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November 6, 2023

How PlugX Malware Has Evolved & Adapted

Discover how Darktrace effectively detected and thwarted the PlugX remote access trojan in 2023 despite its highly evasive and adaptive nature.
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
Nahisha Nobregas
SOC Analyst
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06
Nov 2023

What is PlugX Remote Access Trojan?

Understanding remote access trojans (RATs)

As malicious actors across the threat landscape continue to pursue more efficient and effective ways of compromising target networks, all while remaining undetected by security measures, it is unsurprising to see an increase in the use of remote access trojans (RATs) in recent years. RATs typically operate stealthily, evading security tools while offering threat actors remote control over infected devices, allowing attackers to execute a wide range of malicious activities like data theft or installing additional malware.

Definition and general functionality of RATs: A Remote Access Trojan (RAT) is a type of malware that enables unauthorized remote control of an infected computer. Once installed, RATs allow attackers to monitor user activities, steal sensitive information, manipulate files, and execute commands. RATs are typically distributed via phishing emails, malicious attachments, drive-by downloads, or exploiting software vulnerabilities. Due to their ability to provide comprehensive control over a compromised system, RATs pose a significant security threat to individuals and organizations.

Historical overview of PlugX

PlugX is one such example of a RAT that has attributed to Chinese threat actors such as Mustang Panda, since it first appeared in the wild back in 2008. It is known for its use in espionage, a modular and plug-in style approach to malware development. It has the ability to evolve with the latest tactics, techniques, and procedures (TTPs) that allow it to avoid the detection of traditional security tools as it implants itself target devices.

How does PlugX work?

The ultimate goal of any RAT is to remotely control affected devices with a wide range of capabilities, which in PlugX’s case has typically included rebooting systems, keylogging, managing critical system processes, and file upload/downloads. One technique PlugX heavily relies on is dynamic-link library (DLL) sideloading to infiltrate devices. This technique involves executing a malicious payload that is embedded within a benign executable found in a data link library (DLL) [1]. The embedded payload within the DLL is often encrypted or obfuscated to prevent detection.

What’s more, a new variant of PlugX was observed in the wild across Papua New Guinea, Ghana, Mongolia, Zimbabwe, and Nigeria in August 2022, that added several new capabilities to its toolbox.

Key capabilities of PlugX

The new variation is reported to continuously monitor affected environments for new USB devices to infect, allowing it to spread further through compromised networks [2]. It is then able to hide malicious files within a USB device by using a novel technique that prevents them from being viewed on Windows operating systems (OS). These hidden files can only be viewed on a Unix-like (.nix) OS, or by analyzing an affected USB devices with a forensic tool [2]. The new PlugX variant also has the ability to create a hidden directory, “RECYCLER.BIN”, containing a collection of stolen documents, likely in preparation for exfiltration via its command and control (C2) channels. [3]

Since December 2022, PlugX has been observed targeting networks in Europe through malware delivery via HTML smuggling campaigns, a technique that has been dubbed SmugX [4].

This evasive tactic allows threat actors to prepare and deploy malware via phishing campaigns by exploiting legitimate HTML5 and JavaScript features [5].

Darktrace Coverage of PlugX

Between January and March 2023, Darktrace observed activity relating to the PlugX RAT on multiple customers across the fleet. While PlugX’s TTPs may have bypassed traditional security tools, the anomaly-based detection capabilities of Darktrace allowed it to identify and alert the subtle deviations in the behavior of affected devices, while Darktrace was able to take immediate mitigative action against such anomalous activity and stop attackers in their tracks.  

C2 Communication

Between January and March 2023, Darktrace detected multiple suspicious connections related to the PlugX RAT within customer environments. When a device has been infected, it will typically communicate through C2 infrastructure established for the PlugX RAT. In most cases observed by Darktrace, affected devices exhibited suspicious C2 connections to rare endpoints that were assessed with moderate to high confidence to be linked to PlugX.

On the network of one Darktrace customer the observed communication was a mix of successful and unsuccessful connections at a high volume to rare endpoints on ports such as 110, 443, 5938, and 80. These ports are commonly associated with POP3, HTTPS, TeamViewer RDP / DynGate, and HTTP, respectively.  Figure 1 below showcases this pattern of activity.

Figure 1: Model Breach Event Log demonstrating various successful and unsuccessful connections to the PlugX C2 endpoint 103.56.53[.]46 via various destination ports.

On another customer’s network, Darktrace observed C2 communication involving multiple failed connection attempts to another rare external endpoint associated with PlugX. The device in this case was detected attempting connections to the endpoint, 45.142.166[.]112 on ports 110, 80, and 443 which caused the DETECT model ‘Anomalous Connection / Multiple Failed Connections to Rare Endpoint’ to breach. This model examines devices attempting connections to a rare external endpoint over a short period of time, and it breached in response to almost all PlugX C2 related activity detected by Darktrace. This highlights Darktrace DETECT’s unique ability to identify anomalous activity which appears benign or uncertain, rather than relying on traditional signature-based detections.

Figure 2: Device Event Log demonstrating various successful and unsuccessful connections to the PlugX C2 endpoint 45.142.166[.]112 via various destination on January 27, 2023.

New User Agent

Darktrace's Self-Learning AI approach to threat detection also allowed it to recognize connections to PlugX associated endpoints that utilized a new user agent. In almost all connections to PlugX endpoints detected by Darktrace, the same user agent, Mozilla/5.0 (Windows NT 10.0;Win64;x64)AppleWebKit/537.36, was observed, illustrating a clear pattern in PlugX-related activity

In one example from February 2023, an affected device successfully connected to an endpoint associated with PlugX, 45.142.166[.]112, while using the aforementioned new user agent, as depicted in Figure 3.

Figure 3: The Device Event log above showcases a successful connection to the PlugX associated IP address, 45.142.166[.]112 using the new user agent ‘Mozilla/5.0 (Windows NT 10.0;Win64;x64)AppleWebKit/537.36’.

On March 21, 2023, Darktrace observed similar activity on a separate customer’s network affected by connections to PlugX. This activity included connections to the same endpoint, 45.142.166[.]112. The connection was an HTTP POST request made via proxy with the same new user agent, ‘Mozilla/5.0 (Windows NT 10.0;Win64;x64)AppleWebKit/537.36’. When investigated further this user agent actually reveals very little about itself and appears to be missing a couple of common features that are typically contained in a user agent string, such as a web browser and its version or the mention of Safari before its build ID (‘537.36’).

Additionally, for this connection the URI observed consisted of a random string of 8 hexadecimal characters, namely ‘d819f07a’. This is a technique often used by malware to communicate with its C2 servers, while evading the detection of signature-based detection tools. Darktrace, however, recognized that this external connection to an endpoint with no hostname constituted anomalous behavior, and could have been indicative of a threat actor communicating with malicious infrastructure, thus the ‘Anomalous Connection / Possible Callback URI’ model was breached.

Figure 4: An affected device was detected using the new user agent, ‘Mozilla/5.0 (Windows NT 10.0;Win64;x64)AppleWebKit/537.36’ while connecting to the rare external endpoint 45.142.166[.]112 via proxy.

Numeric File Download

Darktrace’s detection of PlugX activity on another customer’s network, in February 2023, helped to demonstrate related patterns of activity within the C2 communication and tooling attack phases. Observed PlugX activity on this network followed the subsequent pattern; a connection to a PlugX endpoints is made, followed by a HTTP POST request to a numeric URI with a random string of 8 hexadecimal characters, as previously highlighted. Darktrace identified that this activity represented unusual ‘New Activity’ for this device, and thus treated it with suspicion.

Figure 5: New activity was identified by Darktrace in the Device Event Log shown above for connections to the endpoint 45.142.166[.]112 followed by HTTP POSTs to URIs “/8891431c” and “/ba12b866” on February 15, 2023.

The device in question continued to connect to the endpoint and make HTTP POST connections to various URIs relating to PlugX. Additionally, the user agent `Mozilla/5.0 (Windows NT 10.0;Win64;x64)AppleWebKit/537.36` was again detected for these connections. Figure 6 details the activity captured by Darktrace’s Cyber AI Analyst.

Figure 6: The image above showcases activity captured by Darktrace’s AI Analyst for PlugX connections made on February 15, 2023.

Darktrace detected that during these connections, the device in question attempted to download a suspicious file named only with numbers. The use of numeric file names is a technique often used by threat actors to obfuscate the download of malicious files or programs and bypass traditional security tools. Darktrace understood that the download of a numeric file, coupled with the use of an anomalous new user agent, mean the incident should be treated with suspicion. Fortunately, Darktrace RESPOND was enabled in autonomous response mode during this attack, meaning it was able to automatically block the device from downloading the file, or any other files, from the suspicious external location for a two-hour period, potentially preventing the download of PlugX’s malicious tooling.

Conclusion

Amid the continued evolution of PlugX from an espionage tool to a more widely available malware, it is essential that threat detection does not rely on a set of characteristics or indicators, but rather is focused on anomalies. Throughout these cases, Darktrace demonstrated the efficacy of its detection and alerting on emerging activity pertaining to a particularly stealthy and versatile RAT. Over the years, PlugX has continually looked to evolve and survive in the ever-changing threat landscape by adapting new capabilities and TTPs through which it can infect a system and spread to new devices without being noticed by security teams and their tools.

However, Darktrace’s Self-Learning AI allows it to gain a strong understanding of customer networks, learning what constitutes expected network behavior which in turn allows it to recognize the subtle deviations indicative of an ongoing compromise.

Darktrace’s ability to identify emerging threats through anomaly-based detection, rather than relying on established threat intelligence, uniquely positions it to detect and respond to highly adaptable and dynamic threats, like the PlugX malware, regardless of how it may evolve in the future.

Credit to: Nahisha Nobregas, SOC Analyst & Dylan Hinz, Cyber Analyst

Appendices

MITRE ATT&CK Framework

Execution

  • T1059.003 Command and Scripting Interpreter: Windows Command Shell

Persistence and Privilege Escalation

  • T1547.001 Boot or Logon AutoStart Execution: Registry Run Keys / Startup Folder
  • T1574.001 Hijack Execution Flow: DLL Search Order Hijacking
  • T1574.002 Hijack Execution Flow: DLL Side-Loading
  • T1543.003 Create or Modify System Process: Windows Service
  • T1140 Deobfuscate / Decode Files or Information
  • T1083 File and Directory Discovery

Defense Evasion

  • T1564.001 Hide Artifacts: Hidden Files and Directories
  • T1036.004 Masquerading: Task or Service
  • T1036.005 Masquerading: Match Legitimate Name or Location
  • T1027.006 Obfuscated Files or Information: HTML Smuggling

Credential Access

  • T1056.001 Input Capture: Keylogging

Collection

  • T1105 Ingress Tool Transfer

Command and Control

  • T1573.001 Encrypted Channel: Symmetric Cryptography
  • T1070.003 Mail Protocols
  • T1071.001 Web Protocol

DETECT Model Breaches

  • Anomalous Connection / Multiple Failed Connections to Rare Endpoint
  • Anomalous Connection / New User Agent to IP Without Hostname
  • Anomalous File / New User Agent Followed By Numeric File Download
  • Anomalous Connection / Possible Callback URL

Indicators of Compromise (IoCs)

IoC - Type - Description + Confidence

45.142.166[.]112 - IP - PlugX C2 Endpoint / moderate - high

103.56.53[.]46 - IP - PlugX C2 Endpoint / moderate - high

Mozilla/5.0 (Windows NT 10.0;Win64;x64)AppleWebKit/537.36 - User Agent - PlugX User Agent / moderate – high

/8891431c - URI - PlugX URI / moderate-high

/ba12b866 - URI - PlugX URI / moderate -high

References

1. https://www.crowdstrike.com/blog/dll-side-loading-how-to-combat-threat-actor-evasion-techniques/

2. https://unit42.paloaltonetworks.com/plugx-variants-in-usbs/

3. https://news.sophos.com/en-us/2023/03/09/border-hopping-plugx-usb-worm/

4. https://thehackernews.com/2023/07/chinese-hackers-use-html-smuggling-to.html

5. https://www.cyfirma.com/outofband/html-smuggling-a-stealthier-approach-to-deliver-malware/

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
Nahisha Nobregas
SOC Analyst

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May 2, 2025

SocGholish: From loader and C2 activity to RansomHub deployment

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Over the past year, a clear pattern has emerged across the threat landscape: ransomware operations are increasingly relying on compartmentalized affiliate models. In these models, initial access brokers (IABs) [6], malware loaders, and post-exploitation operators work together.

Due to those specialization roles, a new generation of loader campaigns has risen. Threat actors increasingly employ loader operators to quietly establish footholds on the target network. These entities then hand off access to ransomware affiliates. One loader that continues to feature prominently in such campaigns is SocGholish.

What is SocGholish?

SocGholish is a loader malware that has been utilized since at least 2017 [7].  It has long been associated with fake browser updates and JavaScript-based delivery methods on infected websites.

Threat actors often target outdated or poorly secured CMS-based websites like WordPress. Through unpatched plugins, or even remote code execution flaws, they inject malicious JavaScript into the site’s HTML, templates or external JS resources [8].  Historically, SocGholish has functioned as a first-stage malware loader, ultimately leading to deployment of Cobalt Strike beacons [9], and further facilitating access persistence to corporate environments. More recently, multiple security vendors have reported that infections involving SocGholish frequently lead to the deployment of RansomHub ransomware [3] [5].

This blog explores multiple instances within Darktrace's customer base where SocGholish deployment led to subsequent network compromises. Investigations revealed indicators of compromise (IoCs) similar to those identified by external security researchers, along with variations in attacker behavior post-deployment. Key innovations in post-compromise activities include credential access tactics targeting authentication mechanisms, particularly through the abuse of legacy protocols like WebDAV and SCF file interactions over SMB.

Initial access and execution

Since January 2025, Darktrace’s Threat Research team observed multiple cases in which threat actors leveraged the SocGholish loader for initial access. Malicious actors commonly deliver SocGholish by compromising legitimate websites by injecting malicious scripts into the HTML of the affected site. When the visitor lands on an infected site, they are typically redirected to a fake browser update page, tricking them into downloading a ZIP file containing a JavaScript-based loader [1] [2]. In one case, a targeted user appears to have visited the compromised website garagebevents[.]com (IP: 35.203.175[.]30), from which around 10 MB of data was downloaded.

Device Event Log showing connections to the compromised website, following by connections to the identified Keitaro TDS instances.
Figure 1: Device Event Log showing connections to the compromised website, following by connections to the identified Keitaro TDS instances.

Within milliseconds of the connection establishment, the user’s device initiated several HTTPS sessions over the destination port 443 to the external endpoint 176.53.147[.]97, linked to the following Keitaro TDS domains:

  • packedbrick[.]com
  • rednosehorse[.]com
  • blackshelter[.]org
  • blacksaltys[.]com

To evade detection, SocGholish uses highly obfuscated code and relies on traffic distribution systems (TDS) [3].  TDS is a tool used in digital and affiliate marketing to manage and distribute incoming web traffic based on predefined rules. More specifically, Keitaro is a premium self-hosted TDS frequently utilized by attackers as a payload repository for malicious scripts following redirects from compromised sites. In the previously noted example, it appears that the device connected to the compromised website, which then retrieved JavaScript code from the aforementioned Keitaro TDS domains. The script served by those instances led to connections to the endpoint virtual.urban-orthodontics[.]com (IP: 185.76.79[.]50), successfully completing SocGholish’s distribution.

Advanced Search showing connections to the compromised website, following by those to the identified Keitaro TDS instances.
Figure 2: Advanced Search showing connections to the compromised website, following by those to the identified Keitaro TDS instances.

Persistence

During some investigations, Darktrace researchers observed compromised devices initiating HTTPS connections to the endpoint files.pythonhosted[.]org (IP: 151.101.1[.]223), suggesting Python package downloads. External researchers have previously noted how attackers use Python-based backdoors to maintain access on compromised endpoints following initial access via SocGholish [5].

Credential access and lateral movement

Credential access – external

Darktrace researchers identified observed some variation in kill chain activities following initial access and foothold establishment. For example, Darktrace detected interesting variations in credential access techniques. In one such case, an affected device attempted to contact the rare external endpoint 161.35.56[.]33 using the Web Distributed Authoring and Versioning (WebDAV) protocol. WebDAV is an extension of the HTTP protocol that allows users to collaboratively edit and manage files on remote web servers. WebDAV enables remote shares to be mounted over HTTP or HTTPS, similar to how SMB operates, but using web-based protocols. Windows supports WebDAV natively, which means a UNC path pointing to an HTTP or HTTPS resource can trigger system-level behavior such as authentication.

In this specific case, the system initiated outbound connections using the ‘Microsoft-WebDAV-MiniRedir/10.0.19045’ user-agent, targeting the URI path of /s on the external endpoint 161.35.56[.]33. During these requests, the host attempted to initiate NTML authentication and even SMB sessions over the web, both of which failed. Despite the session failures, these attempts also indicate a form of forced authentication. Forced authentication exploits a default behavior in Windows where, upon encountering a UNC path, the system will automatically try to authenticate to the resource using NTML – often without any user interaction. Although no files were directly retrieved, the WebDAV server was still likely able to retrieve the user’s NTLM hash during the session establishment requests, which can later be used by the adversary to crack the password offline.

Credential access – internal

In another investigated incident, Darktrace observed a related technique utilized for credential access and lateral movement. This time, the infected host uploaded a file named ‘Thumbs.scf’ to multiple internal SMB network shares. Shell Command File ( SCF) is a legacy Windows file format used primarily for Windows Explorer shortcuts. These files contain instructions for rendering icons or triggering shell commands, and they can be executed implicitly when a user simply opens a folder containing the file – no clicks required.

The ‘Thumbs.scf’ file dropped by the attacker was crafted to exploit this behavior. Its contents included a [Shell] section with the Command=2 directive and an IconFile path pointing to a remote UNC resource on the same external endpoint, 161.35.56[.]33, seen in the previously described case – specifically, ‘\\161.35.56[.]33\share\icon.ico’. When a user on the internal network navigates to the folder containing the SCF file, their system will automatically attempt to load the icon. In doing so, the system issues a request to the specified UNC path, which again prompts Windows to initiate NTML authentication.

This pattern of activity implies that the attacker leveraged passive internal exposure; users who simply browsed a compromised share would unknowingly send their NTML hashes to an external attacker-controlled host. Unlike the WebDAV approach, which required initiating outbound communication from the infected host, this SCF method relies on internal users to interact with poisoned folders.

Figure 3: Contents of the file 'Thumbs.scf' showing the UNC resource hosted on the external endpoint.
Figure 3: Contents of the file 'Thumbs.scf' showing the UNC resource hosted on the external endpoint.

Command-and-control

Following initial compromise, affected devices would then attempt outbound connections using the TLS/SSL protocol over port 443 to different sets of command-and-control (C2) infrastructure associated with SocGholish. The malware frequently uses obfuscated JavaScript loaders to initiate its infection chain, and once dropped, the malware communicates back to its infrastructure over standard web protocols, typically using HTTPS over port 443. However, this set of connections would precede a second set of outbound connections, this time to infrastructure linked to RansomHub affiliates, possibly facilitating the deployed Python-based backdoor.

Connectivity to RansomHub infrastructure relied on defense evasion tactics, such as port-hopping. The idea behind port-hopping is to disguise C2 traffic by avoiding consistent patterns that might be caught by firewalls, and intrusion detection systems. By cycling through ephemeral ports, the malware increases its chances of slipping past basic egress filtering or network monitoring rules that only scrutinize common web traffic ports like 443 or 80. Darktrace analysts identified systems connecting to destination ports such as 2308, 2311, 2313 and more – all on the same destination IP address associated with the RansomHub C2 environment.

Figure 4: Advanced Search connection logs showing connections over destination ports that change rapidly.

Conclusion

Since the beginning of 2025, Darktrace analysts identified a campaign whereby ransomware affiliates leveraged SocGholish to establish network access in victim environments. This activity enabled multiple sets of different post exploitation activity. Credential access played a key role, with affiliates abusing WebDAV and NTML over SMB to trigger authentication attempts. The attackers were also able to plant SCF files internally to expose NTML hashes from users browsing shared folders. These techniques evidently point to deliberate efforts at early lateral movement and foothold expansion before deploying ransomware. As ransomware groups continue to refine their playbooks and work more closely with sophisticated loaders, it becomes critical to track not just who is involved, but how access is being established, expanded, and weaponized.

Credit to Chrisina Kreza (Cyber Analyst) and Adam Potter (Senior Cyber Analyst)

Appendices

Darktrace / NETWORK model alerts

·       Anomalous Connection / SMB Enumeration

·       Anomalous Connection / Multiple Connections to New External TCP Port

·       Anomalous Connection / Multiple Failed Connections to Rare Endpoint

·       Anomalous Connection / New User Agent to IP Without Hostname

·       Compliance / External Windows Communication

·       Compliance / SMB Drive Write

·       Compromise / Large DNS Volume for Suspicious Domain

·       Compromise / Large Number of Suspicious Failed Connections

·       Device / Anonymous NTML Logins

·       Device / External Network Scan

·       Device / New or Uncommon SMB Named Pipe

·       Device / SMB Lateral Movement

·       Device / Suspicious SMB Activity

·       Unusual Activity / Unusual External Activity

·       User / Kerberos Username Brute Force

MITRE ATT&CK mapping

·       Credential Access – T1187 Forced Authentication

·       Credential Access – T1110 Brute Force

·       Command and Control – T1071.001 Web Protocols

·       Command and Control – T1571 Non-Standard Port

·       Discovery – T1083 File and Directory Discovery

·       Discovery – T1018 Remote System Discovery

·       Discovery – T1046 Network Service Discovery

·       Discovery – T1135 Network Share Discovery

·       Execution – T1059.007 JavaScript

·       Lateral Movement – T1021.002 SMB/Windows Admin Shares

·       Resource Deployment – T1608.004 Drive-By Target

List of indicators of compromise (IoCs)

·       garagebevents[.]com – 35.203.175[.]30 – Possibly compromised website

·       packedbrick[.]com – 176.53.147[.]97 – Keitaro TDS Domains used for SocGholish Delivery

·       rednosehorse[.]com – 176.53.147[.]97 – Keitaro TDS Domains used for SocGholish Delivery

·       blackshelter[.]org – 176.53.147[.]97 – Keitaro TDS Domains used for SocGholish Delivery

·       blacksaltys[.]com – 176.53.147[.]97 – Keitaro TDS Domains used for SocGholish Delivery

·       virtual.urban-orthodontics[.]com – 185.76.79[.]50

·       msbdz.crm.bestintownpro[.]com – 166.88.182[.]126 – SocGholish C2

·       185.174.101[.]240 – RansomHub Python C2

·       185.174.101[.]69 – RansomHub Python C2

·       108.181.182[.]143 – RansomHub Python C2

References

[1] https://www.checkpoint.com/cyber-hub/threat-prevention/what-is-malware/socgholish-malware/

[2] https://intel471.com/blog/threat-hunting-case-study-socgholish

[3] https://www.trendmicro.com/en_us/research/25/c/socgholishs-intrusion-techniques-facilitate-distribution-of-rans.html

[4] https://www.proofpoint.com/us/blog/threat-insight/update-fake-updates-two-new-actors-and-new-mac-malware

[5] https://www.guidepointsecurity.com/blog/ransomhub-affiliate-leverage-python-based-backdoor/

[6] https://www.cybereason.com/blog/how-do-initial-access-brokers-enable-ransomware-attacks

[7] https://attack.mitre.org/software/S1124/

[8] https://expel.com/blog/incident-report-spotting-socgholish-wordpress-injection/

[9] https://www.esentire.com/blog/socgholish-to-cobalt-strike-in-10-minutes

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About the author
Christina Kreza
Cyber Analyst

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May 1, 2025

Your Vendors, Your Risk: Rethinking Third-Party Security in the Age of Supply Chain Attacks

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When most people hear the term supply chain attack, they often imagine a simple scenario: one organization is compromised, and that compromise is used as a springboard to attack another. This kind of lateral movement is common, and often the entry vector is as mundane and as dangerous as email.

Take, for instance, a situation where a trusted third-party vendor is breached. An attacker who gains access to their systems can then send malicious emails to your organization, emails that appear to come from a known and reputable source. Because the relationship is trusted, traditional phishing defenses may not be triggered, and recipients may be more inclined to engage with malicious content. From there, the attacker can establish a foothold, move laterally, escalate privileges, and launch a broader campaign.

This is one dimension of a supply chain cyber-attack, and it’s well understood in many security circles. But the risk doesn’t end there. In fact, it goes deeper, and it often hits the most important asset of all: your customers' data.

The risk beyond the inbox

What happens when customer data is shared with a third party for legitimate processing purposes for example billing, analytics, or customer service and that third party is then compromised?

In that case, your customer data is breached, even if your own systems were never touched. That’s the uncomfortable truth about modern cybersecurity: your risk is no longer confined to your own infrastructure. Every entity you share data with becomes an extension of your attack surface. Thus, we should rethink how we perceive responsibility.

It’s tempting to think that securing our environment is our job, and securing their environment is theirs. But if a breach of their environment results in the exposure of our customers, the accountability and reputational damage fall squarely on our shoulders.

The illusion of boundaries

In an era where digital operations are inherently interconnected, the lines of responsibility can blur quickly. Legally and ethically, organizations are still responsible for the data they collect even if that data is processed, stored, or analyzed by a third party. A customer whose data is leaked because of a vendor breach will almost certainly hold the original brand responsible, not the third-party processor they never heard of.

This is particularly important for industries that rely on extensive outsourcing and platform integrations (SaaS platforms, marketing tools, CRMs, analytics platforms, payment processors). The list of third-party vendors with access to customer data grows year over year. Each integration adds convenience, but also risk.

Encryption isn’t a silver bullet

One of the most common safeguards used in these data flows is encryption. Encrypting customer data in transit is a smart and necessary step, but it’s far from enough. Once data reaches the destination system, it typically needs to be decrypted for use. And the moment it is decrypted, it becomes vulnerable to a variety of attacks like ransomware, data exfiltration, privilege escalation, and more.

In other words, the question isn’t just is the data secure in transit? The more important question is how is it protected once it arrives?

A checklist for organizations evaluating third-parties

Given these risks, what should responsible organizations do when they need to share customer data with third parties?

Start by treating third-party security as an extension of your own security program. Here are some foundational controls that can make a difference:

Due diligence before engagement: Evaluate third-party vendors based on their security posture before signing any contracts. What certifications do they hold? What frameworks do they follow? What is their incident response capability?

Contractual security clauses: Build in specific security requirements into vendor contracts. These can include requirements for encryption standards, access control policies, and data handling protocols.

Third-party security assessments: Require vendors to provide evidence of their security controls. Independent audits, penetration test results, and SOC 2 reports can all provide useful insights.

Ongoing monitoring and attestations: Security isn’t static. Make sure vendors provide regular security attestations and reports. Where possible, schedule periodic reviews or audits, especially for vendors handling sensitive data.

Minimization and segmentation: Don’t send more data than necessary. Data minimization limits the exposure in the event of a breach. Segmentation, both within your environment and within vendor access levels, can further reduce risk.

Incident response planning: Ensure you have a playbook for handling third-party incidents, and that vendors do as well. Coordination in the event of a breach should be clear and rapid.

The human factor: Customers and communication

There’s another angle to supply chain cyber-attacks that’s easy to overlook: the post-breach exploitation of public knowledge. When a breach involving customer data hits the news, it doesn’t take long for cybercriminals to jump on the opportunity.

Attackers can craft phishing emails that appear to be follow-ups from the affected organization: “Click here to reset your password,” “Confirm your details due to the breach,” etc.

A breach doesn’t just put customer data at risk it also opens the door to further fraud, identity theft, and financial loss through social engineering. This is why post-breach communication and phishing mitigation strategies are valuable components of an incident response strategy.

Securing what matters most

Ultimately, protecting against supply chain cyber-attacks isn’t just about safeguarding your own perimeter. It’s about defending the integrity of your customers’ data, wherever it goes. When customer data is entrusted to you, the duty of care doesn’t end at your firewall.

Relying on vendors to “do their part” is not enough. True due diligence means verifying, validating, and continuously monitoring those extended attack surfaces. It means designing controls that assume failure is possible, and planning accordingly.

In today’s threat landscape, cybersecurity is no longer just a technical discipline. It’s a trust-building exercise. Your customers expect you to protect their information, and rightly so. And when a supply chain attack happens, whether the breach originated with you or your partner, the damage lands in the same place: your brand, your customers, your responsibility.

[related-resource]

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About the author
Tony Jarvis
VP, Field CISO | Darktrace
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