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November 2, 2022

How Darktrace Identifies Shadow IT

Find out how Darktrace identifies and manages shadow IT. Gain valuable insights into detecting unauthorized IT activities within your organization.
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
Dan Fein
VP, Product
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02
Nov 2022

Darktrace was recently called into a situation where a department had set up an online questionnaire, which had been included in a newsletter to customers. They’d used a free version of the software and it had not been authorised by IT. 

The questionnaire requested some sensitive data from the respondents, but as there was no third-party contractor agreement in place, there was no agreement on data usage, storage, protection or maintenance. Unfortunately, the software provider had a security vulnerability in their solution, and this resulted in a massive data breach of the questionnaire answers – a situation that could have been avoided, had the organization been using Darktrace PREVENT.

This type of unauthorized usage is a common instance of the growing problem of shadow IT. Unlike formal IT, which is routed through an IT department closely involved in approving, setting up, and maintaining it, shadow IT falls outside of that team’s control. It is made up of systems – including cloud and SaaS applications – which the IT department are either unaware exist, or are unable to remove without disrupting workflows.

Because it lacks proper involvement from IT, shadow IT’s impact on a company’s overall security risk can be ill-defined, not least because it is difficult for many organizations to know how much of it exists within their digital estates. Full visibility over the digital environment, and every asset it contains, is necessary before the problem can begin to be addressed.

The reality is: shadow IT happens

Shadow IT crops up for a number of reasons. This is often employees taking steps to save time: having your IT team acquire and set up new infrastructure and software is important for managing security risks, but they necessarily take time. For some employees, the time taken to go through these formal channels is enough to push them to use shadow IT systems, which are generally quicker and cheaper to set up and begin using. It’s easier than ever, for instance, to spin up cloud IT environments. The pressure of completing projects within strict budgetary limitations may also tempt employees down this cheaper, but more hazardous path.

There is also a problem of business-led IT, whereby business decisions involving the use of new systems are made without consulting IT departments. Organizations should always look to adopt a security-first approach, because when business interests lead the way, IT teams can struggle to keep up, leading to the emergence of new vulnerabilities. In cases where these business decisions are intentionally hidden from the IT team, Shadow IT becomes a serious concern.

Reducing the effects of Shadow IT

In the end, security teams, particularly those charged with securing large organizations, will never entirely prevent employees from occasionally turning to unauthorized systems. They can, however, reduce the impact that these systems have on the organization’s overall risk landscape.

One way to do this is to reexamine the organization’s workflows. Try to identify which formal processes are unnecessarily cumbersome, forcing employees to work around them, and figure out whether they can be improved. When properly managed, formal adoption of the Shadow IT systems employees are already using can be an effective solution.

Improving workflows in this way will begin to help to address the problem, but it will not be the first step an organization takes in the fight against Shadow IT: first it must discover that it has a problem that needs solving, and this cannot be done until its security team uncovers the sheer amount of shadow IT lurking within the organization. The first step, therefore, is to find a way of obtaining total visibility over every system in the digital environment. 

The Power of Prevention

For years Darktrace has illuminated the assets silently lurking within an organization, and now Darktrace / Attack Surface Management is finally giving security teams a clear and complete view over the external attack surface of their digital estates, including all of the shadow IT they didn’t previously know about. It does so by continuously monitoring assets and connections on the attack surface for risks and vulnerabilities. On average, this process reveals 30-50% more externally-facing assets than were previously known to the organization’s IT team and, importantly, analyzes the respective risk posed by each. 

This information is visualized for the security team in a way which makes it simple to determine the ownership of each system and asset, and helps teams to prioritize those vulnerabilities which require the most attention. 

This was crucial recently for an organization that had just been hacked through a shadow IT website created by the marketing department, without the knowledge of the security team. The company immediately brought on Darktrace / Attack Surface Management (ASM) to increase their cyber resilience, and the technology identified 12 urgent vulnerabilities due to shadow IT and misconfigurations which allowed the company to plug those holes before a repeat event occurred.

But having a holistic understanding of the risks of shadow IT requires looking beyond the external attack surface. To this end, Darktrace / Proactive Exposure Management identifies and evaluates all of the attack paths which exist in an organization, and reveals unknown devices which may sit along them. These devices may prove to be components in the middle of critical attack paths leading to precious data or vulnerable assets, but Darktrace minimizes this risk by identifying them and assessing the risk they pose to the environment.

At another organization, Darktrace recently identified a disaster recovery domain controller that was supposed to be an exact replication of the production domain controller. Being a standby for the main domain controller, this device was not regularly monitored by the IT team. However, Darktrace continuously monitors assets within a customer’s environment and identified that, even though they should in theory be the exact same, the back-up domain controller had different potential damage scores due to a Microsoft patch failing to install. No one in the IT team had identified this risk, with Darkrtace identifying the need for patching before to avoid the vulnerability being exploited – and critical data falling into the wrong hands. 

From there, it’s up to security teams how they wish to proceed. Some systems and assets may pose too great a risk and will need to be closed off, while others, particularly those which are already widely used within the organization and can be easily secured by the IT department, may be allowed to stay. What matters, is that the ‘shadow’ of shadow IT – the element of mystery which makes these systems such a hazard to security teams – has been lifted. With full visibility over every system and asset, and a clear understanding of which ones constitute network vulnerabilities, security teams no longer need to live in fear of their own organization’s digital environments.

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
Dan Fein
VP, Product

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April 2, 2026

How Chinese-Nexus Cyber Operations Have Evolved – And What It Means For Cyber Risk and Resilience 

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Cybersecurity has traditionally organized risk around incidents, breaches, campaigns, and threat groups. Those elements still matter—but if we fixate on individual incidents, we risk missing the shaping of the entire ecosystem. Nation‑state–aligned operators are increasingly using cyber operations to establish long-term strategic leverage, not just to execute isolated attacks or short‑term objectives.  

Our latest research, Crimson Echo, shifts the lens accordingly. Instead of dissecting campaigns, malware families, or actor labels as discrete events, the threat research team analyzed Chinese‑nexus activity as a continuum of behaviors over time. That broader view reveals how these operators position themselves within environments: quietly, patiently, and persistently—often preparing the ground long before any recognizable “incident” occurs.  

How Chinese-nexus cyber threats have changed over time

Chinese-nexus cyber activity has evolved in four phases over the past two decades. This ranges from early, high-volume operations in the 1990s and early 2000s to more structured, strategically-aligned activity in the 2010s, and now toward highly adaptive, identity-centric intrusions.  

Today’s phase is defined by scale, operational restraint, and persistence. Attackers are establishing access, evaluating its strategic value, and maintaining it over time. This reflects a broader shift: cyber operations are increasingly integrated into long-term economic and geopolitical strategies. Access to digital environments, specifically those tied to critical national infrastructure, supply chains, and advanced technology, has become a form of strategic leverage for the long-term.  

How Darktrace analysts took a behavioral approach to a complex problem

One of the challenges in analyzing nation-state cyber activity is attribution. Traditional approaches often rely on tracking specific threat groups, malware families, or infrastructure. But these change constantly, and in the case of Chinese-nexus operations, they often overlap.

Crimson Echo is the result of a retrospective analysis of three years of anomalous activity observed across the Darktrace fleet between July 2022 and September 2025. Using behavioral detection, threat hunting, open-source intelligence, and a structured attribution framework (the Darktrace Cybersecurity Attribution Framework), the team identified dozens of medium- to high-confidence cases and analyzed them for recurring operational patterns.  

This long-horizon, behavior-centric approach allows Darktrace to identify consistent patterns in how intrusions unfold, reinforcing that behavioral patterns that matter.  

What the data shows

Several clear trends emerged from the analysis:

  • Targeting is concentrated in strategically important sectors. Across the dataset, 88% of intrusions occurred in organizations classified as critical infrastructure, including transportation, critical manufacturing, telecommunications, government, healthcare, and Information Technology (IT) services.  
  • Strategically important Western economies are a primary focus. The US alone accounted for 22.5% of observed cases, and when combined with major European economies including Germany, Italy, Spain and the UK, over half of all intrusions (55%) were concentrated in these regions.  
  • Nearly 63% of intrusions of intrusions began with the exploitation of internet-facing systems, reinforcing the continued risk posed by externally exposed infrastructure.  

Two models of cyber operations

Across the dataset, Chinese-nexus activity followed two operational models.  

The first is best described as “smash and grab.” These are short-horizon intrusions optimized for speed. Attackers move quickly – often exfiltrating data within 48 hours – and prioritize scale over stealth. The median duration of these compromises is around 10 days. It’s clear they are willing to risk detection for short-term gain.  

The second is “low and slow.” These operations were less prevalent in the dataset, but potentially more consequential. Here, attackers prioritize persistence, establishing durable access through identity systems and legitimate administrative tools, so they can maintain access undetected for months or even years. In one notable case, the actor had fully compromised the environment and established persistence, only to resurface in the environment more than 600 days after. The operational pause underscores both the depth of the intrusion and the actor’s long‑term strategic intent. This suggests that cyber access is a strategic asset to preserve and leverage over time, and we observed these attacks most often inin sectors of the high strategic importance.  

It’s important to note that the same operational ecosystem can employ both models concurrently, selecting the appropriate model based on target value, urgency, intended access. The observation of a “smash and grab” model should not be solely interpreted as a failure of tradecraft, but instead an operational choice likely aligned with objectives. Where “low and slow” operations are optimized for patience, smash and grab is optimized for speed; both seemingly are deliberate operational choices, not necessarily indicators of capability.  

Rethinking cyber risk

For many organizations, cyber risk is still framed as a series of discrete events. Something happens, it is detected and contained, and the organization moves on. But persistent access, particularly in deeply interconnected environments that span cloud, identity-based SaaS and agentic systems, and complex supply chain networks, creates a major ongoing exposure risk. Even in the absence of disruption or data theft, that access can provide insight into operations, dependencies, and strategic decision-making. Cyber risk increasingly resembles long-term competitive intelligence.  

This has impact beyond the Security Operations Center. Organizations need to shift how they think about governance, visibility, and resilience, and treat cyber exposure as a structural business risk instead of an incident response challenge.  

What comes next

The goal of this research is to provide a clearer understanding of how these operations work, so defenders can recognize them earlier and respond more effectively. That includes shifting from tracking indicators to understanding behaviors, treating identity providers as critical infrastructure risks, expanding supplier oversight, investing in rapid containment capabilities, and more.  

Learn more about the findings of Darktrace’s latest research, Crimson Echo: Understanding Chinese-nexus Cyber Operations Through Behavioral Analysis, by downloading the full report and summaries for business leaders, CISOs, and SOC analysts here.  

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

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April 1, 2026

AI-powered security for a rapidly growing grocery enterprise

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Protecting a complex, fast-growing retail organization

For this multi-banner grocery holding organization, cybersecurity is considered an essential business enabler, protecting operations, growth, and customer trust. The organization’s lean IT team manages a highly distributed environment spanning corporate offices, 100+ stores, distribution centers and  thousands of endpoints, users, and third-party connections.

Mergers and acquisitions fueled rapid growth, but they also introduced escalating complexity that constrained visibility into users, endpoints, and security risks inherited across acquired environments.

Closing critical visibility gaps with limited resources

Enterprise-wide visibility is a top priority for the organization, says the  Vice President of Information Technology. “We needed insights beyond the perimeter into how users and devices were behaving across the organization.”

A security breach that occurred before the current IT leadership joined the company reinforced the urgency and elevated cybersecurity to an executive-level priority with a focus on protecting customer trust. The goal was to build a multi-layered security model that could deliver autonomous, enterprise-wide protection without adding headcount.

Managing cyber risk in M&A

Mergers and acquisitions are central to the grocery holding company’s growth strategy. But each transaction introduces new cyber risk, including inherited network architectures, inconsistent tooling, excessive privileges, and remnants of prior security incidents that were never fully remediated.

“Our M&A targets range from small chains with a single IT person and limited cyber tools to large chains with more developed IT teams, toolsets and instrumentation,” explains the VP of IT. “We needed a fast, repeatable, and reliable way to assess cyber risk before transactions closed.”

AI-driven security built for scale, speed, and resilience

Rather than layering additional point tools onto an already complex environment, the retailer adopted the Darktrace ActiveAI Security Platform™ in 2020 as part of a broader modernization effort to improve resilience, close visibility gaps, and establish a security foundation that could scale with growth.

“Darktrace’s AI-driven approach provided the ideal solution to these challenges,” shares the VP of IT. “It has empowered our organization to maintain a robust security strategy, ensuring the protection of our network and the smooth operation of our business.”

Enterprise-wide visibility into traffic  

By monitoring both north-south and east-west traffic and applying Self-Learning AI, Darktrace develops a dynamic understanding of how users and devices normally behave across locations, roles, and systems.

“Modeling normal behavior across the environment enables us to quickly spot behavior that doesn’t fit. Even subtle changes that could signal a threat but appear legitimate at first glance,” explains the VP of IT.

Real-time threat containment, 24/7

Adopting autonomous response has created operational breathing room for the security team, says the company’s Cybersecurity  Engineer.

“Early on, we enabled full Darktrace autonomous mode and we continue to do so today,” shares the IT Security Architect. “Allowing the technology to act first gives us the time we need to investigate incidents during business hours without putting the business at risk.”

Unified, actionable view of security ecosystem

The grocery retailer integrated Darktrace with its existing security ecosystem of firewalls, vulnerability management tools, and endpoint detection and response, and the VP of IT described the adoption process as “exceptionally smooth.”

The team can correlate enterprise-wide security data for a unified and actionable picture of all activity and risk. Using this “single pane of glass” approach, the retailer trains Level 1 and Level 2 operations staff to assist with investigations and user follow-ups, effectively extending the reach of the security function without expanding headcount.

From reactive defense to security at scale

With Darktrace delivering continuous visibility, autonomous containment, and integrated security workflows, the organization has strengthened its cybersecurity posture while improving operational efficiency. The result is a security model that not only reduces risk, but also supports growth, resilience, and informed decision-making at the business level.

Faster detection, faster resolution

With autonomous detection and response, the retailer can immediately contain risk while analysts investigate and validate activity. With this approach, the company can maintain continuous protection even outside business hours and reduce the chance of lateral spread across systems or locations.

Enterprise-grade protection with a lean team

From cloud environments to clients to SaaS collaboration tools, Darktrace provides holistic autonomous AI defense, processing petabytes of the organization’s network traffic and investigating millions of individual events that could be indicative of a wider incident.

Today, Darktrace autonomously conducts the majority of all investigations on behalf of the IT team, escalating only a tiny fraction for analyst review. The impact has been profound, freeing analysts from endless alerts and hours of triage so they can focus on more valuable, proactive, and gratifying work.

“From an operational perspective, Darktrace gives us time back,” says the Cybersecurity Engineer. More importantly, says the VP of IT, “it gives us peace of mind that we’re protected even if we’re not actively monitoring every alert.”

A strategic input for M&A decision-making

One of the most strategic outcomes has been the role of cybersecurity on M&A. 90 days prior to closing a transaction, the security team uses Darktrace alongside other tools to perform a cyber risk assessment of the potential acquisition. “Our approach with Darktrace has consistently identified gaps and exposed risks,” says the VP of IT, including:

  • Remnants of previous incidents that were never fully remediated
  • Network configurations with direct internet exposure
  • Excessive administrative privileges in Active Directory or on critical hosts

While security findings may not alter deal timelines, the VP of IT says they can have enormous business implications. “With early visibility into these risks, we can reduce exposure to inherited cyber threats, strengthen our position during negotiations, and establish clear remediation requirements.”

A security strategy built to evolve with the business

As the holding group expands its cloud footprint, it will extend Darktrace protections into Azure, applying the same AI-driven visibility and autonomous response to cloud workloads. The VP of IT says Darktrace's evolving capabilities will be instrumental in addressing the organization’s future cybersecurity needs and ability to adapt to the dynamic nature of cloud security.

“With Darktrace’s AI-driven approach, we have moved beyond reactive defense, establishing a resilient security foundation for confident expansion and modernization.”

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