in real time as past communication history and validated DMARC cannot be solely relied upon amid an ever-changing threat landscape.  

Security teams should lean on other security measures, such as anomaly detection tools that can identify suspicious emails without relying on historical attack rules and static data. While DMARC is not a silver bullet for email security, it is nevertheless foundational in helping organizations protect their brand identity and must be viewed as an essential layer in an organization's overall cyber security strategy.  

Implementing DMARC

Despite the criticality of DMARC for preserving brand reputation and trust, adoption of the standard has been inconsistent. DMARC can be complex to implement with many organizations lacking the time required to understand and successfully implement the standard. Because of this, DMARC set-up is often outsourced, giving security and infrastructure teams little to no visibility into or control of the process.  

Implementation of DMARC is only the start of this process, as DMARC reports must be consistently monitored to ensure organizations have visibility into who is sending mail from their domain, the volume of mail being sent and whether the mail is passing authentication protocols. This process can be time consuming for security teams who are already faced with mounting responsibilities, tight budgets, and personnel shortages. These complexities unfortunately delay organizations from using DMARC – especially as many today still view it as a ‘nice to have’ rather than an essential.  

With the potential complexities of the DMARC implementation process, there are many ways security and infrastructure teams can still successfully roll out the standard. Initial implementation should start with monitoring, policy adjustment and then enforcement. As business changes over time, DMARC should be reviewed regularly to ensure ongoing protection and maintain domain reputation.

The Future of Email Security

As email-based attacks continue to rise, the industry must recognize the importance of driving adoption of foundational email authentication protocols. To do this, a new and innovative approach to DMARC is needed. DMARC products must evolve to better support organizations throughout the ongoing DMARC monitoring process, rather than just initial implementation. These products must also be able to share intelligence across an organization’s security stack, extending beyond email security tools. Integration across these products and tools will help organizations optimize their posture, ensuring deep understanding of their domain and increased visibility across the entire enterprise.

DMARC is critical in protecting brand identity and mitigating exact-domain based attacks. However, organizations must understand DMARC’s unique benefits and limitations to ensure their inboxes are fully protected. In today’s evolving threat landscape, organizations require a robust, multi-layered approach to stop email threats – in inbound mail and beyond. Email threats have evolved – its time security does too.

Join Darktrace on 9 April for a virtual event to explore the latest innovations needed to get ahead of the rapidly evolving threat landscape. Register today to hear more about our latest innovations coming to Darktrace’s offerings. For additional insights check out Darktrace’s 2023 End of Year Threat Report.

Credit to Carlos Gray and Stephen Pickman for their contribution to this blog

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About the author
Carlos Gray
Product Manager

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