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June 7, 2020

How Darktrace AI Identified Microsoft 365 Breaches

We cover two real cases on how Darktrace stopped Microsoft 365 account takeovers by correlating insights across SaaS applications & email activity.
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
Dan Fein
VP, Product
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07
Jun 2020

Social engineering’. ‘Credential theft’. ‘Account takeover’. If you were a fly on the wall of a Security Operations Center in 2020, you would have heard these phrases far more often than ‘banking trojan’, ‘SQL injection’ or ‘exploit kit’. The reason for this is simple – the reality for most security teams now is that their perimeter has shifted into the cloud. Identities are being attacked more than devices.

Microsoft 365 account compromise’ is the current favorite, with 29% of organizations reporting a related incident in one month alone. Security teams struggle with these attacks because the evidence needed to detect them is scattered across the enterprise: they begin via email, are executed over the network, and progress in the cloud. This broad and spread out digital footprint means that following the breadcrumbs is not easy.

Darktrace’s Cyber AI Platform is designed to understand a user’s behavior as they move between devices and cloud services, tracking their activity to identify a compromise. To help understand how these attacks avoid detection, it is useful to look at a couple of examples of Microsoft Office 365 compromise detected recently in one of our customers.

Microsoft 365 compromised to launch external email threat

A Microsoft 365 account was recently compromised at a public accounting firm based in the United States. Darktrace initially picked up on several anomalies, including a sudden surge in outbound email traffic as well as the unusual login location – while the company and nearly all of its users were located in Wisconsin, an IP address located in Kansas was used to log in to the Microsoft 365 account. Along with the unusual login, a login to Microsoft Teams from the same Kansas IP address was detected.

Figure 1: Just after the new email rule was created, a Microsoft Teams 100% rare IP login occurred.

‘Impossible travel’ rules alone would have missed these anomalies, but an understanding of activity and behavior across different SaaS applications allowed Darktrace’s AI to recognize these events as one systematic case of credential theft. When the threat-actor subsequently created a new email rule, Darktrace was able to connect this event with the other anomalous behavior and understand its potentially malicious nature.

Figure 2: Darktrace’s SaaS Module noted a 100% rare IP logging into the user’s Microsoft 365 account and the creation of a new mailbox rules. All factors indicated 100% unusual SaaS activity.

Five minutes later, Antigena Email alerted on a large number of outbound emails containing a generic subject line and an attached PDF. The technology also detected that there was a clear spike in outbound emails from this user and flagged each of these emails with the “Out of Character” tag, which in this case denoted a change from normal behavior with the surge in recipients, and likely internal compromise.

Figure 3: Antigena Email detected a surge in recipients that indicated a serious breach of normal behavior for this user.

The unusual login behavior detected by Darktrace’s SaaS Module could be connected to the anomalous outbound email behavior flagged by Antigena Email, allowing the security team to see the extent of the attack and neutralize it as it emerged. It was clear that the account was being used to engage in malicious activity, as each of the 220 outbound emails used a generic subject line and contained a suspicious attachment. The security team therefore immediately disabled the compromised account.

Figure 4: A recreation of the email sent by the attacker, containing the malicious attachment.

‘Change of bank details’ sent from accounts department

When an Accounts Department’s Microsoft 365 account was compromised and used to send targeted phishing emails, Darktrace was able to track the attacker’s movement within the inbox, tying together information from Darktrace’s SaaS Module with Antigena Email’s alerts to understand the full picture of the threat and stop the attack.

The SaaS account appears to have been compromised via an inbound spear phishing attack, or some other form of attack that occurred before Darktrace began monitoring the organization. While Darktrace Cyber AI had no oversight of the initial compromise, it was still able to distinguish later attacker behavior as malicious, based on its actively evolving understanding of the organization and its workforce.

When the account user logged in from a 100% rare French IP address, Darktrace’s SaaS Module picked up on the anomaly immediately, and further detected a series of activities carried out after the unusual login. At the same time, Antigena Email noted an email being sent.

Figure 5: The login from a French IP was noted as 100% rare for this user and SaaS account.

Darktrace then identified more activity occurring from a second rare login location, a Swiss IP address. Very little email activity occurred when the account was logged in from this IP. Instead, Cyber AI saw the threat-actor using their illegitimate SaaS access to view information on the legitimate account user and files related to banking, invoices, and payments.

Antigena Email then identified a series of email communications that, when seen in the context of the SaaS account compromise, pointed to a clear threat. There were no obvious malicious attachments or links in the emails. However, the subject of the final reply was ‘Change of Bank Details’, and the email prompted a high Solicitation Inducement Score within Antigena Email, strongly implying that the malicious actor had sent emails instructing the destination to change payment details in order to route money to the attacker, instead of the company.

It seems the attackers went through the banking and invoicing files in order to find a customer with a big bill to pay, then used the compromised email account to launch an outbound phishing attack, changing the billing details. With Darktrace AI correlating information within the SaaS platform and insights from Antigena Email, this targeted phishing attack could be contained before further compromise or damage could occur.

The below screenshot also indicates a series of inbox processing rules made on the compromised account, showing actions that are typical of an account takeover.

Figure 6: Darktrace’s records of new inbox rules being set up on the compromised SaaS account.

The benefits of a unified approach

These stories are all too familiar. Most security tools would not be able to take action on any one of these steps individually. But the combination reveals the tell-tale sign of a Microsoft 365 account hijack. Organizations are struggling to manage their user identities across their cloud infrastructure, and rule and policy-based detection is no longer feasible.

However, by learning identities and behavior across the enterprise, Darktrace is able to detect, and seamlessly respond, to combat these threats. Hundreds of organizations are now using Antigena Email to protect their email and cloud environments continuously, trusting it to dynamically enforce MFA, lock accounts, block network traffic, and withhold emails when necessary.

As cloud-native applications become more popular, organizations face the growing problem of separate end-to-end security solutions for each type of workload. With Antigena Email working in conjunction with Darktrace’s Enterprise Immune System, defenders can be assured that a single, unified platform is tracking every suspicious behavior, wherever it arises in the organization.

Learn more about Antigena Email

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
Dan Fein
VP, Product

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May 12, 2026

Resilience at the Speed of AI: Defending the Modern Campus with Darktrace

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Why higher education is a different cybersecurity battlefield

After four decades in IT, now serving as both CIO and CISO, I’ve learned one simple truth: cybersecurity is never “done.” It’s a constant game of cat and mouse. Criminals evolve. Technologies advance. Regulations expand. But in higher education, the challenge is uniquely complex.

Unlike a bank or a military installation, we can’t lock down networks to a narrow set of approved applications. Higher education environments are open by design. Students collaborate globally, faculty conduct cutting-edge research, and administrators manage critical operations, all of which require seamless access to the internet, global networks, cloud platforms, and connected systems.

Combine that openness with expanding regulatory mandates and tight budgets, and the balancing act becomes clear.

Threat actors don’t operate under the same constraints. Often well-funded and sponsored by nation-states with significant resources, they’re increasingly organized, strategic, and innovative.

That sophistication shows up in the tactics we face every day, from social engineering and ransomware to AI-driven impersonation attacks. We’re dealing with massive volumes of data, countless signals, and a very small window between detection and damage.

No human team, no matter how talented or how numerous, can manually sift through that noise at the speed required.

Discovering a force multiplier

Nothing in cybersecurity is 100% foolproof. I never “set it and forget it.” But for institutions balancing rising threats and finite resources, the Darktrace ActiveAI Security Platform™ offers something incredibly valuable: peace of mind through speed and scale.

It closes the gap between detection and response in a way humans can’t possibly match. At the speed of light, it can quarantine, investigate, and contain anomalous activity.

I’ve purchased and deployed Darktrace three separate times at three different institutions because I’ve seen firsthand what it can do and what it enables teams like mine to achieve.

I first encountered Darktrace while serving as CIO for a large multi-campus college system. What caught my attention was Darktrace's Self-Learning AI, and its ability to learn what "normal" looked like across our network. Instead of relying solely on static signatures or rigid rules, Darktrace built a behavioral baseline unique to our environment and alerted us in real time when something simply didn’t look right.

In higher education, where strict lockdowns aren’t realistic, that behavioral model made all the difference. We deployed it across five campuses, and the impact was immediate. Operating 24/7, Darktrace surfaced threats in ways our team couldn’t replicate manually.

Over time, the Darktrace platform evolved alongside the changing threat landscape, expanding into intrusion prevention, cloud visibility, and email security. At subsequent institutions, including Washington College, Darktrace was one of my first strategic investments.

Revealing the hidden threat other tools missed

One of the most surprising investigations of my career involved a data leak. Leadership suspected sensitive information from high-level meetings was being exposed, but our traditional tools couldn’t provide any answers.

Using Darktrace’s deep network visibility, down to packet-level data, we traced unusual connections to our CCTV camera system, which had been configured with a manufacturer’s default password. A small group of employees had hacked into the CCTV cameras, accessed audio-enabled recordings from boardroom meetings, and stored copies locally.

No other tool in our environment could have surfaced those connections the way Darktrace did. It was a clear example of why using AI to deeply understand how your organization, systems, and tools normally behave, matters: threats and risks don’t always look the way we expect.

Elevating a D-rating into a A-level security program

When I arrived at my last CISO role, the institution had recently experienced a significant ransomware attack. Attackers located  data  which informed their setting  ransom demands to an amount they knew would likely result in payment. It was a sobering example of how calculated and strategic modern cybercriminals have become.

Third-party cyber ratings reflected that reality, with a  D rating.

To raise the bar, we implemented a comprehensive security program and integrated layered defenses; -deploying state of the art tools and methods-  across the environment, with Darktrace at its core.

After a 90-day learning period to establish our behavioral baseline, we transitioned the platform into fully autonomous mode. In a single 30-day span, Darktrace conducted more than 2,500 investigations and autonomously resolved 92% of all false positives.

For a small team, that’s transformative. Instead of drowning in alerts, my staff focused on less than  200 meaningful cases that warranted human review.

Today, we maintain a perfect A rating from third-party assessors and have remained cybersafe.

Peace of mind isn’t about complacency

The effect of Darktrace as a force multiplier has a real human impact.

With the time reclaimed through automation, we expanded community education programs and implemented simulated phishing exercises. Through sustained training and awareness efforts, we reduced social engineering susceptibility from nearly 45% to under 5%.

On a personal level, Darktrace allows me to sleep better at night and take time off knowing we have intelligent systems monitoring and responding around the clock. For any CIO or CISO carrying institutional risk on their shoulders, that matters.

The next era: AI vs. AI

A new chapter in cybersecurity is unfolding as adversaries leverage AI to enhance scale, speed, and believability. Phishing campaigns are more personalized, impersonation attempts are more precise, and deepfake video technology, including live video, is disturbingly authentic. At the same time, organizations are rapidly adopting AI across their own environments —from GenAI assistants to embedded tools to autonomous agents. These systems don’t operate within fixed rules. They act across email, cloud, SaaS, and identity systems, often with broad permissions, and their behavior can evolve over time in ways that are difficult to predict or control.

That creates a new kind of security challenge. It’s not just about defending against AI-powered threats but understanding and governing how AI behaves within your environment, including what it can access, how it acts, and where risk begins to emerge.

From my perspective, this is a natural next step for Darktrace.

Darktrace brings a level of maturity and behavioral understanding uniquely suited to the complexity of AI environments. Self-Learning AI learns the normal patterns of each business to interpret context, uncover subtle intent, and detect meaningful deviations without relying on predefined rules or signatures. Extending into securing AI by bringing real-time visibility and control to GenAI assistants, AI agents, development environments and Shadow AI, feels like the logical evolution of what Darktrace already does so well.

Just as importantly, Darktrace is already built for dynamic, cross-domain environments where risk doesn’t sit in a single tool or control plane. In higher education, activity already spans multiple systems and, with AI, that interconnection only accelerates.

Having deployed Darktrace multiple times, I have confidence it’s uniquely positioned to lead in this space and help organizations adopt AI with greater visibility and control.

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Since authoring this blog, Irving Bruckstein has transitioned to the role of Chief Executive Officer of the Cyberaigroup.

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About the author
Irving Bruckstein
CEO CyberAIgroup

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May 11, 2026

The Next Step After Mythos: Defending in a World Where Compromise is Expected

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Is Anthropic’s Mythos a turning point for cybersecurity?

Anthropic’s recent announcements around their Mythos model, alongside the launch of Project Glasswing, have generated significant interest across the cybersecurity industry.

The closed-source nature of the Mythos model has understandably attracted a degree of skepticism around some of the claims being made. Additionally, Project Glasswing was initially positioned as a way for software vendors to accelerate the proactive discovery of vulnerabilities in their own code; however, much of the attention has focused on the potential for AI to identify exploitable vulnerabilities for those with malicious intent.

Putting questions around the veracity of those claims to one side – which, for what it’s worth, do appear to be at least partially endorsed by independent bodies such as the UK’s AI Security Institute – this should not be viewed as a critical turning point for the industry. Rather, it reflects the natural direction of travel.

How Mythos affects cybersecurity teams  

At Darktrace, extolling the virtues of AI within cybersecurity is understandably close to our hearts. However, taking a step back from the hype, we’d like to consider what developments like this mean for security teams.

Whether it’s Mythos or another model yet to be released, it’s worth remembering that there is no fundamental difference between an AI discovered vulnerability and one discovered by a human. The change is in the pace of discovery and, some may argue, the lower the barrier to entry.

In the hands of a software developer, this is unquestionably positive. Faster discovery enables earlier remediation and more proactive security. But in the hands of an attacker, the same capability will likely lead to a greater number of exploitable vulnerabilities being used in the wild and, critically, vulnerabilities that are not yet known to either the vendor or the end user.

That said, attackers have always been able to find exploitable vulnerabilities and use them undetected for extended periods of time. The use of AI does not fundamentally change this reality, but it does make the process faster and, unfortunately, more likely to occur at scale.

While tools such as Darktrace / Attack Surface Management and / Proactive Exposure Management  can help security teams prioritize where to patch, the emergence of AI-driven vulnerability discovery reinforces an important point: patching alone is not a sufficient control against modern cyber-attacks.

Rethinking defense for a world where compromise is expected

Rather than assuming vulnerabilities can simply be patched away, defenders are better served by working from the assumption that their software is already vulnerable - and always will be -and build their security strategy accordingly.

Under that assumption, defenders should expect initial access, particularly across internet exposed assets, to become easier for attackers. What matters then is how quickly that foothold is detected, contained, and prevented from expanding.

For defenders, this places renewed emphasis on a few core capabilities:

  • Secure-by-design architectures and blast radius reduction, particularly around identity, MFA, segmentation, and Zero Trust principles
  • Early, scalable detection and containment, favoring behavioral and context-driven signals over signatures alone
  • Operational resilience, with the expectation of more frequent early-stage incidents that must be managed without burning out teams

How Darktrace helps organizations proactively defend against cyber threats

At Darktrace, we support security teams across all three of these critical capabilities through a multi-layered AI approach. Our Self-Learning AI learns what’s normal for your organization, enabling real-time threat detection, behavioral prediction, incident investigation and autonomous response. - all while empowering your security team with visibility and control.

To learn more about Darktrace’s application of AI to cybersecurity download our White Paper here.  

Reducing blast radius through visibility and control

Secure-by-design principles depend on understanding how users, devices, and systems behave. By learning the normal patterns of identity and network activity, Darktrace helps teams identify when access is being misused or when activity begins to move beyond expected boundaries. This makes it possible to detect and contain lateral movement early, limiting how far an attacker can progress even after initial access.

Detecting and containing threats at the earliest stage  

As AI accelerates vulnerability discovery, defenders need to identify exploitation before it is formally recognized. Darktrace’s behavioral understanding approach enables detection of subtle deviations from normal activity, including those linked to previously unknown vulnerabilities.

A key example of this is our research on identifying cyber threats before public CVE disclosures, demonstrating that assessing activity against what is normal for a specific environment, rather than relying on predefined indicators of compromise, enables detection of intrusions exploiting previously unknown vulnerabilities days or even weeks before details become publicly available.

Additionally, our Autonomous Response capability provides fast, targeted containment focused on the most concerning events, while allowing normal business operations to continue. This has consistently shown that even when attackers use techniques never seen before, Darktrace’s Autonomous Response can contain threats before they have a chance to escalate.

Scaling response without increasing operational burden

As early-stage incidents become more frequent, the ability to investigate and respond efficiently becomes critical. Darktrace’s Cyber AI Analyst’s AI-driven investigation capabilities automatically correlate activity across the environment, prioritizing the most significant threats and reducing the need for manual triage. This allows security teams to respond faster and more consistently, without increasing workload or burnout.

What effective defense looks like in an AI-accelerated landscape

Developments like Mythos highlight a reality that has been building for some time: the window between exposure and exploitation is shrinking, and in many cases, it may disappear entirely. In that environment, relying on patching alone becomes increasingly reactive, leaving little room to respond once access has been established.

The more durable approach is to assume that compromise will occur and focus on controlling what happens next. That means identifying early signs of misuse, containing threats before they spread, and maintaining visibility across the environment so that isolated signals can be understood in context.

AI plays a role on both sides of this equation. While it enables attackers to move faster, it also gives defenders the ability to detect subtle changes in behavior, prioritize what matters, and respond in real time. The advantage will not come from adopting AI in isolation, but from applying it in a way that reduces the gap between detection and action.

AI may be accelerating parts of the attack lifecycle, but the fundamentals of defense, detection, and containment still apply. If anything, they matter more than ever – and AI is just as powerful a tool for defenders as it is for attackers.

To learn more about Darktrace and Mythos read more on our blog: Mythos vs Ethos: Defending in an Era of AI‑Accelerated Vulnerability Discovery

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About the author
Toby Lewis
Head of Threat Analysis
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