70 million in Cybersecurity Funding for Electric Cooperatives & Utilities
Discover how the Bipartisan Infrastructure Law and its $250M Rural and Municipal Utility Cybersecurity Program empower electric cooperatives and municipalities to strengthen cybersecurity. Learn how innovative tools like anomaly detection, IT/OT integration, and AI-driven solutions enhance resilience against modern threats.
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
Jeff Cornelius
EVP, Cyber-Physical Security
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22
Nov 2023
What is the Bipartisan Infrastructure Deal?
The Bipartisan Infrastructure Law passed by congress in 2021 aimed to upgrade power and infrastructure to deliver clean, reliable energy across the US to achieve zero-emissions. To date, the largest investment in clean energy, the deal will fund new programs to support the development and deployment of clean energy technology.
Why is it relevant to electric municipalities?
Section 40124 of the Bipartisan Infrastructure Law allocates $250 million over a 5-year period to create the Rural and Municipal Utility Cybersecurity (RMUC) Program to help electric cooperative, municipal, and small investor-owned utilities protect against, detect, respond to, and recover from cybersecurity threats.1 This act illuminates the value behind a full life-cycle approach to cyber security. Thus, finding a cyber security solution that can provide all aspects of security in one integrated platform would enhance the overall security posture and ease many of the challenges that arise with adopting multiple point solutions.
On November 16, 2023 the Office of Cybersecurity, Energy Security, and Emergency Response (CESER) released the Advanced Cybersecurity Technology (ACT) for electric utilities offering a $70 million funding opportunity that aims to enhance the cybersecurity posture of electric cooperative, municipal, and small investor-owned utilities.
Funding Details
10 projects will be funded with application submissions due November 29, 2023, 5:00 pm ET with $200,000 each in cash prizes in the following areas:
Direct support for eligible utilities to make investments in cybersecurity technologies, tools, training, and improvements in utility processes and procedures;
Funding to strengthen the peer-to-peer and not-for-profit cybersecurity technical assistance ecosystem currently serving eligible electric utilities; and
Increasing access to cybersecurity technical assistance and training for eligible utilities with limited cybersecurity resources. 2
How can electric municipalities utilize the funding?
While the adoption of hybrid working patterns increase cloud and SaaS usage, the number of industrial IoT devices also continues to rise. The result is decrease in visibility for security teams and new entry points for attackers. Particularly for energy and utility organizations.
Electric cooperatives seeking to enhance their cyber security posture can aim to invest in cyber security tools that provide the following:
Compliance support: Consider finding an OT security solution that maps out how its solutions and features help your organization comply with relevant compliance mandates such as NIST, ISA, FERC, TSA, HIPAA, CIS Controls, and more.
Anomaly based detection: Siloed security solutions also fail to detect attacks that span the entire organization. Anomaly-based detection enhances an organization’s cyber security posture by proactively defending against potential attacks and maintaining a comprehensive view of their attack surface.
Integration capabilities: Implementation of several point solutions that complete individual tasks runs the risk of increasing workloads for operators and creates additional challenges with compliance, budgeting, and technical support. Look for cyber security tools that integrate with your existing technologies.
Passive and active asset tracking: Active Identification offers accurate enumeration, real time updates, vulnerability assessment, asset validation while Passive Identification eliminates the risk of operational disruption, minimizes risk, does not generate additional network traffic. It would be ideal to find a security solution that can do both.
Can secure both IT and OT in unison: Given that most OT cyber-attacks actually start in IT networks before pivoting into OT, a mature security posture for critical infrastructure would include a single solution for both IT and OT. Separate solutions for IT and OT present challenges when defending network boundaries and detecting incidents when an attacker pivots from IT to OT. These independent solutions also significantly increase operator workload and materially diminish risk mitigation efforts.
Darktrace/OT for Electric Cooperatives and Utilities
For smaller teams with just one or two dedicated employees, Darktrace’s Cyber AI Analyst and Investigation features allow end users to spend less time in the platform as it compiles critical incidents into comprehensive actionable event reports. AI Analyst brings all the information into a centralized view with incident reporting in natural language summaries and can be generated for compliance reports specific to regulatory requirements.
For larger teams, Darktrace alerts can be forwarded to 3rd party platforms such as a SIEM, where security team decision making is augmented. Additionally, executive reports and autonomous response reduce the alert fatigue generally associated with legacy tools. Most importantly, Darktrace’s unique understanding of normal allows security teams to detect zero-days and signatureless attacks regardless of the size of the organization and how alerts are consumed.
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.
Managing OT Remote Access with Zero Trust Control & AI Driven Detection
A forward-looking breakdown of why modern OT environments can’t rely on visibility alone, and how combining Zero Trust access control with AI-driven behavioral detection gives industrial organizations real-time oversight, accountability, and secure remote access without disrupting operations.
Pallavi Singh
Product Marketing Manager, OT Security & Compliance
Redefining OT security with dedicated OT workflows & NEXT-gen visibility for industrial teams
The latest release of Darktrace / OT brings powerful new innovations to security teams defending industrial infrastructure. With a dedicated OT dashboard, segmentation-aware risk modeling, and expanded visibility into edge assets and automation protocols, Darktrace / OT empowers engineers and defenders with the context and control they need to protect today’s converged environments, from IT to the industrial edge.
Pallavi Singh
Product Marketing Manager, OT Security & Compliance
Rethinking Signature-Based Detection for Power Utility Cybersecurity
Signature-based detection has been a mainstay of IT security for decades, but the unique realities of operational technology (OT) environments make it a poor return on investment for power utilities. While signatures can still provide value for commodity IT malware, they fail against insider misuse, zero-day exploits, and custom-built malware designed for grid operations. Historical evidence shows signatures rarely generalize across different utilities, and overreliance creates strategic blind spots. To effectively defend critical energy infrastructure, utilities should prioritize behavioral analytics, anomaly detection, and intelligence sharing across the community.
Beyond MFA: Detecting Adversary-in-the-Middle Attacks and Phishing with Darktrace
What is an Adversary-in-the-middle (AiTM) attack?
Adversary-in-the-Middle (AiTM) attacks are a sophisticated technique often paired with phishing campaigns to steal user credentials. Unlike traditional phishing, which multi-factor authentication (MFA) increasingly mitigates, AiTM attacks leverage reverse proxy servers to intercept authentication tokens and session cookies. This allows attackers to bypass MFA entirely and hijack active sessions, stealthily maintaining access without repeated logins.
This blog examines a real-world incident detected during a Darktrace customer trial, highlighting how Darktrace / EMAILTM and Darktrace / IDENTITYTMidentified the emerging compromise in a customer’s email and software-as-a-service (SaaS) environment, tracked its progression, and could have intervened at critical moments to contain the threat had Darktrace’s Autonomous Response capability been enabled.
What does an AiTM attack look like?
Inbound phishing email
Attacks typically begin with a phishing email, often originating from the compromised account of a known contact like a vendor or business partner. These emails will often contain malicious links or attachments leading to fake login pages designed to spoof legitimate login platforms, like Microsoft 365, designed to harvest user credentials.
Proxy-based credential theft and session hijacking
When a user clicks on a malicious link, they are redirected through an attacker-controlled proxy that impersonates legitimate services. This proxy forwards login requests to Microsoft, making the login page appear legitimate. After the user successfully completes MFA, the attacker captures credentials and session tokens, enabling full account takeover without the need for reauthentication.
Follow-on attacks
Once inside, attackers will typically establish persistence through the creation of email rules or registering OAuth applications. From there, they often act on their objectives, exfiltrating sensitive data and launching additional business email compromise (BEC) campaigns. These campaigns can include fraudulent payment requests to external contacts or internal phishing designed to compromise more accounts and enable lateral movement across the organization.
Darktrace’s detection of an AiTM attack
At the end of September 2025, Darktrace detected one such example of an AiTM attack on the network of a customer trialling Darktrace / EMAIL and Darktrace / IDENTITY.
In this instance, the first indicator of compromise observed by Darktrace was the creation of a malicious email rule on one of the customer’s Office 365 accounts, suggesting the account had likely already been compromised before Darktrace was deployed for the trial.
Darktrace / IDENTITY observed the account creating a new email rule with a randomly generated name, likely to hide its presence from the legitimate account owner. The rule marked all inbound emails as read and deleted them, while ignoring any existing mail rules on the account. This rule was likely intended to conceal any replies to malicious emails the attacker had sent from the legitimate account owner and to facilitate further phishing attempts.
Figure 1: Darktrace’s detection of the anomalous email rule creation.
Internal and external phishing
Following the creation of the email rule, Darktrace / EMAIL observed a surge of suspicious activity on the user’s account. The account sent emails with subject lines referencing payment information to over 9,000 different external recipients within just one hour. Darktrace also identified that these emails contained a link to an unusual Google Drive endpoint, embedded in the text “download order and invoice”.
Figure 2: Darkrace’s detection of an unusual surge in outbound emails containing suspicious content, shortly following the creation of a new email rule.
Figure 3: Darktrace / EMAIL’s detection of the compromised account sending over 9,000 external phishing emails, containing an unusual Google Drive link.
As Darktrace / EMAIL flagged the message with the ‘Compromise Indicators’ tag (Figure 2), it would have been held automatically if the customer had enabled default Data Loss Prevention (DLP) Action Flows in their email environment, preventing any external phishing attempts.
Figure 4: Darktrace / EMAIL’s preview of the email sent by the offending account.
Darktrace analysis revealed that, after clicking the malicious link in the email, recipients would be redirected to a convincing landing page that closely mimicked the customer’s legitimate branding, including authentic imagery and logos, where prompted to download with a PDF named “invoice”.
Figure 5: Download and login prompts presented to recipients after following the malicious email link, shown here in safe view.
After clicking the “Download” button, users would be prompted to enter their company credentials on a page that was likely a credential-harvesting tool, designed to steal corporate login details and enable further compromise of SaaS and email accounts.
Darktrace’s Response
In this case, Darktrace’s Autonomous Response was not fully enabled across the customer’s email or SaaS environments, allowing the compromise to progress, as observed by Darktrace here.
Despite this, Darktrace / EMAIL’s successful detection of the malicious Google Drive link in the internal phishing emails prompted it to suggest ‘Lock Link’, as a recommended action for the customer’s security team to manually apply. This action would have automatically placed the malicious link behind a warning or screening page blocking users from visiting it.
Figure 6: Autonomous Response suggesting locking the malicious Google Drive link sent in internal phishing emails.
Furthermore, if active in the customer’s SaaS environment, Darktrace would likely have been able to mitigate the threat even earlier, at the point of the first unusual activity: the creation of a new email rule. Mitigative actions would have included forcing the user to log out, terminating any active sessions, and disabling the account.
Conclusion
AiTM attacks represent a significant evolution in credential theft techniques, enabling attackers to bypass MFA and hijack active sessions through reverse proxy infrastructure. In the real-world case we explored, Darktrace’s AI-driven detection identified multiple stages of the attack, from anomalous email rule creation to suspicious internal email activity, demonstrating how Autonomous Response could have contained the threat before escalation.
MFA is a critical security measure, but it is no longer a silver bullet. Attackers are increasingly targeting session tokens rather than passwords, exploiting trusted SaaS environments and internal communications to remain undetected. Behavioral AI provides a vital layer of defense by spotting subtle anomalies that traditional tools often miss
Security teams must move beyond static defenses and embrace adaptive, AI-driven solutions that can detect and respond in real time. Regularly review SaaS configurations, enforce conditional access policies, and deploy technologies that understand “normal” behavior to stop attackers before they succeed.
Credit to David Ison (Cyber Analyst), Bertille Pierron (Solutions Engineer), Ryan Traill (Analyst Content Lead)
React2Shell: How Opportunist Attackers Exploited CVE-2025-55182 Within Hours
What is React2Shell?
CVE-2025-55182, also known as React2Shell is a vulnerability within React server components that allows for an unauthenticated attacker to gain remote code execution with a single request. The severity of this vulnerability and ease of exploitability has led to threat actors opportunistically exploiting it within a matter of days of its public disclosure.
Darktrace security researchers rapidly deployed a new honeypot using the Cloudypots system, allowing for the monitoring of exploitation of the vulnerability in the wild.
Cloudypots is a system that enables virtual instances of vulnerable applications to be deployed in the cloud and monitored for attack. This approach allows for Darktrace to deploy high-interaction, realistic honeypots, that appear as genuine deployments of vulnerable software to attackers.
This blog will explore one such campaign, nicknamed “Nuts & Bolts” based on the naming used in payloads.
Analysis of the React2Shell exploit
The React2Shell exploit relies on an insecure deserialization vulnerability within React Server Components’ “Flight” protocol. This protocol uses a custom serialization scheme that security researchers discovered could be abused to run arbitrary JavaScript by crafting the serialized data in a specific way. This is possible because the framework did not perform proper type checking, allowing an attacker to reference types that can be abused to craft a chain that resolves to an anonymous function, and then invoke it with the desired JavaScript as a promise chain.
This code execution can then be used to load the ‘child_process’ node module and execute any command on the target server.
The vulnerability was discovered on December 3, 2025, with a patch made available on the same day [1]. Within 30 hours of the patch, a publicly available proof of concept emerged that could be used to exploit any vulnerable server. This rapid timeline left many servers remaining unpatched by the time attackers began actively exploiting the vulnerability.
Initial access
The threat actor behind the “Nuts & Bolts” campaign uses a spreader server with IP 95.214.52[.]170 to infect victims. The IP appears to be located in Poland and is associated with a hosting provided known as MEVSPACE. The spreader is highly aggressive, launching exploitation attempts, roughly every hour.
When scanning, the spreader primarily targets port 3000, which is the default port for a NEXT.js server in a default or development configuration. It is possible the attacker is avoiding port 80 and 443, as these are more likely to have reverse proxies or WAFs in front of the server, which could disrupt exploitation attempts.
When the spreader finds a new host with port 3000 open, it begins by testing if it is vulnerable to React2Shell by sending a crafted request to run the ‘whoami’ command and store the output in an error digest that is returned to the attacker.
The above snippet is the core part of the crafted request that performs the execution. This allows the attacker to confirm that the server is vulnerable and fetch the user account under which the NEXT.js process is running, which is useful information for determining if a target is worth attacking.
From here, the attacker then sends an additional request to run the actual payload on the victim server.
This snippet attempts to deploy several payloads by using wget (or curl if wget fails) into the /dev directory and execute them. The x86 binary is a Mirai variant that does not appear to have any major alterations to regular Mirai. The ‘nuts/bolts’ endpoint returns a bash script, which is then executed. The script includes several log statements throughout its execution to provide visibility into which parts ran successfully. Similar to the ‘whoami’ request, the output is placed in an error digest for the attacker to review.
In this case, the command-and-control (C2) IP, 89[.]144.31.18, is hosted on a different server operated by a German hosting provider named myPrepaidServer, which offers virtual private server (VPS) services and accepts cryptocurrency payments [2].
Figure 1: Logs observed in the NEXT.JS console as a result of exploitation. In this case, the honeypot was attacked just two minutes after being deployed.
Nuts & Bolts script
This script’s primary purpose is to prepare the box for a cryptocurrency miner.
The script starts by attempting to terminate any competing cryptocurrency miner processes using ‘pkill’ that match on a specific name. It will check for and terminate:
xmrig
softirq (this also matches a system process, which it will fail to kill each invocation)
watcher
/tmp/a.sh
health.sh
Following this, the script will checks for a process named “fghgf”. If it is not running, it will retrieve hxxp://89[.]144.31.18/nuts/lc and write it to /dev/ijnegrrinje.json, as well as retrieving hxxp://89[.]144.31.18/nuts/x and writing it to /dev/fghgf. The script will the executes /dev/fghgf -c /dev/ijnegrrinje.json -B in the background, which is an XMRig miner.
Figure 2: The XMRig deployment script.
The miner is configured to connect to two private pools at 37[.]114.37.94 and 37[.]114.37.82, using “poop” as both the username and password. The use of a private pool conceals the associated wallet address. From here, a short bash script is dropped to /dev/stink.sh. This script continuously crawls all running processes on the system and reads their /proc/pid/exe path, which contains a copy of the original executable that was run. The ‘strings’ utility is run to output all valid ASCII strings found within the data and checks to see if contains either “xmrig”, “rondo” or “UPX 5”. If so, it sends a SIGKILL to the process to terminate it.
Additionally, it will run ‘ls –l’ on the exe path in case it is symlinked to a specific path or has been deleted. If the output contains any of the following strings, the script sends a SIGKILL to terminate the program:
(deleted) - Indicates that the original executable was deleted from the disk, a common tactic used by malware to evade detection.
xmrig
hash
watcher
/dev/a
softirq
rondo
UPX 5.02
Figure 3: The killer loop and the dropper. In this case ${R}/${K} resolves to /dev/stink.sh.
Darktrace observations in customer environments
Following the public disclosure of CVE‑2025‑55182 on December, Darktrace observed multiple exploitation attempts across customer environments beginning around December 4. Darktrace triage identified a series of consistent indicators of compromise (IoCs). By consolidating indicators across multiple deployments and repeat infrastructure clusters, Darktrace identified a consistent kill chain involving shell‑script downloads and HTTP beaconing.
In one example, on December 5, Darktrace observed external connections to malicious IoC endpoints (172.245.5[.]61:38085, 5.255.121[.]141, 193.34.213[.]15), followed by additional connections to other potentially malicious endpoint. These appeared related to the IoCs detailed above, as one suspicious IP address shared the same ASN. After this suspicious external connectivity, Darktrace observed cryptomining-related activity. A few hours later, the device initiated potential lateral movement activity, attempting SMB and RDP sessions with other internal devices on the network. These chain of events appear to identify this activity to be related to the malicious campaign of the exploitation of React2Shell vulnerability.
Generally, outbound HTTP traffic was observed to ports in the range of 3000–3011, most notably port 3001. Requests frequently originated from scripted tools, with user agents such as curl/7.76.1, curl/8.5.0, Wget/1.21.4, and other generic HTTP signatures. The URIs associated with these requests included paths like /nuts/x86 and /n2/x86, as well as long, randomized shell script names such as /gfdsgsdfhfsd_ghsfdgsfdgsdfg.sh. In some cases, parameterized loaders were observed, using query strings like: /?h=<ip>&p=<port>&t=<proto>&a=l64&stage=true.
Infrastructure analysis revealed repeated callbacks to IP-only hosts linked to ASN AS200593 (Prospero OOO), a well-known “bulletproof” hosting provider often utilized by cyber criminals [3], including addresses such as 193.24.123[.]68:3001 and 91.215.85[.]42:3000, alongside other nodes hosting payloads and staging content.
Darktrace model coverage
Darktrace model coverage consistently highlighted behaviors indicative of exploitation. Among the most frequent detections were anomalous server activity on new, non-standard ports and HTTP requests posted to IP addresses without hostnames, often using uncommon application protocols. Models also flagged the appearance of new user agents such as curl and wget originating from internet-facing systems, representing an unusual deviation from baseline behavior.
Additionally, observed activity included the download of scripts and executable files from rare external sources, with Darktrace’s Autonomous Response capability intervening to block suspicious transfers, when enabled. Beaconing patterns were another strong signal, with detections for HTTP beaconing to new or rare IP addresses, sustained SSL or HTTP increases, and long-running compromise indicators such as “Beacon for 4 Days” and “Slow Beaconing.”
Conclusion
While this opportunistic campaign to exploit the React2Shell exploit is not particularly sophisticated, it demonstrates that attackers can rapidly prototyping new methods to take advantage of novel vulnerabilities before widespread patching occurs. With a time to infection of only two minutes from the initial deployment of the honeypot, this serves as a clear reminder that patching vulnerabilities as soon as they are released is paramount.
Credit to Nathaniel Bill (Malware Research Engineer), George Kim (Analyst Consulting Lead – AMS), Calum Hall (Technical Content Researcher), Tara Gould (Malware Research Lead, and Signe Zaharka (Principal Cyber Analyst).