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April 1, 2020

How AI Caught APT41 Exploiting Vulnerabilities

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01
Apr 2020
Analyzing how the cyber-criminal group APT41 exploited a zero-day vulnerability, we show how Darktrace’s AI detected and investigated the threat immediately.

Executive summary

  • Darktrace detected several highly targeted attacks in early March, well before any associated signatures had become available. Two weeks later, the attacks were attributed to Chinese threat-actor APT41.
  • APT41 exploited the Zoho ManageEngine zero-day vulnerability CVE-2020-10189. Darktrace automatically detected and reported on the attack in its earliest stages, enabling customers to contain the threat before it could make an impact.
  • The intrusions described here were part of a wider campaign aiming to gain initial access to as many companies as possible during the window of opportunity presented by CVE-2020-10189.
  • The reports generated by Darktrace highlighted and delineated every aspect of the incident in the form of a meaningful security narrative. Even a junior responder could have reviewed this output and acted on this zero-day APT attack in under 5 minutes.

Fighting APT41’s global attack

In early March, Darktrace detected several advanced attacks targeting customers in the US and Europe. A majority of these customers are in the legal sector. The attacks shared the same Techniques, Tools & Procedures (TTPs), targeting public-facing servers and exploiting recent high-impact vulnerabilities. Last week, FireEye attributed this suspicious activity to the Chinese cyber espionage group APT41.

This campaign used the Zoho ManageEngine zero-day vulnerability CVE-2020-10189 to get access to various companies, but little to no follow-up was detected after initial intrusion. This activity indicates a broad-brush campaign to get initial access to as many target companies as possible during the zero-day window of opportunity.

The malicious activity observed by Darktrace took place late on Sunday March 8, 2020 and in the morning of March 9, 2020 (UTC), broadly in line with office hours previously attributed to the Chinese cyber espionage group APT41.

The graphic below shows an exemplary timeline from one of the customers targeted by APT41. The attacks observed in other customer environments are identical.

Timeline of the APT41 attack
Figure 1: A timeline of the attack

Technical analysis

The attack described here centered around the Zoho ManageEngine zero-day vulnerability CVE-2020-10189. Most of the attack appears to have been automated.

We observed the initial intrusion, several follow-up payload downloads, and command and control (C2) traffic. In all cases, the activity was contained before any later steps in the attack lifecycle, such as lateral movement or data exfiltration, were identified.

The below screenshot shows an overview of the key AI Analyst detections reported. Not only did it report on the SSL and HTTP C2 traffic, but it also reported on the payload downloads:

Cyber AI Analyst breaks down the APT41 attack
Figure 2: SSL C2 detection by Cyber AI Analyst
Figure 3: Payload detection by Cyber AI Analyst

Initial compromise

The initial compromise began with the successful exploitation of the Zoho ManageEngine zero-day vulnerability CVE-2020-10189. Following the initial intrusion, the Microsoft BITSAdmin command line tool was used to fetch and install a malicious Batch file, described below:

install.bat (MD5: 7966c2c546b71e800397a67f942858d0) from infrastructure 66.42.98[.]220 on port 12345.

Source: 10.60.50.XX
Destination: 66.42.98[.]220
Destination Port: 12345
Content Type: application/x-msdownload
Protocol: HTTP
Host: 66.42.98[.]220
URI: /test/install.bat
Method: GET
Status Code: 200

Figure 4: Outbound connection fetching batch file

Shortly after the initial compromise, the first stage Cobalt Strike Beacon LOADER was downloaded.

Cobalt Strike Beacon loader screenshot
Figure 5: Detection of the Cobalt Strike Beacon LOADER

Command and Control traffic

Interestingly, TeamViewer activity and the download of Notepad++ was taking place at the same time as the C2 traffic was starting in some of the customer attacks. This indicates APT41 trying to use familiar tools instead of completely ‘Living off the Land’.

Storesyncsvc.dll was a Cobalt Strike Beacon implant (trial-version) which connected to exchange.dumb1[.]com. A successful DNS resolution to 74.82.201[.]8 was identified, which Darktrace discerned as a successful SSL connection to a hostname with Dynamic DNS properties.

Multiple connections to exchange.dumb1[.]com were identified as beaconing to a C2 center. This C2 traffic to the initial Cobalt Strike Beacon was leveraged to download a second stage payload.

Interestingly, TeamViewer activity and the download of Notepad++ was taking place at the same time as the C2 traffic was starting in some of the customer attacks. This indicates APT41 trying to use familiar tools instead of completely ‘Living off the Land’. There is at least high certainty that the use of these two tools can be attributed to this intrusion instead of regular business activity. Notepad++ was not normally used in the target customers’ environments, nor was TeamViewer – in fact, the use of both applications was 100% unusual for the targeted organizations.

Attack tools download

CertUtil.exe, a command line program installed as part of Certificate Services, was then leveraged to connect externally and download the second stage payload.

Detection associated with Meterpreter activity

Figure 6: Darktrace detecting the usage of CertUtil

A few hours after this executable download, the infected device made an outbound HTTP connection requesting the URI /TzGG, which was identified as Meterpreter downloading further shellcode for the Cobalt Strike Beacon.

Figure 7: Detection associated with Meterpreter activity. No lateral movement or significant data exfiltration was observed.

How Cyber AI Analyst reported on the zero-day exploit

Darktrace not only detected this zero-day attack campaign, but Cyber AI Analyst also saved security teams valuable time by investigating disparate security events and generating a report that immediately put them in a position to take action.

The below screenshot shows the AI Analyst incidents reported in one infected environment, over the eight days covering the intrusion period. The first incident on the left represents the APT activity described here. The other five incidents are independent of the APT activity and not as severe.

AI Analyst Security Incidents
Figure 8: The security incidents surfaced by AI Analyst

AI Analyst reported on six incidents in total over the eight-day period. Each AI Analyst incident includes a detailed timeline and summary of the incident, in a concise format that takes an average of two minutes to review. This means that with Cyber AI Analyst, even a non-technical person could have actioned a response to this sophisticated, zero-day incident in less than five minutes.

Conclusion

Without public Indicators of Compromise (IoCs) or any open-source intelligence available, targeted attacks are incredibly difficult to detect. Moreover, even the best detections are useless if they cannot be actioned by a security analyst at an early stage. Too often this occurs because of an overwhelming volume of alerts, or simply because the skills barrier to triage and investigation is too high.

This appears to be a broad campaign to gain initial access to many different companies and sectors. While very sophisticated in nature, the threat sacrificed stealth for speed by targeting many companies at the same time. APT41 wanted to utilize the limited window of opportunity that the Zoho zero-day provided before IT staff starts patching.

Darktrace’s Cyber AI is specifically designed to detect the subtle signs of targeted, unknown attacks at an early stage, without relying on prior knowledge or IoCs. It achieves this by continuously learning the normal patterns of behavior for every user, device, and associated peer group from scratch, and ‘on the job’.

In the face of this zero-day attack campaign, the AI’s ability to (a) detect unknown threats with self-learning AI and (b) augment strained responders with AI-driven investigations and reporting proved crucial. Indeed, it ensured that the attacks were swiftly contained before escalating to the later stages of the attack lifecycle.

Indicators of Compromise

Selection of Darktrace model breaches:

  • Anomalous File / Script from Rare External
  • Anomalous File / EXE from Rare External Location
  • Compromise / SSL to DynDNS
  • Compliance / CertUtil External Connection
  • Anomalous Connection / CertUtil Requesting Non Certificate
  • Anomalous Connection / CertUtil to Rare Destination
  • Anomalous Connection / New User-Agent to IP Without Hostname
  • Device / Initial Breach Chain Compromise
  • Compromise / Slow Beaconing Activity To External Rare
  • Compromise / Beaconing Activity To External Rare
  • Anomalous File / Numeric Exe Download
  • Device / Large Number of Model Breaches
  • Anomalous Server Activity / Rare External from Server
  • Compromise / Sustained TCP Beaconing Activity To Rare Endpoint
  • Compliance / Remote Management Tool On Server

The below screenshot shows Darktrace model breaches occurring together during the compromise of one customer:

Figure 9: Darktrace model breaches occurring together

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.

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Company Shuts Down Cyber-attacks with “Flawless” Detection and Response from Darktrace

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Growing pains: Balancing efficiency with risk  

This organization has recently scaled its operations, and numerous acquisitions have significantly boosted the organization’s capabilities and growth. However, this also creates work and high expectations for the organization’s IT and security teams. Within 12 months of an acquisition, the teams must fully integrate each new business onto the company’s platform. “A huge piece of that integration plan is rolling out our security controls,” said the CISO. “While our goal is to connect those facilities up as quickly as possible to drive efficiency, we also need to implement the proper security controls to protect the enterprise.”

Gap beyond the perimeter  

The organization had established strong security measures to safeguard its perimeter; however, the CISO identified a critical gap in real-time network monitoring. If the perimeter were breached, threats were only discovered after an endpoint was compromised and the issue was manually reported.

As digital transformation progresses, the need to adopt advanced technologies is becoming essential, particularly as organizations begin to open up operational environments to greater connectivity. Many processes still rely on traditional methods, and integrating innovative solutions could drive significant improvements in efficiency and productivity. “We’re committed to adopting cutting-edge technologies,” the CISO explained. “But we understood that without more robust network security controls, opening up our operational environments would expose us to heightened risks, including advanced threats like ransomware.”

Building a layered, proactive security strategy with Darktrace  

To close the gap beyond the perimeter, the company embarked on a free trial with Darktrace. The CISO recalls: “The trials were fantastic. It was obvious that Darktrace was exactly what we needed. The Darktrace team was also very knowledgeable and helpful throughout the process, which was impressive.”  

Today, the organization is using a combination of Darktrace solutions for its layered security approach, including:

Detecting unusual behavior with AI  

Darktrace’s use of machine learning and Self-Learning AI is one of the reasons the company chose Darktrace. Instead of teaching an AI system what an ‘attack’ looks like, training it on large data lakes of thousands of organizations’ data, Darktrace AI learns from the company’s own unique data and user activity to learn and create baseline models of what ‘normal’ looks like for their business.

Darktrace can then detect subtle deviations and unusual activity that signals a possible threat. “That fascinated us because what it really means is this technology doesn’t need to know about every single threat because the threat itself isn’t important, it’s the behavior of the activity that’s important. That capability is unique when it when it comes to threat detection,” said the CISO.

Identifying and mitigating high-impact attack paths

The security team appreciated that with Darktrace they could take a more proactive approach to security by exposing high-risk attack paths through modeling and AI risk assessments. Darktrace / Proactive Exposure Management gives them visibility into vulnerable entry points and assets, identifies active risks, and prioritizes the most important security issues to be addressed.

“Specific users and assets within our business have a higher risk of being targeted by a cyber-attack, for example our executives,” said the CISO. “With Darktrace, we get an adversarial view of our risk. We can see the attack path around those potential targets and proactively take measures to mitigate that vulnerability and prevent an attack.”

Driving up productivity while putting the brakes on cyber-attacks  

The security team collaborated with Darktrace to fine tune the models that really fit their business. With Darktrace now automating most of their threat detection and response efforts, productivity has soared, the security team is now focused on delivering greater value to the business and, most importantly, Darktrace proved it could quickly detect and shut down a major cyber-attack–and do so without impacting business operations.

Fueling team productivity with automation and AI

Prior to using Darktrace, the security team had little visibility into potential risks beyond the perimeter. Today, the team has full control and visibility over the network. “My team is now spending 80-90% of their time doing proactive work because Darktrace is managing the vast majority of our detect and response needs. The team really has faith in the Darktrace system,” said the CISO.  

With less time spent on low-level manual tasks, the security team can now focus on higher priority initiatives. For example, they have expanded their internal vulnerability assessments across the entire group. The team couldn’t focus on this additional audit and vulnerability management work if Darktrace wasn’t taking care of most of their security monitoring. “Darktrace has allowed us to move on to these additional kinds of governance projects that we otherwise would have to hire an army of staff to get through”.

Stopping email threats in their tracks

Using Darktrace / EMAIL, the company has identified and blocked a significant percentage of emails that were making it past their native email filters. “Darktrace is especially good at detecting impersonation emails, and we really appreciate its ability to automatically remove suspicious emails directly from a user’s inbox. It adds an extra level of confidence,” said the CISO.

Self-Learning AI understands anomalies within unique communication patterns to stop known and unknown threats. For example, when an employee sent an email to a brand new domain, Darktrace identified the behavior as unusual and inconsistent with baseline models and blocked the email.

Darktrace passes the biggest test of all

In 2024, the company experienced the value of the security system firsthand when attackers exploited a vulnerability in a third-party remote support solution that they was using. This solution provided remote access and tech support capabilities. If successful, the attackers could have infiltrated high-value end points and created their own administrative user, giving them full control over the server.

“We first became aware of the attack when Darktrace notified us of unusual behavior coming from the remote support server,” said the CISO. The attackers were attempting to put backdoors onto the service with the intent of selling access to the highest bidder who would then install ransomware on their servers. It all happened very quickly, as the attackers tried to connect to the internal network and other servers, while also firing off a host of other actions, like PowerShell commands, to escalate their privileges.  

“Darktrace worked flawlessly. There was no chance that ransomware was ever going to come in,” the CISO said. “Even though there was no signature to really look at, Darktrace realized this was not normal behavior for this server, shutting down connections and doing everything it could do to stop the attack.” Within eight hours, the security team identified and stopped the attack, severed its connection to the third-party solution, and completed additional analysis and clean-up. “In addition to our own investigation, third parties like our external SOC and legal department also confirmed that Darktrace performed as expected. We were able to report back to the executive team that there was zero risk that any data or systems were compromised.”

Post-attack, there was no need to make any changes to Darktrace. The team consistently reviews its models and baselines, often collaborating with Darktrace to make adjustments when needed to continuously improve performance. “Because of this relationship and constant engagement with Darktrace’s technical teams, we didn't have to go back and ask: ‘why wasn’t this updated’ or ‘why didn’t this model work.’ The models worked.”

His advice to other organizations facing similar challenges? First, focus on updating, patching, and vulnerability management, and act quickly when vulnerabilities are identified. His second piece of advice: “have an automated detection system like Darktrace in place so you can respond at the speed that these attacks evolve. Humans can no longer keep up with a scripted attack as it moves around and tries to compromise items on your network. You need the right technology to fight these types of attacks.”

Dynamic capabilities for a dynamic future

Real-time playbooks

With a proactive, enterprise-wide security strategy in place, the CISO now has the time to think about future projects and innovations. He’s particularly interested in the idea of generating playbooks on the fly in response to real-time events. He believes cyber-attacks are far too varied for a static playbook to be useful; when an attack strikes, teams need to quickly understand exactly what’s in front of them and how to shut it down. “This fits into our future cybersecurity strategy, and Darktrace is the only company I’ve seen talking about building playbooks dynamically. This kind of technology would really help bring our cybersecurity strategy full circle.”

“Darktrace ’s technology, experience and expertise is helping us staying ahead of cyber-attacks, minimizing our risk and driving greater productivity for our team,” said the CISO. In collaboration with Darktrace, the team have created a security foundation that is both powerful and agile. “While Darktrace is detecting and responding to attacks targeting our business today, we know that it’s always learning, adapting and scaling to ensure we’re protected tomorrow. That gives me peace of mind and the freedom to focus on our future.”

Download the Darktrace / NETWORK Solution Brief

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Protect in real time: Defend against known and emerging threats without relying on historical data or external intelligence.

Full visibility: Gain comprehensive insights across all network environments, including on-premises, cloud, and remote devices.

AI-powered efficiency: Streamline incident response with AI automation, saving time and resources while ensuring minimal disruption to operations.

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Darktrace is Positioned as a Leader in the IDC MarketScape: Worldwide Network Detection and Response 2024 Vendor Assessment

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Darktrace is pleased to announce that we have been positioned as a Leader in the IDC MarketScape: Worldwide Network Detection and Response 2024 Vendor Assessment. We believe this further highlights Darktrace’s position as a pioneer in the NDR market and follows similar recognition from KuppingerCole, who recently named Darktrace as an Overall Leader, Product Leader, Market Leader and Innovation Leader in the KuppingerCole Leadership Compass: Network Detection and Response (2024).

Network Detection and Response (NDR) solutions are uniquely positioned to provide visibility over the core hub of a business and employee activity, analyzing North-South and East-West traffic to identify threats across the modern network. NDR provides a rich and true source of anomalies and goes beyond process level data that is relied on by Endpoint Detection and Response (EDR) agents that do not provide network level visibility and can be misconfigured at any time.1

Metadata from network traffic can be used to detect a variety of different threats based on events such as anomalous port usage, unusual upload/download activity, impossible travel and many other activities. This has been accelerated by the increased usage of user behavioral analytics (UBA) in network security, which establishes statistical baselines about network entities and highlights deviations from expected activity.1

Darktrace is recognized as a Leader in the IDC MarketScape due to our leadership in the market and our pioneering leadership in AI over the past decade, alongside a variety of other unique differentiators and innovations in the NDR industry.

Darktrace / NETWORK™ delivers full visibility, real time threat detection and Autonomous Response capabilities across an organization’s on-premises, cloud, hybrid and virtual environments, including remote worker endpoints.

Unique Approach to AI

Most NDR vendors and network security tools such as IDS/IPS rely on detecting known attacks with historical data and supervised machine learning, leaving organizations blind and vulnerable to novel threats such as zero-days, variants of known attacks, supply chain attacks and insider threats.

These vendors also tend to apply AI models that are trained globally, and are not unique to each organization’s environment, which creates a high number of false positives and alerts that ultimately lack business context.

The IDC MarketScape recognizes that Darktrace takes a differentiated approach in the market with regards to delivering network detection and response capabilities, noting; “Darktrace is unique in that it does not rely on rules and signatures but rather learns what constitutes as normal for an organization and generates alerts when there is a deviation.”1

Darktrace / NETWORK achieves this through the use of Self-Learning AI and unsupervised machine learning to understand what is normal network behavior, continuously analyzing, mapping and modeling every connection to create a full picture of devices, identities, connections and potential attack paths. Darktrace Self-Learning AI autonomously optimizes itself to cut through the noise and quickly surface genuine, prioritized network security incidents – significantly reducing false positives and removing the hassle of needing to continually tuning alerts manually.

Darktrace’s unique approach to AI also extends to the investigation and triage of network alerts with Cyber AI Analyst. Unlike a chat or prompt based LLM, Cyber AI Analyst investigates all relevant alerts in an environment, including third party alerts, autonomously forming hypotheses and reaching conclusions just like a human analyst would, accelerating SOC Level 2 analyses of incidents by 10x. Cyber AI Analyst also typically providing SOC teams with up to 50,000 additional hours annually of Level 2 analysis producing high level alerts and written reporting, transforming security operations.2

Darktrace also uses its deep understanding of what is normal for a network to identify suspicious behavior, leveraging Autonomous Response capabilities to shut down both known and novel threats in real time, taking targeted actions without disrupting business operations. Darktrace / NETWORK is the only NDR solution that can autonomously enforce a pattern of life based on what is normal for a standalone device or group of peers, rapidly containing and disarming threats based on the overall context of the environment and a granular understanding of what is normal for a device or user – instead of relying on historical attack data.

Continued NDR Market Leadership

Darktrace has been recognized as a Leader in the NDR market, and the IDC MarketScape listed a variety of strengths:

  • Darktrace achieves roughly one-fifth of all global NDR revenue. This is important because other IT and cybersecurity solutions providers necessarily want to have integration with Darktrace.
  • The AI algorithms that Darktrace uses for NDR have had 10 years of deployments, tuning, and learning to draw from.
  • Darktrace is available as a SaaS, as an enterprise license, and as physical, hybrid, or virtual appliances. Darktrace also offers an endpoint agent and visibility into VPN and ZTNA.
  • Darktrace integrates with 30+ different interfaces including SIEM, SOAR, XDR platforms, IT ticketing solutions, and their own dashboards. The Darktrace Threat Visualizer highlights events and incidents from the entire deployment including cloud, apps, email, endpoint, zero trust, network, and OT.
  • Darktrace / NETWORK charts the progress that the SOC is making over time with key metrics such as MTTD/MTTR, alerts generated and processed, and other criteria.
  • Darktrace reported coverage of 14 MITRE ATT&CK categories, 158 techniques, and 184 subtechniques

Proactive Network Resilience

The IDC MarketScape notes, “Ultimately, NDR shines as a standalone detection and response technology but is especially powerful when combined with other platforms. NDR in combination with other control points such as endpoint, data, identity, and application provides the proper context when winnowing alerts and trying to uncover a single source of truth.” . Darktrace comprehensively addresses this as part of the ActiveAI Security Platform, by combining network alerts with data from / EMAIL, / IDENTITY, / ENDPOINT, / CLOUD and / OT, providing deeper contextual analysis for each network alert and automatically enriching investigations.

Darktrace also goes beyond NDR solutions with capabilities that are closely linked to our NDR offering, helping clients to achieve and maintain a state of proactive network resilience:

  • Darktrace / Proactive Exposure Management – look beyond just CVE risks to discover, prioritize and validate risks by business impact and how to address them early, reducing the number of real threats that security teams need to handle.
  • Darktrace / Incident Readiness & Recovery – lets teams respond in the best way to each incident and proactively test their familiarity and effectiveness of IR workflows with sophisticated incident simulations based on their own analysts and assets.

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

Protecting Clients with Continued Innovation

Darktrace invests heavily in Research and Development to continue providing customers with market-leading NDR capabilities and innovations, which was reflected in our position in the Leader category of the MarketScape report for both capabilities and strategy. We are led by the needs and challenges of our customers, which serve as the driving force behind our continued innovation and leadership in the NDR market. The IDC MarketScape report underlines this approach with the following feedback presented by Darktrace customers:

“A customer intimated that 99% of their detections were OOTB with little need to tune or define parameters.”
“A customer reported that it had early warnings for adversarial tactics such as suspicious SMB scanning, suspicious remote execution, remote desktop protocol (RDP) scanning, data exfiltration, C2C, LDAP query, and suspicious Kerberos activity.”
“The client could use Regex to determine if suspicious behavior was found elsewhere on the network.”

Thousands of customers around the world across all industries and sectors rely on Darktrace / NETWORK to protect against known and novel threats. From the latest vulnerabilities in network hardware to sophisticated new strains of ransomware and everything in-between, Darktrace helps clients detect and respond to all types of threats affecting their networks and avoid business disruption, even from the latest attacks.

Find out more about the unique capabilities of Darktrace / NETWORK and our application of AI in network security in the IDC MarketScape excerpt.

References

  1. IDC MarketScape: Worldwide Network Detection and Response 2024 Vendor Assessment (Doc #US51752324, November 2024)
  2. Darktrace Cyber AI Analyst Customer Fleet Data
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About the author
Mikey Anderson
Product Manager, Network Detection & Response
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