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Inside the SOC

Exposing a Demonic Threat: Darktrace’s Fight Against Malware Targeting Brazilian Organizations

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13
Oct 2023
13
Oct 2023
This blog details how Darktrace DETECT identified a banking trojan known to target organizations in Brazil before it was able to steal any sensitive customer data. Following the initial detection, Darktrace’s global SOC were able to investigate the incident and inform the customer for swift mitigation.

Nationally Targeted Cyber Attacks

As the digital world becomes more and more interconnected, the threat of cyber-attacks transcends borders and presents a significant concern to security teams worldwide. Yet despite this, some malicious actors have shown a tendency to focus their attacks on specific countries. By employing highly tailored tactics, techniques, and procedures (TTPs) to target users and organizations from one nation, rather than launching more widespread campaigns, threat actors are able to maximize the efficiency and efficacy of their attacks.

What is Guildma and how does it work?

One example can be seen in the remote access trojan (RAT) and information stealer, Guildma. Guildma, also known by the demonic moniker, Astaroth, first appeared in the wild in 2017 and is a Latin America-based banking trojan known to primarily target organizations in Brazil, although has more recently been observed in North America and Europe too [1].

By concentrating their efforts on Brazil, Guildma is able to launch attacks with a high degree of specificity, focussing their language on Brazilian norms, referencing Brazilian institutions, and tailoring their social engineering accordingly. Moreover, considering that Brazilian customers likely represent a relatively small portion of security vendors’ clientele, there may be a limited pool of available indicators of compromise (IoCs). This limitation could significantly impact the efficacy of traditional security measures that rely on signature-based detection methods in identifying emerging threats.

Darktrace vs. Guildma

In June 2023, Darktrace observed a Guildma compromise on the network of a Brazilian customer in the manufacturing sector. The anomaly-based detection capabilities of Darktrace DETECT™ allowed it to identify suspicious activity surrounding the compromise, agnostic of any IoCs or specific signatures of a threat actor. Following the successful detection of the malware, the Darktrace Security Operations Center (SOC) carried out a thorough investigation into the compromise and brought it to the attention of the customer’s security team, allowing them to quickly react and prevent any further escalation.

This early detection by Darktrace effectively shut down Guildma operations on the network before any sensitive data could be gathered and stolen by malicious actors.

Attack Overview

In the case of the Guildma RAT detected by Darktrace, the affected system was a desktop device, ostensibly used by one employee. The desktop was first observed on the customer’s network in April 2023; however, it is possible that the initial compromise took place before Darktrace had visibility over the network. Guildma compromises typically start with phishing campaigns, indicating that the initial intrusion in this case likely occurred beyond the scope of Darktrace’s monitoring [2].

Early indicators

On June 23, 2023, Darktrace DETECT observed the first instance of unusual activity being performed by the affected desktop device, namely regular HTTP POST requests to a suspicious domain, indicative of command-and-control (C2) beaconing activity. The domain used an unusual Top-Level Domain (TLD), with a plausibly meaningful (in Portuguese) second-level domain and a seemingly random 11-character third-level domain, “dn00x1o0f0h.puxaofolesanfoneiro[.]quest”.

Throughout the course of this attack, Darktrace observed additional connections like this, representing something of a signature of the attack. The suspicious domains were typically registered within six months of observation, featured an uncommon TLD, and included a seemingly randomized third-level domain of 6-11 characters, followed by a plausibly legitimate second-level domain with a minimum of 15 characters. The connections to these unusual endpoints all followed a similar two-hour beaconing period, suggesting that Guildma may rotate its C2 infrastructure, using the Multi-Stage Channels TTP (MITRE ID T1104) to evade restrictions by firewalls or other signature-based security tools that rely on static lists of IoCs and “known bads”.

Figure 1: Model Breach Event Log for the “Compromise / Agent Beacon (Long Period)”. The connections at two-hour intervals, including at unreasonably late hours, is consistent with beaconing for C2.

Living-off-the-land with BITS abuse

A week later, on June 30, 2023, the affected device was observed making an unusual Microsoft BITS connection. BitsAdmin is a deprecated administrative tool available on most Windows devices and can be leveraged by attackers to transfer malicious obfuscated payloads into and around an organization’s network. The domain observed during this connection, "cwiufv.pratkabelhaemelentmarta[.]shop”, follows the previously outlined domain naming convention. Multiple open-source intelligence (OSINT) sources indicated that the endpoint had links to malware and, when visited, redirected users to the Brazilian versions of WhatsApp and Zoom. This is likely a tactic employed by threat actors to ensure users are unaware of suspicious domains, and subsequent malware downloads, by redirected them to a trusted source.

Figure 2: A screenshot of the Model Breach log summary of the “Unusual BITS Activity” model breach. The breach log contains key details such as the ASN, hostname, and user agent used in the breaching connection.

Obfuscated Tooling Downloads

Within one minute of the suspicious BITS activity, Darktrace detected the device downloading a suspicious file from the aforementioned endpoint, (cwiufv.pratkabelhaemelentmarta[.]shop). The file in question appeared to be a ZIP file with the 17-digit numeric name query, namely “?37627343830628786”, with the filename “zodzXLWwaV.zip”.

However, Darktrace DETECT recognized that the file extension did not match its true file type and identified that it was, in fact, an executable (.exe) file masquerading as a ZIP file. By masquerading files downloads, threat actors are able to make their malicious files seem legitimate and benign to security teams and traditional security tools, thereby evading detection. In this case, the suspicious file in question was indeed identified as malicious by multiple OSINT sources.

Following the initial download of this masqueraded file, Darktrace also detected subsequent downloads of additional executable files from the same endpoint.  It is possible that these downloads represented Guildma actors attempting to download additional tooling, including the information-stealer widely known as Astaroth, in order to begin its data collection and exfiltration operations.

Figure 3: A screenshot of a graph produced by the Threat Visualizer of the affected device's external connections. The visual aid marks breaches with red and orange dots, creating a more intuitive explanation of observed behavior.

Darktrace SOC

The successful detection of the masqueraded file transfer triggered an Enhanced Monitoring model breach, a high-fidelity model designed to detect activity that is more likely indicative of an ongoing compromise.  

This breach was immediately escalated to the Darktrace SOC for analysis by Darktrace’s team of expert analysts who were able to complete a thorough investigation and notify the customer’s security team of the compromise in just over half an hour. The investigation carried out by Darktrace’s analysts confirmed that the activity was, indeed, malicious, and provided the customer’s security team with details around the extent of the compromise, the specific IoCs, and risks this compromise posed to their digital environment. This information empowered the customer’s security team to promptly address the issue, having a significant portion of the investigative burden reduced and resolved by the round-the-clock Darktrace analyst team.

In addition to this, Cyber AI Analyst™ launched an investigation into the ongoing compromise and was able to connect the anomalous HTTP connections to the subsequent suspicious file downloads, viewing them as one incident rather than two isolated events. AI Analyst completed its investigation in just three minutes, upon which it provided a detailed summary of events of the activity, further aiding the customer’s remediation process.

Figure 4: CyberAI Analyst summary of the suspicious activity. A prose summary of the breach activity and the meaning of the technical details is included to maintain an easily digestible stream of information.

Conclusion

While the combination of TTPs observed in this Guildma RAT compromise is not uncommon globally, the specificity to targeting organizations in Brazil allows it to be incredibly effective. By focussing on just one country, malicious actors are able to launch highly specialized attacks, adapting the language used and tailoring the social engineering effectively to achieve maximum success. Moreover, as Brazil likely represents a smaller segment of security vendors’ customers, therefore leading to a limited pool of IoCs, attackers are often able to evade traditional signature-based detections.

Darktrace DETECT’s anomaly-based approach to threat detection allows for effective detection, mitigation, and response to emerging threats, regardless of the specifics of the attack and without relying on threat intelligence or previous IoCs. Ultimately in this case, Darktrace was able to identify the suspicious activity surrounding the Guildma compromise and swiftly bring it to the attention of the customer’s security team, before any data gathering, or exfiltration activity took place.

Darktrace’s threat detection capabilities coupled with its expert analyst team and round-the-clock SOC response is a highly effective addition to an organization’s defense-in-depth, whether in Brazil or anywhere else around the world.

Credit to Roberto Romeu, Senior SOC Analyst, Taylor Breland, Analyst Team Lead, San Francisco

References

https://malpedia.caad.fkie.fraunhofer.de/details/win.astaroth

https://www.welivesecurity.com/2020/03/05/guildma-devil-drives-electric/  

Appendices

Darktrace DETECT Model Breaches

  • Compromise / Agent Beacon (Long Period)
  • Device / Unusual BITS Activity
  • Anomalous File / Anomalous Octet Stream (No User Agent)
  • Anomalous File / Masqueraded File Transfer (Enhanced Monitoring Model)
  • Anomalous File / EXE from Rare External Location
  • Anomalous File / Multiple EXE from Rare External Locations

List of IoCs

IoC Type - Description + Confidence

5q710e1srxk.broilhasoruikaliventiladorrta[.]shop - Domain - Likely C2 server

m2pkdlse8md.roilhasohlcortinartai[.]hair - Domain - Likely C2 server

cwiufv.pratkabelhaemelentmarta[.]shop - Domain - C2 server

482w5pct234.jaroilcasacorkalilc[.]ru[.]com - Domain - C2 server

dn00x1o0f0h.puxaofolesanfoneiro[.]quest - Domain - Likely C2 server

10v7mybga55.futurefrontier[.]cyou - Domain - Likely C2 server

f788gbgdclp.growthgenerator[.]cyou - Domain - Likely C2 server

6nieek.satqabelhaeiloumelsmarta[.]shop - Domain - Likely C2 server

zodzXLWwaV.zip (SHA1 Hash: 2a4062e10a5de813f5688221dbeb3f3ff33eb417 ) - File hash - Malware

IZJQCAOXQb.zip (SHA1 Hash: eaec1754a69c50eac99e774b07ef156a1ca6de06 ) - File hash - Likely malware

MITRE ATT&CK Mapping

ATT&CK Technique - Technique ID

Multi-Stage Channels - T1104

BITS Jobs - T1197

Application Layer Protocol: Web Protocols - T1071.001

Acquire Infrastructure: Web Services - T1583.006

Obtain Capabilities: Malware - T1588.001

Masquerading - T1036

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INSIDE THE SOC
Darktrace cyber analysts are world-class experts in threat intelligence, threat hunting and incident response, and provide 24/7 SOC support to thousands of Darktrace customers around the globe. Inside the SOC is exclusively authored by these experts, providing analysis of cyber incidents and threat trends, based on real-world experience in the field.
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Roberto Romeu
Senior SOC Analyst
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Inside the SOC

Royal Pains: How Darktrace Refused to Bend the Knee to the MyKings Botnet

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06
Dec 2023

Botnets: A persistent cyber threat

Since their appearance in the wild over three decades ago, botnets have consistently been the attack vector of choice for many threat actors. The most prevalent of these attack vectors are distributed denial of service (DDoS) and phishing campaigns. Their persistent nature means that even if a compromised device in identified, attackers can continue to operate by using the additional compromised devices they will likely have on the target network. Similarly, command and control (C2) infrastructure can easily be restructured between infected systems, making it increasingly difficult to remove the infection.  

MyKings Botnet

One of the most prevalent and sophisticated examples in recent years is the MyKings botnet, also known as Smominru or DarkCloud. Darktrace has observed numerous cases of MyKings botnet compromises across multiple customer environments in several different industries as far back as August 2022. The diverse tactics, techniques, and procedures (TTPs) and sophisticated kill chains employed by MyKings botnet may prove a challenge to traditional rule and signature-based detections.

However, Darktrace’s anomaly-centric approach enabled it to successfully detect a wide-range of indicators of compromise (IoCs) related to the MyKings botnet and bring immediate awareness to customer security teams, as it demonstrated on the network of multiple customers between March and August 2023.

Background on MyKings Botnet

MyKings has been active and spreading steadily since 2016 resulting in over 520,000 infections worldwide.[1] Although verified attribution of the botnet remains elusive, the variety of targets and prevalence of crypto-mining software on affected devices suggests the threat group behind the malware is financially motivated. The operators behind MyKings appear to be highly opportunistic, with attacks lacking an obvious specific target industry. Across Darktrace’s customer base, the organizations affected were representative of multiple industries such as entertainment, mining, education, information technology, health, and transportation.

Given its longevity, the MyKings botnet has unsurprisingly evolved since its first appearance years ago. Initial analyses of the botnet showed that the primary crypto-related activity on infected devices was the installation of Monero-mining software. However, in 2019 researchers discovered a new module within the MyKings malware that enabled clipboard-jacking, whereby the malware replaces a user's copied cryptowallet address with the operator's own wallet address in order to siphon funds.[2]

Similar to other botnets such as the Outlaw crypto-miner, the MyKings botnet can also kill running processes of unrelated malware on the compromised hosts that may have resulted from prior infection.[3] MyKings has also developed a comprehensive set of persistence techniques, including: the deployment of bootkits, initiating the botnet immediately after a system reboot, configuring Registry run keys, and generating multiple Scheduled Tasks and WMI listeners.[4] MyKings have also been observed rotating tools and payloads over time to propagate the botnet. For example, some operators have been observed utilizing PCShare, an open-source remote access trojan (RAT) customized to conduct C2 services, execute commands, and download mining software[5].

Darktrace Coverage

Across observed customer networks between March and August 2023, Darktrace identified the MyKings botnet primarily targeting Windows-based servers that supports services like MySQL, MS-SQL, Telnet, SSH, IPC, WMI, and Remote Desktop (RDP).  In the initial phase of the attack, the botnet would initiate a variety of attacks against a target including brute-forcing and exploitation of unpatched vulnerabilities on exposed servers. The botnet delivers a variety of payloads to the compromised systems including worm downloaders, trojans, executable files and scripts.

This pattern of activity was detected across the network of one particular Darktrace customer in the education sector in early March 2023. Unfortunately, this customer did not have Darktrace RESPOND™ deployed on their network at the time of the attack, meaning the MyKings botnet was able to move through the cyber kill chain ultimately achieving its goal, which in this case was mining cryptocurrency.

Initial Access

On March 6, Darktrace observed an internet-facing SQL server receiving an unusually large number of incoming MySQL connections from the rare external endpoint 171.91.76[.]31 via port 1433. While it is not possible to confirm whether these suspicious connections represented the exact starting point of the infection, such a sudden influx of SQL connection from a rare external endpoint could be indicative of a malicious attempt to exploit vulnerabilities in the server's SQL database or perform password brute-forcing to gain unauthorized access. Given that MyKings typically spreads primarily through such targeting of internet-exposed devices, the pattern of activity is consistent with potential initial access by MyKings.[6]

Initial Command and Control

The device then proceeded to initiate a series of repeated HTTP connections between March 6 and March 10, to the domain www[.]back0314[.]ru (107.148.239[.]111). These connections included HTTP GET requests featuring URIs such as ‘/back.txt',  suggesting potential beaconing and C2 communication. The device continued this connectivity to the external host over the course of four days, primarily utilizing destination ports 80, and 6666. While port 80 is commonly utilized for HTTP connections, port 6666 is a non-standard port for the protocol. Such connectivity over non-standard ports can indicate potential detection evasion and obfuscation tactics by the threat actors.  During this time, the device also initiated repeated connections to additional malicious external endpoints with seemingly algorithmically generated hostnames such as pc.pc0416[.]xyz.

Darktrace UI image
Figure 1: Model breach showing details of the malicious domain generation algorithm (DGA) connections.

Tool Transfer

While this beaconing activity was taking place, the affected device also began to receive potential payloads from unusual external endpoints. On April 29, the device made an HTTP GET request for “/power.txt” to the endpoint 192.236.160[.]237, which was later discovered to have multiple open-source intelligence (OSINT) links to malware. Power.txt is a shellcode written in PowerShell which is downloaded and executed with the purpose of disabling Windows Defenders related functions.[7] After the initial script was downloaded (and likely executed), Darktrace went on to detect the device making a series of additional GET requests for several varying compressed and executable files. For example, the device made HTTP requests for '/pld/cmd.txt' to the external endpoint 104.233.224[.]173. In response the external server provided numerous files, including ‘u.exe’, and ‘upsup4.exe’ for download, both of which share file names with previously identified MyKings payloads.

MyKings deploys a diverse array of payloads to expand the botnet and secure a firm position within a compromised system. This multi-faceted approach may render conventional security measures less effective due to the intricacies of and variety of payloads involved in compromises. Darktrace, however, does not rely on static or outdated lists of IoCs in order to detect malicious activity. Instead, DETECT’s Self-Learning AI allows it to identify emerging compromise activity by recognizing the subtle deviations in an affected device’s behavior that could indicate it has fallen into the hands of malicious actors.

Figure 2: External site summary of the endpoint 103.145.106[.]242 showing the rarity of connectivity to the external host.

Achieving Objectives – Crypto-Mining

Several weeks after the initial payloads were delivered and beaconing commenced, Darktrace finally detected the initiation of crypto-mining operations. On May 27, the originally compromised server connected to the rare domain other.xmrpool[.]ru over port 1081. As seen in the domain name, this endpoint appears to be affiliated with pool mining activity and the domain has various OSINT affiliations with the cryptocurrency Monero coin. During this connection, the host was observed passing Monero credentials, activity which parallels similar mining operations observed on other customer networks that had been compromised by the MyKings botnet.

Although mining activity may not pose an immediate or urgent concern for security unauthorized cryptomining on devices can result in detrimental consequences, such as compromised hardware integrity, elevated energy costs, and reduced productivity, and even potential involvement in money laundering.

Figure 3: Event breach log showing details of the connection to the other.xmrpool[.]ru endpoint associated with cryptocurrency mining activity.

Conclusion

Detecting future iterations of the MyKings botnet will likely demand a shift away from an overreliance on traditional rules and signatures and lists of “known bads”, instead requiring organizations to employ AI-driven technology that can identify suspicious activity that represents a deviation from previously established patterns of life.

Despite the diverse range of payloads, malicious endpoints, and intricate activities that constitute a typical MyKing botnet compromise, Darktrace was able successfully detect multiple critical phases within the MyKings kill chain. Given the evolving nature of the MyKings botnet, it is highly probable the botnet will continue to expand and adapt, leveraging new tactics and technologies. By adopting Darktrace’s product of suites, including Darktrace DETECT, organizations are well-positioned to identify these evolving threats as soon as they emerge and, when coupled with the autonomous response technology of Darktrace RESPOND, threats like the MyKings botnet can be stopped in their tracks before they can achieve their ultimate goals.

Credit to: Oluwatosin Aturaka, Analyst Team Lead, Cambridge, Adam Potter, Cyber Analyst

Appendix

IoC Table

IoC - Type - Description + Confidence

162.216.150[.]108- IP - C2 Infrastructure

103.145.106[.]242 - IP - C2 Infrastructure

137.175.56[.]104 - IP - C2 Infrastructure

138.197.152[.]201 - IP - C2 Infrastructure

139.59.74[.]135 - IP - C2 Infrastructure

pc.pc0416[.]xyz - Domain - C2 Infrastructure (DGA)

other.xmrpool[.]ru - Domain - Cryptomining Endpoint

xmrpool[.]ru - Domain - Cryptomining Endpoint

103.145.106[.]55 - IP - Cryptomining Endpoint

ntuser[.]rar - Zipped File - Payload

/xmr1025[.]rar - Zipped File - Payload

/20201117[.]rar - Zipped File - Payload

wmi[.]txt - File - Payload

u[.]exe - Executable File - Payload

back[.]txt - File - Payload

upsupx2[.]exe - Executable File - Payload

cmd[.]txt - File - Payload

power[.]txt - File - Payload

ups[.]html - File - Payload

xmr1025.rar - Zipped File - Payload

171.91.76[.]31- IP - Possible Initial Compromise Endpoint

www[.]back0314[.]ru - Domain - Probable C2 Infrastructure

107.148.239[.]111 - IP - Probable C2 Infrastructure

194.67.71[.]99 - IP- Probable C2 Infrastructure

Darktrace DETECT Model Breaches

  • Device / Initial Breach Chain Compromise
  • Anomalous File / Masqueraded File Transfer (x37)
  • Compromise / Large DNS Volume for Suspicious Domain
  • Compromise / Fast Beaconing to DGA
  • Device / Large Number of Model Breaches
  • Anomalous File / Multiple EXE from Rare External Locations (x30)
  • Compromise / Beacon for 4 Days (x2)
  • Anomalous Server Activity / New User Agent from Internet Facing System
  • Anomalous Connection / New User Agent to IP Without Hostname
  • Anomalous Server Activity / New Internet Facing System
  • Anomalous File / EXE from Rare External Location (x37)
  • Device / Large Number of Connections to New Endpoints
  • Anomalous Server Activity / Server Activity on New Non-Standard Port (x3)
  • Device / Threat Indicator (x3)
  • Unusual Activity / Unusual External Activity
  • Compromise / Crypto Currency Mining Activity (x37)
  • Compliance / Internet Facing SQL Server
  • Device / Anomalous Scripts Download Followed By Additional Packages
  • Device / New User Agent

MITRE ATT&CK Mapping

ATT&CK Technique - Technique ID

Reconnaissance – T1595.002 Vulnerability Scanning

Resource Development – T1608 Stage Capabilities

Resource Development – T1588.001 Malware

Initial Access – T1190 Exploit Public-Facing Application

Command and Control – T15568.002 Domain Generated Algorithms

Command and Control – T1571 Non-Standard Port

Execution – T1047 Windows Management Instrumentation

Execution – T1059.001 Command and Scripting Interpreter

Persistence – T1542.003 Pre-OS Boot

Impact – T1496 Resource Hijacking

References

[1] https://www.binarydefense.com/resources/threat-watch/mykings-botnet-is-growing-and-remains-under-the-radar/

[2] https://therecord.media/a-malware-botnet-has-made-more-than-24-7-million-since-2019

[3] https://www.darktrace.com/blog/outlaw-returns-uncovering-returning-features-and-new-tactics

[4] https://www.sophos.com/en-us/medialibrary/pdfs/technical-papers/sophoslabs-uncut-mykings-report.pdf

[5] https://www.antiy.com/response/20190822.html

[6] https://ethicaldebuggers.com/mykings-botnet/

[7] https://ethicaldebuggers.com/mykings-botnet/

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About the author
Oluwatosin Aturaka
Analyst Team Lead, Cambridge

Blog

Thought Leadership

The Implications of NIS2 on Cyber Security and AI

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05
Dec 2023

The NIS2 Directive requires member states to adopt laws that will improve the cyber resilience of organizations within the EU. It impacts organizations that are “operators of essential services”. Under NIS 1, EU member states could choose what this meant. In an effort to ensure more consistent application, NIS2 has set out its own definition. It eliminates the distinction between operators of essential services and digital service providers from NIS1, instead defining a new list of sectors:

  • Energy (electricity, district heating and cooling, gas, oil, hydrogen)
  • Transport (air, rail, water, road)
  • Banking (credit institutions)
  • Financial market infrastructures
  • Health (healthcare providers and pharma companies)
  • Drinking water (suppliers and distributors)
  • Digital infrastructure (DNS, TLD registries, telcos, data center providers, etc.)
  • ICT service providers (B2B): MSSPs and managed service providers
  • Public administration (central and regional government institutions, as defined per member state)
  • Space
  • Postal and courier services
  • Waste management
  • Chemicals
  • Food
  • Manufacturing of medical devices
  • Computers and electronics
  • Machinery and equipment
  • Motor vehicles, trailers and semi-trailers and other transport equipment
  • Digital providers (online market places, online search engines, and social networking service platforms) and research organizations.

With these updates, it becomes harder to try and find industry segments not included within the scope. NIS2 represents legally binding cyber security requirements for a significant region and economy. Standout features that have garnered the most attention include the tight timelines associated with notification requirements. Under NIS 2, in-scope entities must submit an initial report or “early warning” to the competent national authority or computer security incident response team (CSIRT) within 24 hours from when the entity became aware of a significant incident. This is a new development from the first iteration of the Directive, which used more vague language of the need to notify authorities “without undue delay”.

Another aspect gaining attention is oversight and regulation – regulators are going to be empowered with significant investigation and supervision powers including on-site inspections.

The stakes are now higher, with the prospect of fines that are capped at €10 million or 2% of an offending organization’s annual worldwide turnover – whichever is greater. Added to that, the NIS2 Directive includes an explicit obligation to hold members of management bodies personally responsible for breaches of their duties to ensure compliance with NIS2 obligations – and members can be held personally liable.  

The risk management measures introduced in the Directive are not altogether surprising – they reflect common best practices. Many organizations (especially those that are newly in scope for NIS2) may have to expand their cyber security capabilities, but there’s nothing controversial or alarming in the required measures.  For organizations in this situation, there are various tools, best practices, and frameworks they can leverage.  Darktrace in particular provides capabilities in the areas of visibility, incident handling, and reporting that can help.

NIS2 and Cyber AI

The use of AI is not an outright requirement within NIS2 – which may be down to lack of knowledge and expertise in the area, and/or the immaturity of the sector. The clue to this might be in the timing: the provisional agreement on the NIS2 text was reached in May 2022 – six months before ChatGPT and other open-source Generative AI tools propelled broader AI technology into the forefront of public consciousness. If the language were drafted today, it's not far-fetched to imagine AI being mentioned much more prominently and perhaps even becoming a requirement.

NIS2 does, however, very clearly recommend that “member states should encourage the use of any innovative technology, including artificial intelligence”[1].  Another section speaks directly to essential and important entities, saying that they should “evaluate their own cyber security capabilities, and where appropriate, pursue the integration of cyber security enhancing technologies, such as artificial intelligence or machine learning systems…”[2]

One of the recitals states that “member states should adopt policies on the promotion of active cyber protection”.  Where active cyber protection is defined as “the prevention, detection, monitoring, analysis and mitigation of network security breaches in an active manner.”[3]  

From a Darktrace perspective, our self-learning Cyber AI technology is precisely what enables our technology to deliver active cyber protection – protecting organizations and uplifting security teams at every stage of an incident lifecycle – from proactively hardening defenses before an attack is launched, to real-time threat detection and response, through to recovering quickly back to a state of good health.  

The visibility provided by Darktrace is vital to understanding the effectiveness of policies and ensuring policy compliance. NIS2 also covers incident handling and business continuity, which Darktrace HEAL addresses through AI-enabled incident response, readiness reports, simulations, and secure collaborations.

Reporting is integral to NIS2 and organizations can leverage Darktrace’s incident reporting features to present the necessary technical details of an incident and provide a jump start to compiling a full report with business context and impact.  

What’s Next for NIS2

We don’t yet know the details for how EU member states will transpose NIS2 into national law – they have until 17th October 2024 to work this out. The Commission also commits to reviewing the functioning of the Directive every three years. Given how much our overall understanding and appreciation for not only the dangers of AI but also its power (perhaps even necessity in the realm of cyber security) is changing, we may see many member states will leverage the recitals’ references to AI in order to make a strong push if not a requirement that essential and important organizations within their jurisdiction leverage AI.

Organizations are starting to prepare now to meet the forthcoming legislation related to NIS2. To see how Darktrace can help, talk to your representative or contact us.


[1] (51) on page 11
[2]
(89) on page 17
[3]
(57) on page 12

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About the author
John Allen
VP, Cyber Risk & Compliance

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