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October 24, 2017
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Investigating the BadRabbit Cyber Threat

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24
Oct 2017
This blog post describes the currently-circulating ransomware called BadRabbit and how Darktrace’s machine learning technology detects it.

This blog post describes the currently circulating ransomware called BadRabbit and how Darktrace’s machine learning technology detects it. BadRabbit is a self-propagating piece of malware that uses SMB to spread laterally. The campaign is reminiscent of the WannaCry and NotPetya attacks seen earlier this year. Some of the functionality in BadRabbit and the modus operandi of how it infects the targets is similar to the NotPetya attack.

The attack initially hit companies in Russia and Ukraine on October 24th, 2017. Since, the ransomware has spread to other countries across the world as well.

Infection process

The initial infection vector appears to be via drive-by downloads and social engineering using fake Adobe Flash player files. Various news and media websites predominantly but not exclusively in Russia and Ukraine served their visitors with pop-up alerts asking them to download Adobe Flash player software updates. It is unclear at this point if the websites were compromised, or if the advertisement networks were leveraged to display the fake Adobe Flash downloads.

This technique of presenting users with fake updates, commonly Adobe Flash, containing ransomware, adware or other forms of malware, has gained traction in the last six months. The same approach is often applied to trick users into inadvisable actions, such as downloading malware when browsing TV streaming websites, or torrent websites.

Once downloaded, a user has to execute the fake Adobe Flash player with administrative credentials manually. No exploits are used to automatically execute the malware. The malware creates a scheduled task for another file upon execution. The ransomware then encrypts files on the compromised devices using a hard-coded list of file extensions using a RSA 2048 key. The criminals demand a Bitcoin payment for decrypting the files. Users are pointed to a .onion website, which has to be accessed via Tor, to pay the ransom.

BadRabbit can brute-force its way over SMB to other devices on the network using a hard-coded list of common credentials. The malware appears to contain a stripped-down version of the Mimikatz tool which is used to gather credentials on Windows machines. This is likely used to further enhance its lateral movement capabilities using SMB.

Update (October 30, 2017): As the investigation of BadRabbit capabilities continued over the weekend, new details about how BadRabbit spreads have been uncovered. BadRabbit appears to be using the EternalRomance exploit that targets CVE-2017-0145, patched by Microsoft in March 2017, to propagate within the internal network over SMB. As Darktrace’s AI does not rely on identifying individual exploits to detect breaches, this latest discovery does not affect Darktrace’s capability to identify BadRabbit infections. All of the previously identified detection capabilities still hold true.

Darktrace instantly detects BadRabbit

Darktrace has strong detection capabilities for this campaign without the use of any signatures. In fact, we alerted a number of our customers within seconds of the initial fake Flash Player download on their respective networks, and well before the extent of the campaign was publicly known.

The initial fake Adobe Flash Player download from 1dnscontrol[.]com is immediately detected as a suspicious download:

If the early signs of BadRabbit go undetected, the infected devices start brute-forcing access to other devices on the network using SMB - causing thousands of SMB session login attempts per endeavored lateral movement over port 445. This highly anomalous behavior marks a sharp departure from customers’ normal ‘pattern of life’, making BadRabbit very easy to detect for Darktrace’s machine learning technology. Within seconds, Darktrace alerted the affected organizations about this attack flagging it as ‘SMB Session Brute Force’. The below shows an ongoing lateral movement attempt from an infected device to another client device using SMB session brute-force.

Infected devices make connection attempts to one or two seemingly randomly generated IP addresses on the internet over port 445 and also port 139. Examples of these failed connection attempts are displayed below. Darktrace instantly recognized this as unusual behavior for the infected device:

Compromised devices will attempt to move laterally on the network in a search for other devices to infect. Darktrace’s AI algorithms can swiftly recognize this anomalous behavior, alerting the affected organization in real time about these ‘Unusual Internal Connections’, as well as potential ‘Network Scans’.

The below model breaches seen in Darktrace are expected in a BadRabbit infection. Please be aware that not all models listed below are expected to breach in every infection - this depends on the actual behavior observed by Darktrace.

Anomalous File / EXE from Rare External Destination
Device / SMB Session Brute Force
Unusual Activity / Unusual Internal Connections
Device / Network Scan
Unusual Activity / Sustained Unusual Activity
Anomalous Connection / Suspicious Read / Write Ratio
Compliance / Tor Usage

The Darktrace ‘Omnisearch’ and ‘Advanced Search’ features can be used to identify any connections made to the known network Indicators of Compromise:

1dnscontrol[.]com(hosting the fake Adobe Flash player file)185.149.120[.]3(static IP observed, victims HTTP POSTing to the IP)

Conclusion

BadRabbit is a machine-speed ransomware attack that exhibits some of the functionality and infection mechanics of the WannaCry and NotPetya breaches observed earlier this year. The BadRabbit malware masks itself as an ‘Adobe Flash’ software update, tempting unsuspecting users to initiate a download. After the initial impact, the attack can spread from machine to machine without human intervention.

Darktrace’s AI algorithms are quick to detect the highly anomalous patterns of behavior that BadRabbit triggers on a network, alerting the security team in real time. We have seen BadRabbit bypass traditional security controls around the globe, demonstrating once again the futility of attempting to identify and stop threats with rules and signatures. As Darktrace’s machine learning technology doesn’t rely on any assumptions of what ‘bad’ looks like and detects unfolding attacks not by what they are but by what they do, it is very powerful at catching and stopping ransomware attacks like BadRabbit in real time.

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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October 24, 2024

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Inside the SOC

Phishing and Persistence: Darktrace’s Role in Defending Against a Sophisticated Account Takeover

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The exploitation of SaaS platforms

As businesses continue to grow and evolve, the need for sharing ideas through productivity and cloud Software-as-a-Service (SaaS) platforms is becoming increasingly crucial. However, these platforms have also become prime targets for cyber attackers.

Threat actors often exploit these widely-used services to gain unauthorized access, steal sensitive information, and disrupt business operations. The growing reliance on SaaS platforms makes them attractive entry points for cybercriminals, who use sophisticated techniques such as phishing, social engineering, and malware to compromise these systems.

Services like Microsoft 365 are regularly targeted by threat actors looking for an entry point into an organization’s environment to carry out malicious activities. Securing these platforms is crucial to protect business data and ensure operational continuity.

Darktrace / EMAIL detection of the phishing attack

In a recent case, Darktrace observed a customer in the manufacturing sector receiving a phishing email that led to a threat actor logging in and creating an email rule. Threat actors often create email rules to move emails to their inbox, avoiding detection. Additionally, Darktrace detected a spoofed domain registered by the threat actor. Despite already having access to the customer’s SaaS account, the actor seemingly registered this domain to maintain persistence on the network, allowing them to communicate with the spoofed domain and conduct further malicious activity.

Darktrace / EMAIL can help prevent compromises like this one by blocking suspicious emails as soon as they are identified. Darktrace’s AI-driven email detection and response recognizes anomalies that might indicate phishing attempts and applies mitigative actions autonomously to prevent the escalation of an attack.

Unfortunately, in this case, Darktrace was not configured in Autonomous Response mode at the time of the attack, meaning actions had to be manually applied by the customer’s security team. Had it been fully enabled, it would have held the emails, preventing them from reaching the intended recipient and stopping the attack at its inception.

However, Darktrace’s Managed Threat Detection alerted the Security Operations Center (SOC) team to the compromise, enabling them to thoroughly investigate the incident and notify the customer before further damage could occur.

The Managed Threat Detection service continuously monitors customer networks for suspicious activities that may indicate an emerging threat. When such activities are detected, alerts are sent to Darktrace’s expert Cyber Analysts for triage, significantly speeding up the remediation process.

Attack Overview

On May 2, 2024, Darktrace detected a threat actor targeting a customer in the manufacturing sector then an unusual login to their SaaS environment was observed prior to the creation of a new email rule.

Darktrace immediately identified the login as suspicious due to the rarity of the source IP (31.222.254[.]27) and ASN, coupled with the absence of multi-factor authentication (MFA), which was typically required for this account.

The new email rule was intended to mark emails as read and moved to the ‘Conversation History’ folder for inbound emails from a specific domain. The rule was named “….,,,”, likely the attacker attempting to setup their new rule with an unnoteworthy name to ensure it would not be noticed by the account’s legitimate owner. Likewise, by moving emails from a specific domain to ‘Conversation History’, a folder that is rarely used by most users, any phishing emails sent by that domain would remain undetected by the user.

Darktrace’s detection of the unusual SaaS login and subsequent creation of the new email rule “….,,,”.
Figure 1: Darktrace’s detection of the unusual SaaS login and subsequent creation of the new email rule “….,,,”.

The domain in question was identified as being newly registered and an example of a typosquat domain. Typosquatting involves registering new domains with intentional misspelling designed to convince users to visit fake, and often malicious, websites. This technique is often used in phishing campaigns to create a sense of legitimacy and trust and deceive users into providing sensitive information. In this case, the suspicious domain closely resembled several of the customer’s internal domains, indicating an attempt to impersonate the organization’s legitimate internal sites to gain the target’s trust. Furthermore, the creation of this lookalike domain suggests that the attack was highly targeted at this specific customer.

Interestingly, the threat actor registered this spoofed domain despite already having account access. This was likely intended to ensure persistence on the network without having to launch additional phishing attacks. Such use of spoofed domain could allow an attacker to main a foothold in their target network and escalate their malicious activities without having to regain access to the account. This persistence can be used for various purposes, including data exfiltration, spreading malware, or launching further attacks.

Following this, Darktrace detected a highly anomalous email being sent to the customer’s account from the same location as the initial unsual SaaS login. Darktrace’s anomaly-based detection is able to identify threats that human security teams and traditional signature-based methods might miss. By analyzing the expected behavior of network users, Darktrace can recognize the subtle deviations from the norm that may indicate malicious activity. Unfortunately, in this instance, without Darktrace’s Autonomous Response capability enabled, the phishing email was able to successfully reach the recipient. While Darktrace / EMAIL did suggest that the email should be held from the recipients inbox, the customer was required to manually approve it.

Despite this, the Darktrace SOC team were still able to support the customer as they were subscribed to the Managed Threat Detection service. Following the detection of the highlight anomalous activity surrounding this compromise, namely the unusual SaaS login followed by a new email rule, an alert was sent to the Darktrace SOC for immediate triage, who then contacted the customer directly urging immediate action.

Conclusion

This case underscores the need to secure SaaS platforms like Microsoft 365 against sophisticated cyber threats. As businesses increasingly rely on these platforms, they become prime targets for attackers seeking unauthorized access and disruption.

Darktrace’s anomaly-based detection and response capabilities are crucial in identifying and mitigating such threats. In this instance, Darktrace detected a phishing email that led to a threat actor logging in and creating a suspicious email rule. The actor also registered a spoofed domain to maintain persistence on the network.

Darktrace / EMAIL, with its AI-driven detection and analysis, can block suspicious emails before they reach the intended recipient, preventing attacks at their inception. Meanwhile, Darktrace’s SOC team promptly investigated the activity and alerted the customer to the compromise, enabling them to take immediate action to remediate the issue and prevent any further damage.

Credit to Vivek Rajan (Cyber Security Analyst) and Ryan Traill (Threat Content Lead).

Appendices

Darktrace Model Detections

  • SaaS / Access / Unusual External Source for SaaS Credential Use
  • SaaS / Compromise / Login From Rare Endpoint While User Is Active
  • SaaS / Resource / Unusual Access to Delegated Resource by Non Owner
  • SaaS / Email Nexus / Unusual Login Location Following Sender Spoof
  • Compliance / Anomalous New Email Rule
  • SaaS / Compromise / Unusual Login and New Email Rule

Indicators of Compromise (IoCs)

IoC - Type - Description + Confidence

31.222.254[.]27 – IP -  Suspicious Login Endpoint

MITRE ATT&CK Mapping

Tactic – Technqiue – Sub-technique of (if applicable)

Cloud Accounts - DEFENSE EVASION, PERSISTENCE, PRIVILEGE ESCALATION, INITIAL ACCESS - T1078.004 - T1078

Cloud Service Dashboard – DISCOVERY - T1538

Compromise Accounts - RESOURCE DEVELOPMENT - T1586

Steal Web Session Cookie - CREDENTIAL ACCESS - T1539

Outlook Rules – PERSISTENCE - T1137.005 - T1137

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About the author
Vivek Rajan
Cyber Analyst

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October 16, 2024

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Navigating buying and adoption journeys for AI cybersecurity tools

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Enterprise AI tools go mainstream

In this dawning Age of AI, CISOs are increasingly exploring investments in AI security tools to enhance their organizations’ capabilities. AI can help achieve productivity gains by saving time and resources, mining intelligence and insights from valuable data, and increasing knowledge sharing and collaboration.  

While investing in AI can bring immense benefits to your organization, first-time buyers of AI cybersecurity solutions may not know where to start. They will have to determine the type of tool they want, know the options available, and evaluate vendors. Research and understanding are critical to ensure purchases are worth the investment.  

Challenges of a muddied marketplace

Key challenges in AI purchasing come from consumer doubt and lack of vendor transparency. The AI software market is buzzing with hype and flashy promises, which are not necessarily going to be realized immediately. This has fostered uncertainty among potential buyers, especially in the AI cybersecurity space.  

As Gartner writes, “There is a general lack of transparency and understanding about how AI-enhanced security solutions leverage AI and the effectiveness of those solutions within real-world SecOps. This leads to trust issues among security leaders and practitioners, resulting in slower adoption of AI features” [1].  

Similarly, only 26% of security professionals report a full understanding of the different types of AI in use within security products.

Given this widespread uncertainty generated through vague hype, buyers must take extra care when considering new AI tools to adopt.  

Goals of AI adoption

Buyers should always start their journeys with objectives in mind, and a universal goal is to achieve return on investment. When organizations adopt AI, there are key aspects that will signal strong payoff. These include:  

  • Wide-ranging application across operations and areas of the business
  • Actual, enthusiastic adoption and application by the human security team  
  • Integration with the rest of the security stack and existing workflows
  • Business and operational benefits, including but not limited to:  
  • Reduced risk
  • Reduced time to response
  • Reduced potential downtime, damage, and disruption
  • Increased visibility and coverage
  • Improved SecOps workflows
  • Decreased burden on teams so they can take on more strategic tasks  

Ideally, most or all these measurements will be fulfilled. It is not enough for AI tools to benefit productivity and workflows in theory, but they must be practically implemented to provide return on investment.  

Investigation before investment

Before investing in AI tools, buyers should ask questions pertaining to each stage of the adoption journey. The answers to these questions will not only help buyers gauge if a tool could be worth the investment, but also plan how the new tool will practically fit into the organization’s existing technology and workflows.  

Figure 1: Initial questions to consider when starting to shop for AI [2].

These questions are good to imagine how a tool will fit into your organization and determine if a vendor is worth further evaluation. Once you decide a tool has potential use and feasibility in your organization, it is time to dive deeper and learn more.  

Ask vendors specific questions about their technology. This information will most likely not be on their websites, and since it involves intellectual property, it may require an NDA.  

Find a longer list of questions to ask vendors and what to look for in their responses in the white paper “CISO’s Guide to Buying AI.”

Committing to transparency amidst the AI hype

For security teams to make the most out of new AI tools, they must trust the AI. Especially in an AI marketplace full of hype and obfuscation, transparency should be baked into both the descriptions of the AI tool and the tool’s functionality itself. With that in mind, here are some specifics about what techniques make up Darktrace’s AI.  

Darktrace as an AI cybersecurity vendor

Darktrace has been using AI technology in cybersecurity for over 10 years. As a pioneer in the space, we have made innovation part of our process.  

The Darktrace ActiveAI Security Platform™ uses multi-layered AI that trains on your unique business operations data for tailored security across the enterprise. This approach ensures that the strengths of one AI technique make up for the shortcomings of another, providing well-rounded and reliable coverage. Our models are always on and always learning, allowing your team to stop attacks in real time.  

The machine learning techniques used in our solution include:

  • Unsupervised machine learning
  • Multiple Clustering Techniques
  • Multiple anomaly detection models in tandem analyzing data across hundreds of metrics
  • Bayesian probabilistic methods
  • Bayesian metaclassifier for autonomous fine-tuning of unsupervised machine learning models
  • Deep learning engines
  • Graph theory
  • Applied supervised machine learning for investigative AI  
  • Neural networks
  • Reinforcement Learning
  • Generative and applied AI
  • Natural Language Processing (NLP) and Large Language Models (LLMs)
  • Post-processing models

Additionally, since Darktrace focuses on using the customer’s data across its entire digital estate, it brings a range of advantages in data privacy, interpretability, and data transfer costs.  

Building trust with Darktrace AI

Darktrace further supports the human security team’s adoption of our technology by building trust. To do that, we designed our platform to give your team visibility and control over the AI.  

Instead of functioning as a black box, our products focus on interpretability and sharing confidence levels. This includes specifying the threshold of what triggered a certain alert and the details of the AI Analyst’s investigations to see how it reached its conclusions. The interpretability of our AI uplevels and upskills the human security team with more information to drive investigations and remediation actions.  

For complete control, the human security team can modify all the detection and response thresholds for our model alerts to customize them to fit specific business preferences.  

Conclusion

CISO’s are increasingly considering investing in AI cybersecurity tools, but in this rapidly growing field, it’s not always clear what to look for.  

Buyers should first determine their goals for a new AI tool, then research possible vendors by reviewing validation and asking deeper questions. This will reveal if a tool is a good match for the organization to move forward with investment and adoption.  

As leaders in the AI cybersecurity industry, Darktrace is always ready to help you on your AI journey.  

CISOs guide to buying AI white paper cover

Download: CISO’s Guide to Buying AI

Learn more about the most common types of machine learning in cybersecurity in the white paper

References

  1. Gartner, April 17, 2024, “Emerging Tech: Navigating the Impact of AI on SecOps Solution Development.”  
  1. Inspired by Gartner, May 14, 2024, “Presentation Slides: AI Survey Reveals AI Security and Privacy Leads to Improved ROI” and NHS England, September, 18, 2020, “A Buyer’s Guide to AI in Health and Care,” Available at: https://transform.england.nhs.uk/ai-lab/explore-all-resources/adopt-ai/a-buyers-guide-to-ai-in-health-and-care/  
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About the author
Nicole Carignan
VP of Strategic Cyber AI
Your data. Our AI.
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