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May 23, 2023

Darktrace’s Detection of a Hive Ransomware-as-Service

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23
May 2023
This blog investigates a new strain of ransomware, Hive, a ransomware-as-a-service. Darktrace was able to provide full visibility over the attacks.

Update: On January 26, 2023, the Hive ransomware group was dismantled and servers associated with the sale of the ransomware were taken offline following an investigation by the FBI, German law enforcement and the National Crime Agency (NCA). The activity detailed in this blog took place in 2022, whilst the group was still active.

RaaS in Cyber Security

The threat of ransomware continues to be a constant concern for security teams across the cyber threat landscape. With the growing popularity of Ransomware-as-a-Service (RaaS), it is becoming more and more accessible for even inexperienced would-be attackers. As a result of this low barrier to entry, the volume of ransomware attacks is expected to increase significantly.

What’s more, RaaS is a highly tailorable market in which buyers can choose from varied kits and features to use in their ransomware deployments meaning attacks will rarely behave the same. To effectively detect and safeguard against these differentiations, it is crucial to implement security measures that put the emphasis on detecting anomalies and focusing on deviations in expected behavior, rather than relying on depreciated indicators of compromise (IoC) lists or playbooks that focus on attack chains unable to keep pace with the increasing speed of ransomware evolution.

In early 2022, Darktrace DETECT/Network™ identified several instances of Hive ransomware on the networks of multiple customers. Using its anomaly-based detection, Darktrace was able to successfully detect the attacks and multiple stages of the kill chain, including command and control (C2) activity, lateral movement, data exfiltration, and ultimately data encryption and the writing of ransom notes.

Hive Ransomware 

Hive ransomware is a relatively new strain that was first observed in the wild in June 2021. It is known to target a variety of industries including healthcare, energy providers, and retailers, and has reportedly attacked over 1,500 organizations, collecting more than USD 100m in ransom payments [1].

Hive is distributed via a RaaS model where its developers update and maintain the code, in return for a percentage of the eventual ransom payment, while users (or affiliates) are given the tools to carry out attacks using a highly sophisticated and complex malware they would otherwise be unable to use. Hive uses typical tactics, techniques and procedures (TTPs) associated with ransomware, though they do vary depending on the Hive affiliate carrying out the attack.

In most cases a double extortion attack is carried out, whereby data is first exfiltrated and then encrypted before a ransom demand is made. This gives attackers extra leverage as victims are at risk of having their sensitive data leaked to the public on websites such as the ‘HiveLeaks’ TOR website.

Attack Timeline

Owing to the highly customizable nature of RaaS, the tactics and methods employed by Hive actors are expected to differ on a case-by-case basis. Nonetheless in the majority of Hive ransomware incidents identified on Darktrace customer environments, Darktrace DETECT observed the following general attack stages and features. This is possibly indicative of the attacks originating from the same threat actor(s) or from a widely sold batch with a particular configuration to a variety of actors.

Figure 1: A typical timeline of a Hive attack observed by Darktrace.

Initial Access 

Although Hive actors are known to gain initial access to networks through multiple different vectors, the two primary methods reported by security researchers are the exploitation of Microsoft Exchange vulnerabilities, or the distribution of phishing emails with malicious attachments [2][3].

In the early stages of one Hive ransomware attack observed on the network of a Darktrace customer, for example, Darktrace detected a device connecting to the rare external location 23.81.246[.]84, with a PowerShell user agent via HTTP. During this connection, the device attempted to download an executable file named “file.exe”. It is possible that the file was initially accessed and delivered via a phishing email; however, as Darktrace/Email was not enabled at the time of the attack, this was outside of Darktrace’s purview. Fortunately, the connection failed the proxy authentication was thus blocked as seen in the packet capture (PCAP) in Figure 2. 

Shortly after this attempted download, the same device started to receive a high volume of incoming SSL connections from a rare external endpoint, namely 146.70.87[.]132. Darktrace logged that this endpoint was using an SSL certificate signed by Go Daddy CA, an easily obtainable and accessible SSL certificate, and that the increase in incoming SSL connections from this endpoint was unusual behavior for this device. 

It is likely that this highly anomalous activity detected by Darktrace indicates when the ransomware attack began, likely initial payload download.  

Darktrace DETECT models:

  • Anomalous Connection / Powershell to Rare External
  • Anomalous Server Activity / New Internet Facing System
Figure 2: PCAP of the HTTP connection to the rare endpoint 23.81.246[.]84 showing the failed proxy authentication.

C2 Beaconing 

Following the successful initial access, Hive actors begin to establish their C2 infrastructure on infected networks through numerous connections to C2 servers, and the download of additional stagers. 

On customer networks infected by Hive ransomware, Darktrace identified devices initiating a high volume of connections to multiple rare endpoints. This very likely represented C2 beaconing to the attacker’s infrastructure. In one particular example, further open-source intelligence (OSINT) investigation revealed that these endpoints were associated with Cobalt Strike.

Darktrace DETECT models:

  • Anomalous Connection / Multiple Connections to New External TCP
  • Anomalous Server Activity / Anomalous External Activity from Critical Network Device
  • Compromise / High Volume of Connections with Beacon Score
  • Compromise / Sustained SSL or HTTP Increase
  • Compromise / Suspicious HTTP Beacons to Dotted Quad 
  • Compromise / SSL or HTTP Beacon
  • Device / Lateral Movement and C2 Activity

Internal Reconnaissance, Lateral Movement and Privilege Escalation

After C2 infrastructure has been established, Hive actors typically begin to uninstall antivirus products in an attempt to remain undetected on the network [3]. They also perform internal reconnaissance to look for vulnerabilities and open channels and attempt to move laterally throughout the network.

Amid the C2 connections, Darktrace was able to detect network scanning activity associated with the attack when a device on one customer network was observed initiating an unusually high volume of connections to other internal devices. A critical network device was also seen writing an executable file “mimikatz.exe” via SMB which appears to be the Mimikatz attack tool commonly used for credential harvesting. 

There were also several detections of lateral movement attempts via RDP and DCE-RPC where the attackers successfully authenticated using an “Administrator” credential. In one instance, a device was also observed performing ITaskScheduler activity. This service is used to remotely control tasks running on machines and is commonly observed as part of malicious lateral movement activity. Darktrace DETECT understood that the above activity represented a deviation from the devices’ normal pattern of behavior and the following models were breached:

Darktrace DETECT models:

  • Anomalous Connection / Anomalous DRSGetNCChanges Operation
  • Anomalous Connection / New or Uncommon Service Control
  • Anomalous Connection / Unusual Admin RDP Session
  • Anomalous Connection / Unusual SMB Version 1 Connectivity
  • Compliance / SMB Drive Write
  • Device / Anomalous ITaskScheduler Activity
  • Device / Attack and Recon Tools
  • Device / Attack and Recon Tools In SMB
  • Device / EXE Files Distributed to Multiple Devices
  • Device / Suspicious Network Scan Activity
  • Device / Increase in New RPC Services
  • User / New Admin Credentials on Server

Data Exfiltration

At this stage of the attack, Hive actors have been known to carry out data exfiltration activity on infected networks using a variety of different methods. The Cybersecurity & Infrastructure Security Agency (CISA) reported that “Hive actors exfiltrate data likely using a combination of Rclone and the cloud storage service Mega[.]nz” [4]. Darktrace DETECT identified an example of this when a device on one customer network was observed making HTTP connections to endpoints related to Mega, including “w.apa.mega.co[.]nz”, with the user agent “rclone/v1.57.0” with at least 3 GiB of data being transferred externally (Figure 3). The same device was also observed transferring at least 3.6 GiB of data via SSL to the rare external IP, 158.51.85[.]157.

Figure 3: A summary of a device’s external connections to multiple endpoints and the respective amounts of data exfiltrated to Mega storage endpoints.

In another case, a device was observed uploading over 16 GiB of data to a rare external endpoint 93.115.27[.]71 over SSH. The endpoint in question was seen in earlier beaconing activity suggesting that this was likely an exfiltration event. 

However, Hive ransomware, like any other RaaS kit, can differ greatly in its techniques and features, and it is important to note that data exfiltration may not always be present in a Hive ransomware attack. In one incident detected by Darktrace, there were no signs of any data leaving the customer environment, indicating data exfiltration was not part of the Hive actor’s objectives.

Darktrace DETECT models:

  • Anomalous Connection / Data Sent to Rare Domain
  • Anomalous Connection / Lots of New Connections
  • Anomalous Connection / Multiple HTTP POSTs to Rare Hostname
  • Anomalous Connection / Suspicious Self-Signed SSL
  • Anomalous Connection / Uncommon 1 GiB Outbound
  • Device / New User Agent and New IP
  • Unusual Activity / Unusual External Data to New Endpoints
  • Unusual Activity / Unusual External Data Transfer
  • Unusual Activity / Enhanced Unusual External Data Transfer

Ransomware Deployment

In the final stage of a typical Hive ransomware attack, the ransomware payload is deployed and begins to encrypt files on infected devices. On one customer network, Darktrace detected several devices connecting to domain controllers (DC) to read a file named “xxx.exe”. Several sources have linked this file name with the Hive ransomware payload [5].

In another example, Darktrace DETECT observed multiple devices downloading the executable files “nua64.exe” and “nua64.dll” from a rare external location, 194.156.90[.]25. OSINT investigation revealed that the files are associated with Hive ransomware.

Figure 4: Security vendor analysis of the malicious file hash [6] associated with Hive ransomware. 

Shortly after the download of this executable, multiple devices were observed performing an unusual amount of file encryption, appending randomly generated strings of characters to file extensions. 

Although it has been reported that earlier versions of Hive ransomware encrypted files with a “.hive” extension [7], Darktrace observed across multiple customers that encrypted files had extensions that were partially-randomized, but consistently 20 characters long, matching the regular expression “[a-zA-Z0-9\-\_]{8}[\-\_]{1}[A-Za-z0-9\-\_]{11}”.

Figure 5: Device Event Log showing SMB reads and writes of encrypted files with a randomly generated extension of 20 characters. 

Following the successful encryption of files, Hive proceeds to drop a ransom note, named “HOW_TO_DECRYPT.txt”, into each affected directory. Typically, the ransom note will contain a link to Hive’s “sales department” and, in the event that exfiltration took place, a link to the “HiveLeaks” site, where attackers threaten to publish exfiltrated data if their demands are not met (Figure 6).  In cases of Hive ransomware detected by Darktrace, multiple devices were observed attempting to contact “HiveLeaks” TOR domains, suggesting that endpoint users had followed links provided to them in ransom notes.

Figure 6: Sample of a Hive ransom note [4].

Examples of file extensions:

  • 36C-AT9-_wm82GvBoCPC
  • 36C-AT9--y6Z1G-RFHDT
  • 36C-AT9-_x2x7FctFJ_q
  • 36C-AT9-_zK16HRC3QiL
  • 8KAIgoDP-wkQ5gnYGhrd
  • kPemi_iF_11GRoa9vb29
  • kPemi_iF_0RERIS1m7x8
  • kPemi_iF_7u7e5zp6enp
  • kPemi_iF_y4u7pB3d3f3
  • U-9Xb0-k__T0U9NJPz-_
  • U-9Xb0-k_6SkA8Njo5pa
  • zm4RoSR1_5HMd_r4a5a9 

Darktrace DETECT models:

  • Anomalous Connection / SMB Enumeration
  • Anomalous Connection / Sustained MIME Type Conversion
  • Anomalous Connection / Unusual Admin SMB Session
  • Anomalous File / Internal / Additional Extension Appended to SMB File
  • Compliance / SMB Drive Write
  • Compromise / Ransomware / Suspicious SMB Activity
  • Compromise / Ransomware / Ransom or Offensive Words Written to SMB
  • Compromise / Ransomware / Possible Ransom Note Write
  • Compromise / High Priority Tor2Web
  • Compromise / Tor2Web
  • Device / EXE Files Distributed to Multiple Devices

Conclusion

As Hive ransomware attacks are carried out by different affiliates using varying deployment kits, the tactics employed tend to vary and new IoCs are regularly identified. Furthermore, in 2022 a new variant of Hive was written using the Rust programming language. This represented a major upgrade to Hive, improving its defense evasion techniques and making it even harder to detect [8]. 

Hive is just one of many RaaS offerings currently on the market, and this market is only expected to grow in usage and diversity of presentations.  As ransomware becomes more accessible and easier to deploy it is essential for organizations to adopt efficient security measures to identify ransomware at the earliest possible stage. 

Darktrace DETECT’s Self-Learning AI understands customer networks and learns the expected patterns of behavior across an organization’s digital estate. Using its anomaly-based detection Darktrace is able to identify emerging threats through the detection of unusual or unexpected behavior, without relying on rules and signatures, or known IoCs. 

Credit to: Emily Megan Lim, Cyber Analyst, Hyeongyung Yeom, Senior Cyber Analyst & Analyst Team Lead.

Appendices

MITRE AT&CK Mapping

Reconnaissance

T1595.001 – Scanning IP Blocks

T1595.002 – Vulnerability Scanning

Resource Development

T1583.006 – Web Services

Initial Access

T1078 – Valid Accounts

T1190 – Exploit Public-Facing Application

T1200 – Hardware Additions

Execution

T1053.005 – Scheduled Task

T1059.001 – PowerShell

Persistence/Privilege Escalation

T1053.005 – Scheduled Task

T1078 – Valid Accounts

Defense Evasion

T1078 – Valid Accounts

T1207 – Rogue Domain Controller

T1550.002 – Pass the Hash

Discovery

T1018 – Remote System Discovery

T1046 – Network Service Discovery

T1083 – File and Directory Discovery

T1135 – Network Share Discovery

Lateral Movement

T1021.001 – Remote Desktop Protocol

T1021.002 – SMB/Windows Admin Shares

T1021.003 – Distributed Component Object Model

T1080 – Taint Shared Content

T1210 – Exploitation of Remote Services

T1550.002 – Pass the Hash

T1570 – Lateral Tool Transfer

Collection

T1185 – Man in the Browser

Command and Control

T1001 – Data Obfuscation

T1071 – Application Layer Protocol

T1071.001 – Web Protocols

T1090.003 – Multi-hop proxy

T1095 – Non-Application Layer Protocol

T1102.003 – One-Way Communication

T1571 – Non-Standard Port

Exfiltration

T1041 – Exfiltration Over C2 Channel

T1567.002 – Exfiltration to Cloud Storage

Impact

T1486 – Data Encrypted for Impact

T1489 – Service Stop

List of IoCs 

23.81.246[.]84 - IP Address - Likely Malicious File Download Endpoint

146.70.87[.]132 - IP Address - Possible Ransomware Endpoint

5.199.162[.]220 - IP Address - C2 Endpoint

23.227.178[.]65 - IP Address - C2 Endpoint

46.166.161[.]68 - IP Address - C2 Endpoint

46.166.161[.]93 - IP Address - C2 Endpoint

93.115.25[.]139 - IP Address - C2 Endpoint

185.150.1117[.]189 - IP Address - C2 Endpoint

192.53.123[.]202 - IP Address - C2 Endpoint

209.133.223[.]164 - IP Address - Likely C2 Endpoint

cltrixworkspace1[.]com - Domain - C2 Endpoint

vpnupdaters[.]com - Domain - C2 Endpoint

93.115.27[.]71 - IP Address - Possible Exfiltration Endpoint

158.51.85[.]157 - IP Address - Possible Exfiltration Endpoint

w.api.mega.co[.]nz - Domain - Possible Exfiltration Endpoint

*.userstorage.mega.co[.]nz - Domain - Possible Exfiltration Endpoint

741cc67d2e75b6048e96db9d9e2e78bb9a327e87 - SHA1 Hash - Hive Ransomware File

2f9da37641b204ef2645661df9f075005e2295a5 - SHA1 Hash - Likely Hive Ransomware File

hiveleakdbtnp76ulyhi52eag6c6tyc3xw7ez7iqy6wc34gd2nekazyd[.]onion - TOR Domain - Likely Hive Endpoint

References

[1] https://www.justice.gov/opa/pr/us-department-justice-disrupts-hive-ransomware-variant

[2] https://www.varonis.com/blog/hive-ransomware-analysis

[3] https://www.trendmicro.com/vinfo/us/security/news/ransomware-spotlight/ransomware-spotlight-hive 

[4]https://www.cisa.gov/news-events/cybersecurity-advisories/aa22-321a

[5] https://www.trendmicro.com/en_us/research/22/c/nokoyawa-ransomware-possibly-related-to-hive-.html

[6] https://www.virustotal.com/gui/file/60f6a63e366e6729e97949622abd9de6d7988bba66f85a4ac8a52f99d3cb4764/detection

[7] https://heimdalsecurity.com/blog/what-is-hive-ransomware/

[8] https://www.microsoft.com/en-us/security/blog/2022/07/05/hive-ransomware-gets-upgrades-in-rust/ 

Inside the SOC
Darktrace cyber analysts are world-class experts in threat intelligence, threat hunting and incident response, and provide 24/7 SOC support to thousands of Darktrace customers around the globe. Inside the SOC is exclusively authored by these experts, providing analysis of cyber incidents and threat trends, based on real-world experience in the field.
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Emily Megan Lim
Cyber Analyst
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March 18, 2025

Survey findings: How is AI Impacting the SOC?

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There’s no question that AI is already impacting the SOC – augmenting, assisting, and filling the gaps left by staff and skills shortages. We surveyed over 1,500 cybersecurity professionals from around the world to uncover their attitudes to AI cybersecurity in 2025. Our findings revealed striking trends in how AI is changing the way security leaders think about hiring and SOC transformation. Download the full report for the big picture, available now.

Download the full report to explore these findings in depth

The AI-human conundrum

Let’s start with some context. As the cybersecurity sector has rapidly evolved to integrate AI into all elements of cyber defense, the pace of technological advancement is outstripping the development of necessary skills. Given the ongoing challenges in security operations, such as employee burnout, high turnover rates, and talent shortages, recruiting personnel to bridge these skills gaps remains an immense challenge in today’s landscape.

But here, our main findings on this topic seem to contradict each other.

There’s no question over the impact of AI-powered threats – nearly three-quarters (74%) agree that AI-powered threats now pose a significant challenge for their organization.  

When we look at how security leaders are defending against AI-powered threats, over 3 out of 5 (62%) see insufficient personnel to manage tools and alerts as the biggest barrier.  

Yet at the same time, increasing cyber security staff is at the bottom of the priority list for survey participants, with only 11% planning to increase cybersecurity staff in 2025 – less than in 2024. What 64% of stakeholders are committed to, however, is adding new AI-powered tools onto their existing security stacks.

The conclusion? Due to pressures around hiring, defensive AI is becoming integral to the SOC as a means of augmenting understaffed teams.

How is AI plugging skills shortages in the SOC?

As explored in our recent white paper, the CISO’s Guide to Navigating the Cybersecurity Skills Shortage, 71% of organizations report unfilled cybersecurity positions, leading to the estimation that less than 10% of alerts are thoroughly vetted. In this scenario, AI has become an essential multiplier to relieve the burden on security teams.

95% of respondents agree that AI-powered solutions can significantly improve the speed and efficiency of their defenses. But how?

The area security leaders expect defensive AI to have the biggest impact is on improving threat detection, followed by autonomous response to threats and identifying exploitable vulnerabilities.

Interestingly, the areas that participants ranked less highly (reducing alert fatigue and running phishing simulation), are the tasks that AI already does well and can therefore be used already to relieve the burden of manual, repetitive work on the SOC.

Different perspectives from different sides of the SOC

CISOs and SecOps teams aren’t necessarily aligned on the AI defense question – while CISOs tend to see it as a strategic game-changer, SecOps teams on the front lines may be more sceptical, wary of its real-world reliability and integration into workflows.  

From the data, we see that while less than a quarter of execs doubt that AI-powered solutions will block and automatically respond to AI threats, about half of SecOps aren’t convinced. And only 17% of CISOs lack confidence in the ability of their teams to implement and use AI-powered solutions, whereas over 40% those in the team doubt their own ability to do so.

This gap feeds into the enthusiasm that executives share about adding AI-driven tools into the stack, while day-to-day users of the tools are more interested in improving security awareness training and improving cybersecurity tool integration.

Levels of AI understanding in the SOC

AI is only as powerful as the people who use it, and levels of AI expertise in the SOC can make or break its real-world impact. If security leaders want to unlock AI’s full potential, they must bridge the knowledge gap—ensuring teams understand not just the different types of AI, but where it can be applied for maximum value.

Only 42% of security professionals are confident that they fully understand all the types of AI in their organization’s security stack.

This data varies between job roles – executives report higher levels of understanding (60% say they know exactly which types of AI are being used) than participants in other roles. Despite having a working knowledge of using the tools day-to-day, SecOps practitioners were more likely to report having a “reasonable understanding” of the types of AI in use in their organization (42%).  

Whether this reflects a general confidence in executives rather than technical proficiency it’s hard to say, but it speaks to the importance of AI-human collaboration – introducing AI tools for cybersecurity to plug the gaps in human teams will only be effective if security professionals are supported with the correct education and training.  

Download the full report to explore these findings in depth

The full report for Darktrace’s State of AI Cybersecurity is out now. Download the paper to dig deeper into these trends, and see how results differ by industry, region, organization size, and job title.  

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March 18, 2025

Darktrace's Detection of State-Linked ShadowPad Malware

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An integral part of cybersecurity is anomaly detection, which involves identifying unusual patterns or behaviors in network traffic that could indicate malicious activity, such as a cyber-based intrusion. However, attribution remains one of the ever present challenges in cybersecurity. Attribution involves the process of accurately identifying and tracing the source to a specific threat actor(s).

Given the complexity of digital networks and the sophistication of attackers who often use proxies or other methods to disguise their origin, pinpointing the exact source of a cyberattack is an arduous task. Threat actors can use proxy servers, botnets, sophisticated techniques, false flags, etc. Darktrace’s strategy is rooted in the belief that identifying behavioral anomalies is crucial for identifying both known and novel threat actor campaigns.

The ShadowPad cluster

Between July 2024 and November 2024, Darktrace observed a cluster of activity threads sharing notable similarities. The threads began with a malicious actor using compromised user credentials to log in to the target organization's Check Point Remote Access virtual private network (VPN) from an attacker-controlled, remote device named 'DESKTOP-O82ILGG'.  In one case, the IP from which the initial login was carried out was observed to be the ExpressVPN IP address, 194.5.83[.]25. After logging in, the actor gained access to service account credentials, likely via exploitation of an information disclosure vulnerability affecting Check Point Security Gateway devices. Recent reporting suggests this could represent exploitation of CVE-2024-24919 [27,28]. The actor then used these compromised service account credentials to move laterally over RDP and SMB, with files related to the modular backdoor, ShadowPad, being delivered to the  ‘C:\PerfLogs\’ directory of targeted internal systems. ShadowPad was seen communicating with its command-and-control (C2) infrastructure, 158.247.199[.]185 (dscriy.chtq[.]net), via both HTTPS traffic and DNS tunneling, with subdomains of the domain ‘cybaq.chtq[.]net’ being used in the compromised devices’ TXT DNS queries.

Darktrace’s Advanced Search data showing the VPN-connected device initiating RDP connections to a domain controller (DC). The device subsequently distributes likely ShadowPad-related payloads and makes DRSGetNCChanges requests to a second DC.
Figure 1: Darktrace’s Advanced Search data showing the VPN-connected device initiating RDP connections to a domain controller (DC). The device subsequently distributes likely ShadowPad-related payloads and makes DRSGetNCChanges requests to a second DC.
Event Log data showing a DC making DNS queries for subdomains of ‘cbaq.chtq[.]net’ to 158.247.199[.]185 after receiving SMB and RDP connections from the VPN-connected device, DESKTOP-O82ILGG.
Figure 2: Event Log data showing a DC making DNS queries for subdomains of ‘cbaq.chtq[.]net’ to 158.247.199[.]185 after receiving SMB and RDP connections from the VPN-connected device, DESKTOP-O82ILGG.

Darktrace observed these ShadowPad activity threads within the networks of European-based customers in the manufacturing and financial sectors.  One of these intrusions was followed a few months later by likely state-sponsored espionage activity, as detailed in the investigation of the year in Darktrace’s Annual Threat Report 2024.

Related ShadowPad activity

Additional cases of ShadowPad were observed across Darktrace’s customer base in 2024. In some cases, common C2 infrastructure with the cluster discussed above was observed, with dscriy.chtq[.]net and cybaq.chtq[.]net both involved; however, no other common features were identified. These ShadowPad infections were observed between April and November 2024, with customers across multiple regions and sectors affected.  Darktrace’s observations align with multiple other public reports that fit the timeframe of this campaign.

Darktrace has also observed other cases of ShadowPad without common infrastructure since September 2024, suggesting the use of this tool by additional threat actors.

The data theft thread

One of the Darktrace customers impacted by the ShadowPad cluster highlighted above was a European manufacturer. A distinct thread of activity occurred within this organization’s network several months after the ShadowPad intrusion, in October 2024.

The thread involved the internal distribution of highly masqueraded executable files via Sever Message Block (SMB) and WMI (Windows Management Instrumentation), the targeted collection of sensitive information from an internal server, and the exfiltration of collected information to a web of likely compromised sites. This observed thread of activity, therefore, consisted of three phrases: lateral movement, collection, and exfiltration.

The lateral movement phase began when an internal user device used an administrative credential to distribute files named ‘ProgramData\Oracle\java.log’ and 'ProgramData\Oracle\duxwfnfo' to the c$ share on another internal system.  

Darktrace model alert highlighting an SMB write of a file named ‘ProgramData\Oracle\java.log’ to the c$ share on another device.
Figure 3: Darktrace model alert highlighting an SMB write of a file named ‘ProgramData\Oracle\java.log’ to the c$ share on another device.

Over the next few days, Darktrace detected several other internal systems using administrative credentials to upload files with the following names to the c$ share on internal systems:

ProgramData\Adobe\ARM\webservices.dll

ProgramData\Adobe\ARM\wksprt.exe

ProgramData\Oracle\Java\wksprt.exe

ProgramData\Oracle\Java\webservices.dll

ProgramData\Microsoft\DRM\wksprt.exe

ProgramData\Microsoft\DRM\webservices.dll

ProgramData\Abletech\Client\webservices.dll

ProgramData\Abletech\Client\client.exe

ProgramData\Adobe\ARM\rzrmxrwfvp

ProgramData\3Dconnexion\3DxWare\3DxWare.exe

ProgramData\3Dconnexion\3DxWare\webservices.dll

ProgramData\IDMComp\UltraCompare\updater.exe

ProgramData\IDMComp\UltraCompare\webservices.dll

ProgramData\IDMComp\UltraCompare\imtrqjsaqmm

Cyber AI Analyst highlighting an SMB write of a file named ‘ProgramData\Adobe\ARM\webservices.dll’ to the c$ share on an internal system.
Figure 4: Cyber AI Analyst highlighting an SMB write of a file named ‘ProgramData\Adobe\ARM\webservices.dll’ to the c$ share on an internal system.

The threat actor appears to have abused the Microsoft RPC (MS-RPC) service, WMI, to execute distributed payloads, as evidenced by the ExecMethod requests to the IWbemServices RPC interface which immediately followed devices’ SMB uploads.  

Cyber AI Analyst data highlighting a thread of activity starting with an SMB data upload followed by ExecMethod requests.
Figure 5: Cyber AI Analyst data highlighting a thread of activity starting with an SMB data upload followed by ExecMethod requests.

Several of the devices involved in these lateral movement activities, both on the source and destination side, were subsequently seen using administrative credentials to download tens of GBs of sensitive data over SMB from a specially selected server.  The data gathering stage of the threat sequence indicates that the threat actor had a comprehensive understanding of the organization’s system architecture and had precise objectives for the information they sought to extract.

Immediately after collecting data from the targeted server, devices went on to exfiltrate stolen data to multiple sites. Several other likely compromised sites appear to have been used as general C2 infrastructure for this intrusion activity. The sites used by the threat actor for C2 and data exfiltration purport to be sites for companies offering a variety of service, ranging from consultancy to web design.

Screenshot of one of the likely compromised sites used in the intrusion. 
Figure 6: Screenshot of one of the likely compromised sites used in the intrusion.

At least 16 sites were identified as being likely data exfiltration or C2 sites used by this threat actor in their operation against this organization. The fact that the actor had such a wide web of compromised sites at their disposal suggests that they were well-resourced and highly prepared.  

Darktrace model alert highlighting an internal device slowly exfiltrating data to the external endpoint, yasuconsulting[.]com.
Figure 7: Darktrace model alert highlighting an internal device slowly exfiltrating data to the external endpoint, yasuconsulting[.]com.
Darktrace model alert highlighting an internal device downloading nearly 1 GB of data from an internal system just before uploading a similar volume of data to another suspicious endpoint, www.tunemmuhendislik[.]com    
Figure 8: Darktrace model alert highlighting an internal device downloading nearly 1 GB of data from an internal system just before uploading a similar volume of data to another suspicious endpoint, www.tunemmuhendislik[.]com  

Cyber AI Analyst spotlight

Cyber AI Analyst identifying and piecing together the various steps of a ShadowPad intrusion.
Figure 9: Cyber AI Analyst identifying and piecing together the various steps of a ShadowPad intrusion.  
Cyber AI Analyst Incident identifying and piecing together the various steps of the data theft activity.
Figure 10: Cyber AI Analyst Incident identifying and piecing together the various steps of the data theft activity.

As shown in the above figures, Cyber AI Analyst’s ability to thread together the different steps of these attack chains are worth highlighting.

In the ShadowPad attack chains, Cyber AI Analyst was able to identify SMB writes from the VPN subnet to the DC, and the C2 connections from the DC. It was also able to weave together this activity into a single thread representing the attacker’s progression.

Similarly, in the data exfiltration attack chain, Cyber AI Analyst identified and connected multiple types of lateral movement over SMB and WMI and external C2 communication to various external endpoints, linking them in a single, connected incident.

These Cyber AI Analyst actions enabled a quicker understanding of the threat actor sequence of events and, in some cases, faster containment.

Attribution puzzle

Publicly shared research into ShadowPad indicates that it is predominantly used as a backdoor in People’s Republic of China (PRC)-sponsored espionage operations [5][6][7][8][9][10]. Most publicly reported intrusions involving ShadowPad  are attributed to the China-based threat actor, APT41 [11][12]. Furthermore, Google Threat Intelligence Group (GTIG) recently shared their assessment that ShadowPad usage is restricted to clusters associated with APT41 [13]. Interestingly, however, there have also been public reports of ShadowPad usage in unattributed intrusions [5].

The data theft activity that later occurred in the same Darktrace customer network as one of these ShadowPad compromises appeared to be the targeted collection and exfiltration of sensitive data. Such an objective indicates the activity may have been part of a state-sponsored operation. The tactics, techniques, and procedures (TTPs), artifacts, and C2 infrastructure observed in the data theft thread appear to resemble activity seen in previous Democratic People’s Republic of Korea (DPRK)-linked intrusion activities [15] [16] [17] [18] [19].

The distribution of payloads to the following directory locations appears to be a relatively common behavior in DPRK-sponsored intrusions.

Observed examples:

C:\ProgramData\Oracle\Java\  

C:\ProgramData\Adobe\ARM\  

C:\ProgramData\Microsoft\DRM\  

C:\ProgramData\Abletech\Client\  

C:\ProgramData\IDMComp\UltraCompare\  

C:\ProgramData\3Dconnexion\3DxWare\

Additionally, the likely compromised websites observed in the data theft thread, along with some of the target URI patterns seen in the C2 communications to these sites, resemble those seen in previously reported DPRK-linked intrusion activities.

No clear evidence was found to link the ShadowPad compromise to the subsequent data theft activity that was observed on the network of the manufacturing customer. It should be noted, however, that no clear signs of initial access were found for the data theft thread – this could suggest the ShadowPad intrusion itself represents the initial point of entry that ultimately led to data exfiltration.

Motivation-wise, it seems plausible for the data theft thread to have been part of a DPRK-sponsored operation. DPRK is known to pursue targets that could potentially fulfil its national security goals and had been publicly reported as being active in months prior to this intrusion [21]. Furthermore, the timing of the data theft aligns with the ratification of the mutual defense treaty between DPRK and Russia and the subsequent accused activities [20].

Darktrace assesses with medium confidence that a nation-state, likely DPRK, was responsible, based on our investigation, the threat actor applied resources, patience, obfuscation, and evasiveness combined with external reporting, collaboration with the cyber community, assessing the attacker’s motivation and world geopolitical timeline, and undisclosed intelligence.

Conclusion

When state-linked cyber activity occurs within an organization’s environment, previously unseen C2 infrastructure and advanced evasion techniques will likely be used. State-linked cyber actors, through their resources and patience, are able to bypass most detection methods, leaving anomaly-based methods as a last line of defense.

Two threads of activity were observed within Darktrace’s customer base over the last year: The first operation involved the abuse of Check Point VPN credentials to log in remotely to organizations’ networks, followed by the distribution of ShadowPad to an internal domain controller. The second operation involved highly targeted data exfiltration from the network of one of the customers impacted by the previously mentioned ShadowPad activity.

Despite definitive attribution remaining unresolved, both the ShadowPad and data exfiltration activities were detected by Darktrace’s Self-Learning AI, with Cyber AI Analyst playing a significant role in identifying and piecing together the various steps of the intrusion activities.  

Credit to Sam Lister (R&D Detection Analyst), Emma Foulger (Principal Cyber Analyst), Nathaniel Jones (VP), and the Darktrace Threat Research team.

Appendices

Darktrace / NETWORK model alerts

User / New Admin Credentials on Client

Anomalous Connection / Unusual Admin SMB Session

Compliance / SMB Drive Write  

Device / Anomalous SMB Followed By Multiple Model Breaches

Anomalous File / Internal / Unusual SMB Script Write

User / New Admin Credentials on Client  

Anomalous Connection / Unusual Admin SMB Session

Compliance / SMB Drive Write

Device / Anomalous SMB Followed By Multiple Model Breaches

Anomalous File / Internal / Unusual SMB Script Write

Device / New or Uncommon WMI Activity

Unusual Activity / Internal Data Transfer

Anomalous Connection / Download and Upload

Anomalous Server Activity / Rare External from Server

Compromise / Beacon to Young Endpoint

Compromise / Agent Beacon (Short Period)

Anomalous Server Activity / Anomalous External Activity from Critical Network Device

Anomalous Connection / POST to PHP on New External Host

Compromise / Sustained SSL or HTTP Increase

Compromise / Sustained TCP Beaconing Activity To Rare Endpoint

Anomalous Connection / Multiple Failed Connections to Rare Endpoint

Device / Multiple C2 Model Alerts

Anomalous Connection / Data Sent to Rare Domain

Anomalous Connection / Download and Upload

Unusual Activity / Unusual External Data Transfer

Anomalous Connection / Low and Slow Exfiltration

Anomalous Connection / Uncommon 1 GiB Outbound  

MITRE ATT&CK mapping

(Technique name – Tactic ID)

ShadowPad malware threads

Initial Access - Valid Accounts: Domain Accounts (T1078.002)

Initial Access - External Remote Services (T1133)

Privilege Escalation - Exploitation for Privilege Escalation (T1068)

Privilege Escalation - Valid Accounts: Default Accounts (T1078.001)

Defense Evasion - Masquerading: Match Legitimate Name or Location (T1036.005)

Lateral Movement - Remote Services: Remote Desktop Protocol (T1021.001)

Lateral Movement - Remote Services: SMB/Windows Admin Shares (T1021.002)

Command and Control - Proxy: Internal Proxy (T1090.001)

Command and Control - Application Layer Protocol: Web Protocols (T1071.001)

Command and Control - Encrypted Channel: Asymmetric Cryptography (T1573.002)

Command and Control - Application Layer Protocol: DNS (T1071.004)

Data theft thread

Resource Development - Compromise Infrastructure: Domains (T1584.001)

Privilege Escalation - Valid Accounts: Default Accounts (T1078.001)

Privilege Escalation - Valid Accounts: Domain Accounts (T1078.002)

Execution - Windows Management Instrumentation (T1047)

Defense Evasion - Masquerading: Match Legitimate Name or Location (T1036.005)

Defense Evasion - Obfuscated Files or Information (T1027)

Lateral Movement - Remote Services: SMB/Windows Admin Shares (T1021.002)

Collection - Data from Network Shared Drive (T1039)

Command and Control - Application Layer Protocol: Web Protocols (T1071.001)

Command and Control - Encrypted Channel: Asymmetric Cryptography (T1573.002)

Command and Control - Proxy: External Proxy (T1090.002)

Exfiltration - Exfiltration Over C2 Channel (T1041)

Exfiltration - Data Transfer Size Limits (T1030)

List of indicators of compromise (IoCs)

IP addresses and/or domain names (Mid-high confidence):

ShadowPad thread

- dscriy.chtq[.]net • 158.247.199[.]185 (endpoint of C2 comms)

- cybaq.chtq[.]net (domain name used for DNS tunneling)  

Data theft thread

- yasuconsulting[.]com (45.158.12[.]7)

- hobivan[.]net (94.73.151[.]72)

- mediostresbarbas.com[.]ar (75.102.23[.]3)

- mnmathleague[.]org (185.148.129[.]24)

- goldenborek[.]com (94.138.200[.]40)

- tunemmuhendislik[.]com (94.199.206[.]45)

- anvil.org[.]ph (67.209.121[.]137)

- partnerls[.]pl (5.187.53[.]50)

- angoramedikal[.]com (89.19.29[.]128)

- awork-designs[.]dk (78.46.20[.]225)

- digitweco[.]com (38.54.95[.]190)

- duepunti-studio[.]it (89.46.106[.]61)

- scgestor.com[.]br (108.181.92[.]71)

- lacapannadelsilenzio[.]it (86.107.36[.]15)

- lovetamagotchith[.]com (203.170.190[.]137)

- lieta[.]it (78.46.146[.]147)

File names (Mid-high confidence):

ShadowPad thread:

- perflogs\1.txt

- perflogs\AppLaunch.exe

- perflogs\F4A3E8BE.tmp

- perflogs\mscoree.dll

Data theft thread

- ProgramData\Oracle\java.log

- ProgramData\Oracle\duxwfnfo

- ProgramData\Adobe\ARM\webservices.dll

- ProgramData\Adobe\ARM\wksprt.exe

- ProgramData\Oracle\Java\wksprt.exe

- ProgramData\Oracle\Java\webservices.dll

- ProgramData\Microsoft\DRM\wksprt.exe

- ProgramData\Microsoft\DRM\webservices.dll

- ProgramData\Abletech\Client\webservices.dll

- ProgramData\Abletech\Client\client.exe

- ProgramData\Adobe\ARM\rzrmxrwfvp

- ProgramData\3Dconnexion\3DxWare\3DxWare.exe

- ProgramData\3Dconnexion\3DxWare\webservices.dll

- ProgramData\IDMComp\UltraCompare\updater.exe

- ProgramData\IDMComp\UltraCompare\webservices.dll

- ProgramData\IDMComp\UltraCompare\imtrqjsaqmm

- temp\HousecallLauncher64.exe

Attacker-controlled device hostname (Mid-high confidence)

- DESKTOP-O82ILGG

References  

[1] https://www.kaspersky.com/about/press-releases/shadowpad-how-attackers-hide-backdoor-in-software-used-by-hundreds-of-large-companies-around-the-world  

[2] https://media.kasperskycontenthub.com/wp-content/uploads/sites/43/2017/08/07172148/ShadowPad_technical_description_PDF.pdf

[3] https://blog.avast.com/new-investigations-in-ccleaner-incident-point-to-a-possible-third-stage-that-had-keylogger-capacities

[4] https://securelist.com/operation-shadowhammer-a-high-profile-supply-chain-attack/90380/

[5] https://assets.sentinelone.com/c/Shadowpad?x=P42eqA

[6] https://www.cyfirma.com/research/the-origins-of-apt-41-and-shadowpad-lineage/

[7] https://www.csoonline.com/article/572061/shadowpad-has-become-the-rat-of-choice-for-several-state-sponsored-chinese-apts.html

[8] https://global.ptsecurity.com/analytics/pt-esc-threat-intelligence/shadowpad-new-activity-from-the-winnti-group

[9] https://cymulate.com/threats/shadowpad-privately-sold-malware-espionage-tool/

[10] https://www.secureworks.com/research/shadowpad-malware-analysis

[11] https://blog.talosintelligence.com/chinese-hacking-group-apt41-compromised-taiwanese-government-affiliated-research-institute-with-shadowpad-and-cobaltstrike-2/

[12] https://hackerseye.net/all-blog-items/tails-from-the-shadow-apt-41-injecting-shadowpad-with-sideloading/

[13] https://cloud.google.com/blog/topics/threat-intelligence/scatterbrain-unmasking-poisonplug-obfuscator

[14] https://www.domaintools.com/wp-content/uploads/conceptualizing-a-continuum-of-cyber-threat-attribution.pdf

[15] https://www.nccgroup.com/es/research-blog/north-korea-s-lazarus-their-initial-access-trade-craft-using-social-media-and-social-engineering/  

[16] https://www.microsoft.com/en-us/security/blog/2021/01/28/zinc-attacks-against-security-researchers/

[17] https://www.microsoft.com/en-us/security/blog/2022/09/29/zinc-weaponizing-open-source-software/  

[18] https://www.welivesecurity.com/en/eset-research/lazarus-luring-employees-trojanized-coding-challenges-case-spanish-aerospace-company/  

[19] https://blogs.jpcert.or.jp/en/2021/01/Lazarus_malware2.html  

[20] https://usun.usmission.gov/joint-statement-on-the-unlawful-arms-transfer-by-the-democratic-peoples-republic-of-korea-to-russia/

[21] https://media.defense.gov/2024/Jul/25/2003510137/-1/-1/1/Joint-CSA-North-Korea-Cyber-Espionage-Advance-Military-Nuclear-Programs.PDF  

[22] https://kyivindependent.com/first-north-korean-troops-deployed-to-front-line-in-kursk-oblast-ukraines-military-intelligence-says/

[23] https://www.microsoft.com/en-us/security/blog/2024/12/04/frequent-freeloader-part-i-secret-blizzard-compromising-storm-0156-infrastructure-for-espionage/  

[24] https://www.microsoft.com/en-us/security/blog/2024/12/11/frequent-freeloader-part-ii-russian-actor-secret-blizzard-using-tools-of-other-groups-to-attack-ukraine/  

[25] https://www.sentinelone.com/labs/chamelgang-attacking-critical-infrastructure-with-ransomware/    

[26] https://thehackernews.com/2022/06/state-backed-hackers-using-ransomware.html/  

[27] https://blog.checkpoint.com/security/check-point-research-explains-shadow-pad-nailaolocker-and-its-protection/

[28] https://www.orangecyberdefense.com/global/blog/cert-news/meet-nailaolocker-a-ransomware-distributed-in-europe-by-shadowpad-and-plugx-backdoors

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About the author
Sam Lister
SOC Analyst
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