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May 3, 2021

Understanding Modern-Day Cyber Attacks

Discover how Darktrace detects and mitigates threats in IoT ecosystems and globalized supply chains that are constantly evolving.
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.
Written by
Brianna Leddy
Director of Analyst Operations
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03
May 2021

It’s ten to five on a Friday afternoon. A technician has come in to perform a routine check on an electronic door. She enters the office with no issues – she works for a trusted third-party vendor, employees see her every week. She opens her laptop and connects to the Door Access Control Unit, a small Internet of Things (IoT) device used to operate the smart lock. Minutes later, trojans have been downloaded onto the company network, a crypto-mining operation has begun, and there is evidence of confidential data being exfiltrated. Where did things go wrong?

Threats in a business: A new dawn surfaces

As organizations keep pace with the demands of digital transformation, the attack surface has become broader than ever before. There are numerous points of entry for a cyber-criminal – from vulnerabilities in IoT ecosystems, to blind spots in supply chains, to insiders misusing their access to the business. Darktrace sees these threats every day. Sometimes, like in the real-world example above, which will be examined in this blog, they can occur in the very same attack.

Insider threats can use their familiarity and level of access to a system as a critical advantage when evading detection and launching an attack. But insiders don’t necessarily have to be malicious. Every employee or contractor is a potential threat: clicking on a phishing link or accidentally releasing data often leads to wide-scale breaches.

At the same time, connectivity in the workspace – with each IoT device communicating with the corporate network and the Internet on its own IP address – is an urgent security issue. Access control systems, for example, add a layer of physical security by tracking who enters the office and when. However, these same control systems imperil digital security by introducing a cluster of sensors, locks, alarm systems, and keypads, which hold sensitive user information and connect to company infrastructure.

Furthermore, a significant proportion of IoT devices are built without security in mind. Vendors prioritize time-to-market and often don’t have the resources to invest in baked-in security measures. Consider the number of start-ups which manufacture IoT – over 60% of home automation companies have fewer than ten employees.

Insider threat detected by Cyber AI

In January 2021, a medium-sized North American company suffered a supply chain attack when a third-party vendor connected to the control unit for a smart door.

Figure 1: The attack lasted 3.5 hours in total, commencing 16:50 local time.

The technician from the vendor’s company had come in to perform scheduled maintenance. They had been authorized to connect directly to the Door Access Control Unit, yet were unaware that the laptop they were using, brought in from outside of the organization, had been infected with malware.

As soon as the laptop connected with the control unit, the malware detected an open port, identified the vulnerability, and began moving laterally. Within minutes, the IoT device was seen making highly unusual connections to rare external IP addresses. The connections were made using HTTP and contained suspicious user agents and URIs.

Darktrace then detected that the control unit was attempting to download trojans and other payloads, including upsupx2.exe and 36BB9658.moe. Other connections were used to send base64 encoded strings containing the device name and the organization’s external IP address.

Cryptocurrency mining activity with a Monero (XMR) CPU miner was detected shortly afterwards. The device also utilized an SMB exploit to make external connections on port 445 while searching for vulnerable internal devices using the outdated SMBv1 protocol.

One hour later, the device connected to an endpoint related to the third-party remote access tool TeamViewer. After a few minutes, the device was seen uploading over 15 MB to a 100% rare external IP.

Figure 2: Timeline of the connections made by an example device on the days around an incident (blue). The connections associated with the compromise are a significant deviation from the device’s normal pattern of life, and result in multiple unusual activity events and repeated model breaches (orange).

Security threats in the supply chain

Cyber AI flagged the insider threat to the customer as soon as the control unit had been compromised. The attack had managed to bypass the rest of the organization’s security stack, for the simple reason that it was introduced directly from a trusted external laptop, and the IoT device itself was managed by the third-party vendor, so the customer had little visibility over it.

Traditional security tools are ineffective against supply chain attacks such as this. From the SolarWinds hack to Vendor Email Compromise, 2021 has put the nail in the coffin for signature-based security – proving that we cannot rely on yesterday’s attacks to predict tomorrow’s threats.

International supply chains and the sheer number of different partners and suppliers which modern organizations work with thus pose a serious security dilemma: how can we allow external vendors onto our network and keep an airtight system?

The first answer is zero-trust access. This involves treating every device as malicious, inside and outside the corporate network, and demanding verification at all stages. The second answer is visibility and response. Security products must shed a clear light into cloud and IoT infrastructure, and react autonomously as soon as subtle anomalies emerge across the enterprise.

IoT investigated

Darktrace’s Cyber AI Analyst reported on every stage of the attack, including the download of the first malicious executable file.

Figure 3: Example of Cyber AI Analyst detecting anomalous behavior on a device, including C2 connectivity and suspicious file downloads.

Cyber AI Analyst investigated the C2 connectivity, providing a high-level summary of the activity. The IoT device had accessed suspicious MOE files with randomly generated alphanumeric names.

Figure 4: A Cyber AI Analyst summary of C2 connectivity for a device.

Not only did the AI detect every stage of the activity, but the customer was also alerted via a Proactive Threat Notification following a high scoring model breach at 16:59, just minutes after the attack had commenced.

Stranger danger

Third parties coming in to tweak device settings and adjust the network can have unintended consequences. The hyper-connected world which we’re living in, with the advent of 5G and Industry 4.0, has become a digital playground for cyber-criminals.

In the real-world case study above, the IoT device was unsecured and misconfigured. With rushed creations of IoT ecosystems, intertwining supply chains, and a breadth of individuals and devices connecting to corporate infrastructure, modern-day organizations cannot expect simple security tools which rely on pre-defined rules to stop insider threats and other advanced cyber-attacks.

The organization did not have visibility over the management of the Door Access Control Unit. Despite this, and despite no prior knowledge of the attack type or the vulnerabilities present in the IoT device, Darktrace detected the behavioral anomalies immediately. Without Cyber AI, the infection could have remained on the customer’s environment for weeks or months, escalating privileges, silently crypto-mining, and exfiltrating sensitive company data.

Thanks to Darktrace analyst Grace Carballo for her insights on the above threat find.

Learn more about insider threats

Darktrace model detections:

  • Anomalous File/Anomalous Octet Stream
  • Anomalous Connection/New User Agent to IP Without Hostname
  • Unusual Activity/Unusual External Connectivity
  • Device/Increased External Connectivity
  • Anomalous Server Activity/Outgoing from Server
  • Device/New User Agent and New IP
  • Compliance/Cryptocurrency Mining Activity
  • Compliance/External Windows Connectivity
  • Anomalous File/Multiple EXE from Rare External Locations
  • Anomalous File/EXE from Rare External Location
  • Device/Large Number of Model Breaches
  • Anomalous File/Internet Facing System File Download
  • Device/Initial Breach Chain Compromise
  • Device/SMB Session Bruteforce
  • Device/Network Scan- Low Anomaly Score
  • Device/Large Number of Connections to New Endpoint
  • Anomalous Server Activity/Outgoing from Server
  • Compromise/Beacon to Young Endpoint
  • Anomalous Server Activity/Rare External from Server
  • Device/Multiple C2 Model Breaches
  • Compliance/Remote Management Tool on Server
  • Anomalous Connection/Data Sent to New External Device

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.
Written by
Brianna Leddy
Director of Analyst Operations

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November 26, 2025

CastleLoader & CastleRAT: Behind TAG150’s Modular Malware Delivery System

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What is TAG-150?

TAG-150, a relatively new Malware-as-a-Service (MaaS) operator, has been active since March 2025, demonstrating rapid development and an expansive, evolving infrastructure designed to support its malicious operations. The group employs two custom malware families, CastleLoader and CastleRAT, to compromise target systems, with a primary focus on the United States [1]. TAG-150’s infrastructure included numerous victim-facing components, such as IP addresses and domains functioning as command-and-control (C2) servers associated with malware families like SecTopRAT and WarmCookie, in addition to CastleLoader and CastleRAT [2].

As of May 2025, CastleLoader alone had infected a reported 469 devices, underscoring the scale and sophistication of TAG-150’s campaign [1].

What are CastleLoader and CastleRAT?

CastleLoader is a loader malware, primarily designed to download and install additional malware, enabling chain infections across compromised systems [3]. TAG-150 employs a technique known as ClickFix, which uses deceptive domains that mimic document verification systems or browser update notifications to trick victims into executing malicious scripts. Furthermore, CastleLoader leverages fake GitHub repositories that impersonate legitimate tools as a distribution method, luring unsuspecting users into downloading and installing malware on their devices [4].

CastleRAT, meanwhile, is a remote access trojan (RAT) that serves as one of the primary payloads delivered by CastleLoader. Once deployed, CastleRAT grants attackers extensive control over the compromised system, enabling capabilities such as keylogging, screen capturing, and remote shell access.

TAG-150 leverages CastleLoader as its initial delivery mechanism, with CastleRAT acting as the main payload. This two-stage attack strategy enhances the resilience and effectiveness of their operations by separating the initial infection vector from the final payload deployment.

How are they deployed?

Castleloader uses code-obfuscation methods such as dead-code insertion and packing to hinder both static and dynamic analysis. After the payload is unpacked, it connects to its command-and-control server to retrieve and running additional, targeted components.

Its modular architecture enables it to function both as a delivery mechanism and a staging utility, allowing threat actors to decouple the initial infection from payload deployment. CastleLoader typically delivers its payloads as Portable Executables (PEs) containing embedded shellcode. This shellcode activates the loader’s core module, which then connects to the C2 server to retrieve and execute the next-stage malware.[6]

Following this, attackers deploy the ClickFix technique, impersonating legitimate software distribution platforms like Google Meet or browser update notifications. These deceptive sites trick victims into copying and executing PowerShell commands, thereby initiating the infection kill chain. [1]

When a user clicks on a spoofed Cloudflare “Verification Stepprompt, a background request is sent to a PHP script on the distribution domain (e.g., /s.php?an=0). The server’s response is then automatically copied to the user’s clipboard using the ‘unsecuredCopyToClipboard()’ function. [7].

The Python-based variant of CastleRAT, known as “PyNightShade,” has been engineered with stealth in mind, showing minimal detection across antivirus platforms [2]. As illustrated in Figure 1, PyNightShade communicates with the geolocation API service ip-api[.]com, demonstrating both request and response behavior

Packet Capture (PCAP) of PyNightShade, the Python-based variant of CastleRAT, communicating with the geolocation API service ip-api[.]com.
Figure 1: Packet Capture (PCAP) of PyNightShade, the Python-based variant of CastleRAT, communicating with the geolocation API service ip-api[.]com.

Darktrace Coverage

In mid-2025, Darktrace observed a range of anomalous activities across its customer base that appeared linked to CastleLoader, including the example below from a US based organization.

The activity began on June 26, when a device on the customer’s network was observed connecting to the IP address 173.44.141[.]89, a previously unseen IP for this network along with the use of multiple user agents, which was also rare for the user.  It was later determined that the IP address was a known indicator of compromise (IoC) associated with TAG-150’s CastleRAT and CastleLoader operations [2][5].

Figure 2: Darktrace’s detection of a device making unusual connections to the malicious endpoint 173.44.141[.]89.

The device was observed downloading two scripts from this endpoint, namely ‘/service/download/data_5x.bin’ and ‘/service/download/data_6x.bin’, which have both been linked to CastleLoader infections by open-source intelligence (OSINT) [8]. The archives contains embedded shellcode, which enables attackers to execute arbitrary code directly in memory, bypassing disk writes and making detection by endpoint detection and response (EDR) tools significantly more difficult [2].

 Darktrace’s detection of two scripts from the malicious endpoint.
Figure 3: Darktrace’s detection of two scripts from the malicious endpoint.

In addition to this, the affected device exhibited a high volume of internal connections to a broad range of endpoints, indicating potential scanning activity. Such behavior is often associated with reconnaissance efforts aimed at mapping internal infrastructure.

Darktrace / NETWORK correlated these behaviors and generated an Enhanced Monitoring model, a high-fidelity security model designed to detect activity consistent with the early stages of an attack. These high-priority models are continuously monitored and triaged by Darktrace’s Security Operations Center (SOC) as part of the Managed Threat Detection and Managed Detection & Response services, ensuring that subscribed customers are promptly alerted to emerging threats.

Darktrace detected an unusual ZIP file download alongside the anomalous script, followed by internal connectivity. This activity was correlated under an Enhanced Monitoring model.
Figure 4: Darktrace detected an unusual ZIP file download alongside the anomalous script, followed by internal connectivity. This activity was correlated under an Enhanced Monitoring model.

Darktrace Autonomous Response

Fortunately, Darktrace’s Autonomous Response capability was fully configured, enabling it to take immediate action against the offending device by blocking any further connections external to the malicious endpoint, 173.44.141[.]89. Additionally, Darktrace enforced a ‘group pattern of life’ on the device, restricting its behavior to match other devices in its peer group, ensuring it could not deviate from expected activity, while also blocking connections over 443, shutting down any unwanted internal scanning.

Figure 5: Actions performed by Darktrace’s Autonomous Response to contain the ongoing attack.

Conclusion

The rise of the MaaS ecosystem, coupled with attackers’ growing ability to customize tools and techniques for specific targets, is making intrusion prevention increasingly challenging for security teams. Many threat actors now leverage modular toolkits, dynamic infrastructure, and tailored payloads to evade static defenses and exploit even minor visibility gaps. In this instance, Darktrace demonstrated its capability to counter these evolving tactics by identifying early-stage attack chain behaviors such as network scanning and the initial infection attempt. Autonomous Response then blocked the CastleLoader IP delivering the malicious ZIP payload, halting the attack before escalation and protecting the organization from a potentially damaging multi-stage compromise

Credit to Ahmed Gardezi (Cyber Analyst) Tyler Rhea (Senior Cyber Analyst)
Edited by Ryan Traill (Analyst Content Lead)

Appendices

Darktrace Model Detections

  • Anomalous Connection / Unusual Internal Connections
  • Anomalous File / Zip or Gzip from Rare External Location
  • Anomalous File / Script from Rare External Location
  • Initial Attack Chain Activity (Enhanced Monitoring Model)

MITRE ATT&CK Mapping

  • T15588.001 - Resource Development – Malware
  • TG1599 – Defence Evasion – Network Boundary Bridging
  • T1046 – Discovery – Network Service Scanning
  • T1189 – Initial Access

List of IoCs
IoC - Type - Description + Confidence

  • 173.44.141[.]89 – IP – CastleLoader C2 Infrastructure
  • 173.44.141[.]89/service/download/data_5x.bin – URI – CastleLoader Script
  • 173.44.141[.]89/service/download/data_6x.bin – URI  - CastleLoader Script
  • wsc.zip – ZIP file – Possible Payload

References

[1] - https://blog.polyswarm.io/castleloader

[2] - https://www.recordedfuture.com/research/from-castleloader-to-castlerat-tag-150-advances-operations

[3] - https://www.pcrisk.com/removal-guides/34160-castleloader-malware

[4] - https://www.scworld.com/brief/malware-loader-castleloader-targets-devices-via-fake-github-clickfix-phishing

[5] https://www.virustotal.com/gui/ip-address/173.44.141.89/community

[6] https://thehackernews.com/2025/07/castleloader-malware-infects-469.html

[7] https://www.cryptika.com/new-castleloader-attack-using-cloudflare-themed-clickfix-technique-to-infect-windows-computers/

[8] https://www.cryptika.com/castlebot-malware-as-a-service-deploys-range-of-payloads-linked-to-ransomware-attacks/

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About the author
Tyler Rhea
Senior Cyber Analyst

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November 26, 2025

UK Cyber Security & Resilience Bill: What Organizations Need to Know

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Why the Bill has been introduced

The UK’s cyber threat landscape has evolved dramatically since the 2018 NIS regime was introduced. Incidents such as the Synnovis attack against hospitals and the British Library ransomware attack show how quickly operational risk can become public harm. In this context, the UK Department for Science, Innovation and Technology estimates that cyber-attacks cost UK businesses around £14.7 billion each year.

At the same time, the widespread adoption of AI has expanded organisations’ attack surfaces and empowered threat actors to launch more effective and sophisticated activities, including crafting convincing phishing campaigns, exploiting vulnerabilities and initiating ransomware attacks at unprecedented speed and scale.  

The CSRB responds to these challenges by widening who is regulated, accelerating incident reporting and tightening supply chain accountability, while enabling rapid updates that keep pace with technology and emerging risks.

Key provisions of the Cyber Security and Resilience Bill

A wider set of organisations in scope

The Bill significantly broadens the range of organisations regulated under the NIS framework.

  • Managed service providers (MSPs) - medium and large MSPs, including MSSPs, managed SOCs, SIEM providers and similar services,will now fall under NIS obligations due to their systemic importance and privileged access to client systems. The Information Commissioner’s Office (ICO) will act as the regulator. Government analysis anticipates that a further 900 to 1,100 MSPs will be in scope.
  • Data infrastructure is now recognised as essential to the functioning of the economy and public services. Medium and large data centres, as well as enterprise facilities meeting specified thresholds, will be required to implement appropriate and proportionate measures to manage cyber risk. Oversight will be shared between DSIT and Ofcom, with Ofcom serving as the operational regulator.
  • Organisations that manage electrical loads for smart appliances, such as those supporting EV charging during peak times, are now within scope.

These additions sit alongside existing NIS-regulated sectors such as transport, energy, water, health, digital infrastructure, and certain digital services (including online marketplaces, search engines, and cloud computing).

Stronger supply chain requirements

Under the CSRB, regulators can now designate third-party suppliers as ‘designated critical suppliers’ (DCS) when certain threshold criteria are met and where disruption could have significant knock-on effects. Designated suppliers will be subject to the same security and incident-reporting obligations as Operators of Essential Services (OES) and Relevant Digital Service Providers (RDSPs).

Government will scope the supply chain duties for OES and RDSPs via secondary legislation, following consultation. infrastructure incidents where a single supplier’s compromise caused widespread disruption.

Faster incident reporting

Sector-specific regulators, 12 in total, will be responsible for implementing the CSRB, allowing for more effective and consistent reporting. In addition, the CSRB introduces a two-stage reporting process and expands incident reporting criteria. Regulated entities must submit an initial notification within 24 hours of becoming aware of a significant incident, followed by an incident report within 72 hours. Incident reporting criteria are also broadened to capture incidents beyond those which actually resulted in an interruption, ensuring earlier visibility for regulators and the National Cyber Security Centre (NCSC). The importance of information sharing across agencies, law enforcement and regulators is also facilitated by the CSRB.

The reforms also require data centres and managed service providers to notify affected customers where they are likely to have been impacted by a cyber incident.

An agile regulatory framework

To keep pace with technological change, the CSRB will enable the Secretary of State to update elements of the framework via secondary legislation. Supporting materials such as the NCSC Cyber Assessment Framework (CAF) are to be "put on a stronger footing” allowing for requirements to be more easily followed, managed and updated. Regulators will also now be able to recover full costs associated with NIS duties meaning they are better resourced to carry out their associated responsibilities.

Relevant Managed Service Providers must identify and take appropriate and proportionate measures to manage risks to the systems they rely on for providing services within the UK. Importantly, these measures must, having regard to the state of the art, ensure a level of security appropriate to the risk posed, and prevent or minimise the impact of incidents.

The Secretary of State will also be empowered to issue a Statement of Strategic Priorities, setting cross-regime outcomes to drive consistency across the 12 competent authorities responsible for implementation.

Penalties

The enforcement framework will be strengthened, with maximum fines aligned with comparable regimes such as the GDPR, which incorporate maximums tied to turnover. Under the CSRB, maximum penalties for more serious breaches could be up to £17 million or 4% of global turnover, whichever is higher.

Next steps

The Bill is expected to progress through Parliament over the course of 2025 and early 2026, with Royal Assent anticipated in 2026. Once enacted, most operational measures will not take immediate effect. Instead, Government will bring key components into force through secondary legislation following further consultation, providing regulators and industry with time to adjust practices and prepare for compliance.

Anticipated timeline

  • 2025-2026: Parliamentary scrutiny and passage;
  • 2026: Royal Assent;  
  • 2026 consultation: DSIT intends to consult on detailed implementation;
  • From 2026 onwards: Phased implementation via secondary legislation, following further consultation led by DSIT.

How Darktrace can help

The CSRB represents a step change in how the UK approaches digital risk, shifting the focus from compliance to resilience.

Darktrace can help organisations operationalise this shift by using AI to detect, investigate and respond to emerging threats at machine speed, before they escalate into incidents requiring regulatory notification. Proactive tools which can be included in the Darktrace platform allow security teams to stress-test defences, map supply chain exposure and rehearse recovery scenarios, directly supporting the CSRB’s focus on resilience, transparency and rapid response. If an incident does occur, Darktrace’s autonomous agent, Cyber AI Analyst, can accelerate investigations and provide a view of every stage of the attack chain, supporting timely reporting.  

Darktrace’s AI can provide organisations with a vital lens into both internal and external cyber risk. By continuously learning patterns of behaviour across interconnected systems, Darktrace can flag potential compromise or disruption to detect supply chain risk before it impacts your organisation.

In a landscape where compliance and resilience go hand in hand, Darktrace can equip organisations to stay ahead of both evolving threats and evolving regulatory requirements.

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