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November 22, 2023

70 million in Cybersecurity Funding for Electric Cooperatives & Utilities

Discover how the Bipartisan Infrastructure Law and its $250M Rural and Municipal Utility Cybersecurity Program empower electric cooperatives and municipalities to strengthen cybersecurity. Learn how innovative tools like anomaly detection, IT/OT integration, and AI-driven solutions enhance resilience against modern threats.
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
Jeff Cornelius
EVP, Cyber-Physical Security
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22
Nov 2023

What is the Bipartisan Infrastructure Deal?

The Bipartisan Infrastructure Law passed by congress in 2021 aimed to upgrade power and infrastructure to deliver clean, reliable energy across the US to achieve zero-emissions. To date, the largest investment in clean energy, the deal will fund new programs to support the development and deployment of clean energy technology.

Why is it relevant to electric municipalities?

Section 40124 of the Bipartisan Infrastructure Law allocates $250 million over a 5-year period to create the Rural and Municipal Utility Cybersecurity (RMUC) Program to help electric cooperative, municipal, and small investor-owned utilities protect against, detect, respond to, and recover from cybersecurity threats.1 This act illuminates the value behind a full life-cycle approach to cyber security. Thus, finding a cyber security solution that can provide all aspects of security in one integrated platform would enhance the overall security posture and ease many of the challenges that arise with adopting multiple point solutions.

On November 16, 2023 the Office of Cybersecurity, Energy Security, and Emergency Response (CESER) released the Advanced Cybersecurity Technology (ACT) for electric utilities offering a $70 million funding opportunity that aims to enhance the cybersecurity posture of electric cooperative, municipal, and small investor-owned utilities.

Funding Details

10 projects will be funded with application submissions due November 29, 2023, 5:00 pm ET with $200,000 each in cash prizes in the following areas:

  1. Direct support for eligible utilities to make investments in cybersecurity technologies, tools, training, and improvements in utility processes and procedures;
  2. Funding to strengthen the peer-to-peer and not-for-profit cybersecurity technical assistance ecosystem currently serving eligible electric utilities; and
  3. Increasing access to cybersecurity technical assistance and training for eligible utilities with limited cybersecurity resources. 2

To submit for this award visit: https://www.herox.com/ACT1Prize

How can electric municipalities utilize the funding?

While the adoption of hybrid working patterns increase cloud and SaaS usage, the number of industrial IoT devices also continues to rise. The result is decrease in visibility for security teams and new entry points for attackers. Particularly for energy and utility organizations.

Electric cooperatives seeking to enhance their cyber security posture can aim to invest in cyber security tools that provide the following:

Compliance support: Consider finding an OT security solution that maps out how its solutions and features help your organization comply with relevant compliance mandates such as NIST, ISA, FERC, TSA, HIPAA, CIS Controls, and more.

Anomaly based detection: Siloed security solutions also fail to detect attacks that span
the entire organization. Anomaly-based detection enhances an organization’s cyber security posture by proactively defending against potential attacks and maintaining a comprehensive view of their attack surface.

Integration capabilities: Implementation of several point solutions that complete individual tasks runs the risk of increasing workloads for operators and creates additional challenges with compliance, budgeting, and technical support. Look for cyber security tools that integrate with your existing technologies.

Passive and active asset tracking: Active Identification offers accurate enumeration, real time updates, vulnerability assessment, asset validation while Passive Identification eliminates the risk of operational disruption, minimizes risk, does not generate additional network traffic. It would be ideal to find a security solution that can do both.

Can secure both IT and OT in unison: Given that most OT cyber-attacks actually start in IT networks before pivoting into OT, a mature security posture for critical infrastructure would include a single solution for both IT and OT. Separate solutions for IT and OT present challenges when defending network boundaries and detecting incidents when an attacker pivots from IT to OT. These independent solutions also significantly increase operator workload and materially diminish risk mitigation efforts.

Darktrace / OT for Electric Cooperatives and Utilities

For smaller teams with just one or two dedicated employees, Darktrace’s Cyber AI Analyst and Investigation features allow end users to spend less time in the platform as it compiles critical incidents into comprehensive actionable event reports. AI Analyst brings all the information into a centralized view with incident reporting in natural language summaries and can be generated for compliance reports specific to regulatory requirements.  

For larger teams, Darktrace alerts can be forwarded to 3rd party platforms such as a SIEM, where security team decision making is augmented. Additionally, executive reports and autonomous response reduce the alert fatigue generally associated with legacy tools. Most importantly, Darktrace’s unique understanding of normal allows security teams to detect zero-days and signatureless attacks regardless of the size of the organization and how alerts are consumed.

Key Benefits of Darktrace / OT

Figure 1: Darktrace/OT stops threats moving from IT to OT by providing a unified view across both systems

References

1. https://www.whitehouse.gov/briefing-room/statements-releases/2021/11/06/fact-sheet-the-bipartisan-infrastructure-deal/

2. https://www.energy.gov/ceser/rural-and-municipal-utility-advanced-cybersecurity-grant-and-technical-assistance-rmuc

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
Jeff Cornelius
EVP, Cyber-Physical Security

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February 26, 2026

What the Darktrace Annual Threat Report 2026 Means for Security Leaders

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The challenge for today’s CISOs

At the broadest level, the defining characteristic of cybersecurity in 2026 is the sheer pace of change shaping the environments we protect. Organizations are operating in ecosystems that are larger, more interconnected, and more automated than ever before – spanning cloud platforms, distributed identities, AI-driven systems, and continuous digital workflows.  

The velocity of this expansion has outstripped the slower, predictable patterns security teams once relied on. What used to be a stable backdrop is now a living, shifting landscape where technology, risk, and business operations evolve simultaneously. From this vantage point, the central challenge for security leaders isn’t reacting to individual threats, but maintaining strategic control and clarity as the entire environment accelerates around them.

Strategic takeaways from the Annual Threat Report

The Darktrace Annual Threat Report 2026 reinforces a reality every CISO feels: the center of gravity isn’t the perimeter, vulnerability management, or malware, but trust abused via identity. For example, our analysis found that nearly 70% of incidents in the Americas region begin with stolen or misused accounts, reflecting the global shift toward identity‑led intrusions.

Mass adoption of AI agents, cloud-native applications, and machine decision-making means CISOs now oversee systems that act on their own. This creates an entirely new responsibility: ensuring those systems remain safe, predictable, and aligned to business intent, even under adversarial pressure.

Attackers increasingly exploit trust boundaries, not firewalls – leveraging cloud entitlements, SaaS identity transitions, supply-chain connectivity, and automation frameworks. The rise of non-human identities intensifies this: credentials, tokens, and agent permissions now form the backbone of operational risk.

Boards are now evaluating CISOs on business continuity, operational recovery, and whether AI systems and cloud workloads can fail safely without cascading or causing catastrophic impact.

In this environment, detection accuracy, autonomous response, and blast radius minimization matter far more than traditional control coverage or policy checklists.

Every organization will face setbacks; resilience is measured by how quickly security teams can rise, respond, and resume momentum. In 2026, success will belong to those that adapt fastest.

Managing business security in the age of AI

CISO accountability in 2026 has expanded far beyond controls and tooling. Whether we asked for it or not, we now own outcomes tied to business resilience, AI trust, cloud assurance, and continuous availability. The role is less about certainty and more about recovering control in an environment that keeps accelerating.

Every major 2026 initiative – AI agents, third-party risk, cloud, or comms protection – connects to a single board-level question: Are we still in control as complexity and automation scale faster than humans?

Attackers are not just getting more sophisticated; they are becoming more automated. AI changes the economics of attack, lowering cost and increasing speed. That asymmetry is what CISOs are being measured against.

CISOs are no longer evaluated on tool coverage, but on the ability to assure outcomes – trust in AI adoption, resilience across cloud and identity, and being able to respond to unknown and unforeseen threats.

Boards are now explicitly asking whether we can defend against AI-driven threats. No one can predict every new behavior – survival depends on detecting malicious deviations from normal fast and responding autonomously.  

Agents introduce decision-making at machine speed. Governance, CI/CD scanning, posture management, red teaming, and runtime detection are no longer differentiators but the baseline.

Cloud security is no longer architectural, it is operational. Identity, control planes, and SaaS exposure now sit firmly with the CISO.

AI-speed threats already reshaping security in 2026

We’re already seeing clear examples of how quickly the threat landscape has shifted in 2026. Darktrace’s work on React2Shell exposed just how unforgiving the new tempo is: a honeypot stood up with an exposed React was hit in under two minutes. There was no recon phase, no gradual probing – just immediate, automated exploitation the moment the code appeared publicly. Exposure now equals compromise unless defenses can detect, interpret, and act at machine speed. Traditional operational rhythms simply don’t map to this reality.

We’re also facing the first wave of AI-authored malware, where LLMs generate code that mutates on demand. This removes the historic friction from the attacker side: no skill barrier, no time cost, no limit on iteration. Malware families can regenerate themselves, shift structure, and evade static controls without a human operator behind the keyboard. This forces CISOs to treat adversarial automation as a core operational risk and ensure that autonomous systems inside the business remain predictable under pressure.

The CVE-2026-1731 BeyondTrust exploitation wave reinforced the same pattern. The gap between disclosure and active, global exploitation compressed into hours. Automated scanning, automated payload deployment, coordinated exploitation campaigns, all spinning up faster than most organizations can push an emergency patch through change control. The vulnerability-to-exploit window has effectively collapsed, making runtime visibility, anomaly detection, and autonomous containment far more consequential than patching speed alone.

These cases aren’t edge scenarios; they represent the emerging norm. Complexity and automation have outpaced human-scale processes, and attackers are weaponizing that asymmetry.  

The real differentiator for CISOs in 2026 is less about knowing everything and more about knowing immediately when something shifts – and having systems that can respond at the same speed.

[related-resource]

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About the author
Mike Beck
Global CISO

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February 19, 2026

CVE-2026-1731: How Darktrace Sees the BeyondTrust Exploitation Wave Unfolding

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Note: Darktrace's Threat Research team is publishing now to help defenders. We will continue updating this blog as our investigations unfold.

Background

On February 6, 2026, the Identity & Access Management solution BeyondTrust announced patches for a vulnerability, CVE-2026-1731, which enables unauthenticated remote code execution using specially crafted requests.  This vulnerability affects BeyondTrust Remote Support (RS) and particular older versions of Privileged Remote Access (PRA) [1].

A Proof of Concept (PoC) exploit for this vulnerability was released publicly on February 10, and open-source intelligence (OSINT) reported exploitation attempts within 24 hours [2].

Previous intrusions against Beyond Trust technology have been cited as being affiliated with nation-state attacks, including a 2024 breach targeting the U.S. Treasury Department. This incident led to subsequent emergency directives from  the Cybersecurity and Infrastructure Security Agency (CISA) and later showed attackers had chained previously unknown vulnerabilities to achieve their goals [3].

Additionally, there appears to be infrastructure overlap with React2Shell mass exploitation previously observed by Darktrace, with command-and-control (C2) domain  avg.domaininfo[.]top seen in potential post-exploitation activity for BeyondTrust, as well as in a React2Shell exploitation case involving possible EtherRAT deployment.

Darktrace Detections

Darktrace’s Threat Research team has identified highly anomalous activity across several customers that may relate to exploitation of BeyondTrust since February 10, 2026. Observed activities include:

Outbound connections and DNS requests for endpoints associated with Out-of-Band Application Security Testing; these services are commonly abused by threat actors for exploit validation.  Associated Darktrace models include:

  • Compromise / Possible Tunnelling to Bin Services

Suspicious executable file downloads. Associated Darktrace models include:

  • Anomalous File / EXE from Rare External Location

Outbound beaconing to rare domains. Associated Darktrace models include:

  • Compromise / Agent Beacon (Medium Period)
  • Compromise / Agent Beacon (Long Period)
  • Compromise / Sustained TCP Beaconing Activity To Rare Endpoint
  • Compromise / Beacon to Young Endpoint
  • Anomalous Server Activity / Rare External from Server
  • Compromise / SSL Beaconing to Rare Destination

Unusual cryptocurrency mining activity. Associated Darktrace models include:

  • Compromise / Monero Mining
  • Compromise / High Priority Crypto Currency Mining

And model alerts for:

  • Compromise / Rare Domain Pointing to Internal IP

IT Defenders: As part of best practices, we highly recommend employing an automated containment solution in your environment. For Darktrace customers, please ensure that Autonomous Response is configured correctly. More guidance regarding this activity and suggested actions can be found in the Darktrace Customer Portal.  

Appendices

Potential indicators of post-exploitation behavior:

·      217.76.57[.]78 – IP address - Likely C2 server

·      hXXp://217.76.57[.]78:8009/index.js - URL -  Likely payload

·      b6a15e1f2f3e1f651a5ad4a18ce39d411d385ac7  - SHA1 - Likely payload

·      195.154.119[.]194 – IP address – Likely C2 server

·      hXXp://195.154.119[.]194/index.js - URL – Likely payload

·      avg.domaininfo[.]top – Hostname – Likely C2 server

·      104.234.174[.]5 – IP address - Possible C2 server

·      35da45aeca4701764eb49185b11ef23432f7162a – SHA1 – Possible payload

·      hXXp://134.122.13[.]34:8979/c - URL – Possible payload

·      134.122.13[.]34 – IP address – Possible C2 server

·      28df16894a6732919c650cc5a3de94e434a81d80 - SHA1 - Possible payload

References:

1.        https://nvd.nist.gov/vuln/detail/CVE-2026-1731

2.        https://www.securityweek.com/beyondtrust-vulnerability-targeted-by-hackers-within-24-hours-of-poc-release/

3.        https://www.rapid7.com/blog/post/etr-cve-2026-1731-critical-unauthenticated-remote-code-execution-rce-beyondtrust-remote-support-rs-privileged-remote-access-pra/

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About the author
Emma Foulger
Global Threat Research Operations Lead
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