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April 12, 2022

Efficient Incident Reporting: Darktrace AI Analyst

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Apr 2022
Discover how Darktrace's Cyber AI Analyst accelerates incident reporting to the US federal government, enhancing cybersecurity response times.

On March 15, 2022, President Biden signed the Cyber Incident Reporting for Critical Infrastructure Act into law, included as part of the Congressional Omnibus Appropriations bill. The law requires critical infrastructure owners and operators to quickly notify the Cyber and Infrastructure Security Agency (CISA) of ransomware payments and significant cyber-attacks.

The Cyber Incident Reporting for Critical Infrastructure Act creates two new reporting requirements:

  1. an obligation to report certain cyber incidents to DHS CISA within 72 hours
  2. an obligation to report ransomware payments within 24 hours

Supporting the new law, Darktrace AI accelerates the cyber incident reporting process. Specifically, Darktrace’s Cyber AI Analyst understands the connections among disparate security incidents with supervised machine learning and autonomously writes incident reports in human-readable language using natural language processing (NLP). These Darktrace incident reports allow human analysts to send reports to CISA quickly and efficiently.

In the below real-world attack case study, we demonstrate how Cyber AI Analyst facilitates seamless reporting for critical infrastructure organizations that fall victim to ransomware and malicious data exfiltration. The AI technology, trained on human analyst behavior, replicates investigations at machine speed and scale, surfacing relevant details in minutes and allowing security teams to understand what happened precisely and share this information with the relevant authorities.

The below threat investigation details a significant threat find on a step by step level in technical detail to demonstrate the power and speed of Cyber AI Analyst.

Cyber AI Analyst’s incident report

When ransomware struck this organization, Cyber AI Analyst was invaluable, autonomously investigating the full scope of the incident and generating a natural language summary that clearly showed the progression of the attack.

Figure 1: Cyber AI Analyst reveals the full scope of the attack

In the aftermath of this attack, Darktrace’s technology also offered analyst assistance in mapping out the timeline of the attack and identifying what files were compromised, helping the security team identify anomalous activity related to the ransomware attack.

Figure 2: Cyber AI Analyst showing the stages of the attack chain undergone by the compromised device

With Darktrace AI’s insights, the team easily identified the timeline of the attack, affected devices, credentials used, file shares accessed, files exfiltrated, and malicious endpoints contacted, enabling the customer to disclose the scale of the attack and notify necessary parties.

This example demonstrates how Cyber AI Analyst empowers critical infrastructure owners and operators to swiftly report major cyber-attacks to the federal government. Considering that 72 hours is the reporting period is for significant incidents — and 24 hours for ransomware payments — Cyber AI Analyst is no longer a nice-to-have but a must-have for critical infrastructure.

Attack breakdown: Ransomware and data exfiltration

Cyber AI Analyst delivered the most critical information in an easy-to-read report — with no human touch involved — as shown in the incident report above. We will now break down the attack further to demonstrate how Darktrace’s Self-Learning AI understood the unusual activity throughout the attack lifecycle.

In this double extortion ransomware, attackers exfiltrated data over 22 days. The detections made by Darktrace’s Self-Learning AI, and the parallel investigation by Cyber AI Analyst, were used to map the attack chain and identify how and what data had been exfiltrated and encrypted.

The attack consisted of three general groups of events:

  • Unencrypted FTP (File Transfer Protocol) data exfiltration to rare malicious external endpoint in Bulgaria (May 9 07:23:46 UTC – May 21 03:06:46 UTC)
  • Ransomware encryption of files in network file shares (May 25 01:00:27 UTC – May 30 07:09:53 UTC)
  • Encrypted SSH (Secure Shell) data exfiltration to rare malicious external endpoint (May 29 16:43:37 UTC – May 30 13:23:59 UTC)
Figure 3: Timeline of the attack alongside Darktrace model breaches

First, uploads of internal data to a rare external endpoint in Bulgaria were observed within the networks. The exfiltration was preceded by SMB reads of internal file shares before approximately 450GB of data was exfiltrated via FTP.

Darktrace’s AI identified this threatening activity on its own, and the organization was quickly able to pinpoint what data had been exfiltrated, including files camouflaged by markings such as ‘Talent Acquisition’ and ‘Engineering and Construction,’ and legal and financial documents — suggesting that these were documents of an extremely sensitive nature.

Figure 4: Screenshots showing two model breaches relating to external uploads over FTP
Figure 5: Screenshot showing SMB reads from a file share before FTP upload

Model breaches:

  • Anomalous Connection / Unusual Incoming Data Volume
  • Anomalous File / Internal / Additional Extension Appended to SMB File
  • Compromise / Ransomware / Suspicious SMB Activity
  • Compromise / Ransomware / SMB Reads then Writes with Additional Extensions
  • Unusual Activity / Anomalous SMB Move & Write
  • Unusual Activity / High Volume Server Data Transfer
  • Unusual Activity / Sustained Anomalous SMB Activity
  • Device / SMB Lateral Movement

Four days following this observed activity, Darktrace’s AI detected the deployment of ransomware when multiple compromised devices began making anomalous SMB connections to file shares that they do not typically access, reading and writing similar volumes to the SMB file shares, as well as writing additional extensions to files over SMB. The file extension comprised a random string of letters and was likely to be unique to this target.

Using Darktrace, the customer obtained a full list of files that had been encrypted. The list included apparent financial records in an ‘Accounts’ file share.

Figure 6: Model breach showing additional extension written to file during ransomware encryption

Model breaches:

  • Anomalous Connection / Unusual Incoming Data Volume
  • Anomalous File / Internal / Additional Extension Appended to SMB File
  • Compromise / Ransomware / Suspicious SMB Activity
  • Compromise / Ransomware / SMB Reads then Writes with Additional Extensions
  • Unusual Activity / Anomalous SMB Move & Write
  • Unusual Activity / High Volume Server Data Transfer
  • Unusual Activity / Sustained Anomalous SMB Activity
  • Device / SMB Lateral Movement

Simultaneously, uploads of internal data to a rare external endpoint were observed within the network. The uploads were all performed using encrypted SSH/SFTP. In total, approximately 3.5GB of data was exfiltrated this way.

Despite the attacker using an encrypted channel to exfiltrate this data, Darktrace detected anomalous SMB file transfers prior to the external upload, indicating which files were exfiltrated. Here, Darktrace’s ability to go ‘back in time’ proved invaluable in helping analysts determine which files had been exfiltrated, although they were exfiltrated via an encrypted means.

Figure 7: Model breaches showing anomalous SMB activity before upload over SSH

Model breaches:

  • Anomalous Server Activity / Outgoing from Server
  • Compliance / SSH to Rare External Destination
  • Unusual Activity / Enhanced Unusual External Data Transfer
  • Device / Anomalous SMB Followed By Multiple Model Breaches
  • Device / Large Number of Model Breaches
  • Anomalous Connection / Uncommon 1 GiB Outbound
  • Anomalous Connection / Data Sent to Rare Domain
  • Anomalous Connection / Data Sent To New External Device

How did the attack bypass the rest of the security stack?

Existing administrative credentials were used to escalate privileges within the network and perform malicious activity.

Had Darktrace Antigena been active, it would have actioned a targeted, autonomous response to contain the activity in its early stages. Antigena would have enforced the ‘pattern of life’ on the devices involved in anomalous SMB activity — containing activity such as reading from file shares that are not normally connected, appending extensions to files and blocking outgoing connections to rare external endpoints.

However, in this case, Antigena was not set up to take action – it was configured in Human Confirmation mode. The incident was clearly alerted on by Darktrace, and appeared as a top priority item in the security team’s workflow. However, the security team was not monitoring Darktrace’s user interface, and in the absence of any action taken by other tools, the attack was allowed to progress, and the organization was obligated to disclose the details of the incident.

Streamlining the reporting process

In the modern threat landscape, leaning on AI to stop fast-moving and sophisticated attacks at machine speed and scale is critical. As this attack shows, the technology also helps organizations fulfill reporting requirements in the aftermath of an attack.

New legislation requires timely disclosure; with many traditional approaches to security, organizations do not have the capacity to surface the full details after an attack. On top of this, collating these details can take days or weeks. This is why Darktrace is no longer a nice-to-have but a must-have for critical infrastructure organizations, which are now required to report significant incidents swiftly.

Darktrace’s AI detects malicious activity as it happens and empowers customers to quickly understand the timeline of a compromise, as well as files accessed and exfiltrated by an attacker. This not only prepares organizations to resist the most sophisticated attacks, but also accelerates and radically simplifies the process of reporting the data breach.

Security teams should not have to confront disclosure processes on their own. Attacks happen fast, and their aftermaths are messy – retrospective investigation of lost data can be a futile effort with traditional approaches. With Darktrace, security teams can meet disruptive and sudden attacks with precise and nimble means of uncovering data, as well as detection and mitigation of risk. And, should the need arise, rapid and accurate reporting of events is laid out on a silver platter by the AI.

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
Justin Fier
SVP, Red Team Operations

Justin is one of the US’s leading cyber intelligence experts, and holds the position of SVP, Red Team Operations at Darktrace. His insights on cyber security and artificial intelligence have been widely reported in leading media outlets, including the Wall Street Journal, CNN, The Washington Post, and VICELAND. With over 10 years’ experience in cyber defense, Justin has supported various elements in the US intelligence community, holding mission-critical security roles with Lockheed Martin, Northrop Grumman Mission Systems and Abraxas. Justin is also a highly-skilled technical specialist, and works with Darktrace’s strategic global customers on threat analysis, defensive cyber operations, protecting IoT, and machine learning.

Sally Kenyon Grant
VP, Darktrace Federal

Sally Kenyon Grant is Vice President of Federal at Darktrace, working with the US Department of Defense, the Intelligence Community and Federal Civilian Agencies.

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Company Shuts Down Cyber-attacks with “Flawless” Detection and Response from Darktrace

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Growing pains: Balancing efficiency with risk  

This organization has recently scaled its operations, and numerous acquisitions have significantly boosted the organization’s capabilities and growth. However, this also creates work and high expectations for the organization’s IT and security teams. Within 12 months of an acquisition, the teams must fully integrate each new business onto the company’s platform. “A huge piece of that integration plan is rolling out our security controls,” said the CISO. “While our goal is to connect those facilities up as quickly as possible to drive efficiency, we also need to implement the proper security controls to protect the enterprise.”

Gap beyond the perimeter  

The organization had established strong security measures to safeguard its perimeter; however, the CISO identified a critical gap in real-time network monitoring. If the perimeter were breached, threats were only discovered after an endpoint was compromised and the issue was manually reported.

As digital transformation progresses, the need to adopt advanced technologies is becoming essential, particularly as organizations begin to open up operational environments to greater connectivity. Many processes still rely on traditional methods, and integrating innovative solutions could drive significant improvements in efficiency and productivity. “We’re committed to adopting cutting-edge technologies,” the CISO explained. “But we understood that without more robust network security controls, opening up our operational environments would expose us to heightened risks, including advanced threats like ransomware.”

Building a layered, proactive security strategy with Darktrace  

To close the gap beyond the perimeter, the company embarked on a free trial with Darktrace. The CISO recalls: “The trials were fantastic. It was obvious that Darktrace was exactly what we needed. The Darktrace team was also very knowledgeable and helpful throughout the process, which was impressive.”  

Today, the organization is using a combination of Darktrace solutions for its layered security approach, including:

Detecting unusual behavior with AI  

Darktrace’s use of machine learning and Self-Learning AI is one of the reasons the company chose Darktrace. Instead of teaching an AI system what an ‘attack’ looks like, training it on large data lakes of thousands of organizations’ data, Darktrace AI learns from the company’s own unique data and user activity to learn and create baseline models of what ‘normal’ looks like for their business.

Darktrace can then detect subtle deviations and unusual activity that signals a possible threat. “That fascinated us because what it really means is this technology doesn’t need to know about every single threat because the threat itself isn’t important, it’s the behavior of the activity that’s important. That capability is unique when it when it comes to threat detection,” said the CISO.

Identifying and mitigating high-impact attack paths

The security team appreciated that with Darktrace they could take a more proactive approach to security by exposing high-risk attack paths through modeling and AI risk assessments. Darktrace / Proactive Exposure Management gives them visibility into vulnerable entry points and assets, identifies active risks, and prioritizes the most important security issues to be addressed.

“Specific users and assets within our business have a higher risk of being targeted by a cyber-attack, for example our executives,” said the CISO. “With Darktrace, we get an adversarial view of our risk. We can see the attack path around those potential targets and proactively take measures to mitigate that vulnerability and prevent an attack.”

Driving up productivity while putting the brakes on cyber-attacks  

The security team collaborated with Darktrace to fine tune the models that really fit their business. With Darktrace now automating most of their threat detection and response efforts, productivity has soared, the security team is now focused on delivering greater value to the business and, most importantly, Darktrace proved it could quickly detect and shut down a major cyber-attack–and do so without impacting business operations.

Fueling team productivity with automation and AI

Prior to using Darktrace, the security team had little visibility into potential risks beyond the perimeter. Today, the team has full control and visibility over the network. “My team is now spending 80-90% of their time doing proactive work because Darktrace is managing the vast majority of our detect and response needs. The team really has faith in the Darktrace system,” said the CISO.  

With less time spent on low-level manual tasks, the security team can now focus on higher priority initiatives. For example, they have expanded their internal vulnerability assessments across the entire group. The team couldn’t focus on this additional audit and vulnerability management work if Darktrace wasn’t taking care of most of their security monitoring. “Darktrace has allowed us to move on to these additional kinds of governance projects that we otherwise would have to hire an army of staff to get through”.

Stopping email threats in their tracks

Using Darktrace / EMAIL, the company has identified and blocked a significant percentage of emails that were making it past their native email filters. “Darktrace is especially good at detecting impersonation emails, and we really appreciate its ability to automatically remove suspicious emails directly from a user’s inbox. It adds an extra level of confidence,” said the CISO.

Self-Learning AI understands anomalies within unique communication patterns to stop known and unknown threats. For example, when an employee sent an email to a brand new domain, Darktrace identified the behavior as unusual and inconsistent with baseline models and blocked the email.

Darktrace passes the biggest test of all

In 2024, the company experienced the value of the security system firsthand when attackers exploited a vulnerability in a third-party remote support solution that they was using. This solution provided remote access and tech support capabilities. If successful, the attackers could have infiltrated high-value end points and created their own administrative user, giving them full control over the server.

“We first became aware of the attack when Darktrace notified us of unusual behavior coming from the remote support server,” said the CISO. The attackers were attempting to put backdoors onto the service with the intent of selling access to the highest bidder who would then install ransomware on their servers. It all happened very quickly, as the attackers tried to connect to the internal network and other servers, while also firing off a host of other actions, like PowerShell commands, to escalate their privileges.  

“Darktrace worked flawlessly. There was no chance that ransomware was ever going to come in,” the CISO said. “Even though there was no signature to really look at, Darktrace realized this was not normal behavior for this server, shutting down connections and doing everything it could do to stop the attack.” Within eight hours, the security team identified and stopped the attack, severed its connection to the third-party solution, and completed additional analysis and clean-up. “In addition to our own investigation, third parties like our external SOC and legal department also confirmed that Darktrace performed as expected. We were able to report back to the executive team that there was zero risk that any data or systems were compromised.”

Post-attack, there was no need to make any changes to Darktrace. The team consistently reviews its models and baselines, often collaborating with Darktrace to make adjustments when needed to continuously improve performance. “Because of this relationship and constant engagement with Darktrace’s technical teams, we didn't have to go back and ask: ‘why wasn’t this updated’ or ‘why didn’t this model work.’ The models worked.”

His advice to other organizations facing similar challenges? First, focus on updating, patching, and vulnerability management, and act quickly when vulnerabilities are identified. His second piece of advice: “have an automated detection system like Darktrace in place so you can respond at the speed that these attacks evolve. Humans can no longer keep up with a scripted attack as it moves around and tries to compromise items on your network. You need the right technology to fight these types of attacks.”

Dynamic capabilities for a dynamic future

Real-time playbooks

With a proactive, enterprise-wide security strategy in place, the CISO now has the time to think about future projects and innovations. He’s particularly interested in the idea of generating playbooks on the fly in response to real-time events. He believes cyber-attacks are far too varied for a static playbook to be useful; when an attack strikes, teams need to quickly understand exactly what’s in front of them and how to shut it down. “This fits into our future cybersecurity strategy, and Darktrace is the only company I’ve seen talking about building playbooks dynamically. This kind of technology would really help bring our cybersecurity strategy full circle.”

“Darktrace ’s technology, experience and expertise is helping us staying ahead of cyber-attacks, minimizing our risk and driving greater productivity for our team,” said the CISO. In collaboration with Darktrace, the team have created a security foundation that is both powerful and agile. “While Darktrace is detecting and responding to attacks targeting our business today, we know that it’s always learning, adapting and scaling to ensure we’re protected tomorrow. That gives me peace of mind and the freedom to focus on our future.”

Download the Darktrace / NETWORK Solution Brief

Darktrace / NETWORK solution brief screenshot

Protect in real time: Defend against known and emerging threats without relying on historical data or external intelligence.

Full visibility: Gain comprehensive insights across all network environments, including on-premises, cloud, and remote devices.

AI-powered efficiency: Streamline incident response with AI automation, saving time and resources while ensuring minimal disruption to operations.

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Darktrace is Positioned as a Leader in the IDC MarketScape: Worldwide Network Detection and Response 2024 Vendor Assessment

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Darktrace is pleased to announce that we have been positioned as a Leader in the IDC MarketScape: Worldwide Network Detection and Response 2024 Vendor Assessment. We believe this further highlights Darktrace’s position as a pioneer in the NDR market and follows similar recognition from KuppingerCole, who recently named Darktrace as an Overall Leader, Product Leader, Market Leader and Innovation Leader in the KuppingerCole Leadership Compass: Network Detection and Response (2024).

Network Detection and Response (NDR) solutions are uniquely positioned to provide visibility over the core hub of a business and employee activity, analyzing North-South and East-West traffic to identify threats across the modern network. NDR provides a rich and true source of anomalies and goes beyond process level data that is relied on by Endpoint Detection and Response (EDR) agents that do not provide network level visibility and can be misconfigured at any time.1

Metadata from network traffic can be used to detect a variety of different threats based on events such as anomalous port usage, unusual upload/download activity, impossible travel and many other activities. This has been accelerated by the increased usage of user behavioral analytics (UBA) in network security, which establishes statistical baselines about network entities and highlights deviations from expected activity.1

Darktrace is recognized as a Leader in the IDC MarketScape due to our leadership in the market and our pioneering leadership in AI over the past decade, alongside a variety of other unique differentiators and innovations in the NDR industry.

Darktrace / NETWORK™ delivers full visibility, real time threat detection and Autonomous Response capabilities across an organization’s on-premises, cloud, hybrid and virtual environments, including remote worker endpoints.

Unique Approach to AI

Most NDR vendors and network security tools such as IDS/IPS rely on detecting known attacks with historical data and supervised machine learning, leaving organizations blind and vulnerable to novel threats such as zero-days, variants of known attacks, supply chain attacks and insider threats.

These vendors also tend to apply AI models that are trained globally, and are not unique to each organization’s environment, which creates a high number of false positives and alerts that ultimately lack business context.

The IDC MarketScape recognizes that Darktrace takes a differentiated approach in the market with regards to delivering network detection and response capabilities, noting; “Darktrace is unique in that it does not rely on rules and signatures but rather learns what constitutes as normal for an organization and generates alerts when there is a deviation.”1

Darktrace / NETWORK achieves this through the use of Self-Learning AI and unsupervised machine learning to understand what is normal network behavior, continuously analyzing, mapping and modeling every connection to create a full picture of devices, identities, connections and potential attack paths. Darktrace Self-Learning AI autonomously optimizes itself to cut through the noise and quickly surface genuine, prioritized network security incidents – significantly reducing false positives and removing the hassle of needing to continually tuning alerts manually.

Darktrace’s unique approach to AI also extends to the investigation and triage of network alerts with Cyber AI Analyst. Unlike a chat or prompt based LLM, Cyber AI Analyst investigates all relevant alerts in an environment, including third party alerts, autonomously forming hypotheses and reaching conclusions just like a human analyst would, accelerating SOC Level 2 analyses of incidents by 10x. Cyber AI Analyst also typically providing SOC teams with up to 50,000 additional hours annually of Level 2 analysis producing high level alerts and written reporting, transforming security operations.2

Darktrace also uses its deep understanding of what is normal for a network to identify suspicious behavior, leveraging Autonomous Response capabilities to shut down both known and novel threats in real time, taking targeted actions without disrupting business operations. Darktrace / NETWORK is the only NDR solution that can autonomously enforce a pattern of life based on what is normal for a standalone device or group of peers, rapidly containing and disarming threats based on the overall context of the environment and a granular understanding of what is normal for a device or user – instead of relying on historical attack data.

Continued NDR Market Leadership

Darktrace has been recognized as a Leader in the NDR market, and the IDC MarketScape listed a variety of strengths:

  • Darktrace achieves roughly one-fifth of all global NDR revenue. This is important because other IT and cybersecurity solutions providers necessarily want to have integration with Darktrace.
  • The AI algorithms that Darktrace uses for NDR have had 10 years of deployments, tuning, and learning to draw from.
  • Darktrace is available as a SaaS, as an enterprise license, and as physical, hybrid, or virtual appliances. Darktrace also offers an endpoint agent and visibility into VPN and ZTNA.
  • Darktrace integrates with 30+ different interfaces including SIEM, SOAR, XDR platforms, IT ticketing solutions, and their own dashboards. The Darktrace Threat Visualizer highlights events and incidents from the entire deployment including cloud, apps, email, endpoint, zero trust, network, and OT.
  • Darktrace / NETWORK charts the progress that the SOC is making over time with key metrics such as MTTD/MTTR, alerts generated and processed, and other criteria.
  • Darktrace reported coverage of 14 MITRE ATT&CK categories, 158 techniques, and 184 subtechniques

Proactive Network Resilience

The IDC MarketScape notes, “Ultimately, NDR shines as a standalone detection and response technology but is especially powerful when combined with other platforms. NDR in combination with other control points such as endpoint, data, identity, and application provides the proper context when winnowing alerts and trying to uncover a single source of truth.” . Darktrace comprehensively addresses this as part of the ActiveAI Security Platform, by combining network alerts with data from / EMAIL, / IDENTITY, / ENDPOINT, / CLOUD and / OT, providing deeper contextual analysis for each network alert and automatically enriching investigations.

Darktrace also goes beyond NDR solutions with capabilities that are closely linked to our NDR offering, helping clients to achieve and maintain a state of proactive network resilience:

  • Darktrace / Proactive Exposure Management – look beyond just CVE risks to discover, prioritize and validate risks by business impact and how to address them early, reducing the number of real threats that security teams need to handle.
  • Darktrace / Incident Readiness & Recovery – lets teams respond in the best way to each incident and proactively test their familiarity and effectiveness of IR workflows with sophisticated incident simulations based on their own analysts and assets.

Together, these solutions allow Darktrace / NETWORK to go beyond the traditional approach to NDR and shift teams to a more hardened and proactive stance.

Protecting Clients with Continued Innovation

Darktrace invests heavily in Research and Development to continue providing customers with market-leading NDR capabilities and innovations, which was reflected in our position in the Leader category of the MarketScape report for both capabilities and strategy. We are led by the needs and challenges of our customers, which serve as the driving force behind our continued innovation and leadership in the NDR market. The IDC MarketScape report underlines this approach with the following feedback presented by Darktrace customers:

“A customer intimated that 99% of their detections were OOTB with little need to tune or define parameters.”
“A customer reported that it had early warnings for adversarial tactics such as suspicious SMB scanning, suspicious remote execution, remote desktop protocol (RDP) scanning, data exfiltration, C2C, LDAP query, and suspicious Kerberos activity.”
“The client could use Regex to determine if suspicious behavior was found elsewhere on the network.”

Thousands of customers around the world across all industries and sectors rely on Darktrace / NETWORK to protect against known and novel threats. From the latest vulnerabilities in network hardware to sophisticated new strains of ransomware and everything in-between, Darktrace helps clients detect and respond to all types of threats affecting their networks and avoid business disruption, even from the latest attacks.

Find out more about the unique capabilities of Darktrace / NETWORK and our application of AI in network security in the IDC MarketScape excerpt.

References

  1. IDC MarketScape: Worldwide Network Detection and Response 2024 Vendor Assessment (Doc #US51752324, November 2024)
  2. Darktrace Cyber AI Analyst Customer Fleet Data
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About the author
Mikey Anderson
Product Manager, Network Detection & Response
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