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February 24, 2021

LockBit Ransomware Analysis: Compromised Credentials

Darktrace examines how a LockBit ransomware attack that took place over just four hours was caused by one compromised credential. Read more here.
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
Max Heinemeyer
Global Field CISO
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24
Feb 2021

Lockbit ransomware found

LockBit ransomware was recently identified by Darktrace's Cyber AI during a trial with a retail company in the US. After an initial foothold was established via a compromised administrative credential, internal reconnaissance, lateral movement, and encryption of files occurred simultaneously, allowing the ransomware to steamroll through the digital system in just a few hours.

This incident serves as the latest reminder that ransomware campaigns now move through organizations at a speed that far outpaces human responders, demonstrating the need for machine-speed Autonomous Response to contain the threat before damage is done.

Lockbit ransomware defined

First discovered in 2019, LockBit is a relatively new family of ransomware that quickly exploits commonly available protocols and tools like SMB and PowerShell. It was originally known as ‘ABCD’ due the filename extension of the encrypted files, before it started using the current .lockbit extension. Since those early beginnings, it has evolved into one of the most calamitous strains of malware to date, asking for an average ransom of around $40,000 per organization.

As cyber-criminals level up the speed and scale of their attacks, ransomware remains a critical concern for organizations across every industry. In the past 12 months, Darktrace has observed an increase of over 20% in ransomware incidents across its customer base. Attackers are constantly developing new threat variants targeting exploits, utilizing off-the-shelf tools, and profiting from the burgeoning Ransomware-as-a-Service (RaaS) business model.

How does LockBit work?

In a typical attack, a threat actor will spend days or weeks inside a system, manually screening for the best way to grind the victim’s business to a halt. This phase tends to expose multiple indicators of compromise such as command and control (C2) beaconing, which Darktrace AI identifies in real time.

LockBit, however, only requires the presence of a human for a number of hours, after which it propagates through a system and infects other hosts on its own, without the need for human oversight. Crucially, the malware performs reconnaissance and continues to spread during the encryption phase. This allows it to cause maximal damage faster than other manual approaches.

AI-powered defense is essential in fighting back against these machine-driven attacks, which have the capacity to spread at speed and scale, and often go undetected by signature-based security tools. Cyber AI augments human teams by not only detecting the subtle signs of a threat, but autonomously responding in seconds, quicker than any human can be expected to react.

Ransomware analysis: Breaking down a LockBit attack with AI

Figure 1: Timeline of attack on the infected host and the encryption host. The infected host was the device initially infected with LockBit, which then spread to the encryption host, the device which performed the encryption.

Initial compromise

The attack commenced when a cyber-criminal gained access to a single privileged credential – either through a brute-force attack on an externally facing device, as seen in previous LockBit ransomware attacks, or simply with a phishing email. With the use of this credential, the device was able to spread and encrypt files within hours of the initial infection.

Had the method of infiltration been via phishing attack, a route that has become increasingly popular in recent months, Darktrace/Email would have withheld the email and stripped the malicious payloads, and so prevented the attack from the outset.

Limiting permissions, the use of strong passwords, and multi-factor authentication (MFA), are critical in preventing the exploitation of standard network protocols in such attacks.

Internal reconnaissance

At 14:19 local time, the first of many WMI commands (ExecMethod) to multiple internal destinations was performed by an internal IP address over DCE-RPC. This series of commands occurred throughout the encryption process. Given these commands were unusual in the context of the normal ‘pattern of life’ for the organization, Darktrace DETECT alerted the security team to each of these connections.

Within three minutes, the device had started to write executable files over SMB to hidden shares on multiple destinations – many of which were the same. File writes to hidden shares are ordinarily restricted. However, the unauthorized use of an administrative credential granted these privileges. The executable files were written to the Windows / Temp directory. Filenames had a similar formatting: .*eck[0-9]?.exe

Darktrace identified each of these SMB writes as a potential threat, since such administrative activity was unexpected from the compromised device.

The WMI commands and executable file writes continued to be made to multiple destinations. In less than two hours, the ExecMethod command was delivered to a critical device – the ‘encryption host’ – shortly followed by an executable file write (eck3.exe) to its hidden c$ share.

LockBit’s script has the capability to check its current privileges and, if non-administrative, it attempts to bypass using Windows User Account Control (UAC). This particular host did provide the required privileges to the process. Once this device was infected, encryption began.

File encryption

Only one second after encryption had started, Darktrace alerted on the unusual file extension appendage in addition to the previous, high-fidelity alerts for earlier stages of the attack lifecycle.

A recovery file – ‘Restore-My-Files.txt’ – was identified by Darktrace one second after the first encryption event. 8,998 recovery files were written, one to each encrypted folder.

Figure 2: An example of Darktrace’s Threat Visualizer showcasing anomalous SMB connections, with model breaches represented by dots.

The encryption host was a critical device that regularly utilized SMB. Exploiting SMB is a popular tactic for cyber-criminals. Such tools are so frequently used that it is difficult for signature-based detection methods to identify quickly whether their activity is malicious or not. In this case, Darktrace’s ‘Unusual Activity’ score for the device was elevated within two seconds of the first encryption, indicating that the device was deviating from its usual pattern of behavior.

Throughout the encryption process, Darktrace also detected the device performing network reconnaissance, enumerating shares on 55 devices (via srvsvc) and scanning over 1,000 internal IP addresses on nine critical TCP ports.

During this time, ‘Patient Zero’ – the initially infected device – continued to write executable files to hidden file shares. LockBit was using the initial device to spread the malware across the digital estate, while the ‘encryption host’ performed reconnaissance and encrypted the files simultaneously.

Despite Cyber AI detecting the threat even before the encryption had begun, the security team did not have eyes on Darktrace at the time of the attack. The intrusion was thus allowed to continue and over 300,000 files were encrypted and appended with the .lockbit extension. Four servers and 15 desktop devices were affected, before the attack was stopped by the administrators.

The rise of ‘hit and run’ ransomware

While most ransomware resides inside an organization for days or weeks, LockBit’s self-governing nature allows the attacker to ‘hit and run’, deploying the ransomware with minimal interaction required after the initial intrusion. The ability to detect anomalous activity across the entire digital infrastructure in real time is therefore crucial in LockBit’s prevention.

WMI and SMB are relied upon by the vast majority of companies around the world, and yet they were utilized in this attack to propagate through the system and encrypt hundreds of thousands of files. The prevalence and volume of these connections make them near-impossible to monitor with humans or signature-based detection techniques alone.

Moreover, the uniqueness of every enterprise’s digital estate impedes signature-based detection from effectively alerting on internal connections and the volume of such connections. Darktrace, however, uses machine learning to understand the individual pattern of behavior for each device, in this case allowing it to highlight the unusual internal activity as it occurred.

The organization involved did not have Darktrace RESPOND – Darktrace’s Autonomous Response technology – configured in active mode. If enabled, RESPOND would have surgically blocked the initial WMI operations and SMB drive writes that triggered the attack whilst allowing the critical network devices to continue standard operations. Even if the foothold had been established, RESPOND would have enforced the ‘pattern of life’ of the encryption host, preventing the cascade of encryption over SMB. This demonstrates the importance of meeting machine-speed attacks with autonomous cyber security, which reacts in real time to sophisticated threats when human security teams cannot.

LockBit has the ability to encrypt thousands of files in just seconds, even when targeting well-prepared organizations. This type of ransomware, with built-in worm-like functionality, is expected to become increasingly common over 2021. Such attacks can move at a speed which no human security team alone can match. Darktrace’s approach, which uses unsupervised machine learning, can respond in seconds to these rapid attacks and shut them down in their earliest stages.

Thanks to Darktrace analyst Isabel Finn for her insights on the above threat find.

Darktrace model detections:

  • Device / New or Uncommon WMI Activity
  • Compliance / SMB Drive Write
  • Compromise / Ransomware / Suspicious SMB Activity
  • Compromise / Ransomware / Ransom or Offensive Words Written to SMB
  • Anomalous File / Internal / Additional Extension Appended to SMB File
  • Anomalous Connection / SMB Enumeration
  • Device / Network Scan – Low Anomaly Score
  • Anomalous Connection / Sustained MIME Type Conversion
  • Anomalous Connection / Suspicious Read Write Ratio
  • Unusual Activity / Sustained Anomalous SMB Activity
  • Device / Large Number of Model Breaches

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
Max Heinemeyer
Global Field CISO

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January 30, 2026

ClearFake: From Fake CAPTCHAs to Blockchain-Driven Payload Retrieval

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What is ClearFake?

As threat actors evolve their techniques to exploit victims and breach target networks, the ClearFake campaign has emerged as a significant illustration of this continued adaptation. ClearFake is a campaign observed using a malicious JavaScript framework deployed on compromised websites, impacting sectors such as e‑commerce, travel, and automotive. First identified in mid‑2023, ClearFake is frequently leveraged to socially engineer victims into installing fake web browser updates.

In ClearFake compromises, victims are steered toward compromised WordPress sites, often positioned by attackers through search engine optimization (SEO) poisoning. Once on the site, users are presented with a fake CAPTCHA. This counterfeit challenge is designed to appear legitimate while enabling the execution of malicious code. When a victim interacts with the CAPTCHA, a PowerShell command containing a download string is retrieved and executed.

Attackers commonly abuse the legitimate Microsoft HTML Application Host (MSHTA) in these operations. Recent campaigns have also incorporated Smart Chain endpoints, such as “bsc-dataseed.binance[.]org,” to obtain configuration code. The primary payload delivered through ClearFake is typically an information stealer, such as Lumma Stealer, enabling credential theft, data exfiltration, and persistent access [1].

Darktrace’s Coverage of ClearFake

Darktrace / ENDPOINT first detected activity likely associated with ClearFake on a single device on over the course of one day on November 18, 2025. The system observed the execution of “mshta.exe,” the legitimate Microsoft HTML Application Host utility. It also noted a repeated process command referencing “weiss.neighb0rrol1[.]ru”, indicating suspicious external activity. Subsequent analysis of this endpoint using open‑source intelligence (OSINT) indicated that it was a malicious, domain generation algorithm (DGA) endpoint [2].

The process line referencing weiss.neighb0rrol1[.]ru, as observed by Darktrace / ENDPOINT.
Figure 1: The process line referencing weiss.neighb0rrol1[.]ru, as observed by Darktrace / ENDPOINT.

This activity indicates that mshta.exe was used to contact a remote server, “weiss.neighb0rrol1[.]ru/rpxacc64mshta,” and execute the associated HTA file to initiate the next stage of the attack. OSINT sources have since heavily flagged this server as potentially malicious [3].

The first argument in this process uses the MSHTA utility to execute the HTA file hosted on the remote server. If successful, MSHTA would then run JavaScript or VBScript to launch PowerShell commands used to retrieve malicious payloads, a technique observed in previous ClearFake campaigns. Darktrace also detected unusual activity involving additional Microsoft executables, including “winlogon.exe,” “userinit.exe,” and “explorer.exe.” Although these binaries are legitimate components of the Windows operating system, threat actors can abuse their normal behavior within the Windows login sequence to gain control over user sessions, similar to the misuse of mshta.exe.

EtherHiding cover

Darktrace also identified additional ClearFake‑related activity, specifically a connection to bsc-testnet.drpc[.]org, a legitimate BNB Smart Chain endpoint. This activity was triggered by injected JavaScript on the compromised site www.allstarsuae[.]com, where the script initiated an eth_call POST request to the Smart Chain endpoint.

Example of a fake CAPTCHA on the compromised site www.allstarsuae[.]com.
Figure 2: Example of a fake CAPTCHA on the compromised site www.allstarsuae[.]com.

EtherHiding is a technique in which threat actors leverage blockchain technology, specifically smart contracts, as part of their malicious infrastructure. Because blockchain is anonymous, decentralized, and highly persistent, it provides threat actors with advantages in evading defensive measures and traditional tracking [4].

In this case, when a user visits a compromised WordPress site, injected base64‑encoded JavaScript retrieved an ABI string, which was then used to load and execute a contract hosted on the BNB Smart Chain.

JavaScript hosted on the compromised site www.allstaruae[.]com.
Figure 3: JavaScript hosted on the compromised site www.allstaruae[.]com.

Conducting malware analysis on this instance, the Base64 decoded into a JavaScript loader. A POST request to bsc-testnet.drpc[.]org was then used to retrieve a hex‑encoded ABI string that loads and executes the contract. The JavaScript also contained hex and Base64‑encoded functions that decoded into additional JavaScript, which attempted to retrieve a payload hosted on GitHub at “github[.]com/PrivateC0de/obf/main/payload.txt.” However, this payload was unavailable at the time of analysis.

Darktrace’s detection of the POST request to bsc-testnet.drpc[.]org.
Figure 4: Darktrace’s detection of the POST request to bsc-testnet.drpc[.]org.
Figure 5: Darktrace’s detection of the executable file and the malicious hostname.

Autonomous Response

As Darktrace’s Autonomous Response capability was enabled on this customer’s network, Darktrace was able to take swift mitigative action to contain the ClearFake‑related activity early, before it could lead to potential payload delivery. The affected device was blocked from making external connections to a number of suspicious endpoints, including 188.114.96[.]6, *.neighb0rrol1[.]ru, and neighb0rrol1[.]ru, ensuring that no further malicious connections could be made and no payloads could be retrieved.

Autonomous Response also acted to prevent the executable mshta.exe from initiating HTA file execution over HTTPS from this endpoint by blocking the attempted connections. Had these files executed successfully, the attack would likely have resulted in the retrieval of an information stealer, such as Lumma Stealer.

Autonomous Response’s intervention against the suspicious connectivity observed.
Figure 6: Autonomous Response’s intervention against the suspicious connectivity observed.

Conclusion

ClearFake continues to be observed across multiple sectors, but Darktrace remains well‑positioned to counter such threats. Because ClearFake’s end goal is often to deliver malware such as information stealers and malware loaders, early disruption is critical to preventing compromise. Users should remain aware of this activity and vigilant regarding fake CAPTCHA pop‑ups. They should also monitor unusual usage of MSHTA and outbound connections to domains that mimic formats such as “bsc-dataseed.binance[.]org” [1].

In this case, Darktrace was able to contain the attack before it could successfully escalate and execute. The attempted execution of HTA files was detected early, allowing Autonomous Response to intervene, stopping the activity from progressing. As soon as the device began communicating with weiss.neighb0rrol1[.]ru, an Autonomous Response inhibitor triggered and interrupted the connections.

As ClearFake continues to rise, users should stay alert to social engineering techniques, including ClickFix, that rely on deceptive security prompts.

Credit to Vivek Rajan (Senior Cyber Analyst) and Tara Gould (Malware Research Lead)

Edited by Ryan Traill (Analyst Content Lead)

Appendices

Darktrace Model Detections

Process / New Executable Launched

Endpoint / Anomalous Use of Scripting Process

Endpoint / New Suspicious Executable Launched

Endpoint / Process Connection::Unusual Connection from New Process

Autonomous Response Models

Antigena / Network::Significant Anomaly::Antigena Significant Anomaly from Client Block

List of Indicators of Compromise (IoCs)

  • weiss.neighb0rrol1[.]ru – URL - Malicious Domain
  • 188.114.96[.]6 – IP – Suspicious Domain
  • *.neighb0rrol1[.]ru – URL – Malicious Domain

MITRE Tactics

Initial Access, Drive-by Compromise, T1189

User Execution, Execution, T1204

Software Deployment Tools, Execution and Lateral Movement, T1072

Command and Scripting Interpreter, T1059

System Binary Proxy Execution: MSHTA, T1218.005

References

1.        https://www.kroll.com/en/publications/cyber/rapid-evolution-of-clearfake-delivery

2.        https://www.virustotal.com/gui/domain/weiss.neighb0rrol1.ru

3.        https://www.virustotal.com/gui/file/1f1aabe87e5e93a8fff769bf3614dd559c51c80fc045e11868f3843d9a004d1e/community

4.        https://www.packetlabs.net/posts/etherhiding-a-new-tactic-for-hiding-malware-on-the-blockchain/

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Vivek Rajan
Cyber Analyst

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January 30, 2026

The State of Cybersecurity in the Finance Sector: Six Trends to Watch

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The evolving cybersecurity threat landscape in finance

The financial sector, encompassing commercial banks, credit unions, financial services providers, and cryptocurrency platforms, faces an increasingly complex and aggressive cyber threat landscape. The financial sector’s reliance on digital infrastructure and its role in managing high-value transactions make it a prime target for both financially motivated and state-sponsored threat actors.

Darktrace’s latest threat research, The State of Cybersecurity in the Finance Sector, draws on a combination of Darktrace telemetry data from real-world customer environments, open-source intelligence, and direct interviews with financial-sector CISOs to provide perspective on how attacks are unfolding and how defenders in the sector need to adapt.  

Six cybersecurity trends in the finance sector for 2026

1. Credential-driven attacks are surging

Phishing continues to be a leading initial access vector for attacks targeting confidentiality. Financial institutions are frequently targeted with phishing emails designed to harvest login credentials. Techniques including Adversary-in-The-Middle (AiTM) to bypass Multi-factor Authentication (MFA) and QR code phishing (“quishing”) are surging and are capable of fooling even trained users. In the first half of 2025, Darktrace observed 2.4 million phishing emails within financial sector customer deployments, with almost 30% targeted towards VIP users.  

2. Data Loss Prevention is an increasing challenge

Compliance issues – particularly data loss prevention -- remain a persistent risk. In October 2025 alone, Darktrace observed over 214,000 emails across financial sector customers that contained unfamiliar attachments and were sent to suspected personal email addresses highlighting clear concerns around data loss prevention. Across the same set of customers within the same time frame, more than 351,000 emails containing unfamiliar attachments were sent to freemail addresses (e.g. gmail, yahoo, icloud), highlighting clear concerns around DLP.  

Confidentiality remains a primary concern for financial institutions as attackers increasingly target sensitive customer data, financial records, and internal communications.  

3. Ransomware is evolving toward data theft and extortion

Ransomware is no longer just about locking systems, it’s about stealing data first and encrypting second. Groups such as Cl0p and RansomHub now prioritize exploiting trusted file-transfer platforms to exfiltrate sensitive data before encryption, maximizing regulatory and reputational fallout for victims.  

Darktrace’s threat research identified routine scanning and malicious activity targeting internet-facing file-transfer systems used heavily by financial institutions. In one notable case involving Fortra GoAnywhere MFT, Darktrace detected malicious exploitation behavior six days before the CVE was publicly disclosed, demonstrating how attackers often operate ahead of patch cycles

This evolution underscores a critical reality: by the time a vulnerability is disclosed publicly, it may already be actively exploited.

4. Attackers are exploiting edge devices, often pre-disclosure.  

VPNs, firewalls, and remote access gateways have become high-value targets, and attackers are increasingly exploiting them before vulnerabilities are publicly disclosed. Darktrace observed pre-CVE exploitation activity affecting edge technologies including Citrix, Palo Alto, and Ivanti, enabling session hijacking, credential harvesting, and privileged lateral movement into core banking systems.  

Once compromised, these edge devices allow adversaries to blend into trusted network traffic, bypassing traditional perimeter defenses. CISOs interviewed for the report repeatedly described VPN infrastructure as a “concentrated focal point” for attackers, especially when patching and segmentation lag behind operational demands.

5. DPRK-linked activity is growing across crypto and fintech.  

State-sponsored activity, particularly from DPRK-linked groups affiliated with Lazarus, continues to intensify across cryptocurrency and fintech organizations. Darktrace identified coordinated campaigns leveraging malicious npm packages, previously undocumented BeaverTail and InvisibleFerret malware, and exploitation of React2Shell (CVE-2025-55182) for credential theft and persistent backdoor access.  

Targeting was observed across the United Kingdom, Spain, Portugal, Sweden, Chile, Nigeria, Kenya, and Qatar, highlighting the global scope of these operations.  

6. Cloud complexity and AI governance gaps are now systemic risks.  

Finally, CISOs consistently pointed to cloud complexity, insider risk from new hires, and ungoverned AI usage exposing sensitive data as systemic challenges. Leaders emphasized difficulty maintaining visibility across multi-cloud environments while managing sensitive data exposure through emerging AI tools.  

Rapid AI adoption without clear guardrails has introduced new confidentiality and compliance risks, turning governance into a board-level concern rather than a purely technical one.

Building cyber resilience in a shifting threat landscape

The financial sector remains a prime target for both financially motivated and state-sponsored adversaries. What this research makes clear is that yesterday’s security assumptions no longer hold. Identity attacks, pre-disclosure exploitation, and data-first ransomware require adaptive, behavior-based defenses that can detect threats as they emerge, often ahead of public disclosure.

As financial institutions continue to digitize, resilience will depend on visibility across identity, edge, cloud, and data, combined with AI-driven defense that learns at machine speed.  

Learn more about the threats facing the finance sector, and what your organization can do to keep up in The State of Cybersecurity in the Finance Sector report here.  

Acknowledgements:

The State of Cybersecurity in the Finance sector report was authored by Calum Hall, Hugh Turnbull, Parvatha Ananthakannan, Tiana Kelly, and Vivek Rajan, with contributions from Emma Foulger, Nicole Wong, Ryan Traill, Tara Gould, and the Darktrace Threat Research and Incident Management teams.

[related-resource]  

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About the author
Nathaniel Jones
VP, Security & AI Strategy, Field CISO
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