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June 5, 2023

PerfectData Software Abuse and Account Takeover Risks

Darktrace investigates several attacks through PerfectData Software on Microsoft 365 accounts and shows how we were able to prevent full account takeovers.
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
Dariush Onsori
Cyber Security Analyst
Written by
Sam Lister
Specialist Security Researcher
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05
Jun 2023

Introduction: PerfectData Software

Amidst the ever-changing threat landscape, new tactics, techniques, and procedures (TTPs) seem to emerge daily, creating extreme challenges for security teams. The broad range of attack methods utilized by attackers seems to present an insurmountable problem: how do you defend against a playbook that does not yet exist?

Faced with the growing number of novel and uncommon attack methods, it is essential for organizations to adopt a security solution able to detect threats based on their anomalies, rather than relying on threat intelligence alone.   

In March 2023, Darktrace observed an emerging trend in the use of an application known as ‘PerfectData Software’ for probable malicious purposes in several Microsoft 365 account takeovers.

Using its anomaly-based detection, Darktrace was able to identify the activity chain surrounding the use of this application, potentially uncovering a novel piece of threat actor tradecraft in the process.

Microsoft 365 Intrusions

In recent years, Microsoft’s Software-as-a-Service (SaaS) suite, Microsoft 365, along with its built-in identity and access management (IAM) service, Azure Active Directory (Azure AD), have been heavily targeted by threat actors due to their near-ubiquitous usage across industries. Four out of every five Fortune 500 companies, for example, use Microsoft 365 services [1].  

Malicious actors typically gain entry to organizations’ Microsoft 365 environments by abusing either stolen account credentials or stolen session cookies [2]. Once inside, actors can access sensitive data within mailboxes or SharePoint repositories, and send out emails or Teams messages. This activity can often result in serious financial harm, especially in cases where the malicious actor’s end-goal is to elicit fraudulent transactions.  

Darktrace regularly observes malicious actors behaving in predictable ways once they gain access to customer Microsoft 365 environment. One typical example is the creation of new inbox rules and sending deceitful emails intended to convince recipients to carry out subsequent actions, such as following a malicious link or providing sensitive information. It is also common for actors to register new applications in Azure AD so that they can be used to conduct follow-up activities, like mass-mailing or data theft. The registration of applications in Azure AD therefore seems to be a relatively predictable threat actor behavior [3][4]. Darktrace DETECT understands that unusual application registrations in Azure AD may constitute a deviation in expected behavior, and therefore a possible indicator of account compromise.

These registrations of applications in Azure AD are evidenced by creations of, as well as assignments of permissions to, Service Principals in Azure AD. Darktrace has detected a growing trend in actors creating and assigning permissions to a Service Principal named ‘PerfectData Software’. Further investigation of this Azure AD activity revealed it to be part of an ongoing account takeover. 

‘PerfectData Software’ Activity 

Darktrace observed variations of the following pattern of activity relating to an application named ‘PerfectData Software’ within its customer base:

  1. Actor signs in to a Microsoft 365 account from an endpoint associated with a Virtual Private Server (VPS) or Virtual Private Network (VPN) service
  2. Actor registers an application called 'PerfectData Software' with Azure AD, and then grants permissions to the application
  3. Actor accesses mailbox data and creates inbox rule 

In two separate incidents, malicious actors were observed conducting their activities from endpoints associated with VPN services (HideMyAss (HMA) VPN and Surfshark VPN, respectively) and from endpoints within the Autonomous System AS396073 MAJESTIC-HOSTING-01. 

In March 2023, Darktrace observed a malicious actor signing in to a Microsoft 365 account from a Kuwait-based IP address within the Autonomous System, AS198605 AVAST Software s.r.o. This IP address is associated with the VPN service, HMA VPN. Over the next couple of days, an actor (likely the same malicious actor) signed in to the account several more times from two different Nigeria-based endpoints, as well as a VPS-related endpoint and a HMA VPN endpoint. 

During their login sessions, the actor performed a variety of actions. First, they created and assigned permissions to a Service Principal named ‘PerfectData Software’. This Service Principal creation represents the registration of an application called ‘PerfectData Software’ in Azure AD.  Although the reason for registering this application is unclear, within a few days the actor registered and granted permission to another application, ‘Newsletter Software Supermailer’, and created a new inbox rule names ‘s’ on the mailbox of the hijacked account. This inbox rule moved emails meeting certain conditions to a folder named ‘RSS Subscription. The ‘Newsletter Software Supermailer’ application was likely registered by the actor to facilitate mass-mailing activity.

Immediately after these actions, Darktrace detected the actor sending out thousands of malicious emails from the account. The emails included an attachment named ‘Credit Transfer Copy.html’, which contained a suspicious link. Further investigation revealed that the customer’s network had received several fake invoice emails prior to this initial intrusion activity. Additionally, there was an unusually high volume of failed logins to the compromised account around the time of the initial access. 

Figure 1: Advanced Search logs depicting the steps which the actor took after logging in to a user’s Microsoft 365 account.
Figure 1: Advanced Search logs depicting the steps which the actor took after logging in to a user’s Microsoft 365 account.

In a separate case also observed by Darktrace in March 2023, a malicious actor was observed signing in to a Microsoft 365 account from an endpoint within the Autonomous System, AS397086 LAYER-HOST-HOUSTON. The endpoint appears to be related to the VPN service, Surfshark VPN. This login was followed by several failed and successful logins from a VPS-related within the Autonomous System, AS396073 MAJESTIC-HOSTING-01. The actor was then seen registering and assigning permissions to an application called ‘PerfectData Software’. As with the previous example, the motives for this registration are unclear. The actor proceeded to log in several more times from a Surfshark VPN endpoint, however, they were not observed carrying out any further suspicious activity. 

Advanced Search logs depicting the steps which the actor took after logging in to a user’s Microsoft 365 account.
Figure 2: Advanced Search logs depicting the steps which the actor took after logging in to a user’s Microsoft 365 account.

It was not clear in either of these examples, nor in fact any of cases observed by Darktrace, why actors had registered and assigned permissions to an application called ‘PerfectData Software’, and there do not appear to be any open-source intelligence (OSINT) resources or online literature related to the malicious usage of an application by that name. That said, there are several websites which appear to provide email migration and data recovery/backup tools under the moniker ‘PerfectData Software’. 

It is unclear whether the use of ‘PerfectData Software’ by malicious actors observed on the networks of Darktrace customers was one of these tools. However, given the nature of the tools, it is possible that the actors intended to use them to facilitate the exfiltration of email data from compromises mailboxes.

If the legitimate software ‘PerfectData’ is the application in question in these incidents, it is likely being purchased and misused by attackers for malicious purposes. It is also possible the application referenced in the incidents is a spoof of the legitimate ‘PerfectData’ software designed to masquerade a malicious application as legitimate.

Darktrace Coverage

Cases of ‘PerfectData Software’ activity chains detected by Darktrace typically began with an actor signing into an internal user’s Microsoft 365 account from a VPN or VPS-related endpoint. These login events, along with the suspicious email and/or brute-force activity which preceded them, caused the following detection models to breach:

  • SaaS / Access / Unusual External Source for SaaS Credential Use
  • SaaS / Access / Suspicious Login Attempt
  • SaaS / Compromise / Login From Rare Following Suspicious Login Attempt(s)
  • SaaS / Email Nexus / Unusual Location for SaaS and Email Activity

Subsequent activities, including inbox rule creations, registration of applications in Azure AD, and mass-mailing activity, resulted in breaches of the following detection models.

  • SaaS / Admin / OAuth Permission Grant 
  • SaaS / Compromise / Unusual Logic Following OAuth Grant 
  • SaaS / Admin / New Application Service Principal
  • IaaS / Admin / Azure Application Administration Activities
  • SaaS / Compliance / New Email Rule
  • SaaS / Compromise / Unusual Login and New Email Rule
  • SaaS / Email Nexus / Suspicious Internal Exchange Activity
  • SaaS / Email Nexus / Possible Outbound Email Spam
  • SaaS / Compromise / Unusual Login and Outbound Email Spam
  • SaaS / Compromise / Suspicious Login and Suspicious Outbound Email(s)
DETECT Model Breaches highlighting unusual login and 'PerfectData Software' registration activity from a malicious actor
Figure 3: Detection Model Breaches highlighting unusual login and 'PerfectData Software' registration activity from a malicious actor.

In cases where Darktrace's Autonomous Response was enabled in autonomous response mode, ‘PerfectData Software’ activity chains resulted in breaches of the following Darktrace Autonomous Response models:

• Antigena / SaaS / Antigena Suspicious SaaS Activity Block

• Antigena / SaaS / Antigena Significant Compliance Activity Block

In response to these model breaches, Darktrace's Autonomous Response took immediate action, performing aggressive, inhibitive actions, such as forcing the actor to log out of the SaaS platform, and disabling the user entirely. When applied autonomously, these Autonomous Response actions would seriously impede an attacker’s progress and minimize network disruption.

Figure 4: An Autonomous Response model breach created in response to a malicious actor's registration of 'PerfectData Software'

In addition, Darktrace Cyber AI Analyst was able to autonomously investigate registrations of the ‘PerfectData Software’ application and summarized its findings into digestible reports. 

A Cyber AI Analyst Incident Event log
Figure 5: A Cyber AI Analyst Incident Event log showing AI Analyst autonomously pivoting off a breach of 'SaaS / Admin / OAuth Permission Grant' to uncover details of an account hijacking.

Growing threat of account hijackings in the remote workplace 

Due to the widespread adoption of Microsoft 365 services in the workplace and continued emphasis on a remote workforce, account hijackings now pose a more serious threat to organizations around the world than ever before. The cases discussed here illustrate the tendency of malicious actors to conduct their activities from endpoints associated with VPN services, while also registering new applications, like PerfectData Software, with malicious intent. 

While it was unclear exactly why the malicious actors were using ‘PerfectData Software’ as part of their account hijacking, it is clear that either the legitimate or spoofed version of the application is becoming an very likely emergent piece of threat actor tradecraft.

Darktrace's anomaly-based detection allowed it to recognize that the use of ‘PerfectData Software’ represented a deviation in the SaaS user’s expected behavior while Darktrace's Autonomous Response, when enabled in autonomous response mode, was able to quickly take preventative action against threat actors, blocking the potential use of the application for data exfiltration or other nefarious purposes.

[related-resource]

Appendices

MITRE ATT&CK Mapping

Reconnaissance:

T1598 ­– Phishing for Information

Credential Access:

T1110 – Brute Force

Initial Access:

T1078.004 – Valid Accounts: Cloud Accounts

Command and Control:

T1105 ­– Ingress Tool Transfer

Persistence:

T1098.003 – Account Manipulation: Additional Cloud Roles 

Collection:

• T1114 – Email Collection 

Defense Evasion:

• T1564.008 ­– Hide Artifacts: Email Hiding Rules­

Lateral Movement:

T1534 – Internal Spearphishing

Unusual Source IPs

• 5.62.60[.]202  (AS198605 AVAST Software s.r.o.) 

• 160.152.10[.]215 (AS37637 Smile-Nigeria-AS)

• 197.244.250[.]155 (AS37705 TOPNET)

• 169.159.92[.]36  (AS37122 SMILE)

• 45.62.170[.]237 (AS396073 MAJESTIC-HOSTING-01)

• 92.38.180[.]49 (AS202422 G-Core Labs S.A)

• 129.56.36[.]26 (AS327952 AS-NATCOM)

• 92.38.180[.]47 (AS202422 G-Core Labs S.A.)

• 107.179.20[.]214 (AS397086 LAYER-HOST-HOUSTON)

• 45.62.170[.]31 (AS396073 MAJESTIC-HOSTING-01)

References

[1] https://www.investing.com/academy/statistics/microsoft-facts/

[2] https://intel471.com/blog/countering-the-problem-of-credential-theft

[3] https://darktrace.com/blog/business-email-compromise-to-mass-phishing-campaign-attack-analysis

[4] https://darktrace.com/blog/breakdown-of-a-multi-account-compromise-within-office-365

Darktrace's Threat Research Report

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
Dariush Onsori
Cyber Security Analyst
Written by
Sam Lister
Specialist Security Researcher

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April 29, 2026

Darktrace Malware Analysis: Jenkins Honeypot Reveals Emerging Botnet Targeting Online Games

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DDoS Botnet discovery

To observe adversary behavior in real time, Darktrace operates a global honeypot network known as “CloudyPots”, designed to capture malicious activity across a wide range of services, protocols, and cloud platforms. These honeypots provide valuable insights into the techniques, tools, and malware actively targeting internet‑facing infrastructure.

How attackers used a Jenkins honeypot to deploy the botnet

One such software honeypotted by Darktrace is Jenkins, a CI build system that allows developers to build code and run tests automatically. The instance of Jenkins in Darktrace’s honeypot is intentionally configured with a weak password, allowing attackers to obtain remote code execution on the service.

In one instance observed by Darktrace on March 18, 2026, a threat actor seemingly attempted to target Darktrace’s Jenkins honeypot to deploy a distributed denial-of-service (DDoS) botnet. Further analysis by Darktrace’s Threat Research team revealed the botnet was intended to specifically target video game servers.

How the Jenkins scriptText endpoint was used for remote code execution

The Jenkins build system features an endpoint named scriptText, which enables users to programmatically send new jobs, in the form of a Groovy script. Groovy is a programming language with similar syntax to Java and runs using the Java Virtual Machine (JVM). An attacker can abuse the scriptText endpoint to run a malicious script, achieving code execution on the victim host.

Request sent to the scriptText endpoint containing the malicious script.
Figure 1: Request sent to the scriptText endpoint containing the malicious script.

The malicious script is sent using the form-data content type, which results in the contents of the script being URL encoded. This encoding can be decoded to recover the original script, as shown in Figure 2, where Darktrace Analysts decoded the script using CyberChef,

The malicious script decoded using CyberChef.
Figure 2: The malicious script decoded using CyberChef.

What happens after Jenkins is compromised

As Jenkins can be deployed on both Microsoft Windows and Linux systems, the script includes separate branches to target each platform.

In the case of Windows, the script performs the following actions:

  • Downloads a payload from 103[.]177.110.202/w.exe and saves it to C:\Windows\Temp\update.dat.
  • Renames the “update.dat” file to “win_sys.exe” (within the same folder)
  • Runs the Unblock-File command is used to remove security restrictions typically applied to files downloaded from the internet.
  • Adds a firewall allow rule is added for TCP port 5444, which the payload uses for command-and-control (C2) communications.

On Linux systems, the script will instead use a Bash one-liner to download the payload from 103[.]177.110.202/bot_x64.exe to /tmp/bot and execute it.

Why this botnet uses a single IP for delivery and command and control

The IP 103[.]177.110.202 belongs to Webico Company Limited, specifically its Tino brand, a Vietnamese company that offers domain registrar services and server hosting. Geolocation data indicates that the IP is located in Ho Chi Minh City. Open-source intelligence (OSINT) analysis revealed multiple malicious associations tied to the IP [1].

Darktrace’s analysis found that the IP 103[.]177.110.202 is used for multiple stages of an attack, including spreading and initial access, delivering payloads, and C2 communication. This is an unusual combination, as many malware families separate their spreading servers from their C2 infrastructure. Typically, malware distribution activity results in a high volume of abuse complaints, which may result in server takedowns or service suspension by internet providers. Separate C2 infrastructure ensures that existing infections remain controllable even if the spreading server is disrupted.

How the malware evades detection and maintains persistence

Analysis of the Linux payload (bot _x64)

The sample begins by setting the environmental variables BUILD_ID and JENKINS_NODE_COOKIE to “dontKillMe”. By default, Jenkins terminates long-running scripts after a defined timeout period; however, setting these variables to “dontKillMe” bypasses this check, allowing the script to continue running uninterrupted.

The script then performs several stealth behaviors to evade detection. First, it deletes the original executable from disk and then renames itself to resemble the legitimate kernel processes “ksoftirqd/0” or “kworker”, which are found on Linux installations by default. It then uses a double fork to daemonize itself, enabling it to run in the background, before redirecting standard input, standard output, and standard error to /dev/null, hiding any logging from the malware. Finally, the script creates a signal handler for signals such as SIGTERM, causing them to be ignored and making it harder to stop the process.

Stealth component of the main function
Figure 3: Stealth component of the main function

How the botnet communicates with command and control (C2)

The sample then connects to the C2 server and sends the detected architecture of the system on which the agent was installed. The malware then enters a loop to handle incoming commands.

The sample features two types of commands, utility commands used to manage the malware, and commands to trigger attacks. Three special commands are defined: “PING” (which replies with PONG as a keep-alive mechanism), “!stop” which causes the malware to exit, and “!update”, which triggers the malware to download a new version from the C2 server and restart itself.

Initial connection to the C2 sever.
Figure 4: Initial connection to the C2 sever.

What DDoS attack techniques this botnet uses

The attack commands consist of the following:

Many of these commands invoke the same function despite appearing to be different attack techniques. For example, specialized attacks such as Cloudflare bypass (cfbypass, uam) use the exact same function as a standard HTTP attack. This may indicate the threat actor is attempting to make the botnet look like it has more capabilities than it actually has, or it could suggest that these commands are placeholders for future attack functionality that has yet to be implemented

All the commands take three arguments: IP, port to attack, and the duration of the attack.

attack_udp and attack_udp_pps

The attack_udp and attack_udp_pps functions both use a basic loop and sendto system call to send UDP packets to the victim’s IP, either targeting a predetermined port or a random port. The attack_udp function sends packets with 1,450 bytes of data, aimed at bandwidth saturation, while the attack_udp_pps function sends smaller 64-byte packets. In both cases, the data body of the packet consists of entirely random data.

Code for the UDP attack method
Figure 5: Code for the UDP attack method

attack_dayz

The attack_dayz function follows a similar structure to the attack_udp function; however, instead of sending random data, it will instead send a TSource Engine Query. This command is specific to Valve Source Engine servers and is designed to return a large volume of data about the targeted server. By repeatedly flooding this request, an attacker can exhaust the resources of a server using a comparatively small amount of data.

The Valve Source Engine server, also called Source Engine Dedicated server, is a server developed by video game company Valve that enables multiplayer gameplay for titles built using the Source game engine, which is also developed by Valve. The Source engine is used in games such as Counterstrike and Team Fortress 2. Curiously, the function attack_dayz, appears to be named after another popular online multiplayer game, DayZ; however, DayZ does not use the Valve Source Engine, making it unclear why this name was chosen.

The code for the “attack_dayz” attack function.
Figure 6: The code for the attack_dayz” attack function.

attack_tcp_push

The attack_tcp_push function establishes a TCP socket with the non-blocking flag set, allowing it to rapidly call functions such as connect() and send() without waiting for their completion. For the duration of the attack, it enters a while loop in which it repeatedly connects to the victim, sends 1,024 bytes of random data, and then closes the connection. This process repeats until the attack duration ends. If the mode flag is set to 1, the function also configures the socket with TCP no-delay enabled, allowing for packets to be sent immediately without buffering, resulting in a higher packet rate and a more effective attack.

The code for the TCP attack function.
Figure 7: The code for the TCP attack function.

attack_http

Similar to attach_tcp_push, attack_http configures a socket with no-delay enabled and non-blocking set. After establishing the connection, it sends 64 HTTP GET requests before closing the socket.

The code for the HTTP attack function.
Figure 8: The code for the HTTP attack function.

attack_special

The attack_special function creates a UDP socket and sets the port and payload based on the value of the mode flag:

  • Mode 0: Port 53 (DNS), sending a 10-byte malformed data packet.
  • Mode 1: Port 27015 (Valve Source Engine), sending the previously observed TSource Engine Query packet.
  • Mode 2: Port 123 (NTP), sending the start of an NTP control request.
The code for the attack_special function.
Figure 9: The code for the attack_special function.

What this botnet reveals about opportunistic attacks on internet-facing systems

Jenkins is one of the less frequently exploited services honeypotted by Darktrace, with only a handful campaigns observed. Nonetheless, the emergence of this new DDoS botnet demonstrates that attackers continue to opportunistically exploit any internet-facing misconfiguration at scale to grow the botnet strength.

While the hosts most commonly affected by these opportunistic attacks are usually “lower-value” systems, this distinction is largely irrelevant for botnets, where numbers alone are more important to overall effectiveness

The presence of game-specific DoS techniques further highlights that the gaming industry continues to be extensively targeted by cyber attackers, with Cloudflare reporting it as the fourth most targeted industry [2]. This botnet has likely already been used against game servers, serving as a reminder for server operators to ensure appropriate mitigations are in place.

Credit to Nathaniel Bill (Malware Research Engineer)
Edited by Ryan Traill (Content Manager)

Indicators of Compromise (IoCs)

103[.]177.110.202 - Attacker and command-and-control IP

F79d05065a2ba7937b8781e69b5859d78d5f65f01fb291ae27d28277a5e37f9b – bot_x64

References

[1] https://www.virustotal.com/gui/url/86db2530298e6335d3ecc66c2818cfbd0a6b11fcdfcb75f575b9fcce1faa00f1/detection

[2] - https://blog.cloudflare.com/ddos-threat-report-2025-q4/

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Nathaniel Bill
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April 28, 2026

State of AI Cybersecurity 2026: 87% of security professionals are seeing more AI-driven threats, but few feel ready to stop them

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The findings in this blog are taken from Darktrace’s annual State of AI Cybersecurity Report 2026.

In part 1 of this blog series, we explored how AI is remaking the attack surface, with new tools, models, agents — and vulnerabilities — popping up just about everywhere. Now embedded in workflows across the enterprise, and often with far-reaching access to sensitive data, AI systems are quickly becoming a favorite target of cyber threat actors.

Among bad actors, though, AI is more often used as a tool than a target. Nearly 62% of organizations  experienced a social engineering attack involving a deepfake, or an incident in which bad actors used AI-generated video or audio to try to trick a biometric authentication system, compared to 32% that reported an AI prompt injection attack.

In the hands of attackers, AI can do many things. It’s being used across the entire kill chain: to supercharge reconnaissance, personalize phishing, accelerate lateral movement, and automate data exfiltration. Evidence from Anthropic demonstrates that threat actors have harnessed AI to orchestrate an entire cyber espionage campaign from end to end, allegedly running it with minimal human involvement.

CISOs inhabit a world where these increasingly sophisticated attacks are ubiquitous. Naturally, combatting AI-powered threats is top of mind among security professionals, but many worry about whether their capabilities are up to the challenge.

AI-powered threats at scale: no longer hypothetical

AI-driven threats share signature characteristics. They operate at speed and scale. Automated tools can probe multiple attack paths, search for multiple vulnerabilities and send out a barrage of phishing emails, all within seconds. The ability to attack everywhere at once, at a pace that no human operator could sustain, is the hallmark of an AI-powered threat. AI-powered threats are also dynamic. They can adapt their behavior to spread across a network more efficiently or rewrite their own code to evade detection.

Security teams are seeing the signs that they’re fighting AI-powered threats at every stage of the kill chain, and the sophistication of these threats is testing their resolve and their resources.

  • 73% say that AI-powered cyber threats are having a significant impact on their organization
  • 92% agree that these threats are forcing them to upgrade their defenses
  • 87% agree that AI is significantly increasing the sophistication and success rate of malware
  • 87% say AI is significantly increasing the workload of their security operations team

These teams now confront a challenge unlike anything they’ve seen before in their careers, and the risks are compounding across workflows, tools, data, and identities. It’s no surprise that 66% of security professionals say their role is more stressful today than it was five years ago, or that 47% report feeling overwhelmed at work.

Up all night: Security professionals’ worry list is long

Traditional security methods were never built to handle the complexity and subtlety of AI-driven behavior. Working in the trenches, defenders have deep firsthand experience of how difficult it can be to detect and stop AI-assisted threats.

Increasingly effective social engineering attacks are among their top concerns. 50% of security leaders mentioned hyper-personalized phishing campaigns as one of their biggest worries, while 40% voiced apprehension about deepfake voice fraud. These concerns are legitimate: AI-generated phishing emails are increasingly tailored to individual organizations, business activities, or individuals. Gone are the telltale signs – like grammar or spelling mistakes – that once distinguished malicious communications. Notably, 33% of the malicious emails Darktrace observed in 2025 contained over 1,000 characters, indicating probable LLM usage.

Security leaders also worry about how bad actors can leverage AI to make attacks even faster and more dynamic. 45% listed automated vulnerability scanning and exploit chaining among their biggest concerns, while 40% mentioned adaptive malware.

Confidence is lacking

Protecting against AI demands capabilities that many organizations have not yet built. It requires interpreting new indicators, uncovering the subtle intent within interactions, and recognizing when AI behavior – human or machine – could be suspicious. Leaders know that their current tools aren’t prepared for this. Nearly half don’t feel confident in their ability to defend against AI-powered attacks.

We’ve asked participants in our survey about their confidence for the last three years now. In 2024, 60% said their organizations were not adequately prepared to defend against AI-driven threats. Last year, that percentage shrunk to 45%, a possible indicator that security programs were making progress. Since then, however, the progress has apparently stalled. 46% of security leaders now feel inadequately prepared to protect their organizations amidst the current threat landscape.

Some of these differences are accentuated across different cultures. Respondents in Japan are far less confident (77% say they are not adequately prepared) than respondents in Brazil (where only 21% don’t feel prepared).

Where security programs are falling short

It’s no longer the case that cybersecurity is overlooked or underfunded by executive leadership. Across industries, management recognizes that AI-powered threats are a growing problem, and insufficient budget is near the bottom of most CISO’s list of reasons that they struggle to defend against AI-powered threats.  

It’s the things that money can’t buy – experience, knowledge, and confidence – that are holding programs back. Near the top of the list of inhibitors that survey participants mention is “insufficient knowledge or use of AI-driven countermeasures.” As bad actors embrace AI technologies en masse, this challenge is coming into clearer focus: attack-centric security tools, which rely on static rules, signatures, and historical attack patterns, were never designed to handle the complexity and subtlety of AI-driven attacks. These challenges feel new to security teams, but they are the core problems Darktrace was built to solve.  

Our Self-Learning AI develops a deep understanding of what “normal” looks like for your organization –including unique traffic patterns, end user habits, application and device profiles – so that it can detect and stop novel, dynamic threats at the first encounter. By focusing on learning the business, rather than the attack, our AI can keep pace with AI-powered threats as they evolve.

Explore the full State of AI Cybersecurity 2026 report for deeper insights into how security leaders are responding to AI-driven risks.

Learn more about securing AI in your enterprise.

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