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March 24, 2021

Detecting Vendor Email Compromise in Supply Chain Attacks

Learn how Darktrace / EMAIL stopped a supply chain attack by identifying a behavioral shift in the emails, while still allowing legitimate traffic through.
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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.
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24
Mar 2021

What is vendor email compromise and why supply chain attacks are increasing

Supply chain account takeover – also known as Vendor Email Compromise — is the single most pressing issue facing email security at the moment. There has been a wave of high-profile supply chain attacks recently and this trend will only increase over 2021 as cyber-criminals continue to find success in such methods. Traditional security tools are powerless to stop such attacks: since the malicious emails come from trusted partners and suppliers, they slip through the gateway.

The recent SolarWinds cyber-attack shows just how devastating a supply chain compromise can be. Business partnerships are more complex than ever, which means that a single breach can affect dozens of organizations at all levels of a global supply chain, from small local companies to government departments.

This blog examines a compromised third-party provider which sent malicious emails to a customer trialing Darktrace / EMAIL. Despite the emails coming from a trusted source, the AI technology recognized a behavioral shift – that they were anomalous when compared with the previous behavior of the sender. When the contact realized their account had been compromised and issued a warning via email to their regular contacts, Antigena recognized these emails as benign. But as the attacker continued sending emails of a malicious nature on their account, those threatening emails, which bypassed the company’s other security tools, were held back by Darktrace.

How a supply chain email attack spreads through trusted vendors

Let’s set the scene. The company in question is one of the world’s largest beverage suppliers with around 15,000 email users alone. It has a sprawling global supply chain with many partners and trusted vendors. After one of these third parties was compromised, malicious actors sent phishing emails across the supply chain to compromise as many organizations as they could. Our beverage company was one of the main targets.

The trusted relationship with the third party can be seen through Darktrace’s Email tags, which were applied to the previous legitimate emails sent in from the supplier.

Figure 1: A snapshot of Darktrace / EMAIL interface

Shortly after this legitimate email was seen, a wave of new emails came in from the same account. Using this authentic traffic to their advantage, the attacker successfully evaded other tools and blended into legitimate communications. In supply chain attacks, such camouflage is key to a successful compromise.

However, due to slight changes in the behavior of the sender when compared with their previous history, Darktrace was able to identify that the account had been compromised, shown by the Out of Character and Suspicious Link tags.

Figure 2: A snapshot of Darktrace / EMAIL interface

Darktrace’s AI detected a range of anomalies, including:

  • the source of the email;
  • the nature of the links and their association with the company;
  • the language and intention of the email body.

These extremely subtle shifts in email can only be detected by using Darktrace’s sophisticated unsupervised machine learning approach. By understanding how the user typically acts and interacts with their peers and other organizations, Darktrace’s AI is able to identify anomalous behavior that indicates account takeover and impersonation.

Attack breakdown: Why traditional email security fails against vendor email compromise

In the emails, there was a link directing the user to a legitimate file storage site (‘canva.com’), which was being used to host a malicious payload. This tactic is commonly used by cyber-criminals to bypass legacy security gateways, because traditional gateways fail to defend against malicious file storage links using reputation checks, since the domains themselves are legitimate.

Darktrace / EMAIL, however, identified that this email did not belong and flagged the email as 100% anomalous. The figure below shows three of the malicious emails, and the scores assigned to them by Darktrace / EMAIL's machine learning. The top email is the supplier emailing the company legitimately, to warn of the compromised account. Despite arriving shortly after the malicious emails, the email was given only a 31% threat score, with no actions suggested. This proves just how valuable Darktrace / EMAIL is not only in stopping the bad emails, but also in accurately identifying benign emails – ensuring it does not interfere with legitimate communication.

Figure 3: Darktrace / EMAIL clearly distinguishes the benign communication from harmful emails

Darktrace / EMAIL's action of choice was to hold the emails back from the inbox entirely, protecting the recipient from any potential solicitation or attempt to take communications to a less secure platform.

Why supply chain email attacks are becoming more common

This year will undoubtedly see the highly lucrative supply chain fraud continue to rise, as cyber-criminals focus on the weakest links and target partners and suppliers to gain a foothold in a range of organizations. In fact, it is likely that supply chain attacks will become more common than CEO fraud this year. Whereas the C-suite are often well protected by vigilant security teams, third parties offer a plethora of ways into a company. Security teams are blind to third-party environments and gateways rarely flag emails which come from legitimate sources.

Darktrace / EMAIL is the only email security technology which looks at each individual email in the wider context of the organization, the recipient, and past interactions with the sender, stopping anomalous emails sent with malicious intent, no matter who has sent them.

How to prevent vendor email compromise with AI-driven email security

Preventing vendor email compromise requires shifting focus away from domains and reputation, and toward how trusted senders actually behave. Attacks succeed because compromised accounts look legitimate, making traditional controls ineffective.

Security teams can reduce risk by monitoring behavioral changes in third-party communications, identifying anomalies in how vendors interact, and extending visibility across email, identity, and supply chain activity. This allows teams to detect compromised accounts earlier, before phishing spreads across trusted relationships.

To see how this works in practice, explore how Darktrace / EMAIL uses behavioral AI to detect and stop vendor email compromise in real time. Download the solution brief to learn more

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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.
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June 2, 2026

Stopping Stealth Attacks with Precision: How Núclea Prevented a Breach Without Disruption

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Núclea is a Brazilian data and technology company that supports the country’s financial system by delivering digital services exclusively to banks and financial institutions. Operating in an environment where trust, availability, and data integrity are critical, the company faces a threat landscape that has evolved rapidly—particularly with the rise of AI-driven cyberattacks.

Brazil has experienced a wave of successful cyber incidents targeting financial institutions, many of them enabled by insiders or compromised credentials. The result was a noticeable shift in attacker strategy: instead of focusing on end customers, threat actors began targeting the institutions and platforms that underpin the financial ecosystem itself.

“Attacks became far more directed and contextual,” explains Guilherme, who leads incident response within Núclea’s security platform engineering team. “They weren’t noisy or obviously malicious—they were precise, patient, and designed to blend into normal operations.”

That precision was on full display in January 2026, when Núclea faced one of the most convincing phishing attacks the team had seen.

A real attack, built on trust and context

The attack began with a seemingly routine email.

It was sent from a real Brazilian government institution, using legitimate infrastructure and valid credentials that were later confirmed to have been compromised. Núclea had an established, ongoing relationship with this organization, and the email’s language, tone, and subject matter aligned perfectly with the type of communication the recipient team handled every day.

Attached to the email was a PDF document containing content that looked entirely legitimate.

The problem? A single URL embedded inside that PDF.

“The message itself was correct. The sender was real. The context was familiar. Even the document content made sense,” Guilherme explains. “There was just one small element that didn’t belong.”

That small detail was enough to initiate a full attack chain.

What the attackers were trying to do

If clicked, the URL would have downloaded a malicious payload designed to:

  • Collect information about the user and device
  • Identify where the system was located within the financial ecosystem
  • Install remote access tools to maintain control
  • Deploy an infostealer to extract sensitive data
  • Execute anti-forensic scripts to erase traces of the intrusion

In other words, it was a carefully engineered operation designed for persistence and stealth, not immediate disruption.

The attack also employed urgency—a classic social engineering technique. When the link didn’t open as expected, employees requested assistance from the security team, insisting the document was important and needed to be accessed quickly.

This is precisely the kind of scenario where traditional security tools struggle: almost everything about the interaction is legitimate.

Where Darktrace made the difference

Instead of blocking the entire message or relying on known indicators of compromise, Darktrace focused on behavioral context.

Darktrace recognized:

  • That the sending organization was normally trusted
  • That the communication pattern matched historical behavior
  • That the PDF content itself was not suspicious

But it also identified that the URL embedded within the document deviated from established behavioral patterns.

Rather than disrupting business operations, Darktrace took precise action: it rewrote the URL, preventing the malicious download while leaving the rest of the email untouched.

“When we analyzed it afterward, it became clear how dangerous the attack would have been,” says Guilherme. “But it never progressed—because Darktrace acted at exactly the right point.”

Subsequent forensic analysis confirmed the payload’s malicious intent. The attack never succeeded.

Precision over disruption

For Núclea, this incident reinforced a critical lesson: modern attacks don’t always look malicious—they hide within normal activity.

“What stands out to me is the precision,” Guilherme says. “Darktrace doesn’t rely on big, obvious signals. It’s effective in situations that fall outside the standard patterns we all know.”

Building resilience in a high trust ecosystem

For Núclea, cybersecurity is not just a defensive measure—it’s a business enabler.

Availability failures or successful breaches in the financial ecosystem can have immediate, large-scale consequences, from financial loss to reputational damage. Preventing those outcomes protects not just Núclea, but its partners and customers as well.

“Cyber resilience means keeping the business running—even under attack,” Guilherme explains. “And that requires people, processes, and technology working together.”

As AI continues to accelerate both attacks and defenses, the role of security is evolving. Precision, behavioral understanding, and intelligent automation are no longer optional—they’re essential.

“The easy days were yesterday,” Guilherme says. “The challenges ahead are bigger. We need to be prepared—internally and with partners that help us build resilience.”

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June 1, 2026

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

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

They don’t break in. They blend in.

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

Confidence is creating risk

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

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

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

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

Attackers anticipate what we miss

Even well-trained users can become entry points.

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

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

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

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

The most dangerous threats are already inside

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

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

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

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

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

“Unusual” behavior is the new red flag

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

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

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

AI shifts defense from reaction to anticipation

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

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

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

  • Trusted sessions
  • Legitimate services
  • Human error

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

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

Resilience, not perfection, is the new security standard

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

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

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

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

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