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May 5, 2020

Old But Still Dangerous: Dharma Ransomware Attack

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05
May 2020
See how Darktrace's Cyber AI detected a fast-acting Dharma ransomware attack at every stage of the life cycle to prevent further damage to the system.

Executive summary

  • In the past few weeks, Darktrace has observed an increase in attacks against internet-facing systems, such as RDP. The initial intrusions usually take place via existing vulnerabilities or stolen, legitimate credentials. The Dharma ransomware attack described in this blog post is one such example.
  • Old threats can be damaging – Dharma and its variants have been around for four years. This is a classic example of ‘legacy’ ransomware morphing and adapting to bypass traditional defenses.
  • The intrusion shows signs that indicate the threat-actors are aware of – and are actively exploiting – the COVID-19 situation.
  • In the current threat landscape surrounding COVID-19, Darktrace recommends monitoring internet-facing systems and critical servers closely – keeping track of administrative credentials and carefully considering security when rapidly deploying internet-facing infrastructure.

Introduction

In mid-April, Darktrace detected a targeted Dharma ransomware attack on a UK company. The initial point of intrusion was via RDP – this represents a very common attack method of infection that Darktrace has observed in the broader threat landscape over the past few weeks.

This blog post highlights every stage of the attack lifecycle and details the attacker’s techniques, tools and procedures (TTP) – all detected by Darktrace.

Dharma – a varient of the CrySIS malware family – first appeared in 2016 and uses multiple intrusion vectors. It distributes its malware as an attachment in a spam email, by disguising it as an installation file for legitimate software, or by exploiting an open RDP connection through internet-facing servers. When Dharma has finished encrypting files, it drops a ransom note with the contact email address in the encrypted SMB files.

Darktrace had strong, real-time detections of the attack – however the absence of eyes on the user interface prior to the encryption activity, and without Autonomous Response deployed in Active Mode, these alerts were only actioned after the ransomware was unleashed. Fortunately, it was unable to spread within the organization, thanks to human intervention at the peak of the attack. However, Darktrace Antigena in active mode would have significantly slowed down the attack.

Timeline

The timeline below provides a rough overview of the major attack phases over five days of activity.

Figure 1: A timeline of the attack

Technical analysis

Darktrace detected that the main device hit by the attack was an internet-facing RDP server (‘RDP server’). Dharma used network-level encryption here: the ransomware activity takes place over the network protocol SMB.

Below is a chronological overview of all Darktrace detections that fired during this attack: Darktrace detected and reported every single unusual or suspicious event occurring on the RDP server.

Figure 2: An overview of Darktrace detections

Initial compromise

On April 7, the RDP server began receiving a large number of incoming connections from rare IP addresses on the internet.

On April 7, the RDP server began receiving a large number of incoming connections from rare IP addresses on the internet. This means a lot of IP addresses on the internet that usually don’t connect to this company started connection attempts over RDP. The top five cookies used to authenticate show that the source IPs were located in Russia, the Netherlands, Korea, the United States, and Germany.

It is highly likely that the RDP credential used in this attack had been compromised prior to the attack – either via common brute-force methods, credential stuffing attacks, or phishing. Indeed, a TTP growing in popularity is to buy RDP credentials on marketplaces and skip to initial access.

Attempted privilege escalation

The following day, the malicious actor abused the SMB version 1 protocol, notorious for always-on null sessions which offer unauthenticated users’ information about the machine – such as password policies, usernames, group names, machine names, user and host SIDs. What followed was very unusual: the server connected externally to a rare IP address located in Morocco.

Next, the attacker attempted a failed SMB session to the external IP over an unusual port. Darktrace detected this activity as highly anomalous, as it had previously learned that SMB is usually not used in this fashion within this organization – and certainly not for external communication over this port.

Figure 3: Darktrace detecting the rare external IP address

Figure 4: The SMB session failure and the rare connection over port 1047

Command and control traffic

As the entire attack occurred over five days, this aligns with a smash-and-grab approach, rather than a highly covert, low-and-slow operation.

Two hours later, the server initiated a large number of anomalous and rare connections to external destinations located in India, China, and Italy – amongst other destinations the server had never communicated with before. The attacker was now attempting to establish persistence and create stronger channels for command and control (C2). As the entire attack occurred over five days, this aligns with a smash-and-grab approach, rather than a highly covert, low-and-slow operation.

Actions on target

Notwithstanding this approach, the malicious actor remained dormant for two days, biding their time until April 10 — a public holiday in the UK — when security teams would be notably less responsive. This pause in activity provides supporting evidence that the attack was human-driven.

Figure 5: The unusual RDP connections detected by Darktrace

The RDP server then began receiving incoming remote desktop connections from 100% rare IP addresses located in the Netherlands, Latvia, and Poland.

Internal reconnaissance

The IP address 85.93.20[.]6, hosted at the time of investigation in Panama, made two connections to the server, using an administrative credential. On April 12, as other inbound RDP connections scanned the network, the volume of data transferred by the RDP server to this IP address spiked. The RDP server never scans the internal network. Darktrace identified this as highly unusual activity.

Figure 6: Darktrace detects the anomalous external data transfer

Lateral movement and payload execution

Finally, on April 12, the attackers executed the Dharma payload at 13:45. The RDP server wrote a number of files over the SMB protocol, appended with a file extension containing a throwaway email account possibly evoking the current COVID-19 pandemic, ‘cov2020@aol[.]com’. The use of string ‘…@aol.com].ROGER’ and presence of a file named ‘FILES ENCRYPTED.txt’ resembles previous Dharma compromises.

Parallel to the encryption activity, the ransomware tried to spread and infect other machines by initiating successful SMB authentications using the same administrator credential seen during the internal reconnaissance. However, the destination devices did not encrypt any files themselves.

It was during the encryption activity that the internal IT staff pulled the plug from the compromised RDP server, thus ending the ransomware activity.

Conclusion

This incident supports the idea that ‘legacy’ ransomware may morph to resurrect itself to exploit vulnerabilities in remote working infrastructure during this pandemic.

Dharma executed here a fast-acting, planned, targeted, ransomware attack. The attackers used off-the-shelf tools (RDP, abusing SMB1 protocol) blurring detection and attribution by blending in with typical administrator activity.

Darktrace detected every stage of the attack without having to depend on threat intelligence or rules and signatures, and the internal security team acted on the malicious activity to prevent further damage.

This incident supports the idea that ‘legacy’ ransomware may morph to resurrect itself to exploit vulnerabilities in remote working infrastructure during this pandemic. Poorly-secured public-facing systems have been rushed out and security is neglected as companies prioritize availability – sacrificing security in the process. Financially-motivated actors weaponize these weak points.

The use of the COVID-related email ‘cov2020@aol[.]com’ during the attack indicates that the threat-actor is aware of and abusing the current global pandemic.

Recent attacks, such as APT41’s exploitation of the Zoho Manage Engine vulnerability last March, show that attacks against internet-facing infrastructure are gaining popularity as the initial intrusion vector. Indeed, as many as 85% of ransomware attacks use RDP as an entry vector. Ensuring that backups are isolated, configurations are hardened, and systems are patched is not enough – real-time detection of every anomalous action can help protect potential victims of ransomware.

Technical Details

Some of the detections on the RDP server:

  • Compliance / Internet Facing RDP server – exposure of critical server to Internet
  • Anomalous Connection / Application Protocol on Uncommon Port – external connections using an unusual port to rare endpoints
  • Device / Large Number of Connections to New Endpoints – indicative of peer-to-peer or scanning activity
  • Compliance / Incoming Remote Desktop – device is remotely controlled from an external source, increased rick of bruteforce
  • Compromise / Ransomware / Suspicious SMB Activity – reading and writing similar volumes of data to remote file shares, indicative of files being overwritten and encrypted
  • Anomalous File / Internal / Additional Extension Appended to SMB File – device is renaming network share files with an added extension, seen during ransomware activity

The graph below shows the timeline of Darktrace detections on the RDP server. The attack lifecycle is clearly observable.

Figure 7: The model breaches occurring over time

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.
Author
Max Heinemeyer
Global Field CISO

Max is a cyber security expert with over a decade of experience in the field, specializing in a wide range of areas such as Penetration Testing, Red-Teaming, SIEM and SOC consulting and hunting Advanced Persistent Threat (APT) groups. At Darktrace, Max is closely involved with Darktrace’s strategic customers & prospects. He works with the R&D team at Darktrace, shaping research into new AI innovations and their various defensive and offensive applications. Max’s insights are regularly featured in international media outlets such as the BBC, Forbes and WIRED. Max holds an MSc from the University of Duisburg-Essen and a BSc from the Cooperative State University Stuttgart in International Business Information Systems.

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February 3, 2025

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Cloud

CNAPP Alone Isn’t Enough: Focusing on CDR for Real-Time Cross Domain Protection

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Forecasts predict public cloud spending will soar to over $720 billion by 2025, with 90%[1] of organizations embracing a hybrid cloud approach by 2027. These figures could also be eclipsed as more businesses unearth the potential impact that AI can make on their productivity. The pace of evolution is staggering, but one thing hasn’t changed: the cloud security market is a maze of complexity. Filled with acronyms, overlapping capabilities, and endless use cases tailored to every buyer persona.

On top of this, organizations face a fragmented landscape of security tools, each designed to cover just one slice of the cloud security puzzle. Then there’s CNAPP (Cloud-Native Application Protection Platform) — a broad platform promising to do it all but often falling short, especially around providing runtime detection and response capabilities. It’s no wonder organizations struggle to cut through the noise and find the precision they require.

Looking more closely at what CNAPP has to offer, it can feel like as if it is all you would ever need, but is that really the case?

Strengths and limitations of CNAPP

A CNAPP is undeniably a compelling solution, originally coming from CSPM (Cloud Security Posture Management), it provided organizations with a snapshot of their deployed cloud assets, highlighting whether they were as secure as intended. However, this often resulted in an overwhelming list of issues to fix, leaving organizations unsure where to focus their energy for maximum impact.

To address this, CNAPP’s evolved, incorporating capabilities like; identifying software vulnerabilities, mapping attack paths, and understanding which identities could act within the cloud. The goal became clear: prioritize fixes to reduce the risk of compromise.

But what if we could avoid these problems altogether? Imagine deploying software securely from the start — preventing the merging of vulnerable packages and ensuring proper configurations in production environments by shifting left. This preventative approach is vital to any “secure by design” strategy, CNAPP’s again evolving to add this functionality alongside.

However, as applications grow more complex, so do the variety and scope of potential issues. The responsibility for addressing these challenges often falls to engineers, who are left balancing the pressure to write code with the burden of fixing critical findings that may never even pose a real risk to the organization.

While CNAPP serves as an essential risk prevention tool — focusing on hygiene, compliance, and enabling organizations to deploy high-quality code on well-configured infrastructure — its role is largely limited to reducing the potential for issues. Once applications and infrastructure are live, the game changes. Security’s focus shifts to detecting unwanted activity and responding to real-time risks.

Limitations of CNAPP

Here’s where CNAPP shows its limitations:

1. Blind spots for on-premises workloads

Designed for cloud-native environments, it can leave blind spots for workloads that remain on-premises — a significant concern given that 90% of organizations are expected to adopt a hybrid cloud strategy by 2027. These blind spots can increase the risk of cross-domain attacks, underscoring the need for a solution that goes beyond purely prevention but adds real-time detection and response.

2. Detecting and mitigating cross-domain threats

Adversaries have evolved to exploit the complexity of hybrid and cloud environments through cross-domain attacks. These attacks span multiple domains — including traditional network environments, identity systems, SaaS platforms, and cloud environments — making them exceptionally difficult to detect and mitigate. Attackers are human and will naturally choose the path of least resistance, why spend time writing a detailed software exploit for a vulnerability if you can just target the identity?

Imagine a scenario where an attacker compromises an organization via leaked credentials and then moves laterally, similar to the example outlined in this blog: The Price of Admission: Countering Stolen Credentials with Darktrace. If an attacker identifies cloud credentials and moves into the cloud control plane, they could access additional sensitive data. Without a detection platform that monitors these areas for unusual activity, while working to consolidate findings into a unified timeline, detecting these types of attacks becomes incredibly challenging.

A CNAPP might only point to a potential misconfiguration of an identity or for example a misconfiguration around secret storage, but it cannot detect when that misconfiguration has been exploited — let alone respond to it.

Identity + Network: Unlocking cross-domain threats

Identity is more than just a role or username; it is essentially an access point for attackers to leverage and move between different areas of a digital estate. Real-time monitoring of human and non-human identities is crucial for understanding intent, spotting anomalies, and preventing possible attacks before they spread.

Non-human roles, such as service accounts or automation tooling, often operate with trust and without oversight. In 2024, the Cybersecurity and Critical Infrastructure Agency (CISA) [2] released a warning regarding new strategies employed by SolarWinds attackers. These strategies were primarily aimed at cloud infrastructure and non-human identities. The warning details how attackers leverage credentials and valid applications for malicious purposes.

With organizations opting for a hybrid approach, combining network, identity, cloud management and cloud runtime activity is essential to detecting and mitigating cross domain attacks, these are just some of the capabilities needed for effective detection and response:

  • AI driven automated and unified investigation of events – due to the volume of data and activity within businesses digital estates leveraging AI is vital, to enable SOC teams in understanding and facilitating proportional and effective responses.
  • Real-time monitoring auditing combined with anomaly detection for human and non-human identities.
  • A unified investigation platform that can deliver a real-time understanding of Identity, deployed cloud assets, runtime and contextual findings as well as coverage for remaining on premises workloads.
  • The ability to leverage threat intelligence automatically to detect potential malicious activities quickly.

The future of cloud security: Balancing risk management with real-time detection and response

Darktrace / CLOUD's CDR approach enhances CNAPP by providing the essential detection and native response needed to protect against cross-domain threats. Its agentless, default setup is both cost-effective and scalable, creating a runtime baseline that significantly boosts visibility for security teams. While proactive controls are crucial for cloud security, pairing them with Cloud Detection and Response solutions addresses a broader range of challenges.

With Darktrace / CLOUD, organizations benefit from continuous, real-time monitoring and advanced AI-driven behavioural detection, ensuring proactive detection and a robust cloud-native response. This integrated approach delivers comprehensive protection across the digital estate.

Unlock advanced cloud protection

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Download the Darktrace / CLOUD solution brief to discover how autonomous, AI-driven defense can secure your environment in real-time.

  • Achieve 60% more accurate detection of unknown and novel cloud threats.
  • Respond instantly with autonomous threat response, cutting response time by 90%.
  • Streamline investigations with automated analysis, improving ROI by 85%.
  • Gain a 30% boost in cloud asset visibility with real-time architecture modeling.
  • References

    1. https://www.gartner.com/en/newsroom/press-releases/2024-11-19-gartner-forecasts-worldwide-public-cloud-end-user-spending-to-total-723-billion-dollars-in-2025
    2. https://www.cisa.gov/news-events/cybersecurity-advisories/aa24-057a
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    About the author
    Adam Stevens
    Director of Product, Cloud Security

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    February 4, 2025

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    Reimagining Your SOC: Overcoming Alert Fatigue with AI-Led Investigations  

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    The efficiency of a Security Operations Center (SOC) hinges on its ability to detect, analyze and respond to threats effectively. With advancements in AI and automation, key early SOC team metrics such as Mean Time to Detect (MTTD) have seen significant improvements:

    • 96% of defenders believing AI-powered solutions significantly boost the speed and efficiency of prevention, detection, response, and recovery.
    • Organizations leveraging AI and automation can shorten their breach lifecycle by an average of 108 days compared to those without these technologies.

    While tool advances have improved performance and effectiveness in the detection phase, this has not been as beneficial to the next step of the process where initial alerts are investigated further to determine their relevance and how they relate to other activities. This is often measured with the metric Mean Time to Analysis (MTTA), although some SOC teams operate a two-level process with teams for initial triage to filter out more obviously uninteresting alerts and for more detailed analysis of the remainder. SOC teams continue to grapple with alert fatigue, overwhelmed analysts, and inefficient triage processes, preventing them from achieving the operational efficiency necessary for a high-performing SOC.

    Addressing this core inefficiency requires extending AI's capabilities beyond detection to streamline and optimize the following investigative workflows that underpin effective analysis.

    Challenges with SOC alert investigation

    Detecting cyber threats is only the beginning of a much broader challenge of SOC efficiency. The real bottleneck often lies in the investigation process.

    Detection tools and techniques have evolved significantly with the use of machine learning methods, improving early threat detection. However, after a detection pops up, human analysts still typically step in to evaluate the alert, gather context, and determine whether it’s a true threat or a false alarm and why. If it is a threat, further investigation must be performed to understand the full scope of what may be a much larger problem. This phase, measured by the mean time to analysis, is critical for swift incident response.

    Challenges with manual alert investigation:

    • Too many alerts
    • Alerts lack context
    • Cognitive load sits with analysts
    • Insufficient talent in the industry
    • Fierce competition for experienced analysts

    For many organizations, investigation is where the struggle of efficiency intensifies. Analysts face overwhelming volumes of alerts, a lack of consolidated context, and the mental strain of juggling multiple systems. With a worldwide shortage of 4 million experienced level two and three SOC analysts, the cognitive burden placed on teams is immense, often leading to alert fatigue and missed threats.

    Even with advanced systems in place not all potential detections are investigated. In many cases, only a quarter of initial alerts are triaged (or analyzed). However, the issue runs deeper. Triaging occurs after detection engineering and alert tuning, which often disable many alerts that could potentially reveal true threats but are not accurate enough to justify the time and effort of the security team. This means some potential threats slip through unnoticed.

    Understanding alerts in the SOC: Stopping cyber incidents is hard

    Let’s take a look at the cyber-attack lifecycle and the steps involved in detecting and stopping an attack:

    First we need a trace of an attack…

    The attack will produce some sort of digital trace. Novel attacks, insider threats, and attacker techniques such as living-off-the-land can make attacker activities extremely hard to distinguish.

    A detection is created…

    Then we have to detect the trace, for example some beaconing to a rare domain. Initial detection alerts being raised underpin the MTTD (mean time to detection). Reducing this initial unseen duration is where we have seen significant improvement with modern threat detection tools.

    When it comes to threat detection, the possibilities are vast. Your initial lead could come from anything: an alert about unusual network activity, a potential known malware detection, or an odd email. Once that lead comes in, it’s up to your security team to investigate further and determine if this is this a legitimate threat or a false alarm and what the context is behind the alert.

    Investigation begins…

    It doesn’t just stop at a detection. Typically, humans also need to look at the alert, investigate, understand, analyze, and conclude whether this is a genuine threat that needs a response. We normally measure this as MTTA (mean time to analyze).

    Conducting the investigation effectively requires a high degree of skill and efficiency, as every second counts in mitigating potential damage. Security teams must analyze the available data, correlate it across multiple sources, and piece together the timeline of events to understand the full scope of the incident. This process involves navigating through vast amounts of information, identifying patterns, and discerning relevant details. All while managing the pressure of minimizing downtime and preventing further escalation.

    Containment begins…

    Once we confirm something as a threat, and the human team determines a response is required and understand the scope, we need to contain the incident. That's normally the MTTC (mean time to containment) and can be further split into immediate and more permanent measures.

    For more about how AI-led solutions can help in the containment stage read here: Autonomous Response: Streamlining Cybersecurity and Business Operations

    The challenge is not only in 1) detecting threats quickly, but also 2) triaging and investigating them rapidly and with precision, and 3) prioritizing the most critical findings to avoid missed opportunities. Effective investigation demands a combination of advanced tools, robust workflows, and the expertise to interpret and act on the insights they generate. Without these, organizations risk delaying critical containment and response efforts, leaving them vulnerable to greater impacts.

    While there are further steps (remediation, and of course complete recovery) here we will focus on investigation.

    Developing an AI analyst: How Darktrace replicates human investigation

    Darktrace has been working on understanding the investigative process of a skilled analyst since 2017. By conducting internal research between Darktrace expert SOC analysts and machine learning engineers, we developed a formalized understanding of investigative processes. This understanding formed the basis of a multi-layered AI system that systematically investigates data, taking advantage of the speed and breadth afforded by machine systems.

    With this research we found that the investigative process often revolves around iterating three key steps: hypothesis creation, data collection, and results evaluation.

    All these details are crucial for an analyst to determine the nature of a potential threat. Similarly, they are integral components of our Cyber AI Analyst which is an integral component across our product suite. In doing so, Darktrace has been able to replicate the human-driven approach to investigating alerts using machine learning speed and scale.

    Here’s how it works:

    • When an initial or third-party alert is triggered, the Cyber AI Analyst initiates a forensic investigation by building multiple hypotheses and gathering relevant data to confirm or refute the nature of suspicious activity, iterating as necessary, and continuously refining the original hypothesis as new data emerges throughout the investigation.
    • Using a combination of machine learning including supervised and unsupervised methods, NLP and graph theory to assess activity, this investigation engine conducts a deep analysis with incidents raised to the human team only when the behavior is deemed sufficiently concerning.
    • After classification, the incident information is organized and processed to generate the analysis summary, including the most important descriptive details, and priority classification, ensuring that critical alerts are prioritized for further action by the human-analyst team.
    • If the alert is deemed unimportant, the complete analysis process is made available to the human team so that they can see what investigation was performed and why this conclusion was drawn.
    Darktrace cyber ai analyst workflow, how it works

    To illustrate this via example, if a laptop is beaconing to a rare domain, the Cyber AI Analyst would create hypotheses including whether this could be command and control traffic, data exfiltration, or something else. The AI analyst then collects data, analyzes it, makes decisions, iterates, and ultimately raises a new high-level incident alert describing and detailing its findings for human analysts to review and follow up.

    Learn more about Darktrace's Cyber AI Analyst

    • Cost savings: Equivalent to adding up to 30 full-time Level 2 analysts without increasing headcount
    • Minimize business risk: Takes on the busy work from human analysts and elevates a team’s overall decision making
    • Improve security outcomes: Identifies subtle, sophisticated threats through holistic investigations

    Unlocking an efficient SOC

    To create a mature and proactive SOC, addressing the inefficiencies in the alert investigation process is essential. By extending AI's capabilities beyond detection, SOC teams can streamline and optimize investigative workflows, reducing alert fatigue and enhancing analyst efficiency.

    This holistic approach not only improves Mean Time to Analysis (MTTA) but also ensures that SOCs are well-equipped to handle the evolving threat landscape. Embracing AI augmentation and automation in every phase of threat management will pave the way for a more resilient and proactive security posture, ultimately leading to a high-performing SOC that can effectively safeguard organizational assets.

    Every relevant alert is investigated

    The Cyber AI Analyst is not a generative AI system, or an XDR or SEIM aggregator that simply prompts you on what to do next. It uses a multi-layered combination of many different specialized AI methods to investigate every relevant alert from across your enterprise, native, 3rd party, and manual triggers, operating at machine speed and scale. This also positively affects detection engineering and alert tuning, because it does not suffer from fatigue when presented with low accuracy but potentially valuable alerts.

    Retain and improve analyst skills

    Transferring most analysis processes to AI systems can risk team skills if they don't maintain or build them and if the AI doesn't explain its process. This can reduce the ability to challenge or build on AI results and cause issues if the AI is unavailable. The Cyber AI Analyst, by revealing its investigation process, data gathering, and decisions, promotes and improves these skills. Its deep understanding of cyber incidents can be used for skill training and incident response practice by simulating incidents for security teams to handle.

    Create time for cyber risk reduction

    Human cybersecurity professionals excel in areas that require critical thinking, strategic planning, and nuanced decision-making. With alert fatigue minimized and investigations streamlined, your analysts can avoid the tedious data collection and analysis stages and instead focus on critical decision-making tasks such as implementing recovery actions and performing threat hunting.

    Stay tuned for part 3/3

    Part 3/3 in the Reimagine your SOC series explores the preventative security solutions market and effective risk management strategies.

    Coming soon!

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    About the author
    Brittany Woodsmall
    Product Marketing Manager, AI & Attack Surface
    Your data. Our AI.
    Elevate your network security with Darktrace AI