December 9, 2024

Darktrace’s view on Operation Lunar Peek: Exploitation of Palo Alto firewall devices (CVE 2024-0012 and 2024-9474)

Darktrace’s Threat Research team investigated a major campaign exploiting vulnerabilities in Palo Alto firewall devices (CVE 2024-0012 and 2024-9474). Learn about the spike in post-exploitation activities and understand the need for anomaly-based detection to stay ahead of evolving threats.

Written by

Adam Potter

Senior Cyber Analyst

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

Adam Potter

Senior Cyber Analyst

Dec 2024

Introduction: Spike in exploitation and post-exploitation activity affecting Palo Alto firewall devices

As the first line of defense for many organizations, perimeter devices such as firewalls are frequently targeted by threat actors. If compromised, these devices can serve as the initial point of entry to the network, providing access to vulnerable internal resources. This pattern of malicious behavior has become readily apparent within the Darktrace customer base. In 2024, Darktrace Threat Research analysts identified and investigated at least two major campaigns targeting internet-exposed perimeter devices. These included the exploitation of PAN-OS firewall exploitation via CVE 2024-3400 and FortiManager appliances via CVE 2024-47575.

More recently, at the end of November, Darktrace analysts observed a spike in exploitation and post-exploitation activity affecting, once again, Palo Alto firewall devices in the days following the disclosure of the CVE 2024-0012 and CVE-2024-9474 vulnerabilities.

Threat Research analysts had already been investigating potential exploitation of the firewalls’ management interface after Palo Alto published a security advisory (PAN-SA-2024-0015) on November 8. Subsequent analysis of data from Darktrace’s Security Operations Center (SOC) and external research uncovered multiple cases of Palo Alto firewalls being targeted via the likely exploitation of these vulnerabilities since November 13, through the end of the month. Although this spike in anomalous behavior may not be attributable to a single malicious actor, Darktrace Threat Research identified a clear increase in PAN-OS exploitation across the customer base by threat actors likely utilizing the recently disclosed vulnerabilities, resulting in broad patterns of post-exploitation activity.

How did exploitation occur?

CVE 2024-0012 is an authentication bypass vulnerability affecting unpatched versions of Palo Alto Networks Next-Generation Firewalls. The vulnerability resides in the management interface application on the firewalls specifically, which is written in PHP. When attempting to access highly privileged scripts, users are typically redirected to a login page. However, this can be bypassed by supplying an HTTP request where a Palo Alto related authentication header can be set to “off”. Users can supply this header value to the Nginx reverse proxy server fronting the application which will then send it without any prior processing [1].

CVE-2024-9474 is a privilege escalation vulnerability that allows a PAN-OS administrator with access to the management web interface to execute root-level commands, granting full control over the affected device [2]. When combined, these vulnerabilities enable unauthenticated adversaries to execute arbitrary commands on the firewall with root privileges.

Post-Exploitation Patterns of Activity

Darktrace Threat Research analysts examined potential indicators of PAN-OS software exploitation via CVE 2024-0012 and CVE-2024-9474 during November 2024. The investigation identified three main groupings of post-exploitation activity:

Exploit validation and initial payload retrieval
Command and control (C2) connectivity, potentially featuring further binary downloads
Potential reconnaissance and cryptomining activity

Exploit Validation

Across multiple investigated customers, Darktrace analysts identified likely vulnerable PAN-OS devices conducting external network connectivity to bin services. Specifically, several hosts performed DNS queries for, and HTTP requests to Out-of-Band Application Security Testing (OAST) domains, such as csv2im6eq58ujueonqs0iyq7dqpak311i.oast[.]pro. These endpoints are commonly used by network administrators to harden defenses, but they are increasingly used by threat actors to verify successful exploitation of targeted devices and assess their potential for further compromise. Although connectivity involving OAST domains were prevalent across investigated incidents, this activity was not necessarily the first indicator observed. In some cases, device behavior involving OAST domains also occurred shortly after an initial payload was downloaded.

Figure 1: Darktrace model alert logs detailing the HTTP request to an OAST domain immediately following PAN-OS device compromise.

Initial Payload Retrieval

Following successful exploitation, affected devices commonly performed behaviors indicative of initial payload download, likely in response to incoming remote command execution. Typically, the affected PAN-OS host would utilize the command line utilities curl and Wget, seen via use of user agents curl/7.61.1 and Wget/1.19.5 (linux-gnu), respectively.

In some cases, the use of these command line utilities by the infected devices was considered new behavior. Given the nature of the user agents, interaction with the host shell suggests remote command execution to achieve the outgoing payload requests.

While additional binaries and scripts were retrieved in later stages of the post-exploitation activity in some cases, this set of behaviors and payloads likely represent initial persistence and execution mechanisms that will enable additional functionality later in the kill chain. During the investigation, Darktrace analysts noted the prevalence of shell script payload requests. Devices analyzed would frequently make HTTP requests over the usual destination port 80 using the command line URL utility (curl), as seen in the user-agent field.

The observed URIs often featured requests for text files, such as “1.txt”, or shell scripts such as “y.sh”. Although packet capture (PCAP) samples were unavailable for review, external researchers have noted that the IP address hosting such “1.txt” files (46.8.226[.]75) serves malicious PHP payloads. When examining the contents of the “y.sh” shell script, Darktrace analysts noticed the execution of bash commands to upload a PHP-written web shell on the affected server.

Figure 2: PCAP showing the client request and server response associated with the download of the y.sh script from 45.76.141[.]166. The body content of the HTTP response highlights a shebang command to run subsequent code as bash script. The content is base64 encoded and details PHP script for what appears to be a webshell that will likely be written to the firewall device.

While not all investigated cases saw initial shell script retrieval, affected systems would commonly make an external HTTP connection, almost always via Wget, for the Executable and Linkable Format (ELF) file “/palofd” from the rare external IP 38.180.147[.]18.

Such requests were frequently made without prior hostname lookups, suggesting that the process or script initiating the requests already contained the external IP address. Analysts noticed a consistent SHA1 hash present for all identified instances of “/palofd” downloads (90f6890fa94b25fbf4d5c49f1ea354a023e06510). Multiple open-source intelligence (OSINT) vendors have associated this hash sample with Spectre RAT, a remote access trojan with capabilities including remote command execution, payload delivery, process manipulation, file transfers, and data theft [3][4].

Figure 3: Advanced Search log metrics highlighting details of the “/palofd” file download over HTTP.

Several targeted customer devices were observed initiating TLS/SSL connections to rare external IPs with self-signed TLS certificates following exploitation. Model data from across the Darktrace fleet indicated some overlap in JA3 fingerprints utilized by affected PAN-OS devices engaging in the suspicious TLS activity. Although JA3 hashes alone cannot be used for process attribution, this evidence suggests some correlation of source process across instances of PAN-OS exploitation.

These TLS/SSL sessions were typically established without the specification of a Server Name Indication (SNI) within the TLS extensions. The SNI extension prevents servers from supplying an incorrect certificate to the requesting client when multiple sites are hosted on the same IP. SSL connectivity without SNI specification suggests a potentially malicious running process as most software establishing TLS sessions typically supply this information during the handshake. Although the encrypted nature of the connection prevented further analysis of the payload packets, external sources note that JavaScript content is transmitted during these sessions, serving as initial payloads for the Sliver C2 platform using Wget [5].

C2 Communication and Additional Payloads

Following validation and preliminary post-compromise actions, examined hosts would commonly initiate varying forms of C2 connectivity. During this time, devices were frequently detected making further payload downloads, likely in response to directives set within C2 communications.

Palo Alto firewalls likely exploited via the newly disclosed CVEs would commonly utilize the Sliver C2 platform for external communication. Sliver’s functionality allows for different styles and formatting for communication. An open-source alternative to Cobalt Strike, this framework has been increasingly popular among threat actors, enabling the generation of dynamic payloads (“slivers”) for multiple platforms, including Windows, MacOS, Linux.

These payloads allow operators to establish persistence, spawn new shells, and exfiltrate data. URI patterns and PCAPs analysis yielded evidence of both English word type encoding within Sliverand Gzip formatting.

For example, multiple devices contacted the Sliver-linked IP address 77.221.158[.]154 using HTTP to retrieve Gzip files. The URIs present for these requests follow known Sliver Gzip formatted communication patterns [6]. Investigations yielded evidence of both English word encoding within Sliver, identified through PCAP analysis, and Gzip formatting.

Figure 4: Sample of URIs observed in Advanced Searchhighlighting HTTP requests to 77.221.158[.]154 for Gzip content suggest of Sliver communication.

Figure 5: PCAP showing English word encoding for Sliver communication observed during post-exploitation C2 activity.

External connectivity during this phase also featured TCP connection attempts over uncommon ports for common application protocols. For both Sliver and non-Sliver related IP addresses, devices utilized destination ports such as 8089, 3939, 8880, 8084, and 9999 for the HTTP protocol. The use of uncommon destination ports may represent attempts to avoid detection of connectivity to rare external endpoints. Moreover, some external beaconing within included URIs referencing the likely IP of the affected device. Such behavior can suggest the registration of compromised devices with command servers.

Targeted devices also proceeded to download additional payloads from rare external endpoints as beaconing/C2 activity was ongoing. For example, the newly registered domain repositorylinux[.]org (IP: 103.217.145[.]112) received numerous HTTP GET requests from investigated devices throughout the investigation period for script files including “linux.sh” and “cron.sh”. Young domains, especially those that present as similar to known code repositories, tend to host harmful content. Packet captures of the cron.sh file reveal commands within the HTTP body content involving crontab operations, likely to schedule future downloads. Some hosts that engaged in connectivity to the fake repository domain were later seen conducting crypto-mining connections, potentially highlighting the download of miner applications from the domain.

Additional payloads observed during this time largely featured variations of shell scripts, PHP content, and/or executables. Typically, shell scripts direct the device to retrieve additional content from external servers or repositories or contain potential configuration details for subsequent binaries to run on the device. For example, the “service.sh” retrieves a tar-compressed archive, a configuration JSON file as well as a file with the name “solr” from GitHub, potentially associated with the Apache Solr tool used for enterprise search. These could be used for further enumeration of the host and/or the network environment. PHP scripts observed may involve similar web shell functionality and were retrieved from both rare external IPs identified as well by external researchers [7]. Darktrace also detected the download of octet-stream data occurring mid-compromise from an Amazon Web Services (AWS) S3 bucket. Although no outside research confirmed the functionality, additional executable downloads for files such as “/initd”(IP: 178.215.224[.]246) and “/x6” (IP: 223.165.4[.]175) may relate to tool ingress, further Trojan/backdoor functionality, or cryptocurrency mining.

Figure 7: PCAP specifying the HTTP response headers and body content for the service.sh file request. The body content shown includes variable declarations for URLs that will eventually be called by the device shell via bash command.

Reconnaissance and Cryptomining

Darktrace analysts also noticed additional elements of kill chain operations from affected devices after periods of initial exploit activity. Several devices initiated TCP connections to endpoints affiliated with cryptomining pools such as us[.]zephyr[.]herominers[.]com and xmrig[.]com. Connectivity to these domains indicates likely successful installation of mining software during earlier stages of post-compromise activity. In a small number of instances, Darktrace observed reconnaissance and lateral movement within the time range of PAN-OS exploitation. Firewalls conducted large numbers of internal connectivity attempts across several critical ports related to privileged protocols, including SMB and SSH. Darktrace detected anonymous NTLM login attempts and new usage of potential PAN-related credentials. These behaviors likely constitute attempts at lateral movement to adjacent devices to further extend network compromise impact.

Figure 8: Model alert connection logs detailing the uncommon failed NTLM logins using an anonymous user account following PAN-OS exploitation.

Conclusion

Darktrace Threat Research and SOC analysts increasingly detect spikes in malicious activity on internet-facing devices in the days following the publication of new vulnerabilities. The latest iteration of this trend highlighted how threat actors quickly exploited Palo Alto firewall using authentication bypass and remote command execution vulnerabilities to enable device compromise. A review of the post-exploitation activity during these events reveals consistent patterns of perimeter device exploitation, but also some distinct variations.

Prior campaigns targeting perimeter devices featured activity largely confined to the exfiltration of configuration data and some initial payload retrieval. Within the current campaign, analysts identified a broader scope post-compromise activity consisting not only of payloads downloads but also extensive C2 activity, reconnaissance, and coin mining operations. While the use of command line tools like curl featured prominently in prior investigations, devices were seen retrieving a generally wider array of payloads during the latest round of activity. The use of the Sliver C2 platform further differentiates the latest round of PAN-OS compromises, with evidence of Sliver activity in about half of the investigated cases.

Several of the endpoints contacted by the infected firewall devices did not have any OSINT associated with them at the time of the attack. However, these indicators were noted as unusual for the devices according to Darktrace based on normal network traffic patterns. This reality further highlights the need for anomaly-based detection that does not rely necessarily on known indicators of compromise (IoCs) associated with CVE exploitation for detection. Darktrace’s experience in 2024 of multiple rounds of perimeter device exploitation may foreshadow future increases in these types of comprise operations.

Credit to Adam Potter (Senior Cyber Analyst), Alexandra Sentenac (Senior Cyber Analyst), Emma Foulger (Principal Cyber Analyst) and the Darktrace Threat Research team.

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References

[1]: https://labs.watchtowr.com/pots-and-pans-aka-an-sslvpn-palo-alto-pan-os-cve-2024-0012-and-cve-2024-9474/

[2]: https://security.paloaltonetworks.com/CVE-2024-9474

[3]: https://threatfox.abuse[.]ch/ioc/1346254/

[4]:https://www.virustotal.com/gui/file/4911396d80baff80826b96d6ea7e54758847c93fdbcd3b86b00946cfd7d1145b/detection

[5]: https://arcticwolf.com/resources/blog/arctic-wolf-observes-threat-campaign-targeting-palo-alto-networks-firewall-devices/

[6] https://www.immersivelabs.com/blog/detecting-and-decrypting-sliver-c2-a-threat-hunters-guide

[7] https://arcticwolf.com/resources/blog/arctic-wolf-observes-threat-campaign-targeting-palo-alto-networks-firewall-devices/

Appendices

Darktrace Model Alerts

Anomalous Connection / Anomalous SSL without SNI to New External

Anomalous Connection / Application Protocol on Uncommon Port

Anomalous Connection / Multiple Failed Connections to Rare Endpoint

Anomalous Connection / Multiple HTTP POSTs to Rare Hostname

Anomalous Connection / New User Agent to IP Without Hostname

Anomalous Connection / Posting HTTP to IP Without Hostname

Anomalous Connection / Rare External SSL Self-Signed

Anomalous File / EXE from Rare External Location

Anomalous File / Incoming ELF File

Anomalous File / Mismatched MIME Type From Rare Endpoint

Anomalous File / Multiple EXE from Rare External Locations

Anomalous File / New User Agent Followed By Numeric File Download

Anomalous File / Script from Rare External Location

Anomalous File / Zip or Gzip from Rare External Location

Anomalous Server Activity / Rare External from Server

Compromise / Agent Beacon (Long Period)

Compromise / Agent Beacon (Medium Period)

Compromise / Agent Beacon to New Endpoint

Compromise / Beacon for 4 Days

Compromise / Beacon to Young Endpoint

Compromise / Beaconing Activity To External Rare

Compromise / High Priority Tunnelling to Bin Services

Compromise / High Volume of Connections with Beacon Score

Compromise / HTTP Beaconing to New IP

Compromise / HTTP Beaconing to Rare Destination

Compromise / Large Number of Suspicious Failed Connections

Compromise / Large Number of Suspicious Successful Connections

Compromise / Slow Beaconing Activity To External Rare

Compromise / SSL Beaconing to Rare Destination

Compromise / Suspicious Beaconing Behavior

Compromise / Suspicious File and C2

Compromise / Suspicious HTTP and Anomalous Activity

Compromise / Suspicious TLS Beaconing To Rare External

Compromise / Sustained SSL or HTTP Increase

Compromise / Sustained TCP Beaconing Activity To Rare Endpoint

Device / Initial Attack Chain Activity

Device / New User Agent

MITRE ATT&CK Mapping

Tactic – Technique

INITIAL ACCESS – Exploit Public-Facing Application

RESOURCE DEVELOPMENT – Malware

EXECUTION – Scheduled Task/Job (Cron)

EXECUTION – Unix Shell

PERSISTENCE – Web Shell

DEFENSE EVASION – Masquerading (Masquerade File Type)

DEFENSE EVASION - Deobfuscate/Decode Files or Information

CREDENTIAL ACCESS – Brute Force

DISCOVERY – Remote System Discovery

COMMAND AND CONTROL – Ingress Tool Transfer

COMMAND AND CONTROL – Application Layer Protocol (Web Protocols)

COMMAND AND CONTROL – Encrypted Channel

COMMAND AND CONTROL – Non-Standard Port

COMMAND AND CONTROL – Data Obfuscation

IMPACT – Resource Hijacking (Compute)

List of IoCs

IoC – Type – Description

sys.traceroute[.]vip – Hostname - C2 Endpoint
77.221.158[.]154 – IP - C2 Endpoint
185.174.137[.]26 – IP - C2 Endpoint
93.113.25[.]46 – IP - C2 Endpoint
104.131.69[.]106 – IP - C2 Endpoint
95.164.5[.]41 – IP - C2 Endpoint
bristol-beacon-assets.s3.amazonaws[.]com – Hostname - Payload Server
img.dxyjg[.]com – Hostname - Payload Server
38.180.147[.]18 – IP - Payload Server
143.198.1[.]178 – IP - Payload Server
185.208.156[.]46 – IP - Payload Server
185.196.9[.]154 – IP - Payload Server
46.8.226[.]75 – IP - Payload Server
223.165.4[.]175 – IP - Payload Server
188.166.244[.]81 – IP - Payload Server
bristol-beaconassets.s3[.]amazonaws[.]com/Y5bHaYxvd84sw – URL - Payload
img[.]dxyjg[.]com/KjQfcPNzMrgV – URL - Payload
38.180.147[.]18/palofd – URL - Payload
90f6890fa94b25fbf4d5c49f1ea354a023e06510 – SHA1 - Associated to file /palofd
143.198.1[.]178/7Z0THCJ – URL - Payload
8d82ccdb21425cf27b5feb47d9b7fb0c0454a9ca – SHA1 - Associated to file /7Z0THCJ
fefd0f93dcd6215d9b8c80606327f5d3a8c89712 – SHA1 - Associated to file /7Z0THCJ
e5464f14556f6e1dd88b11d6b212999dd9aee1b1 – SHA1 - Associated to file /7Z0THCJ
143.198.1[.]178/o4VWvQ5pxICPm – URL - Payload
185.208.156[.]46/lUuL095knXd62DdR6umDig – URL - Payload
185.196.9[.]154/ykKDzZ5o0AUSfkrzU5BY4w – URL - Payload
46.8.226[.]75/1.txt – URL - Payload
223.165.4[.]175/x6 – URL - Payload
45.76.141[.]166/y.sh – URL - Payload
repositorylinux[.]org/linux.sh – URL - Payload
repositorylinux[.]org/cron.sh – URL - Payload

‍

執筆者

Adam Potter

Senior Cyber Analyst

Inside the SOC

Written by

Adam Potter

Senior Cyber Analyst

Malware Research Lead

•

May 18, 2026

Jason Lusted

AI Governance Advisor

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AI

May 18, 2026

AI Insider Threats: How Generative AI is Changing Insider Risk

How generative AI changes insider behavior

AI systems, especially generative platforms such as chatbots, are designed for engagement with humans. They are equipped with extraordinary human-like responses that can both confirm, and inflate, human ideas and ideology; offering an appealing cognitive partnership between machine and human. When considering this against the threat posed by insiders, the type of diverse engagement offered by AI can greatly increase the speed of an insider event, and can facilitate new attack platforms to carry out insider acts.

This article offers analysis on how to consider this new paradigm of insider risk, and outlines key governance principles for CISOs, CSOs and SOC managers to manage the threats inherent with AI-powered insider risk.

What is an insider threat?

There are many industry or government definitions of what constitutes insider threat. At its heart, it relates to the harm created when trusted access to sensitive information, assets or personnel is abused bywith malicious intent, or through negligent activities.

Traditional methodologies to manage insider threat have relied on two main concepts: assurance of individuals with access to sensitive assets, and a layered defense system to monitor for any breach of vulnerability. This is often done both before, and after access has been granted. In the pre-access state, assurance is gained through security or recruitment checks. Once access is granted, controls such as privileged access, and zero-trust architecture offer defensive layers.

How does AI change the insider threat paradigm?

While these two concepts remain central to the management of insider threats, the introduction of AI offers three key new aspects that will re-shape the paradigm:.

AI can act as a cognitive amplifier, influencing and affecting the motivations that can lead to insider-related activity. This is especially relevant for the deliberate insider - someone who is considering an act of insider harm. These individuals can now turn to AI systems to validate their thinking, provide unique insights, and, crucially, offer encouragement to act. With generative systems hard-wired to engage and agree with users, this can turn a helpful AI system into a dangerous AI hype machine for those with harmful insider intent.

AI can act as an operational enabler. AI can now develop and increase the range of tools needed to carry out insider acts. New social engineering platforms such as vishing and deepfakes give adversaries a new edge to create insider harm. AI can generate solutions and operational platforms at increasing speeds; often without the need for human subject matter expertise to execute the activities. As one bar for advanced AI capabilities continues to be raised, the bar needed to make use of those platforms has become significantly lower.

AI can act as a semi-autonomous insider, particularly when agentic AI systems or non-human identities are provided broad levels of autonomy; creating a vector of insider acts with little-to-no human oversight or control. As AI agents assume many of the orchestration layers once reserved for humans, they do so without some of the restricted permissions that generally bind service accounts. With broad levels of accessibility and authority, these non-human identities (NHIs) can themselves become targets of insider intent. Commonly, this refers to the increasing risks of prompt injection, poisoning, or other types of embedded bias. In many ways, this mirrors the risks of social engineering traditionally faced by humans. Even without deliberate or malicious efforts to corrupt them, AI systems and AI agents can carry out unintended actions; creating vulnerabilities and opportunities for insider harm.

How to defend against AI-powered insider threats

The increasing attack surfaces created or facilitated by AI is a growing concern. In Darktrace’s own AI cybersecurity research, the risks introduced, and acknowledged, through the proliferation of AI tools and systems continues to outstrip traditional policies and governance guardrails. 22% of respondents in the survey cited ‘insider misuse aided by generative AI’ as a major threat concern. And yet, in the same survey, only 37% of all respondents have formal policies in place to manage the safe and responsible use of AI. This draws a significant and worrying delta between the known risks and threat concerns, and the ability (and resources) to mitigate them.

What can CISOs and SOC leaders do to protect their organization from AI insider threats?

Given the rapid adaptation, adoption, and scale of AI systems, implementing the right levels of AI governance is non-negotiable. Getting the correct balance between AI-driven productivity gains and careful compliance will lead to long-term benefits. Adapting traditional insider threat structures to account for newer risks posed through the use of AI will be crucial. And understanding the value of AI systems that add to your cybersecurity resilience rather than imperil it will be essential.

For those responsible for the security and protection of their business assets and data holdings, the way AI has changed the paradigm of insider threats can seem daunting. Adopting strong, and suitable AI governance can become difficult to introduce due to the volume and complexity of systems needed to be monitored. As well as traditional insider threat mitigations such as user monitoring, access controls and active management, the speed and autonomy of some AI systems need different, as well as additional layers of control.

How Darktrace helps protect against AI-powered insider threats

Darktrace has demonstrated that, through platforms such as our proprietary Cyber AI Analyst, and our latest product Darktrace / SECURE AI, there are ways AI systems can be self-learning, self-critical and resilient to unpredictable AI behavior whilst still offering impressive returns; complementing traditional SOC and CISO strategies to combat insider threat.

With / SECURE AI, some of the ephemeral risks drawn through AI use can be more easily governed. Specifically, the ability to monitor conversational prompts (which can both affect AI outputs as well as highlight potential attempts at manipulation of AI; raising early flags of insider intent); the real-time observation of AI usage and development (highlighting potential blind-spots between AI development and deployment); shadow AI detection (surfacing unapproved tools and agents across your IT stack) and; the ability to know which identities (human or non-human) have permission access. All these features build on the existing foundations of strong insider threat management structures.

How to take a defense-in-depth approach to AI-powered insider threats

Even without these tools, there are four key areas where robust, more effective controls can mitigate AI-powered insider threat. Each of the below offers a defencce-in-depth approach: layering acknowledgement and understanding of an insider vector with controls that can bolster your defenses.

Identity and access controls

Having a clear understanding of the entities that can access your sensitive information, assets and personnel is the first step in understanding the landscape in which insider harm can occur. AI has shown that it is not just flesh and bone operators who can administer insider threats; Non-Human Identities (such as agentic AI systems) can operate with autonomy and freedom if they have the right credentials. By treating NHIs in the same way as human operators (rather than helpful machine-based tools), and adding similar mitigation and management controls, you can protect both your business, and your business-based identities from insider-related attention.

Visibility and shadow AI detection

Configuring AI systems carefully, as well as maintaining internal monitoring, can help identify ‘shadow AI’ usage; defined as the use of unsanctioned AI tools within the workplace¹ (this topic was researched in Darktrace’s own paper on "How to secure AI in the enterprise". The adoption of shadow AI could be the result of deliberate preference, or ‘shortcutting’; where individuals use systems and models they are familiar with, even if unsanctioned. As well as some performance risks inherent with the use of shadow AI (such as data leakage and unwanted actions), it could also be a dangerous precursor for insider-related harm (either through deliberate attempts to subvert regular monitoring, or by opening vulnerabilities through unpatched or unaccredited tooling).

Prompt and Output Guardrails

The ability to introduce guardrails for AI systems offers something of a traditional “perimeter protection” layer in AI defense architecture; checking prompts and outputs against known threat vectors, or insider threat methodologies. Alone, such traditional guardrails offer limited assurance. But, if tied with behavior-centric threat detection, and an enforcement system that deters both malicious and accidental insider activities, this would offer considerable defense- in- depth containment.

Forensic logging and incident readiness response

The need for detection, data capture, forensics, and investigation are inherent elements of any good insider threat strategy. To fully understand the extent or scope of any suspected insider activity (such as understanding if it was deliberate, targeted, or likely to occur again), this rich vein of analysis could prove invaluable. As the nature of business increasingly turns ephemeral; with assets secured in remote containers, information parsed through temporary or cloud-based architecture, and access nodes distributed beyond the immediate visibility of internal security teams, the development of AI governance through containment, detection, and enforcement will grow ever more important.

Enabling these controls can offer visibility and supervision over some of the often-expressed risks about AI management. With the right kind of data analytics, and with appropriate human oversight for high-risk actions, it can illuminate the core concerns expressed through a new paradigm of AI-powered insider threats by:

Ensuring deliberately mis-configured AI systems are exposed through regular monitoring.
Highlighting changes in systems-based activity that might indicate harmful insider actions; whether malicious or accidental.
Promoting a secure-by-design process that discourages and deters insider-related ambitions.
Ensuring the control plane for identity-based access spans humans, NHIs and AI models, and:
Offering positive containment strategies that will help curate the extent of AI control, and minimize unwanted activities.

Why insider threat remains a human challenge

At its root, and however it has been configured, AI is still an algorithmic tool; something designed to automate, process and manage computational functions at machine speed, and boost productivity. Even with the best cybersecurity defenses in place, the success of an insider threat management program will still depend on the ability of human operators to identify, triage, and manage the insider threat attack surface.

AI governance policies, human-in-the-loop break points, and automated monitoring functions will not guard against acts of insider harm unless there is intention to manage this proactively, and through a strong culture of how to guard against abuses of trust and responsibility.

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About the author

Jason Lusted

AI Governance Advisor

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Network

May 14, 2026

Chinese APT Campaign Targets Entities with Updated FDMTP Backdoor

Darktrace have identified activity consistent with Chinese-nexus operations, a Twill Typhoon-linked campaign targeting customer environments, primarily within the Asia-Pacific & Japan (APJ) region

Beginning in late September 2025, multiple affected hosts were observed making requests to domains impersonating content delivery networks (CDNs), including infrastructure masquerading as Yahoo- and Apple-affiliated services. Across these cases, Darktrace identified a consistent behavioral execution pattern: the retrieval of legitimate binaries alongside malicious Dynamic Link Libraries (DLLs), enabling sideloading and execution of a modular .NET-based Remote Access Trojan (RAT) framework.

The activity aligns with patterns described in Darktrace’s previous Chinese-nexus operations report, Crimson Echo. In this case, observed modular intrusion chains built on legitimate software, and staged payload delivery. Threat actors retrieve legitimate binaries alongside configuration files and malicious DLLs to enable sideloading of a .NET-based RAT.

Observed Campaign

Across cases, the same ordered sequence appears: retrieval of a legitimate executable, (2) retrieval of a matching .config file, (3) retrieval of the malicious

DLL, (4) repeated DLL downloads over time, and (5) command-and-control (C2) communication. The .config file retrieves a malicious binary, while the legitimate binary provides a legitimate process to run it in.

Darktrace assesses with moderate confidence that this activity aligns with publicly reported Twill Typhoon tradecraft. The observed use of FDMTP, DLL sideloading, and overlapping infrastructure is consistent with previously observed operations, though not unique to a single actor. While initial access was not directly observed, previous Twill Typhoon campaigns have typically involved spear-phishing.

What Darktrace Observed

Since late September 2025, Darktrace has observed multiple customer environments making HTTP GET requests to infrastructure presenting as “CDN” endpoints for well-known platforms (including Yahoo and Apple lookalikes). Across cases, the affected hosts retrieved legitimate executables, then matching .config files (same base filename), then DLLs intended for sideloading. The sequencing of a legitimate binary + configuration + DLL has been previously observed in campaigns linked to China-nexus threat actors.

In several cases, affected hosts also issued outbound requests to a /GetCluster endpoint, including the protocol=Dotnet-Tcpdmtp parameter. This activity was repeatedly followed by retrieval of DLL content that was subsequently used for search-order hijacking within legitimate processes.

In the September–October 2025 cases, Darktrace alerting commonly surfaced early-stage registration and C2 setup behaviors, followed by retrieval of a DLL (e.g., Client.dll) from the same external host, sometimes repeatedly over multiple days, consistent with establishing and maintaining the execution chain.

In April 2026, a finance-sector endpoint initiated a series of GET requests to yahoo-cdn[.]it[.]com, first fetching legitimate binaries (including vshost.exe and dfsvc.exe), then repeatedly retrieving associated configuration and DLL components (including dfsvc.exe.config and dnscfg.dll) over an 11-day window. The use of both Visual Studio hosting and OneClick (dfsvc.exe) paths are used to ensure the malware can run in the targeted environment.

Technical Analysis

Initial staging and execution

While the initial access method is unknown, Darktrace security researchers identified multiple archives containing the malware.

A representative example includes a ZIP archive (“test.zip”) containing:

A legitimate executable: biz_render.exe (Sogou Pinyin IME)
A malicious DLL: browser_host.dll

Contained within the zip archive named “test.zip” is the legitimate binary “biz_render.exe”, a popular Chinese Input Method Editor (IME) Sogou Pinyin.

Alongside the legitimate binary is a malicious DLL named “browser_host.dll”. As the legitimate binary loads a legitimate DLL named “browser_host.dll” via LoadLibraryExW, the malicious DLL has been named the same to sideload the malicious DLL into biz_render.exe. By supplying a malicious DLL with an identical name, the actor hijacks execution flow, enabling the payload to execute within a trusted process.

Figure 1: Biz_render.exe loading browser_host.dll.

The legitimate binary invokes the function GetBrowserManagerInstance from the sideloaded “browser_host.dll”, which then performs XOR-based decryption of embedded strings (key 0x90) to resolve and dynamically load mscoree.dll.

The DLL uses the Windows Common Language Runtime (CLR) to execute managed .NET code inside the process rather than relying solely on native binaries. During execution, the loader loads a payload directly into memory as .NET assemblies, enabling an in-memory execution.

C2 Registration

A GET request is made to:

GET /GetCluster?protocol=DotNet-TcpDmtp&tag={0}&uid={1}

with the custom header:

Verify_Token: Dmtp

This returns Base64-encoded and gzip-compressed IP addresses used for subsequent communication.

Staged payload retrieval

Subsequent activity includes retrieval of multiple components from yahoo-cdn.it[.]com. The following GET requests are made:

/dfsvc.exe

/dnscfg.dll

/dfsvc.exe.config

/vhost.exe

/Microsoft.VisualStudio.HostingProcess.Utilities.Sync.dll

/config.etl

ClickOnce and AppDomain hijacking

Dfsvc.exe is the legitimate Windows ClickOnce Engine, part of the .NET framework used for updating ClickOnce Applications. Accompanying dfsvc.exe is a legitimate dfsvc.exe.config file that is used to store configuration data for the application. However, in this instance the malware has replaced the legitimate dfsvc.exe.config with the one retrieved from the server in: C:\Windows\Microsoft.NET\Framework64\v4.0.30319.

Additionally, vhost.exe the legitimate Visual Studio hosting process is retrieved from the server, along with “Microsoft.VisualStudio.HostingProcess.Utilities.Sync.dll” and “config.etl”. The DLL is used to decrypt the AES encrypted payload in config.etl and load it. The encrypted payload is dnscfg.dll, which can be loaded into vshost instead of dfsvc, and may be used if the environment does not support .NET.

The malicious configuration disables logging, forces the application to load dnscfg.dll from the remote server, and uses a custom AppDomainManager to ensure the DLL is executed during initialization of dfsvc.exe. To ensure persistence, a scheduled task is added for %APPDATA%\Local\Microsoft\WindowsApps\dfsvc.exe.

Core payload

The DLL dnscfg.dll is a .NET binary named Client.TcpDmtp.dll. The payload is a heavily obfuscated backdoor that generates its logic at runtime and communicates with the command and control (C2) over custom TCP, DMTP (Duplex Message Transport Protocol) and appears to be an updated version of FDMTP to version 3.2.5.1

The payload:

Uses cluster-based resolution (GetHostFromCluster)
Implements token validation
Enters a persistent execution loop (LoopMessage)
Supports structured remote tasking over DMTP

Once connected, the malware enters a persistent loop (LoopMessage), enabling it to receive commands from the remote server.

Rather than referencing values directly, they are retrieved through containers that are resolved at runtime. String values are stored in an encrypted byte array (_0) and decrypted by a custom XOR-based string decryption routine (dcsoft). The lower 16 bits of the provided key are XORed with 0xA61D (42525) to derive the initial XOR key, while subsequent bits define the string length and offset into the encrypted byte array. Each character is reconstructed from two encrypted bytes and XORed with the incrementing key value, producing the plaintext string used by the payload.

Embedded in the resources section are multiple compressed binaries, the majority of which are library files. The only exceptions are client.core.dll and client.dmtpframe.dll.

Modular framework and plugins

The payload embeds multiple compressed libraries, notably:

client.core.dll
client.dmtpframe.dll

Client.core.dll is a core library used for system profiling, C2 communication and plugin execution. The implant has the functionality to retrieve information including antivirus products, domain name, HWID, CLR version, administrator status, hardware details, network details, operating system, and user.

Additionally, the component is responsible for loading plugins, with support for both binary and JSON-based plugin execution. This allows plugins to receive commands and parameters in different formats depending on the task being performed.

The framework handles details such as plugin hashes, method names, task identifiers, caller tracking, and argument processing, allowing plugins to be executed consistently within the environment. In addition to execution management, the library also provides plugins with access to common runtime functionality such as logging, communication, and process handling.

client.dmtpframe.dll handles:

DMTP communication
Heartbeats and reconnection
Plugin persistence via registry:

HKCU\Software\Microsoft\IME\{id}

Client.dmtpframe.dll is built on the TouchSocket DMTP networking library and continues to manage the remote plugins. The DLL implements remote communication features including heartbeat maintenance, reconnection handling, RPC-style messaging, SSL support, and token-based verification. The DLL also has the ability to add plugins to the registry under HKCU/Software/Microsoft/IME/{id} for persistence.

Plugins observed

While the full set of plugins remains unknown, researchers were able to identify four plugins, including:

Persist.WpTask.dll - used to create, remove and trigger scheduled Windows tasks remotely.
Persist.registry.dll - used to manage registry persistence with the ability to create, and delete registry values, along with hidden persistence keys.
Persist.extra.dll - used to load and persist the main framework.‍
Assist.dll - used to remotely retrieve files or commands, as well as manipulate system processes.

Figure 10: Plugins stored in IME registry.

Figure 11: Obfuscated script in plugin resources.

Persist.extra.dll is a module that is used to load a script “setup.log” to load and persist the main framework. Stored within the resources section of the binary is an obfuscated script that creates a .NET COM object that is added to the registry key HKCU\Software\Classes\TypeLib\ {9E175B61-F52A-11D8-B9A5-505054503030} \1.0\1\Win64 for persistence. After deobfuscating this script, another DLL is revealed named “WindowsBase.dll”.

The binary checks in with icloud-cdn[.]net every five minutes, retrieves a version string, downloads an encrypted payload named checksum.bin, saves it locally as C:\ProgramData\USOShared\Logs\checksum.etl, decrypts it with AES using the hardcoded key POt_L[Bsh0=+@0a., and loads the decrypted assembly directly from memory via Assembly.Load(byte[]). The version.txt file acts as an update marker so it only re-downloads when the remote version changes, while the mutex prevents duplicate instances.

Checksum.etl is decrypted with AES and loaded into memory, loading another .NET DLL named “Client.dll”. This binary is the same as “dnscfg.dll” mentioned at the start and allows the threat actors to update the main framework based on the version.

Conclusion

Across cases, Darktrace consistently observed the following sequence:

Retrieval of legitimate executables
Retrieval of DLLs for sideloading
C2 registration via /GetCluster

This approach is consistent with broader China-nexus tradecraft. As outlined in Darktrace’s Crimson Echo report, the stable feature of this activity is behavioral. Infrastructure rotates and payloads can change, but the execution model persists. For defenders, the implication is straightforward: detection anchored to individual indicators will degrade quickly. Detection anchored to a behavioral sequence offer a far more durable approach.

Credit to Tara Gould (Malware Research Lead), Adam Potter (Senior Cyber Analyst), Emma Foulger (Global Threat Research Operations Lead), Nathaniel Jones (VP, Security & AI Strategy)

Edited by Ryan Traill (Content Manager)

‍

Appendices

A detailed list of detection models and triggered indicators is provided alongside IoCs.

Indicators of Compromise (IoCs)

Test.zip - fc3959ebd35286a82c662dc81ca658cb

Dnscfg.dll - b2c8f1402d336963478f4c5bc36c961a

Client.TcpDmtp.dll - c52b4a16d93a44376f0407f1c06e0b

Browser_host.dll - c17f39d25def01d5c87615388925f45a

Client.DmtpFrame.dll - 482cc72e01dfa54f30efe4fefde5422d

Persist.Extra - 162F69FE29EB7DE12B684E979A446131

Persist.Registry - 067FBAD4D6905D6E13FDC19964C1EA52

Assist - 2CD781AB63A00CE5302ED844CFBECC27

Persist.WpTask - DF3437C88866C060B00468055E6FA146

Microsoft.VisualStudio.HostingProcess.Utilities.Sync.dll - c650a624455c5222906b60aac7e57d48

www.icloud-cdn[.]net

www.yahoo-cdn.it[.]com

154.223.58[.]142[AP8] [EF9]

MITRE ATT&CK Techniques

T1106 – Native API

T1053.005 - Scheduled Task

T1546.16 - Component Object Model Hijacking

T1547.001 - Registry Run Keys

T1511.001 - Dynamic Link Library Injection

T1622 – Debugger Evasion

T1140 – Deobfuscate/Decode Files or Information

T1574.001 - Hijack Execution Flow: DLL

T1620 – Reflective Code Loading

T1082 – System Information Discovery

T1007 – System Service Discovery

T1030 – System Owner/User Discovery

T1071.001 - Web Protocols

T1027.007 - Dynamic API Resolution

T1095 – Non-Application Layer Protocol

Darktrace Model Alerts

· Compromise / Beaconing Activity To External Rare

· Compromise / HTTP Beaconing to Rare Destination

· Anomalous File / Script from Rare External Location

· Compromise / Sustained SSL or HTTP Increase

· Compromise / Agent Beacon to New Endpoint

· Anomalous File / EXE from Rare External Location

· Anomalous File / Multiple EXE from Rare External Locations

· Compromise / Quick and Regular Windows HTTP Beaconing

· Compromise / High Volume of Connections with Beacon Score

· Anomalous File / Anomalous Octet Stream (No User Agent)

· Compromise / Repeating Connections Over 4 Days

· Device / Large Number of Model Alerts

· Anomalous Connection / Multiple Connections to New External TCP Port

· Compromise / Large Number of Suspicious Failed Connections

· Anomalous Connection / Multiple Failed Connections to Rare Endpoint

· Device / Increased External Connectivity

About the author

Tara Gould

Malware Research Lead

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Check out this article by Darktrace: Darktrace’s view on Operation Lunar Peek: Exploitation of Palo Alto firewall devices (CVE 2024-0012 and 2024-9474)

Darktrace’s view on Operation Lunar Peek: Exploitation of Palo Alto firewall devices (CVE 2024-0012 and 2024-9474)

Introduction: Spike in exploitation and post-exploitation activity affecting Palo Alto firewall devices

How did exploitation occur?

Post-Exploitation Patterns of Activity

Exploit Validation

Initial Payload Retrieval

C2 Communication and Additional Payloads

Reconnaissance and Cryptomining

Conclusion

Get the latest insights on emerging cyber threats

References

Appendices

MITRE ATT&CK Mapping

List of IoCs

Chinese APT Campaign Targets Entities with Updated FDMTP Backdoor

AI Insider Threats: How Generative AI is Changing Insider Risk

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Observed Campaign

What Darktrace Observed

Technical Analysis

Initial staging and execution

C2 Registration

Staged payload retrieval

ClickOnce and AppDomain hijacking

Core payload

Modular framework and plugins

Plugins observed

Conclusion

Appendices

Indicators of Compromise (IoCs)

MITRE ATT&CK Techniques

Darktrace Model Alerts