Learn how a Mimecast misstep led to a large-scale email compromise and how DarkTrace AI detected the threat. Stay informed and protected against cyber threats.
In the last few years, email attacks have rapidly increased in volume and sophistication, with well-researched and convincing impersonation attacks accompanying rising cases of account takeovers. Their sophistication has particularly accelerated over the course of 2020, with globally pertinent news and more businesses embracing new ways of working proving to be fertile content for email attacks.
In this threat landscape, traditional email tools – which create rules for what ‘bad’ emails look like based on past campaigns – are missing these novel and sophisticated hoax emails.
This blog looks at an Australian logistics company that had Mimecast operating in its Microsoft 365 environment, but moved to an autonomous approach to email security when a malicious email — deemed benign by all other tools — was detected by Darktrace’s AI.
The company was trialling Antigena Email which was installed in passive mode, meaning it wasn’t configured to actively interfere. However, looking into the email dashboard allows us to see what actions the technology would have taken – and the consequences of relying purely on gateways to stop advanced threats.
Without AI taking action, compromising one employee’s email account was all the attacker needed to continue making headway throughout the business. The attacker accessed several sensitive files, gathering details of employees and credit card transactions, and then began communicating with others in the organization, sending out over two hundred further emails to take hold of more employee accounts. This activity was picked up in real time by Darktrace’s Microsoft 365 SaaS Module.
Details of the attack
The company was under sustained attack from a cyber-criminal who had already performed account hijacks on a number of their trusted partners. Abusing their trusted relationships, the attacker sent out several tailored emails from these partners’ accounts to the Australian company. All used the same convention in the subject – RFP for [compromised company’s name] – and all appeared to be credential harvesting.
Figure 1: A sample of the malicious emails from the hijacked accounts; the red icon indicating that Antigena Email would have held these emails back
Each of these emails contained a malicious payload, which was a file storage (SharePoint) link, hidden behind the below text. It’s likely the attacker did this to bypass mail link analysis. Mimecast did rewrite the link for analysis, but it failed to identify it as malicious.
Figure 2: Darktrace surfaces the text behind which the link was hidden
When clicked on, the link took the victim to a fake Microsoft login page for credential harvesting. This was an accurate replica of a genuine login page and sent email and password combinations directly to the attacker for further account compromise.
Figure 3: The fake Microsoft login page
A number of employees read the email, including the CEO; however only one person – a general manager – appeared to get their email account hijacked by the attacker.
Figure 4: An interactive snapshot of Antigena Email’s user interface
About three hours after opening the malicious email, an anomalous SaaS login was detected on the account from an IP address not seen across the business before.
Open source analysis of the IP address showed that it was a high fraud risk ISP, which runs anonymizing VPNs and servers – this may have been how the attacker overcame geofencing rules.
Shortly afterwards, Darktrace detected an anonymous sharing link being created for a password file.
Figure 5: Darktrace’s SaaS Module revealing the anomalous creation of a link
Darktrace revealed that this file was subsequently accessed by the anomalous IP address. Deeper analysis showed that the attacker repeated this methodology, making previously protected resources publicly available, before immediately accessing them publicly via the same IP address. Darktrace AI observed the attacker accessing potentially sensitive information, including a file that appeared to hold information about credit card transactions, as well as a document containing passwords.
Figure 6: Darktrace’s SaaS Console surfaces the unusual activity on the compromised account
Perpetuating the attack
The following day, after the attacker had exhausted all sensitive information they could elicit from the compromised email account, they then used that account to send out further malicious emails to trusted business associates using the same methodology as before – sending fake and targeted RFPs in an attempt to compromise credentials. Darktrace’s SaaS Module identified this anomalous behavior, graphically revealing that the attacker sent out over 1,600 tailored emails over the course of 25 minutes.
Figure 7: A graphical representation of the burst of emails sent over a 25 minute period
Why AI is needed to fight modern email threats
For the logistics company in question, this incident served as a wake-up call. The Managed Security Service Provider (MSSP) running their cloud security was completely unaware of the account takeover, which was detected by Darktrace’s SaaS Module. The organization realised that today’s email security challenge requires best in class technologies that can not only prevent phishing emails from reaching the inbox, but detect account takeovers and malicious outbound emails sent from a compromised account.
This incident caused the organization to deploy Antigena Email in active mode, allowing the technology to stop the most subtle and targeted threats that attempt to enter through the inbox based on its nuanced and contextual understanding of the normal ‘pattern of life’ for every user and device.
The reality is, hundreds of emails like this trick not only humans, but traditional security tools every day. It’s clear that when it comes to the growing email security challenge, the status quo is no longer good enough. With the modern workforce more dispersed and agile than ever, there is a growing need to protect remote users across SaaS collaboration platforms, whilst neutralizing email attacks before they reach the inbox.
Thanks to Darktrace analyst Liam Dermody for his insights on the above threat find.
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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
Dan Fein
VP, Product
Based in New York, Dan joined Darktrace’s technical team in 2015, helping customers quickly achieve a complete and granular understanding of Darktrace’s product suite. Dan has a particular focus on Darktrace/Email, ensuring that it is effectively deployed in complex digital environments, and works closely with the development, marketing, sales, and technical teams. Dan holds a Bachelor’s degree in Computer Science from New York University.
Bytesize Security: Insider Threats in Google Workspace
What is an insider threat?
An insider threat is a cyber risk originating from within an organization. These threats can involve actions such as an employee inadvertently clicking on a malicious link (e.g., a phishing email) or an employee with malicious intent conducting data exfiltration for corporate sabotage.
Insiders often exploit their knowledge and access to legitimate corporate tools, presenting a continuous risk to organizations. Defenders must protect their digital estate against threats from both within and outside the organization.
For example, in the summer of 2024, Darktrace / IDENTITY successfully detected a user in a customer environment attempting to steal sensitive data from a trusted Google Workspace service. Despite the use of a legitimate and compliant corporate tool, Darktrace identified anomalies in the user’s behavior that indicated malicious intent.
Attack overview: Insider threat
In June 2024, Darktrace detected unusual activity involving the Software-as-a-Service (SaaS) account of a former employee from a customer organization. This individual, who had recently left the company, was observed downloading a significant amount of data in the form of a “.INDD” file (an Adobe InDesign document typically used to create page layouts [1]) from Google Drive.
While the use of Google Drive and other Google Workspace platforms was not unexpected for this employee, Darktrace identified that the user had logged in from an unfamiliar and suspicious IPv6 address before initiating the download. This anomaly triggered a model alert in Darktrace / IDENTITY, flagging the activity as potentially malicious.
Figure 1: A Model Alert in Darktrace / IDENTITY showing the unusual “.INDD” file being downloaded from Google Workspace.
Following this detection, the customer reached out to Darktrace’s Security Operations Center (SOC) team via the Security Operations Support service for assistance in triaging and investigating the incident further. Darktrace’s SOC team conducted an in-depth investigation, enabling the customer to identify the exact moment of the file download, as well as the contents of the stolen documents. The customer later confirmed that the downloaded files contained sensitive corporate data, including customer details and payment information, likely intended for reuse or sharing with a new employer.
In this particular instance, Darktrace’s Autonomous Response capability was not active, allowing the malicious insider to successfully exfiltrate the files. If Autonomous Response had been enabled, Darktrace would have immediately acted upon detecting the login from an unusual (in this case 100% rare) location by logging out and disabling the SaaS user. This would have provided the customer with the necessary time to review the activity and verify whether the user was authorized to access their SaaS environments.
Conclusion
Insider threats pose a significant challenge for traditional security tools as they involve internal users who are expected to access SaaS platforms. These insiders have preexisting knowledge of the environment, sensitive data, and how to make their activities appear normal, as seen in this case with the use of Google Workspace. This familiarity allows them to avoid having to use more easily detectable intrusion methods like phishing campaigns.
Darktrace’s anomaly detection capabilities, which focus on identifying unusual activity rather than relying on specific rules and signatures, enable it to effectively detect deviations from a user’s expected behavior. For instance, an unusual login from a new location, as in this example, can be flagged even if the subsequent malicious activity appears innocuous due to the use of a trusted application like Google Drive.
Credit to Vivek Rajan (Cyber Analyst) and Ryan Traill (Analyst Content Lead)
Appendices
Darktrace Model Detections
SaaS / Resource::Unusual Download Of Externally Shared Google Workspace File
RansomHub Ransomware: investigación de Darktrace sobre la herramienta más nueva en ShadowSyndicate's Arsenal
What is ShadowSyndicate?
ShadowSyndicate, also known as Infra Storm, is a threat actor reportedly active since July 2022, working with various ransomware groups and affiliates of ransomware programs, such as Quantum, Nokoyawa, and ALPHV. This threat actor employs tools like Cobalt Strike, Sliver, IcedID, and Matanbuchus malware in its attacks. ShadowSyndicate utilizes the same SSH fingerprint (1ca4cbac895fc3bd12417b77fc6ed31d) on many of their servers—85 as of September 2023. At least 52 of these servers have been linked to the Cobalt Strike command and control (C2) framework [1].
What is RansomHub?
First observed following the FBI's takedown of ALPHV/BlackCat in December 2023, RansomHub quickly gained notoriety as a Ransomware-as-a-Service (RaaS) operator. RansomHub capitalized on the law enforcement’s disruption of the LockBit group’s operations in February 2024 to market themselves to potential affiliates who had previously relied on LockBit’s encryptors. RansomHub's success can be largely attributed to their aggressive recruitment on underground forums, leading to the absorption of ex-ALPHV and ex-LockBit affiliates. They were one of the most active ransomware operators in 2024, with approximately 500 victims reported since February, according to their Dedicated Leak Site (DLS) [2].
ShadowSyndicate and RansomHub
External researchers have reported that ShadowSyndicate had as many as seven different ransomware families in their arsenal between July 2022, and September 2023. Now, ShadowSyndicate appears to have added RansomHub’s their formidable stockpile, becoming an affiliate of the RaaS provider [1].
Darktrace’s analysis of ShadowSyndicate across its customer base indicates that the group has been leveraging RansomHub ransomware in multiple attacks in September and October 2024. ShadowSyndicate likely shifted to using RansomHub due to the lucrative rates offered by this RaaS provider, with affiliates receiving up to 90% of the ransom—significantly higher than the general market rate of 70-80% [3].
In many instances where encryption was observed, ransom notes with the naming pattern “README_[a-zA-Z0-9]{6}.txt” were written to affected devices. The content of these ransom notes threatened to release stolen confidential data via RansomHub’s DLS unless a ransom was paid. During these attacks, data exfiltration activity to external endpoints using the SSH protocol was observed. The external endpoints to which the data was transferred were found to coincide with servers previously associated with ShadowSyndicate activity.
Darktrace’s coverage of ShadowSyndicate and RansomHub
Darktrace’s Threat Research team identified high-confidence indicators of compromise (IoCs) linked to the ShadowSyndicate group deploying RansomHub. The investigation revealed four separate incidents impacting Darktrace customers across various sectors, including education, manufacturing, and social services. In the investigated cases, multiple stages of the kill chain were observed, starting with initial internal reconnaissance and leading to eventual file encryption and data exfiltration.
Attack Overview
Internal Reconnaissance
The first observed stage of ShadowSyndicate attacks involved devices making multiple internal connection attempts to other internal devices over key ports, suggesting network scanning and enumeration activity. In this initial phase of the attack, the threat actor gathers critical details and information by scanning the network for open ports that might be potentially exploitable. In cases observed by Darktrace affected devices were typically seen attempting to connect to other internal locations over TCP ports including 22, 445 and 3389.
C2 Communication and Data Exfiltration
In most of the RansomHub cases investigated by Darktrace, unusual connections to endpoints associated with Splashtop, a remote desktop access software, were observed briefly before outbound SSH connections were identified.
Following this, Darktrace detected outbound SSH connections to the external IP address 46.161.27[.]151 using WinSCP, an open-source SSH client for Windows used for secure file transfer. The Cybersecurity and Infrastructure Security Agency (CISA) identified this IP address as malicious and associated it with ShadowSyndicate’s C2 infrastructure [4]. During connections to this IP, multiple gigabytes of data were exfiltrated from customer networks via SSH.
Data exfiltration attempts were consistent across investigated cases; however, the method of egress varied from one attack to another, as one would expect with a RaaS strain being employed by different affiliates. In addition to transfers to ShadowSyndicate’s infrastructure, threat actors were also observed transferring data to the cloud storage and file transfer service, MEGA, via HTTP connections using the ‘rclone’ user agent – a command-line program used to manage files on cloud storage. In another case, data exfiltration activity occurred over port 443, utilizing SSL connections.
Lateral Movement
In investigated incidents, lateral movement activity began shortly after C2 communications were established. In one case, Darktrace identified the unusual use of a new administrative credential which was quickly followed up with multiple suspicious executable file writes to other internal devices on the network.
The filenames for this executable followed the regex naming convention “[a-zA-Z]{6}.exe”, with two observed examples being “bWqQUx.exe” and “sdtMfs.exe”.
Figure 1: Cyber AI Analyst Investigation Process for the SMB Writes of Suspicious Files to Multiple Devices' incident.
Additionally, script files such as “Defeat-Defender2.bat”, “Share.bat”, and “def.bat” were also seen written over SMB, suggesting that threat actors were trying to evade network defenses and detection by antivirus software like Microsoft Defender.
File Encryption
Among the three cases where file encryption activity was observed, file names were changed by adding an extension following the regex format “.[a-zA-Z0-9]{6}”. Ransom notes with a similar naming convention, “README_[a-zA-Z0-9]{6}.txt”, were written to each share. While the content of the ransom notes differed slightly in each case, most contained similar text. Clear indicators in the body of the ransom notes pointed to the use of RansomHub ransomware in these attacks. As is increasingly the case, threat actors employed double extortion tactics, threatening to leak confidential data if the ransom was not paid. Like most ransomware, RansomHub included TOR site links for communication between its "customer service team" and the target.
Figure 2: The graph shows the behavior of a device with encryption activity, using the “SMB Sustained Mimetype Conversion” and “Unusual Activity Events” metrics over three weeks.
Since Darktrace’s Autonomous Response capability was not enabled during the compromise, the ransomware attack succeeded in its objective. However, Darktrace’s Cyber AI Analyst provided comprehensive coverage of the kill chain, enabling the customer to quickly identify affected devices and initiate remediation.
Figure 3: Cyber AI Analyst panel showing the critical incidents of the affected device from one of the cases investigated.
In lieu of Autonomous Response being active on the networks, Darktrace was able to suggest a variety of manual response actions intended to contain the compromise and prevent further malicious activity. Had Autonomous Response been enabled at the time of the attack, these actions would have been quickly applied without any human interaction, potentially halting the ransomware attack earlier in the kill chain.
Figure 4: A list of suggested Autonomous Response actions on the affected devices."
Conclusion
The Darktrace Threat Research team has noted a surge in attacks by the ShadowSyndicate group using RansomHub’s RaaS of late. RaaS has become increasingly popular across the threat landscape due to its ease of access to malware and script execution. As more individual threat actors adopt RaaS, security teams are struggling to defend against the increasing number of opportunistic attacks.
For customers subscribed to Darktrace’s Security Operations Center (SOC) services, the Analyst team promptly investigated detections of the aforementioned unusual and anomalous activities in the initial infection phases. Multiple alerts were raised via Darktrace’s Managed Threat Detection to warn customers of active ransomware incidents. By emphasizing anomaly-based detection and response, Darktrace can effectively identify devices affected by ransomware and take action against emerging activity, minimizing disruption and impact on customer networks.
Credit to Kwa Qing Hong (Senior Cyber Analyst and Deputy Analyst Team Lead, Singapore) and Signe Zahark (Principal Cyber Analyst, Japan)
