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January 31, 2024

How Darktrace Defeated SmokeLoader Malware

Read how Darktrace's AI identified and neutralized SmokeLoader malware. Gain insights into their proactive approach to cybersecurity.
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
Patrick Anjos
Senior Cyber Analyst
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31
Jan 2024

What is Loader Malware?

Loader malware is a type of malicious software designed primarily to infiltrate a system and then download and execute additional malicious payloads.

In recent years, loader malware has emerged as a significant threat for organizations worldwide. This trend is expected to continue given the widespread availability of many loader strains within the Malware-as-a-Service (MaaS) marketplace. The MaaS marketplace contains a wide variety of innovative strains which are both affordable, with toolkits ranging from USD 400 to USD 1,650 [1], and continuously improving, aiming to avoid traditional detection mechanisms.

SmokeLoader is one such example of a MaaS strain that has been observed in the wild since 2011 and continues to pose a significant threat to organizations and their security teams.

How does SmokeLoader Malware work?

SmokeLoader’s ability to drop an array of different malware strains onto infected systems, from backdoors, ransomware, cryptominers, password stealers, point-of-sale malware and banking trojans, means its a highly versatile loader that has remained consistently popular among threat actors.

In addition to its versatility, it also exhibits advanced evasion strategies that make it difficult for traditional security solutions to detect and remove, and it is easily distributed via methods like spam emails or malicious file downloads.

Between July and August 2023, Darktrace observed an increasing trend in SmokeLoader compromises across its customer base. The anomaly-based threat detection capabilities of Darktrace, coupled with the autonomous response technology, identified and contained the SmokeLoader infections in their initial stages, preventing attackers from causing further disruption by deploying other malicious software or ransomware.

SmokeLoader Malware Attack Details

PROPagate Injection Technique

SmokeLoader utilizes the PROPagate code injection technique, a less common method that inserts malicious code into existing processes in order to appear legitimate and bypass traditional signature-based security measures [2] [3]. In the case of SmokeLoader, this technique exploits the Windows SetWindowsSubclass function, which is typically used to add or change the behavior of Windows Operation System. By manipulating this function, SmokeLoader can inject its code into other running processes, such as the Internet Explorer. This not only helps to disguise  the malware's activity but also allows attackers to leverage the permissions and capabilities of the infected process.

Obfuscation Methods

SmokeLoader is known to employ several obfuscation techniques to evade the detection and analysis of security teams. The techniques include scrambling portable executable files, encrypting its malicious code, obfuscating API functions and packing, and are intended to make the malware’s code appear harmless or unremarkable to antivirus software. This allows attackers to slip past defenses and execute their malicious activities while remaining undetected.

Infection Vector and Communication

SmokeLoader typically spreads via phishing emails that employ social engineering tactics to convince users to unknowingly download malicious payloads and execute the malware. Once installed on target networks, SmokeLoader acts as a backdoor, allowing attackers to control infected systems and download further malicious payloads from command-and-control (C2) servers. SmokeLoader uses fast flux, a DNS technique utilized by botets whereby IP addresses associated with C2 domains are rapidly changed, making it difficult to trace the source of the attack. This technique also boosts the resilience of attack, as taking down one or two malicious IP addresses will not significantly impact the botnet's operation.

Continuous Evolution

As with many MaaS strains, SmokeLoader is continuously evolving, with its developers regularly adding new features and techniques to increase its effectiveness and evasiveness. This includes new obfuscation methods, injection techniques, and communication protocols. This constant evolution makes SmokeLoader a significant threat and underscores the importance of advanced threat detection and response capabilities solution.

Darktrace’s Coverage of SmokeLoader Attack

Between July and August 2023, Darktrace detected one particular SmokeLoader infection at multiple stages of its kill chain on a customer network. This detection was made possible by Darktrace DETECT’s anomaly-based approach and Self-Learning AI that allows it to identify subtle deviations in device behavior.

One of the key components of this process is the classification of endpoint rarity and determining whether an endpoint is new or unusual for any given network. This classification is applied to various aspects of observed endpoints, such as domains, IP addresses, or hostnames within the network. It thereby plays a vital role in identifying SmokeLoader activity, such as the initial infection vector or C2 communication, which typically involve a device contacting a malicious endpoint associated with SmokeLoader.

The First Signs of Infection SmokeLoader Infection

Beginning in July 2023, Darktrace observed a surge in suspicious activities that were assessed with moderate to high confidence to be associated with SmokeLoader malware.

For example on July 30, a device was observed making a successful HTTPS request to humman[.]art, a domain that had never been seen on the network, and therefore classified as 100% rare by DETECT. During this connection, the device in question received a total of 6.0 KiB of data from the unusual endpoint. Open-source intelligence (OSINT) sources reported with high confidence that this domain was associated with the SmokeLoader C2 botnet.

The device was then detected making an HTTP request to another 100% rare external IP, namely 85.208.139[.]35, using a new user agent. This request contained the URI ‘/DefenUpdate.exe’, suggesting a possible download of an executable (.exe) file. This was corroborated by the total amount of data received in this connection, 4.3 MB. Both the file name and its size suggest that the offending device may have downloaded additional malicious tooling from the SmokeLoader C2 endpoint, such as a trojan or information stealer, as reported on OSINT platforms [4].

Figure 1: Device event log showing the moment when a device made its first connection to a SmokeLoader associated domain, and the use of a new user agent. A few seconds later, the DETECT model “Anomalous Connection / New User Agent to IP Without Hostname” breached.

The observed new user agent, “Mozilla/5.0 (Windows NT 10.0; Win64; x64; Trident/7.0; rv:11.0) like Gecko” was identified as suspicious by Darktrace leading to the “Anomalous Connection / New User Agent to IP Without Hostname” DETECT model breach.

As this specific user agent was associated with the Internet Explorer browser running on Windows 10, it may not have appeared suspicious to traditional security tools. However, Darktrace’s anomaly-based detection allows it to identify and mitigate emerging threats, even those that utilize sophisticated evasion techniques.

This is particularly noteworthy in this case because, as discussed earlier, SmokeLoader is known to inject its malicious code into legitimate processes, like Internet Explorer.

Figure 2: Darktrace detecting the affected device leveraging a new user agent and establishing an anomalous HTTP connection with an external IP, which was 100% rare to the network.

C2 Communication

Darktrace continued to observe the device making repeated connections to the humman[.]art endpoint. Over the next few days. On August 7, the device was observed making unusual POST requests to the endpoint using port 80, breaching the ‘Anomalous Connection / Multiple HTTP POSTs to Rare Hostname’ DETECT model. These observed POST requests were observed over a period of around 10 days and consisted of a pattern of 8 requests, each with a ten-minute interval.

Figure 3: Model Breach Event Log highlighting the Darktrace DETECT model breach ‘Anomalous Connection / Multiple HTTP POSTs to Rare Hostname’.

Upon investigating the details of this activity identified by Darktrace DETECT, a particular pattern was observed in these requests: they used the same user-agent, “Mozilla/5.0 (Windows NT 10.0; Win64; x64; Trident/7.0; rv:11.0) like Gecko”, which was previously detected in the initial breach.

Additionally, they the requests had a constantly changing  eferrer header, possibly using randomly generated domain names for each request. Further examination of the packet capture (PCAP) from these requests revealed that the payload in these POST requests contained an RC4 encrypted string, strongly indicating SmokeLoader C2 activity.

Figure4: Advanced Search results display an unusual pattern in the requests made by the device to the hostname humman[.]art. This pattern shows a constant change in the referrer header for each request, indicating anomalous behavior.
Figure 5: The PCAP shows the payload seen in these POST requests contained an RC4 encrypted string strongly indicating SmokeLoader C2 activity.  

Unfortunately in this case, Darktrace RESPOND was not active on the network meaning that the attack was able to progress through its kill chain. Despite this, the timely alerts and detailed incident insights provided by Darktrace DETECT allowed the customer’s security team to begin their remediation process, implementing blocks on their firewall, thus preventing the SmokeLoader malware from continuing its communication with C2 infrastructure.

Darktrace RESPOND Halting Potential Threats from the Initial Stages of Detection

With Darktrace RESPOND, organizations can move beyond threat detection to proactive defense against emerging threats. RESPOND is designed to halt threats as soon as they are identified by DETECT, preventing them from escalating into full-blown compromises. This is achieved through advanced machine learning and Self-Learning AI that is able to understand  the normal ‘pattern of life’ of customer networks, allowing for swift and accurate threat detection and response.

One pertinent example was seen on July 6, when Darktrace detected a separate SmokeLoader case on a customer network with RESPOND enabled in autonomous response mode. Darktrace DETECT initially identified a string of anomalous activity associated with the download of suspicious executable files, triggering the ‘Anomalous File / Multiple EXE from Rare External Locations’ model to breach.

The device was observed downloading an executable file (‘6523.exe’ and ‘/g.exe’) via HTTP over port 80. These downloads originated from endpoints that had never been seen within the customer’s environment, namely ‘hugersi[.]com’ and ‘45.66.230[.]164’, both of which had strongly been linked to SmokeLoader by OSINT sources, likely indicating the initial infection stage of the attack [5].

Figure 6: This figure illustrates Darktrace DETECT observing a device downloading multiple .exe files from rare endpoints and the associated model breach, ‘Anomalous File / Multiple EXE from Rare External Locations’.

Around the same time, Darktrace also observed the same device downloading an unusual file with a numeric file name. Threat actors often employ this tactic in order to avoid using file name patterns that could easily be recognized and blocked by traditional security measures; by frequently changing file names, malicious executables are more likely to remain undetected.

Figure 7: Graph showing the unusually high number of executable files downloaded by the device during the initial infection stage of the attack. The orange and red circles represent the number of model breaches that the device made during the observed activity related to SmokeLoader infection.
Figure 8: This figure illustrates the moment when Darktrace DETECT identified a suspicious download with a numeric file name.

With Darktrace RESPOND active and enabled in autonomous response mode, the SmokeLoader infection was thwarted in the first instance. RESPOND took swift autonomous action by blocking connections to the suspicious endpoints identified by DETECT, blocking all outgoing traffic, and enforcing a pre-established “pattern of life” on offending devices. By enforcing a patten of life on a device, Darktrace RESPOND ensures that it cannot deviate from its ‘normal’ activity to carry out potentially malicious activity, while allowing the device to continue expected business operations.

Figure 9:  A total of 8 RESPOND actions were applied, including blocking connections to suspicious endpoints and domains associated with SmokeLoader.

In addition to the autonomous mitigative actions taken by RESPOND, this customer also received a Proactive Threat Notification (PTN) informing them of potentially malicious activity on their network. This prompted the Darktrace Security Operations Center (SOC) to investigate and document the incident, allowing the customer’s security team to shift their focus to remediating and removing the threat of SmokeLoader.

Conclusion

Ultimately, Darktrace showcased its ability to detect and contain versatile and evasive strains of loader malware, like SmokeLoader. Despite its adeptness at bypassing conventional security tools by frequently changing its C2 infrastructure, utilizing existing processes to infect malicious code, and obfuscating malicious file and domain names, Darktrace’s anomaly-based approach allowed it to recognize such activity as deviations from expected network behavior, regardless of their apparent legitimacy.

Considering SmokeLoader’s wide array of functions, including C2 communication that could be used to facilitate additional attacks like exfiltration, or even the deployment of information-stealers or ransomware, Darktrace proved to be crucial in safeguarding customer networks. By identifying and mitigating SmokeLoader at the earliest possible stage, Darktrace effectively prevented the compromises from escalating into more damaging and disruptive compromises.

With the threat of loader malware expected to continue growing alongside the boom of the MaaS industry, it is paramount for organizations to adopt proactive security solutions, like Darktrace DETECT+RESPOND, that are able to make intelligent decisions to identify and neutralize sophisticated attacks.

Credit to Patrick Anjos, Senior Cyber Analyst, Justin Torres, Cyber Analyst

Appendices

Darktrace DETECT Model Detections

- Anomalous Connection / New User Agent to IP Without Hostname

- Anomalous Connection / Multiple HTTP POSTs to Rare Hostname

- Anomalous File / Multiple EXE from Rare External Locations

- Anomalous File / Numeric File Download

List of IOCs (IOC / Type / Description + Confidence)

- 85.208.139[.]35 / IP / SmokeLoader C2 Endpoint

- 185.174.137[.]109 / IP / SmokeLoader C2 Endpoint

- 45.66.230[.]164 / IP / SmokeLoader C2 Endpoint

- 91.215.85[.]147 / IP / SmokeLoader C2 Endpoint

- tolilolihul[.]net / Hostname / SmokeLoader C2 Endpoint

- bulimu55t[.]net / Hostname / SmokeLoader C2 Endpoint

- potunulit[.]org / Hostname / SmokeLoader C2 Endpoint

- hugersi[.]com / Hostname / SmokeLoader C2 Endpoint

- human[.]art / Hostname / SmokeLoader C2 Endpoint

- 371b0d5c867c2f33ae270faa14946c77f4b0953 / SHA1 / SmokeLoader Executable

References:

[1] https://bazaar.abuse.ch/sample/d7c395ab2b6ef69210221337ea292e204b0f73fef8840b6e64ab88595eda45b3/#intel

[2] https://malpedia.caad.fkie.fraunhofer.de/details/win.smokeloader

[3] https://www.darkreading.com/cyber-risk/breaking-down-the-propagate-code-injection-attack

[4] https://n1ght-w0lf.github.io/malware%20analysis/smokeloader/

[5] https://therecord.media/surge-in-smokeloader-malware-attacks-targeting-ukrainian-financial-gov-orgs

MITRE ATT&CK Mapping

Model: Anomalous Connection / New User Agent to IP Without Hostname

ID: T1071.001

Sub technique: T1071

Tactic: COMMAND AND CONTROL

Technique Name: Web Protocols

Model: Anomalous Connection / Multiple HTTP POSTs to Rare Hostname

ID: T1185

Sub technique: -

Tactic: COLLECTION

Technique Name: Man in the Browser

ID: T1071.001

Sub technique: T1071

Tactic: COMMAND AND CONTROL

Technique Name: Web Protocols

Model: Anomalous File / Multiple EXE from Rare External Locations

ID: T1189

Sub technique: -

Tactic: INITIAL ACCESS

Technique Name: Drive-by Compromise

ID: T1588.001

Sub technique: - T1588

Tactic: RESOURCE DEVELOPMENT

Technique Name: Malware

Model: Anomalous File / Numeric File Download

ID: T1189

Sub technique: -

Tactic: INITIAL ACCESS

Technique Name: Drive-by Compromise

ID: T1588.001

Sub technique: - T1588

Tactic: RESOURCE DEVELOPMENT

Technique Name: Malware

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
Patrick Anjos
Senior Cyber Analyst

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November 6, 2025

Darktrace Named the Only 2025 Gartner® Peer Insights™ Customers’ Choice for Network Detection and Response

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Darktrace: The only Customers’ Choice for NDR in 2025

In a year defined by rapid change across the threat landscape, recognition from those who use and rely on security technology every day means the most.

That’s why we’re proud to share that Darktrace has been named the only Customers’ Choice in the 2025 Gartner® Peer Insights™ Voice of the Customer for Network Detection and Response (NDR).

Out of 11 leading NDR vendors evaluated, Darktrace stood alone as the sole Customers’ Choice, a recognition that we feel reflects not just our innovation, but the trust and satisfaction of the customers who secure their networks with Darktrace every day.

What the Gartner® Peer Insights™ Voice of the Customer means

“Voice of the Customer” is a document that synthesizes Gartner Peer Insights reviews into insights for buyers of technology and services. This aggregated peer perspective, along with the individual detailed reviews, is complementary to Gartner expert research and can play a key role in your buying process. Peers are verified reviewers of a technology product or service, who not only rate the offering, but also provide valuable feedback to consider before making a purchase decision. Vendors placed in the upper-right “Customers’ Choice” quadrant of the “Voice of the Customer” have scores that meet or exceed the market average for both axes (User Interest and Adoption, and Overall Experience).It’s not just a rating. We feel it’s a reflection of genuine customer sentiment and success in the field.

In our view, Customers consistently highlight Darktrace’s ability to:

  • Detect and respond to unknown threats in real time
  • Deliver unmatched visibility across IT, OT, and cloud environments
  • Automate investigations and responses through AI-driven insights

We believe this recognition reinforces what our customers already know: that Darktrace helps them see, understand, and stop attacks others miss.

A rare double: recognized by customers and analysts alike

This distinction follows another major recogniton. Darktrace’s placement as a Leader in the Gartner® Magic Quadrant™ for Network Detection and Response earlier this year.

That makes Darktrace the only vendor to achieve both:

  • A Leader status in the Gartner Magic Quadrant for NDR, and
  • A Customers’ Choice in Gartner Peer Insights 2025

It’s a rare double that we feel reflects both industry leadership and customer trust, two perspectives that, together, define what great cybersecurity looks like.

A Customers’ Choice across the network and the inbox

To us, this recognition also builds on Darktrace’s momentum across multiple domains. Earlier this year, Darktrace was also named a Customers’ Choice for Email Security Platforms in the Gartner® Peer Insights™ report.

With more than 1,000 verified reviews across Network Detection and Response, Email Security Platforms, and Cyber Physical Systems (CPS), we at Darktrace are proud to be trusted across the full attack surface, from the inbox to the industrial network.

Thank you to our customers

We’re deeply grateful to every customer who shared their experience with Darktrace on Gartner Peer Insights. Your insights drive our innovation and continue to shape how we protect complex, dynamic environments across the world.

Discover why customers choose Darktrace for network and email security.

Gartner® Peer Insights™ content consists of the opinions of individual end users based on their own experiences, and should not be construed as statements of fact, nor do they represent the views of Gartner or its affiliates. Gartner does not endorse any vendor, product or service depicted in this content nor makes any warranties, expressed or implied, with respect to this content, about its accuracy or completeness, including any warranties of merchantability or fitness for a particular purpose.

GARTNER is a registered trademark and service mark of Gartner, Inc. and/or its affiliates in the U.S. and internationally and is used herein with permission. All rights reserved.

Magic Quadrant and Peer Insights are registered trademarks of Gartner, Inc. and/or its affiliates and is used herein with permission. All rights reserved.

Gartner, Voice of the Customer for Network Detection and Response, By Peer Community Contributor, 30 October 2025

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Product Marketing Manager, Network Detection & Response

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November 5, 2025

Tracking a Dragon: Investigating a DragonForce-affiliated ransomware attack with Darktrace

Tracking a Dragon: Investigating a DragonForce-affiliated ransomware attack with Darktrace Default blog imageDefault blog image

What is DragonForce?

DragonForce is a Ransomware-as-a-Service (RaaS) platform that emerged in late 2023, offering broad-scale capabilities and infrastructure to threat actors. Recently, DragonForce has been linked to attacks targeting the UK retail sector, resulting in several high-profile cases [1][2]. Moreover, the group launched an affiliate program offering a revenue share of roughly 20%, significantly lower than commissions reported across other RaaS platforms [3].

This Darktrace case study examines a DragonForce-linked RaaS infection within the manufacturing industry. The earliest signs of compromise were observed during working hours in August 2025, where an infected device started performing network scans and attempted to brute-force administrative credentials. After eight days of inactivity, threat actors returned and multiple devices began encrypting files via the SMB protocol using a DragonForce-associated file extension. Ransom notes referencing the group were also dropped, suggesting the threat actor is claiming affiliation with DragonForce, though this has not been confirmed.

Despite Darktrace’s detection of the attack in its early stages, the customer’s deployment did not have Darktrace’s Autonomous Response capability configured, allowing the threat to progress to data exfiltration and file encryption.

Darktrace's Observations

While the initial access vector was not clearly defined in this case study, it was likely achieved through common methods previously employed out by DragonForce affiliates. These include phishing emails leveraging social engineering tactics, exploitation of public-facing applications with known vulnerabilities, web shells, and/or the abuse of remote management tools.

Darktrace’s analysis identified internal devices performing internal network scanning, brute-forcing credentials, and executing unusual Windows Registry operations. Notably, Windows Registry events involving "Schedule\Taskcache\Tasks" contain subkeys for individual tasks, storing GUIDs that can be used to locate and analyze scheduled tasks. Additionally, Control\WMI\Security holds security descriptors for WMI providers and Event Tracing loggers that use non-default security settings respectively.

Furthermore, Darktrace identified data exfiltration activity over SSH, including connections to an ASN associated with a malicious hosting service geolocated in Russia.

1. Network Scan & Brute Force

Darktrace identified anomalous behavior in late August to early September 2025, originating from a source device engaging in internal network scanning followed by brute-force attempts targeting administrator credential, including “administrator”, “Admin”, “rdpadmin”, “ftpadmin”.

Upon further analysis, one of the HTTP connections seen in this activity revealed the use of the user agent string “OpenVAS-VT”, suggesting that the device was using the OpenVAS vulnerability scanner. Subsequently, additional devices began exhibiting network scanning behavior. During this phase, a file named “delete.me” was deleted by multiple devices using SMB protocol. This file is commonly associated with network scanning and penetration testing tool NetScan.

2. Windows Registry Key Update

Following the scanning phase, Darktrace observed the initial device then performing suspicious Winreg operations. This included the use of the ”BaseRegOpenKey” function across multiple registry paths.

Additional operations such as “BaseRegOpenKey” and “BaseRegQueryValue” were also seen around this time. These operations are typically used to retrieve specific registry key values and allow write operations to registry keys.

The registry keys observed included “SYSTEM\CurrentControlSet\Control\WMI\Security” and “Software\Microsoft\Windows NT\CurrentVersion\Schedule\Taskcache\Tasks”. These keys can be leveraged by malicious actors to update WMI access controls and schedule malicious tasks, respectively, both of which are common techniques for establishing persistence within a compromised system.

3. New Administrator Credential Usage

Darktrace subsequently detected the device using a highly privileged credential, “administrator”, via a successful Kerberos login for the first time. Shortly after, the same credential was used again for a successful SMB session.

These marked the first instances of authentication using the “administrator” credential across the customer’s environment, suggesting potential malicious use of the credential following the earlier brute-force activity.

Darktrace’s detection of administrator credentials being used in Kerberos login events by an infected device.
Figure 1: Darktrace’s detection of administrator credentials being used in Kerberos login events by an infected device.
Darktrace’s detection of administrator credentials being used in SMB sessions by an infected device.
Figure 2: Darktrace’s detection of administrator credentials being used in SMB sessions by an infected device.

4. Data Exfiltration

Prior to ransomware deployment, several infected devices were observed exfiltrating data to the malicious IP 45.135.232[.]229 via SSH connections [7][8]. This was followed by the device downloading data from other internal devices and transferring an unusually large volume of data to the same external endpoint.

The IP address was first seen on the network on September 2, 2025 - the same date as the observed data exfiltration activity preceding ransomware deployment and encryption.

Further analysis revealed that the endpoint was geolocated in Russia and registered to the malicious hosting provider Proton66. Multiple external researchers have reported malicious activity involving the same Proton66 ASN (AS198953 Proton66 OOO) as far back as April 2025. These activities notably included vulnerability scanning, exploitation attempts, and phishing campaigns, which ultimately led to malware [4][5][6].

Data Exfiltration Endpoint details.

  • Endpoint: 45.135.232[.]229
  • ASN: AS198953 Proton66 OOO
  • Transport protocol: TCP
  • Application protocol: SSH
  • Destination port: 22
Darktrace’s summary of the external IP 45.135.232[.]229, first detected on September 2, 2025. The right-hand side showcases model alerts triggered related to this endpoint including multiple data exfiltration related model alerts.
Figure 3: Darktrace’s summary of the external IP 45.135.232[.]229, first detected on September 2, 2025. The right-hand side showcases model alerts triggered related to this endpoint including multiple data exfiltration related model alerts.

Further investigation into the endpoint using open-source intelligence (OSINT) revealed that it led to a Microsoft Internet Information Services (IIS) Manager console webpage. This interface is typically used to configure and manage web servers. However, threat actors have been known to exploit similar setups, using fake certificate warnings to trick users into downloading malware, or deploying malicious IIS modules to steal credentials.

Live screenshot of the destination (45.135.232[.]229), captured via OSINT sources, displaying a Microsoft IIS Manager console webpage.
Figure 4: Live screenshot of the destination (45.135.232[.]229), captured via OSINT sources, displaying a Microsoft IIS Manager console webpage.

5. Ransomware Encryption & Ransom Note

Multiple devices were later observed connecting to internal devices via SMB and performing a range of actions indicative of file encryption. This suspicious activity prompted Darktrace’s Cyber AI Analyst to launch an autonomous investigation, during which it pieced together associated activity and provided concrete timestamps of events for the customer’s visibility.

During this activity, several devices were seen writing a file named “readme.txt” to multiple locations, including network-accessible webroot paths such as inetpub\ and wwwroot\. This “readme.txt” file, later confirmed to be the ransom note, claimed the threat actors were affiliated with DragonForce.

At the same time, devices were seen performing SMB Move, Write and ReadWrite actions involving files with the “.df_win” extension across other internal devices, suggesting that file encryption was actively occurring.

Darktrace’s detection of SMB events (excluding Read events) where the device was seen moving or writing files with the “.df_win” extension.
Figure 5: Darktrace’s detection of SMB events (excluding Read events) where the device was seen moving or writing files with the “.df_win” extension.
Darktrace’s detection of a spike in SMB Write events with the filename “readme.txt” on September 9, indicating the start of file encryption.
Figure 6: Darktrace’s detection of a spike in SMB Write events with the filename “readme.txt” on September 9, indicating the start of file encryption.

Conclusion

The rise of Ransomware-as-a-Service (RaaS) and increased attacker customization is fragmenting tactics, techniques, and procedures (TTPs), making it increasingly difficult for security teams to prepare for and defend against each unique intrusion. RaaS providers like DragonForce further complicate this challenge by enabling a wide range of affiliates, each with varying levels of sophistication [9].

In this instance, Darktrace was able to identify several stages of the attack kill chain, including network scanning, the first-time use of privileged credentials, data exfiltration, and ultimately ransomware encryption. Had the customer enabled Darktrace’s Autonomous Response capability, it would have taken timely action to interrupt the attack in its early stages, preventing the eventual data exfiltration and ransomware detonation.

Credit to Justin Torres, Senior Cyber Analyst, Nathaniel Jones, VP, Security & AI Strategy, FCISO, & Emma Foulger, Global Threat Research Operations Lead.

Edited by Ryan Traill (Analyst Content Lead)

Appendices

References:

1. https://www.infosecurity-magazine.com/news/dragonforce-goup-ms-coop-harrods/

2. https://www.picussecurity.com/resource/blog/dragonforce-ransomware-attacks-retail-giants

3. https://blog.checkpoint.com/security/dragonforce-ransomware-redefining-hybrid-extortion-in-2025/

4. https://www.trustwave.com/en-us/resources/blogs/spiderlabs-blog/proton66-part-1-mass-scanning-and-exploit-campaigns/

5. https://www.trustwave.com/en-us/resources/blogs/spiderlabs-blog/proton66-part-2-compromised-wordpress-pages-and-malware-campaigns/

6. https://www.broadcom.com/support/security-center/protection-bulletin/proton66-infrastructure-tied-to-expanding-malware-campaigns-and-c2-operations

7. https://www.virustotal.com/gui/ip-address/45.135.232.229

8. https://spur.us/context/45.135.232.229

9. https://www.group-ib.com/blog/dragonforce-ransomware/

IoC - Type - Description + Confidence

·      45.135.232[.]229 - Endpoint Associated with Data Exfiltration

·      .readme.txt – Ransom Note File Extension

·      .df_win – File Encryption Extension Observed

MITRE ATT&CK Mapping

DragonForce TTPs vs Darktrace Models

Initial Access:

·      Anomalous Connection::Callback on Web Facing Device

Command and Control:

·      Compromise::SSL or HTTP Beacon

·      Compromise::Beacon to Young Endpoint

·      Compromise::Beaconing on Uncommon Port

·      Compromise::Suspicious SSL Activity

·      Anomalous Connection::Devices Beaconing to New Rare IP

·      Compromise::Suspicious HTTP and Anomalous Activity

·      DNS Tunnel with TXT Records

Tooling:

·      Anomalous File::EXE from Rare External Location

·      Anomalous File::Masqueraded File Transfer

·      Anomalous File::Numeric File Download

·      Anomalous File::Script from Rare External Location

·      Anomalous File::Uncommon Microsoft File then Exe

·      Anomalous File::Zip or Gzip from Rare External Location

·      Anomalous File::Uncommon Microsoft File then Exe

·      Anomalous File::Internet Facing System File Download

Reconnaissance:

·      Device::Suspicious SMB Query

·      Device::ICMP Address Scan

·      Anomalous Connection::SMB Enumeration

·      Device::Possible SMB/NTLM Reconnaissance

·      Anomalous Connection::Possible Share Enumeration Activity

·      Device::Possible Active Directory Enumeration

·      Anomalous Connection::Large Volume of LDAP Download

·      Device::Suspicious LDAP Search Operation

Lateral Movement:

·      User::Suspicious Admin SMB Session

·      Anomalous Connection::Unusual Internal Remote Desktop

·      Anomalous Connection::Unusual Long Remote Desktop Session

·      Anomalous Connection::Unusual Admin RDP Session

·      User::New Admin Credentials on Client

·      User::New Admin Credentials on Server

·      Multiple Device Correlations::Spreading New Admin Credentials

·      Anomalous Connection::Powershell to Rare External

·      Device::New PowerShell User Agent

·      Anomalous Active Directory Web Services

·      Compromise::Unusual SVCCTL Activity

Evasion:

·      Unusual Activity::Anomalous SMB Delete Volume

·      Persistence

·      Device::Anomalous ITaskScheduler Activity

·      Device::AT Service Scheduled Task

·      Actions on Objectives

·      Compromise::Ransomware::Suspicious SMB Activity (EM)

·      Anomalous Connection::Sustained MIME Type Conversion

·      Compromise::Ransomware::SMB Reads then Writes with Additional Extensions

·      Compromise::Ransomware::Possible Ransom Note Write

·      Data Sent to Rare Domain

·      Uncommon 1 GiB Outbound

·      Enhanced Unusual External Data Transfer

Darktrace Cyber AI Analyst Coverage/Investigation Events:

·      Web Application Vulnerability Scanning of Multiple Devices

·      Port Scanning

·      Large Volume of SMB Login Failures

·      Unusual RDP Connections

·      Widespread Web Application Vulnerability Scanning

·      Unusual SSH Connections

·      Unusual Repeated Connections

·      Possible Application Layer Reconnaissance Activity

·      Unusual Administrative Connections

·      Suspicious Remote WMI Activity

·      Extensive Unusual Administrative Connections

·      Suspicious Directory Replication Service Activity

·      Scanning of Multiple Devices

·      Unusual External Data Transfer

·      SMB Write of Suspicious File

·      Suspicious Remote Service Control Activity

·      Access of Probable Unencrypted Password Files

·      Internal Download and External Upload

·      Possible Encryption of Files over SMB

·      SMB Writes of Suspicious Files to Multiple Devices

The content provided in this blog is published by Darktrace for general informational purposes only and reflects our understanding of cybersecurity topics, trends, incidents, and developments at the time of publication. While we strive to ensure accuracy and relevance, the information is provided “as is” without any representations or warranties, express or implied. Darktrace makes no guarantees regarding the completeness, accuracy, reliability, or timeliness of any information presented and expressly disclaims all warranties.

Nothing in this blog constitutes legal, technical, or professional advice, and readers should consult qualified professionals before acting on any information contained herein. Any references to third-party organizations, technologies, threat actors, or incidents are for informational purposes only and do not imply affiliation, endorsement, or recommendation.

Darktrace, its affiliates, employees, or agents shall not be held liable for any loss, damage, or harm arising from the use of or reliance on the information in this blog.

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About the author
Justin Torres
Cyber Analyst
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