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February 24, 2025

Detecting and Containing Account Takeover with Darktrace

Account takeovers are rising with SaaS adoption. Learn how Darktrace detects deviations in user behavior and autonomously stops threats before they escalate.
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
Min Kim
Cyber Security Analyst
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24
Feb 2025

Thanks to its accessibility from anywhere with an internet connection and a web browser, Software-as-a-Service (SaaS) platforms have become nearly universal across organizations worldwide. However, with this growing popularity comes greater responsibility. Increased attention attracts a larger audience, including those who may seek to exploit these widely used services. One crucial factor to be vigilant about in the SaaS landscape is safeguarding internal credentials. Minimal protection on accounts can lead to SaaS hijacking, which could allow further escalations within the network.

How does SaaS account takeover work?

SaaS hijacking occurs when a malicious actor takes control of a user’s active session with a SaaS application. Attackers can achieve this through various methods, including employees using company credentials on compromised or spoofed external websites, brute-force attacks, social engineering, and exploiting outdated software or applications.

After the hijack, attackers may escalate their actions by changing email rules and using internal addresses for additional social engineering attacks. The larger goal of these actions is often to steal internal data, damage reputations, and disrupt operations.

Account takeover protection

It has become essential to have security tools capable of outsmarting potential malicious actors. Traditional tools that rely on rules and signatures may not be able to identify new events, such as logins or activities from a rare endpoint, unless they come from a known malicious source.

Darktrace relies on analysis of user and network behavior, tailored to each customer, allowing it to identify anomalous events that the user typically does not engage in. In this way, unusual SaaS activities can be detected, and unwanted actions can be halted to allow time for remediation before further escalations.

The following cases, drawn from the global customer base, illustrate how Darktrace detects potential SaaS hijack attempts and further escalations, and applies appropriate actions when necessary.

Case 1: Unusual login after a phishing email

A customer in the US received a suspicious email that seemed to be from the legitimate file storage service, Dropbox. However, Darktrace identified that the reply-to email address, hremployeepyaroll@mail[.]com, was masquerading as one associated with the customer’s Human Resources (HR) department.

Further inspection of this sender address revealed that the attacker had intentionally misspelled ‘payroll’ to trick recipients into believing it was legitimate

Furthermore, the subject of the email indicated that the attackers were attempting a social engineering attack by sharing a file related to pay raises and benefits to capture the recipients' attention and increase the likelihood of their targets engaging with the email and its attachment.

Figure 1: Subject of the phishing email.
Figure 1: Subject of the phishing email.

Unknowingly, the recipient, who believed the email to be a legitimate HR communication, acted on it, allowing malicious attackers to gain access to the account. Following this, the recipient’s account was observed logging in from a rare location using multi-factor authentication (MFA) while also being active from another more commonly observed location, indicating that the SaaS account had been compromised.

Darktrace’s Autonomous Response action triggered by an anomalous email received by an internal user, followed by a failed login attempt from a rare external source.
Figure 2: Darktrace’s Autonomous Response action triggered by an anomalous email received by an internal user, followed by a failed login attempt from a rare external source.

Darktrace subsequently observed the SaaS actor creating new inbox rules on the account. These rules were intended to mark as read and move any emails mentioning the file storage company, whether in the subject or body, to the ‘Conversation History’ folder. This was likely an attempt by the threat actor to hide any outgoing phishing emails or related correspondence from the legitimate account user, as the ‘Conversation History’ folder typically goes unread by most users.

Typically, Darktrace / EMAIL would have instantly placed the phishing email in the junk folder before they reached user’s inbox, while also locking the links identified in the suspicious email, preventing them from being accessed. Due to specific configurations within the customer’s deployment, this did not happen, and the email remained accessible to the user.

Case 2: Login using unusual credentials followed by password change

In the latter half of 2024, Darktrace detected an unusual use of credentials when a SaaS actor attempted to sign into a customer’s Microsoft 365 application from an unfamiliar IP address in the US. Darktrace recognized that since the customer was located within the Europe, Middle East, and Africa (EMEA) region, a login from the US was unexpected and suspicious. Around the same time, the legitimate account owner logged into the customer’s SaaS environment from another location – this time from a South African IP, which was commonly seen within the environment and used by other internal SaaS accounts.

Darktrace understood that this activity was highly suspicious and unlikely to be legitimate, given one of the IPs was known and expected, while the other had never been seen before in the environment, and the simultaneous logins from two distant locations were geographically impossible.

Model alert in Darktrace / IDENTITY: Detecting a login from a different source while the user is already active from another source.
Figure 3: Model alert in Darktrace / IDENTITY: Detecting a login from a different source while the user is already active from another source.

Darktrace detected several unusual login attempts, including a successful login from an uncommon US source. Subsequently, Darktrace / NETWORK identified the device associated with this user making external connections to rare endpoints, some of which were only two weeks old. As this customer had integrated Darktrace with Microsoft Defender, the Darktrace detection was enriched by Defender, adding the additional context that the user had likely been compromised in an Adversary-in-the-Middle (AiTM) phishing attack. AiTM phishing attacks occur when a malicious attacker intercepts communications between a user and a legitimate authentication service, potentially leading to account hijacking. These attacks are harder to identify as they can bypass security measures like MFA.

Following this, Darktrace observed the attacker using the now compromised credentials to access password management and change the account's password. Such behavior is common in account takeover incidents, as attackers seek to maintain persistence within the SaaS environment.

While Darktrace’s Autonomous Response was not fully configured on the customer’s SaaS environment, they were subscribed to the Managed Threat Detection service offered by Darktrace’s Security Operations Center (SOC). This 24/7 service ensures that Darktrace’s analysts monitor and investigate emerging suspicious activity, informing customers in real-time. As such, the customer received notification of the compromise and were able to quickly take action to prevent further escalation.

Case 3: Unusual logins, new email rules and outbound spam

Recently, Darktrace has observed a trend in SaaS compromises involving unusual logins, followed by the creation of new email rules, and then outbound spam or phishing campaigns being launched from these accounts.

In October, Darktrace identified a SaaS user receiving an email with the subject line "Re: COMPANY NAME Request for Documents" from an unknown sender using a freemail  account. As freemail addresses require very little personal information to create, threat actors can easily create multiple accounts for malicious purposes while retaining their anonymity.

Within the identified email, Darktrace found file storage links that were likely intended to divert recipients to fraudulent or malicious websites upon interaction. A few minutes after the email was received, the recipient was seen logging in from three different sources located in the US, UK, and the Philippines, all around a similar time. As the customer was based in the Philippines, a login from there was expected and not unusual. However, Darktrace understood that the logins from the UK and US were highly unusual, and no other SaaS accounts had connected from these locations within the same week.

After successfully logging in from the UK, the actor was observed updating a mailbox rule, renaming it to ‘.’ and changing its parameters to move any inbound emails to the deleted items folder and mark them as read.

Figure 4: The updated email rule intended to move any inbound emails to the deleted items folder.

Malicious actors often use ambiguous names like punctuation marks, repetitive letters, and unreadable words to name resources, disguising their rules to avoid detection by legitimate users or administrators. Similarly, attackers have been known to adjust existing rule parameters rather than creating new rules to keep their footprints untracked. In this case, the rule was updated to override an existing email rule and delete all incoming emails. This ensured that any inbound emails, including responses to potential phishing emails sent by the account, would be deleted, allowing the attacker to remain undetected.

Over the next two days, additional login attempts, both successful and failed, were observed from locations in the UK and the Philippines. Darktrace noted multiple logins from the Philippines where the legitimate user was attempting to access their account using a password that had recently expired or been changed, indicating that the attacker had altered the user’s original password as well.

Following this chain of events, over 500 emails titled “Reminder For Document Signed Agreement.10/28/2024” were sent from the SaaS actor’s account to external recipients, all belonging to a different organization within the Philippines.

These emails contained rare attachments with a ‘.htm’ extension, which included programming language that could initiate harmful processes on devices. While inherently not malicious, if used inappropriately, these files could perform unwanted actions such as code execution, malware downloads, redirects to malicious webpages, or phishing upon opening.

Outbound spam seen from the hijacked SaaS account containing a ‘.htm’ attachment.
Figure 5: Outbound spam seen from the hijacked SaaS account containing a ‘.htm’ attachment.

As this customer did not have Autonomous Response enabled for Darktrace / IDENTITY, the unusual activity went unattended, and the compromise was able to escalate to the point of a spam email campaign being launched from the account.

In a similar example on a customer network in EMEA, Darktrace detected unusual logins and the creation of new email rules from a foreign location through a SaaS account. However, in this instance, Autonomous Response was enabled and automatically disabled the compromised account, preventing further malicious activity and giving the customer valuable time to implement their own remediation measures.

Conclusion

Whether it is an unexpected login or an unusual sequence of events – such as a login followed by a phishing email being sent – unauthorized or unexpected activities can pose a significant risk to an organization’s SaaS environment. The threat becomes even greater when these activities escalate to account hijacking, with the compromised account potentially providing attackers access to sensitive corporate data. Organizations, therefore, must have robust SaaS security measures in place to prevent data theft, ensure compliance and maintain continuity and trust.

The Darktrace suite of products is well placed to detect and contain SaaS hijack attempts at multiple stages of an attack. Darktrace / EMAIL identifies initial phishing emails that attackers use to gain access to customer SaaS environments, while Darktrace / IDENTITY detects anomalous SaaS behavior on user accounts which could indicate they have been taken over by a malicious actor.

By identifying these threats in a timely manner and taking proactive mitigative measures, such as logging or disabling compromised accounts, Darktrace prevents escalation and ensures customers have sufficient time to response effectively.

Credit to Min Kim (Cyber Analyst) and Ryan Traill (Analyst Content Lead)

[related-resource]

Appendices

Darktrace Model Detections Case 1

SaaS / Compromise / SaaS Anomaly Following Anomalous Login

SaaS / Compromise / Unusual Login and New Email Rule

SaaS / Compliance / Anomalous New Email Rule

SaaS / Unusual Activity / Multiple Unusual SaaS Activities

SaaS / Access / Unusual External Source for SaaS Credential Us

SaaS / Compromise / Login From Rare Endpoint While User is Active

SaaS / Email Nexus / Unusual Login Location Following Link to File Storage

Antigena / SaaS / Antigena Email Rule Block (Autonomous Response)

Antigena / SaaS / Antigena Suspicious SaaS Activity Block (Autonomous Response)

Antigena / SaaS / Antigena Enhanced Monitoring from SaaS User Block (Autonomous Response)

List of Indicators of Compromise (IoCs)

176.105.224[.]132 – IP address – Unusual SaaS Activity Source

hremployeepyaroll@mail[.]com – Email address – Reply-to email address

MITRE ATT&CK Mapping

Cloud Accounts – DEFENSE EVASION, PERSISTENCE, PRIVILEGE ESCALATION, INITIAL ACCESS – T1078

Outlook Rules – PERSISTENCE – T1137

Cloud Service Dashboard – DISCOVERY – T1538

Compromise Accounts – RESOURCE DEVELOPMENT – T1586

Steal Web Session Cookie – CREDENTIAL ACCESS – T1539

Darktrace Model Detections Case 2

SaaS / Compromise / SaaS Anomaly Following Anomalous Login

SaaS / Compromise / Unusual Login and Account Update

Security Integration / High Severity Integration Detection

SaaS / Access / Unusual External Source for SaaS Credential Use

SaaS / Compromise / Login From Rare Endpoint While User Is Active

SaaS / Compromise / Login from Rare High Risk Endpoint

SaaS / Access / M365 High Risk Level Login

Antigena / SaaS / Antigena Suspicious SaaS Activity Block (Autonomous Response)

Antigena / SaaS / Antigena Enhanced Monitoring from SaaS user Block (Autonomous Response)

List of IoCs

74.207.252[.]129 – IP Address – Suspicious SaaS Activity Source

MITRE ATT&CK Mapping

Cloud Accounts – DEFENSE EVASION, PERSISTENCE, PRIVILEGE ESCALATION, INITIAL ACCESS – T1078

Cloud Service Dashboard – DISCOVERY – T1538

Compromise Accounts – RESOURCE DEVELOPMENT – T1586

Steal Web Session Cookie – CREDENTIAL ACCESS – T1539

Darktrace Model Detections Case 3

SaaS / Compromise / Unusual Login and Outbound Email Spam

SaaS / Compromise / New Email Rule and Unusual Email Activity

SaaS / Compromise / Unusual Login and New Email Rule

SaaS / Email Nexus / Unusual Login Location Following Sender Spoof

SaaS / Email Nexus / Unusual Login Location Following Link to File Storage

SaaS / Email Nexus / Possible Outbound Email Spam

SaaS / Unusual Activity / Multiple Unusual SaaS Activities

SaaS / Email Nexus / Suspicious Internal Exchange Activity

SaaS / Compliance / Anomalous New Email Rule

List of IoCs

95.142.116[.]1 – IP Address – Suspicious SaaS Activity Source

154.12.242[.]58 – IP Address – Unusual Source

MITRE ATT&CK Mapping

Cloud Accounts – DEFENSE EVASION, PERSISTENCE, PRIVILEGE ESCALATION, INITIAL ACCESS – T1078

Compromise Accounts – RESOURCE DEVELOPMENT – T1586

Email Accounts – RESOURCE DEVELOPMENT – T1585

Phishing – INITIAL ACCESS – T1566

Outlook Rules – PERSISTENCE – T1137

Internal Spear phishing – LATERAL MOVEMENT - T1534

Get the latest insights on emerging cyber threats

This report explores the latest trends shaping the cybersecurity landscape and what defenders need to know in 2025.

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
Min Kim
Cyber Security Analyst

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April 16, 2026

Why Behavioral AI Is the Answer to Mythos

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How AI is breaking the patch-and-prevent security model

The business world was upended last week by the news that Anthropic has developed a powerful new AI model, Claude Mythos, which poses unprecedented risk because of its ability to expose flaws in IT systems.  

Whether it’s Mythos or OpenAI’s GPT-5.4-Cyber, which was just announced on Tuesday, supercharged AI models in the hands of hackers will allow them to carry out attacks at machine speed, much faster than most businesses can stop them.  

This news underscores a stark reality for all leaders: Patching holes alone is not a sufficient control against modern cyberattacks. You must assume that your software is already vulnerable right now. And while LLMs are very good at spotting vulnerabilities, they’re pretty bad at reliably patching them.

Project Glasswing members say it could take months or years for patches to be applied. While that work is done, enterprises must be protected against Zero-Day attacks, or security holes that are still undiscovered.  

Most cybersecurity strategies today are built like a daily multivitamin: broad, preventative, and designed to keep the system generally healthy over time. Patch regularly. Update software. Reduce known vulnerabilities. It’s necessary, disciplined, and foundational. But it’s also built for a world where the risks are well known and defined, cycles are predictable, and exposure unfolds at a manageable pace.

What happens when that model no longer holds?

The AI cyber advantage: Behavioral AI

The vulnerabilities exposed by AI systems like Mythos aren’t the well-understood risks your “multivitamin” was designed to address. They are transient, fast-emerging entry points that exist just long enough to be exploited.

In that environment, prevention alone isn’t enough. You don’t need more vitamins—you need a painkiller. The future of cybersecurity won’t be defined by how well you maintain baseline health. It will be defined by how quickly you respond when something breaks and every second counts.

That’s why behavioral AI gives businesses a durable cyber advantage. Rather than trying to figure out what the attacker looks like, it learns what “normal” looks like across the digital ecosystem of each individual business.  

That’s exactly how behavioral AI works. It understands the self, or what's normal for the organization, and then it can spot deviations in from normal that are actually early-stage attacks.

The Darktrace approach to cybersecurity

At Darktrace, we’ve been defending our 10,000 customers using behavioral AI cybersecurity developed in our AI Research Centre in Cambridge, U.K.

Darktrace was built on the understanding that attacks do not arrive neatly labeled, and that the most damaging threats often emerge before signatures, indicators, or public disclosures can catch up.  

Our AI algorithms learn in real time from your personalized business data to learn what’s normal for every person and every asset, and the flows of data within your organization. By continuously understanding “normal” across your entire digital ecosystem, Darktrace identifies and contains threats emerging from unknown vulnerabilities and compromised supply chain dependencies, autonomously curtailing attacks at machine speed.  

Security for novel threats

Darktrace is built for a world where AI is not just accelerating attacks, but fundamentally reshaping how they originate. What makes our AI so unique is that it's proven time and again to identify cyber threats before public vulnerability disclosures, such as critical Ivanti vulnerabilities in 2025 and SAP NetWeaver exploitations tied to nation-state threat actors.  

As AI reshapes how vulnerabilities are found and exploited, cybersecurity must be anchored in something more durable than a list of known flaws. It requires a real-time understanding of the business itself: what belongs, what does not, and what must be stopped immediately.

What leaders should do right now

The leadership priority must shift accordingly.

First, stop treating unknown vulnerabilities as an edge case. AI‑driven discovery makes them the norm. Security programs built primarily around known flaws, signatures, and threat intelligence will always lag behind an attacker that is operating in real time.

Second, insist on an understanding of what is actually normal across the business. When threats are novel, labels are useless. The earliest and most reliable signal of danger is abnormal behavior—systems, users, or data flows that suddenly depart from what is expected. If you cannot see that deviation as it happens, you are effectively blind during the most critical window.

Finally, assume that the next serious incident will occur before remediation guidance is available. Ask what happens in those first minutes and hours. The organizations that maintain resilience are not the ones waiting for disclosure cycles to catch up—they are the ones that can autonomously identify and contain emerging threats as they unfold.

This is the reality of cybersecurity in an AI‑shaped world. Patching and prevention remain important foundations, but the advantage now belongs to those who can respond instantly when the unpredictable occurs.

Behavioral AI is security designed not just for known threats, but for the ones that AI will discover next.

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Ed Jennings
President and CEO

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April 16, 2026

Inside ZionSiphon: Darktrace’s Analysis of OT Malware Targeting Israeli Water Systems

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What is ZionSiphon?

Darktrace recently analyzed a malware sample, which identifies itself as ZionSiphon. This sample combines several familiar host-based capabilities, including privilege escalation, persistence, and removable-media propagation, with targeting logic themed around water treatment and desalination environments.

This blog details Darktrace’s investigation of ZionSiphon, focusing on how the malware identifies targets, establishes persistence, attempts to tamper with local configuration files, and scans for Operational Technology (OT)-relevant services on the local subnet. The analysis also assesses what the code suggests about the threat actor’s intended objectives and highlights where the implementation appears incomplete.

Function “ZionSiphon()” used by the malware author.
Figure 1: Function “ZionSiphon()” used by the malware author.

Targets and motivations

Israel-Focused Targeting and Messaging

The clearest indicators of intent in this sample are its hardcoded Israel-focused targeting checks and the strong political messaging found in some strings in the malware’s binary.

In the class initializer, the malware defines a set of IPv4 ranges, including “2.52.0.0-2.55.255.255”, “79.176.0.0-79.191.255.255”, and “212.150.0.0-212.150.255.255”, indicating that the author intended to restrict execution to a narrow range of addresses. All of the specified IP blocks are geographically located within Israel.

The malware obfuscates the IP ranges by encoding them in Base64.
Figure 2: The malware obfuscates the IP ranges by encoding them in Base64.

The ideological motivations behind this malware are also seemingly evident in two Base64-encoded strings embedded in the binary. The first (shown in Figure 1) is:

Netanyahu = SW4gc3VwcG9ydCBvZiBvdXIgYnJvdGhlcnMgaW4gSXJhbiwgUGFsZXN0aW5lLCBhbmQgWWVtZW4gYWdhaW5zdCBaaW9uaXN0IGFnZ3Jlc3Npb24uIEkgYW0gIjB4SUNTIi4=“, which decodes to “In support of our brothers in Iran, Palestine, and Yemen against Zionist aggression. I am "0xICS".

The second string, “Dimona = UG9pc29uaW5nIHRoZSBwb3B1bGF0aW9uIG9mIFRlbCBBdml2IGFuZCBIYWlmYQo=“, decodes to “Poisoning the population of Tel Aviv and Haifa”.  These strings do not appear to be used by the malware for any operational purpose, but they do offer an indication of the attacker’s motivations. Dimona, referenced in the second string, is an Israeli city in the Negev desert, primarily known as the site of the Shimon Peres Negev Nuclear Research Center.

The Dimona string as it appears in the decompiled malware, with the Base64-decoded text.
Figure 3: The Dimona string as it appears in the decompiled malware, with the Base64-decoded text.

The hardcoded IP ranges and propaganda‑style text suggest politically motivated intent, with Israel appearing to be a likely target.

Water and desalination-themed targeting?

The malware also includes Israel-linked strings in its target list, including “Mekorot, “Sorek”, “Hadera”, “Ashdod”, “Palmachim”, and “Shafdan”. All of the strings correspond to components of Israel’s national water infrastructure: Mekorot is Israel’s national water company responsible for managing the country’s water system, including major desalination and wastewater projects. Sorek, Hadera, Ashdod, and Palmachim are four of Israel’s five major seawater desalination plants, each producing tens of millions of cubic meters of drinking water annually. Shafdan is the country’s central wastewater treatment and reclamation facility. Their inclusion in ZionSiphon’s targeting list suggests an interest in infrastructure linked to Israel’s water sector.

Strings in the target list, all related to Israel and water treatment.
Figure 4: Strings in the target list, all related to Israel and water treatment.

Beyond geographic targeting, the sample contains a second layer of environment-specific checks aimed at water treatment and desalination systems. In the function ”IsDamDesalinationPlant()”, the malware first inspects running process names for strings such as “DesalPLC”, “ROController”, “SchneiderRO”, “DamRO”, “ReverseOsmosis”, “WaterGenix”, “RO_Pump”, “ChlorineCtrl”, “WaterPLC”, “SeaWaterRO”, “BrineControl”, “OsmosisPLC”, “DesalMonitor”, “RO_Filter”, “ChlorineDose”, “RO_Membrane”, “DesalFlow”, “WaterTreat”, and “SalinityCtrl”. These strings are directly related to desalination, reverse osmosis, chlorine handling, and plant control components typically seen in the water treatment industry.

The filesystem checks reinforce this focus. The code looks for directories such as “C:\Program Files\Desalination”, “C:\Program Files\Schneider Electric\Desal”, “C:\Program Files\IDE Technologies”, “C:\Program Files\Water Treatment”, “C:\Program Files\RO Systems”, “C:\Program Files\DesalTech”, “C:\Program Files\Aqua Solutions”, and “C:\Program Files\Hydro Systems”, as well as files including “C:\DesalConfig.ini”, “C:\ROConfig.ini”, “C:\DesalSettings.conf”, “C:\Program Files\Desalination\system.cfg”, “C:\WaterTreatment.ini”, “C:\ChlorineControl.dat”, “C:\RO_PumpSettings.ini”, and “C:\SalinityControl.ini.”

Malware Analysis

Privilege Escalation

The “RunAsAdmin” function from the malware sample.
Figure 5: The “RunAsAdmin” function from the malware sample.


The malware’s first major action is to check whether it is running with administrative rights. The “RunAsAdmin()” function calls “IsElevated()”, which retrieves the current Windows identity and checks whether it belongs to the local Administrators group. If the process is already elevated, execution proceeds normally.

The “IsElevated” function as seen in the sample.
Figure 6: The “IsElevated” function as seen in the sample.


If not, the code waits on the named mutex and launches “powershell.exe” with the argument “Start-Process -FilePath <current executable> -Verb RunAs”, after which it waits for that process to finish and then exits.

Persistence and stealth installation

Registry key creation.
Figure 7: Registry key creation.

Persistence is handled by “s1()”. This routine opens “HKCU\Software\Microsoft\Windows\CurrentVersion\Run”, retrieves the current process path, and compares it to “stealthPath”. If the current file is not already running from that location, it copies itself to the stealth path and sets the copied file’s attributes to “hidden”.

The code then creates a “Run” value named “SystemHealthCheck” pointing to the stealth path. Because “stealthPath” is built from “LocalApplicationData” and the hardcoded filename “svchost.exe”, the result is a user-level persistence mechanism that disguises the payload under a familiar Windows process name. The combination of a hidden file and a plausible-sounding autorun value suggests an intent to blend into ordinary Windows artifacts rather than relying on more complex persistence methods.

Target determination

The malware’s targeting determination is divided between “IsTargetCountry()” and “IsDamDesalinationPlant()”. The “IsTargetCountry()” function retrieves the local IPv4 address, converts it to a numeric value, and compares it against each of the hardcoded ranges stored in “ipRanges”. Only if the address falls within one of these ranges does the code move on to next string-comparison step, which ultimately determines whether the country check succeeded.

The main target validation function.
Figure 8: The main target validation function.
 The “IsTargetCountry” function.
Figure 9 : The “IsTargetCountry” function.


IsDamDesalinationPlant()” then assesses whether the host resembles a relevant OT environment. It first scans running process names for the hardcoded strings previously mentioned, followed by checks for the presence of any of the hardcoded directories or files. The intended logic is clear: the payload activates only when both a geographic condition and an environment specific condition related to desalination or water treatment are met.

Figure. 10: An excerpt of the list of strings used in the “IsDamDesalinationPlant” function

Why this version appears dysfunctional

Although the file contains sabotage, scanning, and propagation functions, the current sample appears unable to satisfy its own target-country checking function even when the reported IP falls within the specified ranges. In the static constructor, every “ipRanges” entry is associated with the same decoded string, “Nqvbdk”, derived from “TnF2YmRr”. Later, “IsTargetCountry()” (shown in Figure 8) compares that stored value against “EncryptDecrypt("Israel", 5)”.

The “EncryptDecrypt” function
Figure 11: The “EncryptDecrypt” function

As implemented, “EncryptDecrypt("Israel", 5)” does not produce “Nqvbdk”, it produces a different string. This function seems to be a basic XOR encode/decode routine, XORing the string “Israel” with value of 5. Because the resulting output does not match “Nqvbdk” the comparison always fails, even when the host IP falls within one of the specified ranges. As a result, this build appears to consistently determine that the device is not a valid target. This behavior suggests that the version is either intentionally disabled, incorrectly configured, or left in an unfinished state. In fact, there is no XOR key that would transform “Israel” into “Nqvbdk” using this function.

Self-destruct function

The “SelfDestruct” function
Figure 12: The “SelfDestruct” function

If IsTargetCountry() returns false, the malware invokes “SelfDestruct()”. This routine removes the SystemHealthCheck value from “HKCU\Software\Microsoft\Windows\CurrentVersion\Run”, writes a log file to “%TEMP%\target_verify.log” containing the message “Target not matched. Operation restricted to IL ranges. Self-destruct initiated.” and creates the batch file “%TEMP%\delete.bat”. This file repeatedly attempts to delete the malware’s executable, before deleting itself.

Local configuration file tampering

If the malware determines that the system it is on is a valid target, its first action is local file tampering. “IncreaseChlorineLevel()” checks a hardcoded list of configuration files associated with desalination, reverse osmosis, chlorine control, and water treatment OT/Industrial Control Systems (ICS).  As soon as it finds any one of these file present, it appends a fixed block of text to it and returns immediately.

The block of text appended to relevant configuration files.
Figure 13: The block of text appended to relevant configuration files.

The appended block of text contains the following entries: “Chlorine_Dose=10”, “Chlorine_Pump=ON”, “Chlorine_Flow=MAX”, “Chlorine_Valve=OPEN”, and “RO_Pressure=80”. Only if none of the hardcoded files are found does the malware proceed to its network-based OT discovery logic.

OT discovery and protocol logic

This section of the code attempts to identify devices on the local subnet, assign each one a protocol label, and then attempt protocol-specific communication. While the overall structure is consistent across protocols, the implementation quality varies significantly.

Figure 14: The ICS scanning function.

The discovery routine, “UZJctUZJctUZJct()”, obtains the local IPv4 address, reduces it to a /24 prefix, and iterates across hosts 1 through 255. For each host, it probes ports 502 (Modbus), 20000 (DNP3), and 102 (S7comm), which the code labels as “Modbus”, “DNP3”, and “S7” respectively if a valid response is received on the relevant port.

The probing is performed in parallel. For every “ip:port” combination, the code creates a task and attempts a TCP connection. The “100 ms” value in the probe routine is a per-connection timeout on “WaitOne(100, ...)”, rather than a delay between hosts or protocols. In practice, this results in a burst of short-lived OT-focused connection attempts across the local subnet.

Protocol validation and device classification

When a connection succeeds, the malware does not stop at the open port. It records the endpoint as an “ICSDevice” with an IP address, port, and protocol label. It then performs a second-stage validation by writing a NULL byte to the remote stream and reading the response that comes back.

For Modbus, the malware checks whether the first byte of the reply is between 1 and 255, for DNP3, it checks whether the first two bytes are “05 64”, and for S7comm, it checks whether the first byte is “03”. These checks are not advanced parsers, but they do show that the author understood the protocols well enough to add lightweight confirmation before sending follow-on data.

 The Modbus read request along with unfinished code for additional protocols.
Figure 15: The Modbus read request along with unfinished code for additional protocols.  

The most developed OT-specific logic is the Modbus-oriented path. In the function “IncreaseChlorineLevel(string targetIP, int targetPort, string parameter)”, the malware connects to the target and sends “01 03 00 00 00 0A”. It then reads the response and parses register values in pairs. The code then uses some basic logic to select a register index: for “Chlorine_Dose”, it looks for values greater than 0 and less than 1000; for “Turbine_Speed”, it looks for values greater than 100.

The Modbus command observed in the sample (01 03 00 00 00 0A) is a Read Holding Registers request. The first byte (0x01) represents the unit identifier, which in traditional Modbus RTU specifies the addressed slave device; in Modbus TCP, however, this value is often ignored or used only for gateway routing because device addressing is handled at the IP/TCP layer.

The second byte (0x03) is the Modbus function code indicating a Read Holding Registers request. The following two bytes (0x00 0x00) specify the starting register address, indicating that the read begins at address zero. The final two bytes (0x00 0A) define the number of registers to read, in this case ten consecutive registers. Taken together, the command requests the contents of the first ten holding registers from the target device and represents a valid, commonly used Modbus operation.

If a plausible register is found, the malware builds a six-byte Modbus write using function code “6” (Write)” and sets the value to 100 for “Chlorine_Dose”, or 0 for any other parameter. If no plausible register is found, it falls back to using hardcoded write frames. In the main malware path, however, the code only calls this function with “Chlorine_Dose".

If none of the ten registers meets the expected criteria, the malware does not abandon the operation. Instead, it defaults to a set of hardcoded Modbus write frames that specify predetermined register addresses and values. This behavior suggests that the attacker had only partial knowledge of the target environment. The initial register-scanning logic appears to be an attempt at dynamic discovery, while the fallback logic ensures that a write operation is still attempted even if that discovery fails.

Incomplete DNP3 and S7comm Logic

The DNP3 and S7comm branches appear much less complete. In “GetCommand()”, the DNP3 path returns the fixed byte sequence “05 64 0A 0C 01 02”, while the S7comm path returns “03 00 00 13 0E 00”. Neither sequence resembles a fully formed command for the respective protocol.

In the case of the S7comm section, the five byte‑ sequence found in the malware sample (05 00 1C 22 1E) most closely matches the beginning of an S7comm parameter block, specifically the header of a “WriteVar (0x05)” request, which is the S7comm equivalent of a Modbus register write operation. In the S7comm protocol, the first byte of a parameter block identifies the function code,  but the remaining bytes in this case do not form a valid item definition. A vaild S7 WriteVar parameter requires at least one item and a full 11-byte variable-specification structure. By comparison this 5‑ byte array is far too short to be a complete or usable command.

The zero item count (0x00) and the trailing three bytes appear to be either uninitialized data or the beginning of an incomplete address field. Together, these details suggest that the attacker likely intended to implement S7 WriteVar functionality, like the Modbus function, but left this portion of the code unfinished.

The DNP3 branch of the malware also appears to be only partially implemented. The byte sequence returned by the DNP3 path (05 64 0A 0C 01 02) begins with the correct two‑byte DNP3 link‑layer sync header (0x05 0x64) and includes additional bytes that resemble the early portion of a link‑layer header. However, the sequence is far too short to constitute a valid DNP3 frame. It lacks the required destination and source address fields, the 16‑bit CRC blocks, and any application‑layer payload in which DNP3 function code would reside. As a result, this fragment does not represent a meaningful DNP3 command.

The incomplete S7 and DNP3 fragments suggest that these protocol branches were still in a developmental or experimental state when the malware was compiled. Both contain protocol‑accurate prefixes, indicating an intent to implement multi‑protocol OT capabilities, however for reasons unknow, these sections were not fully implemented or could not be completed prior to deployment.

USB Propagation

The malware also includes a removable-media propagation mechanism. The “sdfsdfsfsdfsdfqw()” function scans for drives, selects those identified as removable, and copies the hidden payload to each one as “svchost.exe” if it is not already present. The copied executable is marked with the “Hidden” and “System” attributes to reduce visibility.

The malware then calls “CreateUSBShortcut()”, which uses “WScript.Shell” to create .lnk files for each file in the removable drive root. Each shortcut’s TargetPath is set to the hidden malware copy, the icon is set to “shell32.dll, 4” (this is the windows genericfile icon), and the original file is hidden. Were a victim to click this “file,” they would unknowingly run the malware.

Figure 14:The creation of the shortcut on the USB device.

Key Insights

ZionSiphon represents a notable, though incomplete, attempt to build malware capable of malicious interaction with OT systems targeting water treatment and desalination environments.

While many of ZionSiphon’s individual capabilities align with patterns commonly found in commodity malware, the combination of politically motivated messaging, Israel‑specific IP targeting, and an explicit focus on desalination‑related processes distinguishes it from purely opportunistic threats. The inclusion of Modbus sabotage logic, filesystem tampering targeting chlorine and pressure control, and subnet‑wide ICS scanning demonstrates a clear intent to interact directly with industrial processes controllers and to cause significant damage and potential harm, rather than merely disrupt IT endpoints.

At the same time, numerous implementation flaws, most notably the dysfunctional country‑validation logic and the placeholder DNP3 and S7comm components, suggest that analyzed version is either a development build, a prematurely deployed sample, or intentionally defanged for testing purposes. Despite these limitations, the overall structure of the code likely indicates a threat actor experimenting with multi‑protocol OT manipulation, persistence within operational networks, and removable‑media propagation techniques reminiscent of earlier ICS‑targeting campaigns.

Even in its unfinished state, ZionSiphon underscores a growing trend in which threat actors are increasingly experimenting with OT‑oriented malware and applying it to the targeting of critical infrastructure. Continued monitoring, rapid anomaly detection, and cross‑visibility between IT and OT environments remain essential for identifying early‑stage threats like this before they evolve into operationally viable attacks.

Credit to Calum Hall (Cyber Analyst)
Edited by Ryan Traill (Content Manager)

References

1.        https://www.virustotal.com/gui/file/07c3bbe60d47240df7152f72beb98ea373d9600946860bad12f7bc617a5d6f5f/details

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About the author
Calum Hall
Technical Content Researcher
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