Defending Against the New Normal in Cybercrime: AI
07
Mar 2024
This blog outlines research & data points on the evolving threat landscape, the impact of malicious AI, and why proactive cyber readiness is essential.
AI in Cyber Security
Over the last 18 months, discussions about artificial intelligence (AI) – specifically generative AI – ranged from excitement and optimism about its transformative potential to fear and uncertainty about the new risks it introduces.
New research1 commissioned by Darktrace shows that 89 percent of IT security teams polled globally believe AI-augmented cyber threats will have a significant impact on their organization within the next two years, yet 60 percent believe they are currently unprepared to defend against these attacks. Their concerns include increased volume and sophistication of malware that targets known vulnerabilities and increased exposure of sensitive or proprietary information from using generative AI tools.
At Darktrace, we monitor trends across our global customer base to understand how the challenges facing security teams are evolving alongside industry advancements in AI. We’ve observed that AI, automation, and cybercrime-as-a-service have increased the speed, sophistication and efficacy of cyber security attacks.
How AI Impacts Phishing Attempts
Darktrace has observed immediate impacts on phishing, which remains one of the most common forms of attack. In April 2023, Darktrace shared research that found a 135 percent increase in ‘novel social engineering attacks’ in the first two months of 2023, corresponding with the widespread adoption of ChatGPT2. These phishing attacks showed a strong linguistic deviation – semantically and syntactically – compared to other phishing emails, which suggested to us that generative AI is providing an avenue for threat actors to craft sophisticated and targeted attacks at speed and scale. A year later, we’ve seen this trend continue. Darktrace customers received approximately 2,867,000 phishing emails in December 2023 alone, a 14 percent increase on what was observed months prior in September3. Between September and December 2023, phishing attacks that used novel social engineering techniques grew by 35 percent on average across the Darktrace customer base4.
These observations reinforce trends that others in the industry have shared. For example, Microsoft and OpenAI recently published research on tactics, techniques, and procedures (TTPs) augmented by large language models (LLMs) that they have observed nation-state threat actors using. That includes using LLMs to draft and generate social engineering attacks, inform reconnaissance, assist with vulnerability research and more.
The Rise of Cybercrime-as-as-a-Service
The increasing cyber challenge facing defenders cannot be attributed to AI alone. The rise of cybercrime as-a-service is also changing the dynamic. Darktrace’s 2023 End of Year Threat Report found that cybercrime-as-a-service continue to dominate the threat landscape, with malware-as-a-Service (MaaS) and ransomware-as-a-Service (RaaS) tools making up most malicious tools in use by attackers. The as-a-Service ecosystem can provide attackers with everything from pre-made malware to templates for phishing emails, payment processing systems and even helplines to enable bad actors to mount attacks with limited technical knowledge.
These trends make it clear that attackers now have a more widely accessible toolbox that reduces their barriers.
AI Enabling Accidental Insider Threats
However, the new risks facing businesses aren’t from external threat actors alone. Use of generative AI tools within the enterprise introduces a new category of accidental insider threats. Employees using generative AI tools now have easier access to more organizational data than ever before. Even the most well-intentioned employee could unintentionally leak or access restricted, sensitive data via these tools. In the second half of 2023, we observed that approximately half of Darktrace customers had employees accessing generative AI services. As this continues to increase, organizations need policies in place to guide the use cases for generative AI tools as well as strong data governance and the ability to enforce these policies to minimize risk.
It is inevitable that AI will increase the risks and threats facing an organization, but this is not an unsolvable challenge from a defensive perspective. While advancements in generative AI may be worsening issues like novel social engineering and creating new types of accidental insider threats, AI itself offers a strong defense.
The Shift to Proactive Cyber Readiness
According to the World Economic Forum’s Global Cybersecurity Outlook 2024, the number of organizations that “maintain minimum viable cyber resilience is down 30 percent compared to 2023”, and “while large organizations have demonstrated gains in cyber resilience, small and medium-sized companies showed significant decline.” The importance of cyber resilience cannot be understated in the face of today’s increasingly as-a-service, automated, and AI-augmented threat landscape.
Historically, organizations wait for incidents to happen and rely on known attack data for threat detection and response, making it nearly impossible to identify never-before-seen threats. The traditional security stack has also relied heavily on point solutions focused on protecting different pieces of the digital environment, with individual tools for endpoint, email, network, on-premises data centers, SaaS applications, cloud, OT and beyond. These point solutions fail to correlate disparate incidents to form a complete picture of an orchestrated attack. Even with the addition of tools that can stitch together events from across the enterprise, they are in a reactive state that focuses heavily on threat detection and response.
Organizations need to evolve from a reactive posture to a stance of proactive cyber readiness. To do so, they need an approach that proactively identifies internal and external vulnerabilities, identifies gaps in security policy and process before an attack occurs, breaks down silos to investigate all threats (known and unknown) during an attack, and uplifts the human analyst beyond menial tasks to incident validation and recovery after an attack.
AI can help break down silos within the SOC and provide a more proactive approach to scale up and augment defenders. It provides richer context when it is fed information from multiple systems, data sets, and tools within the stack and can build an in-depth, real-time behavioural understanding of a business that humans alone cannot.
Lessons From AI in the SOC
At Darktrace, we’ve been applying AI to the challenge of cyber security for more than ten years, and we know that proactive cyber readiness requires the right mix of people, process, and technology.
When the right AI is applied responsibly to the right cyber security challenge, the impact on both the human security team and the business is profound.
AI can bring machine speed and scale to some of the most time-intensive, error-prone, and psychologically draining components of cyber security, helping humans focus on the value-added work that only they can provide. Incident response and continuous monitoring are two areas where AI has already been proven to effectively augment defenders. For example, a civil engineering company used Darktrace’s AI to uplift its SOC team from the repetitive, manual tasks of analyzing and responding to email incidents. The analysts estimated they were each spending 10 hours per week on email incident analysis. With AI autonomously analyzing and responding to email incidents, the analysts could gain approximately 20 percent of their time back to focus on proactive cyber security measures
An effective human-AI partnership is key to proactive cyber readiness and can directly benefit the work-life of defenders. It can help to reduce burnout, support data-driven decision-making, and reduce the reliance on hard-to-find, specialized talent that has created a skills shortage in cyber security for many years. Most importantly, AI can free up team members to focus on more meaningful tasks, such as compliance initiatives, user education, and sophisticated threat hunting.
Advancements in AI are happening at a rapid pace. As we’ve already observed, attackers will be watching these developments and looking for ways to use it to their advantage. Luckily, AI has already proved to be an asset for defenders, and embracing a proactive approach to cyber resilience can help organizations increase their readiness for this next phase. Prioritizing cyber security will be an enabler of innovation and progress as AI development continues.
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References
[1] The survey was undertaken by AimPoint Group & Dynata on behalf Darktrace between December 2023 & January 2024. The research polled 1773 security professionals in positions across the security team from junior roles to CISOs, across 14 countries – Australia, Brazil, France, Germany, Italy, Japan, Mexico, Netherlands, Singapore, Spain, Sweden, UAE, UK, and USA.
[2] Based on the average change in email attacks between January and February 2023 detected across Darktrace/Email deployments with control of outliers.
[3] Average calculated across Darktrace customers from 31st August to 21st December.
[4] Average calculated across Darktrace customers from 31st August to 21st December. Novel social engineering attacks use linguistic techniques that are different to techniques used in the past, as measured by a combination of semantics, phrasing, text volume, punctuation, and sentence length.
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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.
Author
Max Heinemeyer
Chief Product Officer
Max is a cyber security expert with over a decade of experience in the field, specializing in a wide range of areas such as Penetration Testing, Red-Teaming, SIEM and SOC consulting and hunting Advanced Persistent Threat (APT) groups. At Darktrace, Max is closely involved with Darktrace’s strategic customers & prospects. He works with the R&D team at Darktrace, shaping research into new AI innovations and their various defensive and offensive applications. Max’s insights are regularly featured in international media outlets such as the BBC, Forbes and WIRED. Max holds an MSc from the University of Duisburg-Essen and a BSc from the Cooperative State University Stuttgart in International Business Information Systems.
From Royal to BlackSuit: Understanding the Tactics and Impact of a Sophisticated Ransomware Strain
What is BlackSuit Ransomware?
Since late 2023, Darktrace has detected BlackSuit ransomware infiltrating multiple customer networks in the US. This ransomware has targeted a wide range of industries, including arts, entertainment, real estate, public administration, defense, and social security.
Emerging in May 2023, BlackSuit is believed to be a spinoff of Royal ransomware due to similarities in code and Conti, and most likely consists of Russian and Eastern European hackers [1]. Recorded Future reported that the ransomware had affected 95 organizations worldwide, though the actual number is likely much higher [2]. While BlackSuit does not appear to focus on any particular sector, it has targeted multiple organizations in the healthcare, eduction, IT, government, retail and manufacturing industries [3]. Employing double extortion tactics, BlackSuit not only encrypts files but also steals sensitive data to leverage ransom payments.
BlackSuit has demanded over USD 500 million in ransoms, with the highest individual demand reaching USD 60 million [4]. Notable targets include CDK Global, Japanese media conglomerate Kadokawa, multiple educational institutions, Octapharma Plasma, and the government of Brazil [5][6][7][8].
Darktrace’s Coverage of BlackSuit Ransomware Attack
Case 1, November 2023
The earliest attack on a Darktrace customer by BlackSuit was detected at the start of November 2023. The unusual network activity began on a weekend—a time commonly chosen by ransomware groups to increase their chances of success, as many security teams operate with reduced staff. Darktrace identified indicators of the attackers’ presence on the network for almost two weeks, during which a total of 15 devices exhibited suspicious behavior.
The attack commenced with unusual internal SMB (Server Message Block) connections using a compromised service account. An internal device uploaded an executable (zzza.exe) to a domain controller (DC) and shortly after, wrote a script (socks5.ps1) to another device. According to a Cybersecurity Advisory from the CISA (Cybersecurity and Infrastructure Security Agency, US), the script file was a PowerShell reverse proxy [9].
Approximately an hour and a half later, the device to which the script was written exhibited uncommon WMI (Windows Management Instrumentation) activity. Two hours after receiving the executable file, the DC was observed making an outgoing NTLM request, using PowerShell to remotely execute commands, distributing differently named executable files (<PART OF THE CUSTOMER’S NAME>.exe), and controlling services on other devices.
Eighteen hours after the start of the unusual activity, Darktrace detected another device making repeated connections to “mystuff.bublup[.]com”, which the aforementioned CISA Advisory identifies as a domain used by BlackSuit for data exfiltration [9].
About ten minutes after the suspicious executables were distributed across the network, and less than 24 hours after the start of the unusual activity, file encryption began. A total of ten devices were seen appending the “.blacksuit” extension to files saved on other devices using SMB, as well as writing ransom notes (readme.blacksuit.txt). The file encryption lasted less than 20 minutes.
Figure 1: An example of the contents of a BlackSuit ransom note being written over SMB.
During this compromise, external connections to endpoints related to ConnectWise’s ScreenConnect remote management tool were also seen from multiple servers, suggesting that the tool was likely being abused for command-and-control (C2) activity. Darktrace identified anomalous connectivity associated with ScreenConnect was seen up to 11 days after the start of the attack.
10 days after the start of the compromise, an account belonging to a manager was detected adding “.blacksuit” extensions to the customer’s Software-a-Service (SaaS) resources while connecting from 173.251.109[.]106. Six minutes after file encryption began, Darktrace flagged the unusual activity and recommended a block. However, since Autonomous Response mode was not enabled, the customer’s security team needed to manually confirm the action. Consequently, suspicious activity continued for about a week after the initial encryption. This included disabling authentication on the account and an unusual Teams session initiated from the suspicious external endpoint 216.151.180[.]147.
Case 2, February 2024
Another BlackSuit compromise occurred at the start of February 2024, when Darktrace identified approximately 50 devices exhibiting ransomware-related activity in another US customer’s environment. Further investigation revealed that a significant number of additional devices had also been compromised. These devices were outside Darktrace’s purview to the customer’s specific deployment configuration. The threat actors managed to exfiltrate around 4 TB of data.
Initial access to the network was gained via a virtual private network (VPN) compromise in January 2024, when suspicious connections from a Romanian IP address were detected. According to CISA, the BlackSuit group often utilizes the services of initial access brokers (IAB)—actors who specialize in infiltrating networks, such as through VPNs, and then selling that unauthorized access to other threat actors [9]. Other initial access vectors include phishing emails, RDP (Remote Desktop Protocol) compromise, and exploitation of vulnerable public-facing applications.
Similar to the first case, the file encryption began at the end of the working week. During this phase of the attack, affected devices were observed encrypting files on other internal devices using two compromised administrator accounts. The encryption activity lasted for approximately six and a half hours. Multiple alerts were sent to the customer from Darktrace’s Security Operations Centre (SOC) team, who began reviewing the activity within four minutes of the start of the file encryption.
Figure 2: Darktrace’s Cyber AI Analyst clustering together multiple events related to unusual activity on the network, including file encryption over SMB by BlackSuit.
Figure 3: A spike in model alerts on the day when file encryption by BlackSuit was observed in the network.
In this case, the threat actor utilized SystemBC proxy malware for command and control (C2). A domain controller (DC) was seen connecting to 137.220.61[.]94 on the same day the file encryption took place. The DC was also observed connecting to a ProxyScrape domain around the same time, which is related to the SOCKS5 protocol used by SystemBC. During this compromise, RDP, SSH, and SMB were used for lateral movement within the network.
Figure 4: A Cyber AI Analyst investigation alerting to a device on the VPN subnet making suspicious internal SSH connections due to malicious actors moving laterally within the network.
Signs of threat actors potentially being on the network were observed as early as two days prior to the file encryption. This included unusual internal network scanning via multiple protocols (ICMP, SMB, RDP, etc.), credential brute-forcing, SMB access failures, and anonymous SMBv1 sessions. These activities were traced to IP addresses belonging to two desktop devices in the VPN subnet associated with two regular employee user accounts. Threat actors were seemingly able to exploit at least one of these accounts due to LDAP legacy policies being in place on the customer’s environment.
Figure 5: A Cyber AI Analyst incident summary alerting to a device on the VPN subnet conducting internal reconnaissance.
Figure 6: Examples of the proposed Darktrace Autonomous Response actions on the day BlackSuit initiated file encryption.
Case 3, August 2024
The most recently observed BlackSuit compromise occurred in August 2024, when a device was observed attempting to brute-force the credentials of an IT administrator. This activity continued for 11 days.
Once the admin’s account was successfully compromised, network scanning, unusual WMI, and SAMR (Security Account Manager Remote protocol) activity followed. A spike in the use of this account was detected on a Sunday—once again, the attackers seemingly targeting the weekend—when the account was used by nearly 50 different devices.
The compromised admin’s account was exploited for data gathering via SMB, resulting in the movement of 200 GB of data between internal devices in preparation for exfiltration. The files were then archived using the naming convention “*.part<number>.rar”.
Around the same time, Darktrace observed data transfers from 19 internal devices to “bublup-media-production.s3.amazonaws[.]com,” totaling just over 200 GB—the same volume of data gathered internally. Connections to other Bublup domains were also detected. The internal data download and external data transfer activity took approximately 8-9 hours.
Unfortunately, Darktrace was not configured in Autonomous Response mode at the time of the attack, meaning any mitigative actions to stop the data gathering or exfiltration required human confirmation.
Figure 7: One of the compromised devices was seen sending 80 GB of data to bublup-media-production.s3.amazonaws[.]com within a span of 4 hours.
Once the information was stolen, the threat actor moved on to the final stage of the attack—file encryption. Five internal devices, using either the compromised admin account or connecting via anonymous SMBv1 sessions, were seen encrypting files and writing ransom notes to five other devices on the network. The attempts at file encryption continued for around two hours, but Darktrace’s Autonomous Response capability was able to block the activity and prevent the attack from escalating.
Conclusion
The persistent and evolving threat posed by ransomware like BlackSuit underscores the critical importance of robust cybersecurity measures across all sectors. Since its emergence in 2023, BlackSuit has demonstrated a sophisticated approach to infiltrating networks, leveraging double extortion tactics, and demanding substantial ransoms. The cases highlighted above illustrate the varied methods and persistence of BlackSuit attackers, from exploiting VPN vulnerabilities to abusing remote management tools and targeting off-hours to maximize impact.
Although many similar connection patterns, such as the abuse of Bublup services for data exfiltration or the use of SOCKS5 proxies for C2, were observed during cases investigated by Darktrace, BlackSuit actors are highly sophisticated and tailors their attacks to each target organization. The consequences of a successful attack can be highly disruptive, and remediation efforts can be time-consuming and costly. This includes taking the entire network offline while responding to the incident, restoring encrypted files from backups (if available), dealing with damage to the organization’s reputation, and potential lawsuits.
These BlackSuit ransomware incidents emphasize the need for continuous vigilance, timely updates to security protocols, and the adoption of autonomous response technologies to swiftly counteract such attacks. As ransomware tactics continue to evolve, organizations must remain agile and informed to protect their critical assets and data. By learning from these incidents and enhancing their cybersecurity frameworks, organizations can better defend against the relentless threat of ransomware and ensure the resilience of their operations in an increasingly digital world.
Credit to Signe Zaharka (Principal Cyber Analyst) and Adam Potter (Senior Cyber Analyst)
Darktrace’s First 6: Half-Year Threat Report 2024 highlights the latest attack trends and key threats observed by the Darktrace Threat Research team in the first six months of 2024.
Focuses on anomaly detection and behavioral analysis to identify threats
Maps mitigated cases to known, publicly attributed threats for deeper context
Offers guidance on improving security posture to defend against persistent threats
Appendices
Darktrace Model Detections
Anomalous Connection / Data Sent to Rare Domain
Anomalous Connection / High Volume of New or Uncommon Service Control
Anomalous Connection / New or Uncommon Service Control
Anomalous Connection / Rare WinRM Outgoing
Anomalous Connection / SMB Enumeration
Anomalous Connection / Suspicious Activity On High Risk Device
Anomalous Connection / Suspicious Read Write Ratio
Anomalous Connection / Suspicious Read Write Ratio and Unusual SMB
Anomalous Connection / Sustained MIME Type Conversion
.blacksuit - File extension – When encrypting the files, this extension is appended to the filename – High
readme.blacksuit.txt – ransom note - A file demanding cryptocurrency payment in exchange for decrypting the victim's files and not leaking the stolen data – High
mystuff.bublup[.]com, bublup-media-production.s3.amazonaws[.]com – data exfiltration domains related to an organization and project management app that has document sharing functionality – High
137.220.61[.]94:4001 – SystemBC C2 related IP address (this tool is often used by other ransomware groups as well) - Medium
173.251.109[.]106 – IP address seen during a SaaS BlackSuit compromise (during file encryption) – Medium
216.151.180[.]147 – IP address seen during a SaaS BlackSuit compromise (during an unusual Teams session) - Medium
MITRE ATT&CK Mapping
Tactic - Technqiue
Account Manipulation - PERSISTENCE - T1098
Alarm Suppression - INHIBIT RESPONSE FUNCTION - T0878
Application Layer Protocol - COMMAND AND CONTROL - T1071
Automated Collection - COLLECTION - T1119
Block Command Message - INHIBIT RESPONSE FUNCTION - T0803
Block Reporting Message - INHIBIT RESPONSE FUNCTION - T0804
Onomastics Gymnastics: How Darktrace Detects Spoofing and Business Email Compromise in Multi-Name Users
Note: For privacy reasons, actual surnames and email addresses observed in these incidents below have been replaced with fictitious placeholder names, using the common Spanish names “Fulano” and “Mengano”.
Naming conventions
Modeling names and their variants of members of an organization is a critical component to properly detect if those same names and variants are being spoofed by malicious actors. For many predominantly English-speaking organizations, these variants can largely be captured by variants of a person’s given name (e.g. James-Jimmy-Jim) and a consistent, singular surname or family name (e.g. Smith). Naming conventions, however, are far from universal. This piece will review how Darktrace / EMAIL manages the common naming conventions of much of the Spanish-speaking world, and can use its modeling to create high-fidelity detections of multiple types of spoofing attempts.
A brief summary of the common convention across Spain and much of Spanish-speaking America: most people are given one or two given names (e.g. Roberto, Juan, María, Natalia), and their surnames are the first surname of their father, followed by the first surname of their mother. While there are various exceptions to this norm, the below graphic Wikipedia [1][2] highlights the general rule.
Figure 1: Example Spanish naming convention for father “José García Torres” and mother “María Acosta Gómez” for child “Pablo García Acosta”. If shortened to one surname, the convention holds the child would be referred to as “Pablo García” [1].
Detection of improper name usage
Implicit in the above comment that shortening to one surname follows the convention of using the first surname, shortening to the second surname is often a tell-tale sign of someone unfamiliar with the person or their broader culture. This can be a useful corroborating feature in detecting a spoof attempt – analogous to a spelling error.
In the case of a Spanish customer, this misuse of name shortening contributed to the detection of a spoof attempt trying to solicit a response by impersonating an internal user forwarding information about ‘Data Protection’.
Figure 2: The Cyber AI Analyst summary of the Darktrace / EMAIL detections shows the use of the Gmail sender impersonating Isabel Maria Fulano Mengano, but incorrectly uses the second surname Mengano.
While the limited communication history from the sender and the nature of the text content already marks the mail as suspicious, Darktrace / EMAIL notes the personal name used in the email is similar to a high-value user (‘whale’ to use the terminology of spearphishing). The additional context provided by the detection of the attempted spoof prompted more severe actioning of this email, leading to a ‘Hold’ action instead of a less-severe ‘Unspoof’ action via a banner on the email.
Figure 3: The content summary of the sender showing the ‘Personal’ field of the email being ‘Isabel Mengano’, breaking from the standard name-shortening convention. The additional metrics identify features that might be anomalous about the sender.
Malicious email properly using both surnames
Misusing the name-shortening convention is not the only way that Darktrace / EMAIL can detect spoofing attempts. In the case of another Spanish customer, Darktrace observed a whale impersonation being sent to 230 users with solicitation content, but no links or attachments. Although the name was modeled internally in the “Surname, Given-name” format, Darktrace identified the spoofing attempt targeting a high-value user and took action, blocking the series of emails from reaching end-user inboxes to prevent unsuspecting users from responding.
Figure 4: Cyber AI Analyst summary of a suspicious email. The personal field is visible as ‘juan fulano mengano’, which is consistent with the reverse-order modelled user ‘fulano mengano, juan’. The subject line ‘Urgent Request’ sent to 230 users gives an intuitive indicator of the emails potentially being part of a malicious solicitation campaign.
In Summary: A case of onomastics gymnastics
The variety in valid usage of human language can be a barrier to evaluating when a given text is benign or malicious. Despite this, Darktrace / EMAIL is designed to manage this variety, as exemplified by the detections of two spoofing attempts seen against organizations using the distinct Spanish-speaking world’s common naming convention. The scope of this design as seen in this onomastic context, extends to a wide range of detections surrounding emails and their behavioral anomalies.
Credit to Roberto Romeu (Principal Cyber Analyst), Justin Torres (Senior Cyber Analyst) and Natalia Sánchez Rocafort (Senior Analyst Consultant).
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![One of the compromised devices was seen sending 80 GB of data to bublup-media-production.s3.amazonaws[.]com within a span of 4 hours.](https://cdn.prod.website-files.com/626ff4d25aca2edf4325ff97/673513f1135d0e009caf256f_6735136a725738f4afe4de2b_Fig%25207.png)
