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September 11, 2023

Darktrace & FERC Order 887: Enhancing Cybersecurity

Understand Darktrace's role in supporting FERC Order 887 and its efforts to improve cybersecurity measures.
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
Jeffrey Macre
Principal Industrial Security Solutions Architect
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11
Sep 2023

At a glance:

  • Darktrace/OT leverages machine learning to provide actionable preventative analytics, relevant real time anomaly based threat detection, and a variety of response capabilities as a full suite protection for OT/ICS operations Purdue levels 5-0.
  • Self-Learning AI detects and responds to cyber threats including malicious or non malicious insiders and supply chain attacks.
  • Darktrace/OT deploys passively within NERC CIP environments providing visibility without the need for any external connectivity or threat intelligence updates.

What is FERC?

The US Federal Energy Regulatory Commission (FERC) is responsible for the regulation of the wholesale electricity and natural gas transmission. FERC sits above the North American Electric Reliability Corporation (NERC) which is responsible for the development and enforcement of reliability standards for the US bulk power system. NERC CIP reliability standards are standards enforced by NERC to ensure the safety and protection of the bulk electric system.

What is FERC order 887?

In review of the CIP requirements, FERC identified a security gap. The gap was that there is no requirement for internal network security monitoring (INSM) within the security perimeters of CIP networked systems. Without this requirement and protections in place, if an attacker was to breach the security perimeter of the CIP networked environment, the victim organization would have no capability of detecting and alerting to what the adversary is doing within the security perimeter.  

FERC Order 887 is a final rule issued intended to direct NERC to develop new or modified reliability standards requiring internal network security monitoring INSM within Critical Infrastructure Protection (CIP) networked environments. A focus is placed on anomaly based detection used within the security perimeter so that threats without known rules and signatures associated, including insider threat and supply chain attacks, can be detected based on anomalous network activity within the CIP networked environment.

FERC order 887 specifically focuses on the need for addressing the INSM gap for BES high impact power generation systems with CIP networked environments with and without external connectivity and medium impact systems with external connectivity.

FERC Order 887 Requirements

1. Any new or modified CIP Reliability Standards should address the need for responsible entities to develop baselines of their network traffic inside their CIP-networked environment for BES Medium impact with external routable network connectivity and high impact with or without external routable network connectivity.

2. Any new or modified CIP Reliability Standards should address the need for responsible entities to monitor for and detect unauthorized activity, connections, devices, and software inside the CIP-networked environment. This should be done so that sophisticated threats including those that may already have persistent access to CIP networked systems, insider threats and supply chain threats can be detected at earlier stages.

3. Any new or modified CIP Reliability Standards should require responsible entities to identify anomalous activity to a high level of confidence by:  (1) logging network traffic (we note that packet capture is one means of accomplishing this goal); (2) maintaining logs and other data collected regarding network traffic.

How does Darktrace support FERC order 887?

For security professionals to satisfy FERC order 887, it is ideal to deploy an INSM that leverages anomaly based detection and is capable of detecting insider threats and supply chain attacks within CIP networked environments in medium and high impact power generation sites. Additionally, the INSM has to be able to function within high impact sites without any external network connectivity.

Darktrace/OT leverages machine learning to provide actionable preventative analytics, relevant real time anomaly based threat detection, and a variety of response capabilities as a full suite protection for OT/ICS operations Purdue levels 5-0, helping security professionals accommodate for FERC order 887 requirements.

Anomaly Based Detection

Darktrace establishes baseline and normal network activity via passive traffic analysis when monitoring the CIP-networked OT system. The baseline or “pattern of life” is then used to detect anomalies within the environment including unauthorized activity, connections, devices, and software inside the CIP-networked environment via anomaly-based detection.  

Darktrace’s AI technology uses unsupervised machine learning to identify anomalous activity to a high statistical level of confidence by logging network traffic via packet capture and maintaining logs and other data collected regarding network traffic inherently within the platform for 1 year.

All log data stored by Darktrace can be exported to other systems so that it can be stored longer than 1 year. If you need to retain logs for more than 1 year, Darktrace can offload the logs to retain indefinitely.

Figure 1: AI Analyst Incident reporting an unusual reprogram command using the MODBUS protocol. The incident includes a plain English summary, relevant technical information, and the investigation process used by the AI.

Self-Learning AI

Darktrace/OT analyzes network traffic passively and learns the normal pattern of life of the these assets and their details (make, model, firmware, protocols, etc.). Darktrace/OT does not need any data or threat feeds from external sources because the AI builds an innate understanding of self without third-party support.

Darktrace is capable of detecting sophisticated novel malware-based attacks as well as supply chain attacks, insider threats, and other attacks where the adversary has established foothold or persistent legitimized access to systems and cannot be detected by rules and signatures-based detection systems.

Darktrace/OT is an intelligent decision-making engine that uses its evolving understanding of your industrial organization to prompt targeted, non-disruptive action to contain emerging attacks, actively responding to security events occurring within the security perimeter autonomously or via human confirmation using TCP/resets or Darktrace can respond at security boundaries via various integrations with network security tools including firewalls and OT zero trust solutions.

Figure 2: The Darktrace Threat Visualizer allows security analysts and OT engineers to visualize and replay incidents in real time.

Deploys in Isolation Without External Connectivity

Darktrace/OT can deploy passively without the need for any external network connectivity into any low, medium, or high impact power generation facilities and maintain 100 percent integrity of the existing segmentation including fully air gapped environments.

Once Darktrace/OT is deployed, Darktrace immediately begins monitoring, learning, and analyzing the raw OT network traffic (east/west and north/south) within the CIP-networked environment creating a live data flow topology and baseline of network connectivity.

Because all data-processing and analytics are performed locally on the Darktrace appliance, there is no requirement for Darktrace to have a connection out to the internet. As a result, Darktrace/OT provides visibility and threat detection to air-gapped or highly segmented networks without jeopardizing their integrity. If a human or machine displays even the most nuanced forms of threatening behavior, the solution can illuminate this in real time.

Attack Case Study: Insider Threat

In the real-world example below, Darktrace/OT detected a subtle deviation from normal behavior when a reprogram command was sent by an engineering workstation to a PLC controlling a pump, an action an insider threat with legitimized access to OT systems would take to alter the physical process without any malware involved. In this instance, AI Analyst, Darktrace’s investigation tool that triages events to reveal the full security incident, detected the event as unusual based on multiple metrics including the source of the command, the destination device, the time of the activity, and the command itself.  

As a result, AI Analyst created a complete security incident, with a natural language summary, the technical details of the activity, and an investigation process explaining how it came to its conclusion. By leveraging Explainable AI, a security team can quickly triage and escalate Darktrace incidents in real time before it becomes disruptive, and even when performed by a trusted insider.

Figure 3: AI Analyst Incident reporting an unusual reprogram command using the MODBUS protocol. The incident includes a plain English summary, relevant technical information, and the investigation process used by the AI.

Credit to Daniel Simonds and Oakley Cox for their contribution to this blog.

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
Jeffrey Macre
Principal Industrial Security Solutions Architect

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June 1, 2026

Defend What You Trust: Stories from the Front Lines of Modern Cyber Defense

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Modern attacks don’t always announce themselves, follow obvious patterns, or rely on known malware. Often, they move quietly inside trusted systems, authenticated sessions, and everyday behavior.

They don’t break in. They blend in.

That’s why an AI-powered defense is essential. It turns invisible signals into actionable insights at a scale neither analysts nor traditional tools can achieve alone.

Confidence is creating risk

One of the most dangerous assumptions in cybersecurity today is that strong controls equal strong protection.

Multi-factor authentication (MFA), for example, is widely viewed as a foundational safeguard. But as the CISO for a professional sports organization explains, that confidence can be misplaced. “A lot of organizations assume that once you have MFA, those accounts are safe. That’s not true.”

In one instance, his team identified a sophisticated attack where a threat actor bypassed MFA entirely, not by breaking it, but by going around it. A user’s authenticated session was hijacked and re-used, allowing the attacker to impersonate them without triggering traditional controls.

“Darktrace picked up that a session had been re-injected by the hacker, and we were able to block it right away,” he explains.

Attackers anticipate what we miss

Even well-trained users can become entry points.

“An email bypassed our existing security tools,” shares the VP of IT at a U.S.-based risk management services provider.  “The user missed one signal and entered their credentials into a malicious site. That’s what the bad guys count on.”

The organization responded quickly, but not before damage was done. Crucially, this occurred while Darktrace was in “watch mode,” before autonomous response was fully enabled. “Darktrace would have seen that and shut it down immediately,” he notes.

Mistakes and oversights like misconfigurations, forgotten machines, and missed patches can create serious vulnerabilities.

The CIO of a utility services organization shares an instance when Darktrace detected a breach to a client’s network via their ZTNA VPN due to misconfigured MFA. “Darktrace alerted us and autonomously blocked the scanning, preventing what could have been a ransomware-type incident.”  

The most dangerous threats are already inside

The Head of Security at a global business services provider knows firsthand how blind spots can persist inside environments. His team uncovered evidence of dormant ransomware artifacts sitting unnoticed within a company’s environment ¬¬– long before modern detection was in place.

“During a routine file transfer, Darktrace flagged the suspicious activity, identified the ransomware, and immediately quarantined the server,” he recalls.  While the attack was never executed, the implication was significant: the risk existed long before it was finally detected.

Cyber threats are also successful because they take advantage of normal human behavior, exploiting moments of cognitive overload, urgency, and trust.

The Executive Director of IT and Business Applications at a pharmaceutical lab describes the time Darktrace flagged an employee logging into Microsoft 365 from Singapore, despite him being physically located in the U.S. Darktrace immediately cut off his access and within minutes revealed that the employee’s son was using a VPN to play a video game.

While the threat was benign, it demonstrated the strength of AI to use contextual information to detect threats other tools miss. The information also saved security analysts hours of investigation and minimized downtime for the employee. “That level of precision and speed isn’t just convenient, it’s game changing.”

“Unusual” behavior is the new red flag

Detecting modern threats requires an understanding of what “normal” looks like and recognizing when something subtly deviates.

One security leader  at an AI technology enterprise described a scenario in which an employee connected to a proxy service in China. The service itself was legitimate, and although traditional tools didn’t flag it, the behavior was unusual for that user specifically.

“That’s what Darktrace picked up on. The activity turned out to be benign, but without visibility into behavioral deviations, it could just as easily have been something more serious.”

AI shifts defense from reaction to anticipation

These stories point to a fundamental shift by cyber attackers, both tactically and strategically. Because traditional security tools were built to detect what’s already known, modern attacks are often:

  • Credential-based, not malware-based
  • Behavioral, not signature-based
  • Subtle, not overt

They may operate within the boundaries of what appears normal, exploiting what organizations trust, not what they block:

  • Trusted sessions
  • Legitimate services
  • Human error

This is where AI is changing the equation. Rather than relying on predefined rules or known threat signatures, AI can:

  • Establish a baseline of normal behavior
  • Detect subtle anomalies in real time
  • Act autonomously to contain potential threats

Resilience, not perfection, is the new security standard

As these frontline experiences show, the organizations that lead are those that move beyond reactive defense and embrace AI as a core part of their strategy.

It eliminates the blind spots and uncertainty, says the CISO of a professional sports organization. “If you lack visibility, you’re not managing risk, you’re assuming it. AI gives you the actionable insights needed to turn uncertainty into control.”

And it provides the speed and agility that are vital when seconds matter, says the Executive Director of IT and Business Applications. “When Darktrace alerted us at 3:00 am to a ransomware attack, it had already quarantined the affected systems, blocked the attacker’s access, and provided us with the critical details and time needed to investigate. That action likely saved us hundreds of thousands, if not millions, of dollars.”

The modern SOC has become a cornerstone of enterprise resilience, responsible for protecting data and operational continuity while enabling digital growth and innovation. For today’s security professional, that means success is no longer measured by what they keep out, but by what they protect: revenue, reputation, and trust.

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May 28, 2026

From Efficiency to Exposure: How AI Adoption Is Creating Unseen Vulnerabilities on the Factory Floor

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How AI agents impact the manufacturing industry

Security teams and IT personnel across the manufacturing industry are under constant pressure to protect production, maintain uptime, and safeguard critical assets but the rise of AI is bringing huge new opportunities alongside new cyber risks. Across manufacturing, AI is embedded into workflows, decision-making, and increasingly, autonomous AI agents are acting on behalf of employees and systems.  

Agentic systems are powerful because they can act independently, but that same autonomy also creates cyber and operational risk. Agents have extensive permissions and are capable of carrying out complex tasks, making decisions, and interacting with tools or external systems with little to no human intervention.

Unlike traditional AI models that perform predefined tasks, AI agents use advanced techniques to mimic human decision-making processes, dynamically adapting to new challenges, making decision and taking action based on their own judgement. They look like employees operationally but lack judgment, ethics, or fear of consequences like humans do. This means they can be easily manipulated by cybercriminals, and an AI agent embedded across an OT network creates threats that extend well beyond data exposure. For example, at BMW, AI identifies faults in welding processes as they occur. At its Spartanburg plant, AI monitors the weld of 300-400 metal studs onto every SUV frame to detect misplaced or faulty studs and correct them instantly. Corruption of BMW’s AI system could lead to catastrophic quality control errors.

Adopting agentic AI systems across manufacturing raises some concerns across security teams. New data from our State of AI Cybersecurity survey shows that 78% of manufacturing security professionals are worried about employee use of AI agents – their top concern. That’s followed by employee use of generative AI tools like CoPilot and ChatGPT, a worry for 76% of security professionals at manufacturing organizations. As these tools gain more access to business data and processes, and more autonomy within organizations, security teams, who today have minimal visibility of agent activity in their environments, increasingly have sensitive data exposure (a worry for 60%) and accidental policy and regulatory violations (59%) on their minds.

External AI-powered threats are evolving just as quickly

The same capabilities transforming manufacturing are also reshaping cyberattacks.

AI is enabling attackers to automate reconnaissance, refine targeting, and adapt in real time. What once required time and manual effort can now be executed continuously and at scale. Manufacturers are already seeing the impact. According to manufacturing security professionals we surveyed, 76% are already being impacted by AI-powered threats and 90% see AI increasing the success of social engineering attacks.

And the techniques themselves are evolving. Concerns across the manufacturing sector show growing anxiety about the range of AI-powered attack routes, most pressingly of adaptive malware that evolves in real-time – a prospect half (49%) of manufacturing security professionals we surveyed are worried by, a full 9% more than the average across industries. AI adaptive malware is followed by:

  • Automated vulnerability scanning and exploit chaining (48%) which has become even more pressing as Anthropic’s new Mythos AI Model supercharges vulnerability discovery
  • Hyper-personalized phishing campaigns (46%), which remain a mainstay in hackers’ arsenals, and AI has amplified their effectiveness by making phishing emails more convincing and harder to detect.

This is not just an increase in volume, it is a shift toward threats that evolve as they unfold - often faster than static defenses can respond.

Despite rising awareness, many manufacturers are not yet equipped to manage this shift. More than half (51%) say they are not adequately prepared for AI-driven threats, and only 37% have formal policies governing AI deployment.  

Securing AI through visibility, context, and guardrails

Addressing this challenge does not require manufacturers to slow innovation. It requires a different approach to security, one that can operate at the same speed and scale as AI. Three specific priorities are emerging for manufacturers looking to take advantage of the power of AI.

Visibility is foundational.  

Organizations need to understand where AI is being used, what it can access, and how it behaves across both IT and OT environments. Without that, risk cannot be measured or managed. It is no surprise that Darktrace’s research found that 91% of manufacturing security professionals said that they need to understand how AI makes decisions before trusting it. This is even more critical in operational settings where disruption has safety, environmental, financial, and reputational impacts.

Context is what turns visibility into action.  

In environments shaped by AI, normal behavior is constantly shifting. Detecting threats requires a behavioral approach; understanding patterns of life across the organization and identifying subtle deviations in real time – a step change in organizations’ traditional approach to security and risk management.

Guardrails ensure that agency does not become exposure  

As AI systems take on greater responsibility, organizations need clear boundaries around what they can do and when they can act independently. These controls must be embedded into systems themselves, not applied after the fact.  

Securing AI Agents Across Manufacturing IT and OT

The rise of agentic AI is transforming manufacturing - powering next-generation operations while reshaping the security landscape. This is not just an increase in threats, but a shift to autonomous systems, continuously evolving behaviors, and risks moving at machine speed. For organizations trying to grapple with the challenge of enabling AI while managing the risk, visibility, context and guardrails should be foundational.

Darktrace helps manufacturers build secure AI approaches by making those foundations possible. It provides visibility and real-time detection and response to unusual activity across IT and OT environments and allows organizations to understand AI activity from the prompts employees use and the agents they build to how those agents are behaving across the environment. For manufacturers scaling AI, this delivers a foundation for innovation without sacrificing control.

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About the author
Oakley Cox
Director of Product
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