Blog
/
Email
/
December 15, 2025

Beyond MFA: Detecting Adversary-in-the-Middle Attacks and Phishing with Darktrace

During a customer trial of Darktrace / EMAIL and Darktrace / IDENTITY, Darktrace detected an adversary-in-the-middle (AiTM) attack that compromised a user’s Office 365 account via a business email compromise (BEC) phishing email. Following the breach, the compromised account was used to launch both internal and external phishing campaigns.
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
Ryan Traill
Analyst Content Lead
Beyond MFA: Detecting Adversary-in-the-Middle Attacks and Phishing with DarktraceDefault blog imageDefault blog imageDefault blog imageDefault blog imageDefault blog imageDefault blog image
15
Dec 2025

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 / IDENTITYTM identified 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.

Darktrace’s detection of the anomalous email rule creation.
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”.

Darkrace’s detection of an unusual surge in outbound emails containing suspicious content, shortly following the creation of a new email rule.
Figure 2: Darkrace’s detection of an unusual surge in outbound emails containing suspicious content, shortly following the creation of a new email rule.
Darktrace / EMAIL’s detection of the compromised account sending over 9,000 external phishing emails, containing an unusual Google Drive link.
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.
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.

Autonomous Response suggesting locking the malicious Google Drive link sent in internal phishing emails.
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)

Appendices

Models

SaaS / Anomalous New Email Rule

Tactic – Technique – Sub-Technique  

Phishing - T1566

Adversary-in-the-Middle - T1557

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
Ryan Traill
Analyst Content Lead

More in this series

No items found.

Blog

/

/

April 2, 2026

How Chinese-Nexus Cyber Operations Have Evolved – And What It Means For Cyber Risk and Resilience 

Default blog imageDefault blog image

Cybersecurity has traditionally organized risk around incidents, breaches, campaigns, and threat groups. Those elements still matter—but if we fixate on individual incidents, we risk missing the shaping of the entire ecosystem. Nation‑state–aligned operators are increasingly using cyber operations to establish long-term strategic leverage, not just to execute isolated attacks or short‑term objectives.  

Our latest research, Crimson Echo, shifts the lens accordingly. Instead of dissecting campaigns, malware families, or actor labels as discrete events, the threat research team analyzed Chinese‑nexus activity as a continuum of behaviors over time. That broader view reveals how these operators position themselves within environments: quietly, patiently, and persistently—often preparing the ground long before any recognizable “incident” occurs.  

How Chinese-nexus cyber threats have changed over time

Chinese-nexus cyber activity has evolved in four phases over the past two decades. This ranges from early, high-volume operations in the 1990s and early 2000s to more structured, strategically-aligned activity in the 2010s, and now toward highly adaptive, identity-centric intrusions.  

Today’s phase is defined by scale, operational restraint, and persistence. Attackers are establishing access, evaluating its strategic value, and maintaining it over time. This reflects a broader shift: cyber operations are increasingly integrated into long-term economic and geopolitical strategies. Access to digital environments, specifically those tied to critical national infrastructure, supply chains, and advanced technology, has become a form of strategic leverage for the long-term.  

How Darktrace analysts took a behavioral approach to a complex problem

One of the challenges in analyzing nation-state cyber activity is attribution. Traditional approaches often rely on tracking specific threat groups, malware families, or infrastructure. But these change constantly, and in the case of Chinese-nexus operations, they often overlap.

Crimson Echo is the result of a retrospective analysis of three years of anomalous activity observed across the Darktrace fleet between July 2022 and September 2025. Using behavioral detection, threat hunting, open-source intelligence, and a structured attribution framework (the Darktrace Cybersecurity Attribution Framework), the team identified dozens of medium- to high-confidence cases and analyzed them for recurring operational patterns.  

This long-horizon, behavior-centric approach allows Darktrace to identify consistent patterns in how intrusions unfold, reinforcing that behavioral patterns that matter.  

What the data shows

Several clear trends emerged from the analysis:

  • Targeting is concentrated in strategically important sectors. Across the dataset, 88% of intrusions occurred in organizations classified as critical infrastructure, including transportation, critical manufacturing, telecommunications, government, healthcare, and Information Technology (IT) services.  
  • Strategically important Western economies are a primary focus. The US alone accounted for 22.5% of observed cases, and when combined with major European economies including Germany, Italy, Spain and the UK, over half of all intrusions (55%) were concentrated in these regions.  
  • Nearly 63% of intrusions of intrusions began with the exploitation of internet-facing systems, reinforcing the continued risk posed by externally exposed infrastructure.  

Two models of cyber operations

Across the dataset, Chinese-nexus activity followed two operational models.  

The first is best described as “smash and grab.” These are short-horizon intrusions optimized for speed. Attackers move quickly – often exfiltrating data within 48 hours – and prioritize scale over stealth. The median duration of these compromises is around 10 days. It’s clear they are willing to risk detection for short-term gain.  

The second is “low and slow.” These operations were less prevalent in the dataset, but potentially more consequential. Here, attackers prioritize persistence, establishing durable access through identity systems and legitimate administrative tools, so they can maintain access undetected for months or even years. In one notable case, the actor had fully compromised the environment and established persistence, only to resurface in the environment more than 600 days after. The operational pause underscores both the depth of the intrusion and the actor’s long‑term strategic intent. This suggests that cyber access is a strategic asset to preserve and leverage over time, and we observed these attacks most often inin sectors of the high strategic importance.  

It’s important to note that the same operational ecosystem can employ both models concurrently, selecting the appropriate model based on target value, urgency, intended access. The observation of a “smash and grab” model should not be solely interpreted as a failure of tradecraft, but instead an operational choice likely aligned with objectives. Where “low and slow” operations are optimized for patience, smash and grab is optimized for speed; both seemingly are deliberate operational choices, not necessarily indicators of capability.  

Rethinking cyber risk

For many organizations, cyber risk is still framed as a series of discrete events. Something happens, it is detected and contained, and the organization moves on. But persistent access, particularly in deeply interconnected environments that span cloud, identity-based SaaS and agentic systems, and complex supply chain networks, creates a major ongoing exposure risk. Even in the absence of disruption or data theft, that access can provide insight into operations, dependencies, and strategic decision-making. Cyber risk increasingly resembles long-term competitive intelligence.  

This has impact beyond the Security Operations Center. Organizations need to shift how they think about governance, visibility, and resilience, and treat cyber exposure as a structural business risk instead of an incident response challenge.  

What comes next

The goal of this research is to provide a clearer understanding of how these operations work, so defenders can recognize them earlier and respond more effectively. That includes shifting from tracking indicators to understanding behaviors, treating identity providers as critical infrastructure risks, expanding supplier oversight, investing in rapid containment capabilities, and more.  

Learn more about the findings of Darktrace’s latest research, Crimson Echo: Understanding Chinese-nexus Cyber Operations Through Behavioral Analysis, by downloading the full report and summaries for business leaders, CISOs, and SOC analysts here.  

Continue reading
About the author

Blog

/

Proactive Security

/

April 1, 2026

AI-powered security for a rapidly growing grocery enterprise

Default blog imageDefault blog image

Protecting a complex, fast-growing retail organization

For this multi-banner grocery holding organization, cybersecurity is considered an essential business enabler, protecting operations, growth, and customer trust. The organization’s lean IT team manages a highly distributed environment spanning corporate offices, 100+ stores, distribution centers and  thousands of endpoints, users, and third-party connections.

Mergers and acquisitions fueled rapid growth, but they also introduced escalating complexity that constrained visibility into users, endpoints, and security risks inherited across acquired environments.

Closing critical visibility gaps with limited resources

Enterprise-wide visibility is a top priority for the organization, says the  Vice President of Information Technology. “We needed insights beyond the perimeter into how users and devices were behaving across the organization.”

A security breach that occurred before the current IT leadership joined the company reinforced the urgency and elevated cybersecurity to an executive-level priority with a focus on protecting customer trust. The goal was to build a multi-layered security model that could deliver autonomous, enterprise-wide protection without adding headcount.

Managing cyber risk in M&A

Mergers and acquisitions are central to the grocery holding company’s growth strategy. But each transaction introduces new cyber risk, including inherited network architectures, inconsistent tooling, excessive privileges, and remnants of prior security incidents that were never fully remediated.

“Our M&A targets range from small chains with a single IT person and limited cyber tools to large chains with more developed IT teams, toolsets and instrumentation,” explains the VP of IT. “We needed a fast, repeatable, and reliable way to assess cyber risk before transactions closed.”

AI-driven security built for scale, speed, and resilience

Rather than layering additional point tools onto an already complex environment, the retailer adopted the Darktrace ActiveAI Security Platform™ in 2020 as part of a broader modernization effort to improve resilience, close visibility gaps, and establish a security foundation that could scale with growth.

“Darktrace’s AI-driven approach provided the ideal solution to these challenges,” shares the VP of IT. “It has empowered our organization to maintain a robust security strategy, ensuring the protection of our network and the smooth operation of our business.”

Enterprise-wide visibility into traffic  

By monitoring both north-south and east-west traffic and applying Self-Learning AI, Darktrace develops a dynamic understanding of how users and devices normally behave across locations, roles, and systems.

“Modeling normal behavior across the environment enables us to quickly spot behavior that doesn’t fit. Even subtle changes that could signal a threat but appear legitimate at first glance,” explains the VP of IT.

Real-time threat containment, 24/7

Adopting autonomous response has created operational breathing room for the security team, says the company’s Cybersecurity  Engineer.

“Early on, we enabled full Darktrace autonomous mode and we continue to do so today,” shares the IT Security Architect. “Allowing the technology to act first gives us the time we need to investigate incidents during business hours without putting the business at risk.”

Unified, actionable view of security ecosystem

The grocery retailer integrated Darktrace with its existing security ecosystem of firewalls, vulnerability management tools, and endpoint detection and response, and the VP of IT described the adoption process as “exceptionally smooth.”

The team can correlate enterprise-wide security data for a unified and actionable picture of all activity and risk. Using this “single pane of glass” approach, the retailer trains Level 1 and Level 2 operations staff to assist with investigations and user follow-ups, effectively extending the reach of the security function without expanding headcount.

From reactive defense to security at scale

With Darktrace delivering continuous visibility, autonomous containment, and integrated security workflows, the organization has strengthened its cybersecurity posture while improving operational efficiency. The result is a security model that not only reduces risk, but also supports growth, resilience, and informed decision-making at the business level.

Faster detection, faster resolution

With autonomous detection and response, the retailer can immediately contain risk while analysts investigate and validate activity. With this approach, the company can maintain continuous protection even outside business hours and reduce the chance of lateral spread across systems or locations.

Enterprise-grade protection with a lean team

From cloud environments to clients to SaaS collaboration tools, Darktrace provides holistic autonomous AI defense, processing petabytes of the organization’s network traffic and investigating millions of individual events that could be indicative of a wider incident.

Today, Darktrace autonomously conducts the majority of all investigations on behalf of the IT team, escalating only a tiny fraction for analyst review. The impact has been profound, freeing analysts from endless alerts and hours of triage so they can focus on more valuable, proactive, and gratifying work.

“From an operational perspective, Darktrace gives us time back,” says the Cybersecurity Engineer. More importantly, says the VP of IT, “it gives us peace of mind that we’re protected even if we’re not actively monitoring every alert.”

A strategic input for M&A decision-making

One of the most strategic outcomes has been the role of cybersecurity on M&A. 90 days prior to closing a transaction, the security team uses Darktrace alongside other tools to perform a cyber risk assessment of the potential acquisition. “Our approach with Darktrace has consistently identified gaps and exposed risks,” says the VP of IT, including:

  • Remnants of previous incidents that were never fully remediated
  • Network configurations with direct internet exposure
  • Excessive administrative privileges in Active Directory or on critical hosts

While security findings may not alter deal timelines, the VP of IT says they can have enormous business implications. “With early visibility into these risks, we can reduce exposure to inherited cyber threats, strengthen our position during negotiations, and establish clear remediation requirements.”

A security strategy built to evolve with the business

As the holding group expands its cloud footprint, it will extend Darktrace protections into Azure, applying the same AI-driven visibility and autonomous response to cloud workloads. The VP of IT says Darktrace's evolving capabilities will be instrumental in addressing the organization’s future cybersecurity needs and ability to adapt to the dynamic nature of cloud security.

“With Darktrace’s AI-driven approach, we have moved beyond reactive defense, establishing a resilient security foundation for confident expansion and modernization.”

Continue reading
About the author
Your data. Our AI.
Elevate your network security with Darktrace AI