Blog
/
Network
/
May 10, 2024

Exploitation of ConnectWise ScreenConnect Vulnerabilities

Uncover the tactics used to exploit ConnectWise vulnerabilities and strategies to protect your systems.
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
Justin Torres
Cyber Analyst
Default blog imageDefault blog imageDefault blog imageDefault blog imageDefault blog imageDefault blog image
10
May 2024

Introduction

Across an ever changing cyber landscape, it is common place for threat actors to actively identify and exploit newly discovered vulnerabilities within commonly utilized services and applications. While attackers are likely to prioritize developing exploits for the more severe and global Common Vulnerabilities and Exposures (CVEs), they typically have the most success exploiting known vulnerabilities within the first couple years of disclosure to the public.

Addressing these vulnerabilities in a timely manner reduces the effectiveness of known vulnerabilities, decreasing the pace of malicious actor operations and forcing pursuit of more costly and time-consuming methods, such as zero-day related exploits or attacking software supply chain operations. While actors also develop tools to exploit other vulnerabilities, developing exploits for critical and publicly known vulnerabilities gives actors impactful tools at a low cost they are able to use for quite some time.

Between January and March 2024, the Darktrace Threat Research team investigated one such example that involved indicators of compromise (IoCs) suggesting the exploitation of vulnerabilities in ConnectWise’s remote monitoring and management (RMM) software ScreenConnect.

What are the ConnectWise ScreenConnect vulnerabilities?

CVE-2024-1708 is an authentication bypass vulnerability in ScreenConnect 23.9.7 (and all earlier versions) that, if exploited, would enable an attacker to execute remote code or directly impact confidential information or critical systems. This exploit would pave the way for a second ScreenConnect vulnerability, CVE-2024-1709, which allows attackers to directly access confidential information or critical systems [1].

ConnectWise released a patch and automatically updated cloud versions of ScreenConnect 23.9.9, while urging security teams to update on-premise versions immediately [3].

If exploited in conjunction, these vulnerabilities could allow a malicious actor to create new administrative accounts on publicly exposed instances by evading existing security measures. This, in turn, could enable attackers to assume an administrative role and disable security tools, create backdoors, and disrupt RMM processes. Access to an organization’s environment in this manner poses serious risk, potentially leading to significant consequences such as deploying ransomware, as seen in various incidents involving the exploitation of ScreenConnect [2]

Darktrace Coverage of ConnectWise Exploitation

Darktrace’s anomaly-based detection was able to identify evidence of exploitation related to CVE-2024-1708 and CVE-2024-1709 across two distinct timelines; these detections included connectivity with endpoints that were later confirmed to be malicious by multiple open-source intelligence (OSINT) vendors. The activity observed by Darktrace suggests that threat actors were actively exploiting these vulnerabilities across multiple customer environments.

In the cases observed across the Darktrace fleet, Darktrace DETECT™ and Darktrace RESPOND™ were able to work in tandem to pre-emptively identify and contain network compromises from the onset. While Darktrace RESPOND was enabled in most customer environments affected by the ScreenConnect vulnerabilities, in the majority of cases it was configured in Human Confirmation mode. Whilst in Human Confirmation mode, RESPOND will provide recommended actions to mitigate ongoing attacks, but these actions require manual approval from human security teams.

When enabled in autonomous response mode, Darktrace RESPOND will take action automatically, shutting down suspicious activity as soon as it is detected without the need for human intervention. This is the ideal end state for RESPOND as actions can be taken at machine speed, without any delays waiting for user approval.

Looking within the patterns of activity observed by Darktrace , the typical  attack timeline included:

Darktrace observed devices on affected customer networks performing activity indicative of ConnectWise ScreenConnect usage, for example connections over 80 and 8041, connections to screenconnect[.]com, and the use of the user agent “LabTech Agent”. OSINT research suggests that this user agent is an older name for ConnectWise Automate [5] which also includes ScreenConnect as standard [6].

Darktrace DETECT model alert highlighting the use of a remote management tool, namely “screenconnect[.]com”.
Figure 1: Darktrace DETECT model alert highlighting the use of a remote management tool, namely “screenconnect[.]com”.

This activity was typically followed by anomalous connections to the external IP address 108.61.210[.]72 using URIs of the form “/MyUserName_DEVICEHOSTNAME”, as well as additional connections to another external, IP 185.62.58[.]132. Both of these external locations have since been reported as potentially malicious [14], with 185.62.58[.]132 in particular linked to ScreenConnect post-exploitation activity [2].

Figure 2: Darktrace DETECT model alert highlighting the unusual connection to 185.62.58[.]132 via port 8041.
Figure 2: Darktrace DETECT model alert highlighting the unusual connection to 185.62.58[.]132 via port 8041.
Figure 3: Darktrace DETECT model alert highlighting connections to 108.61.210[.]72 using a new user agent and the “/MyUserName_DEVICEHOSTNAME” URI.
Figure 3: Darktrace DETECT model alert highlighting connections to 108.61.210[.]72 using a new user agent and the “/MyUserName_DEVICEHOSTNAME” URI.

Same Exploit, Different Tactics?  

While the majority of instances of ConnectWise ScreenConnect exploitation observed by Darktrace followed the above pattern of activity, Darktrace was able to identify some deviations from this.

In one customer environment, Darktrace’s detection of post-exploitation activity began with the same indicators of ScreenConnect usage, including connections to screenconnect[.]com via port 8041, followed by connections to unusual domains flagged as malicious by OSINT, in this case 116.0.56[.]101 [16] [17]. However, on this deployment Darktrace also observed threat actors downloading a suspicious AnyDesk installer from the endpoint with the URI “hxxp[:]//116.0.56[.]101[:]9191/images/Distribution.exe”.

Figure 4: Darktrace DETECT model alert highlighting the download of an unusual executable file from 116.0.56[.]101.
Figure 4: Darktrace DETECT model alert highlighting the download of an unusual executable file from 116.0.56[.]101.

Further investigation by Darktrace’s Threat Research team revealed that this endpoint was associated with threat actors exploiting CVE-2024-1708 and CVE-2024-1709 [1]. Darktrace was additionally able to identify that, despite the customer being based in the United Kingdom, the file downloaded came from Pakistan. Darktrace recognized that this represented a deviation from the device’s expected pattern of activity and promptly alerted for it, bringing it to the attention of the customer.

Figure 5: External Sites Summary within the Darktrace UI pinpointing the geographic locations of external endpoints, in this case highlighting a file download from Pakistan.
Figure 5: External Sites Summary within the Darktrace UI pinpointing the geographic locations of external endpoints, in this case highlighting a file download from Pakistan.

Darktrace’s Autonomous Response

In this instance, the customer had Darktrace enabled in autonomous response mode and the post-exploitation activity was swiftly contained, preventing the attack from escalating.

As soon as the suspicious AnyDesk download was detected, Darktrace RESPOND applied targeted measures to prevent additional malicious activity. This included blocking connections to 116.0.56[.]101 and “*.56.101”, along with blocking all outgoing traffic from the device. Furthermore, RESPOND enforced a “pattern of life” on the device, restricting its activity to its learned behavior, allowing connections that are considered normal, but blocking any unusual deviations.

Figure 6: Darktrace RESPOND enforcing a “pattern of life” on the offending device after detecting the suspicious AnyDesk download.
Figure 6: Darktrace RESPOND enforcing a “pattern of life” on the offending device after detecting the suspicious AnyDesk download.
Figure 7: Darktrace RESPOND blocking connections to the suspicious endpoint 116.0.56[.]101 and “*.56.101” following the download of the suspicious AnyDesk installer.
Figure 7: Darktrace RESPOND blocking connections to the suspicious endpoint 116.0.56[.]101 and “*.56.101” following the download of the suspicious AnyDesk installer.

The customer was later able to use RESPOND to manually quarantine the offending device, ensuring that all incoming and outgoing traffic to or from the device was prohibited, thus preventing any further malicious communication or lateral movement attempts.

Figure 8: The actions applied by Darktrace RESPOND in response to the post-exploitation activity related to the ScreenConnect vulnerabilities, including the manually applied “Quarantine device” action.

Conclusion

In the observed cases of the ConnectWise ScreenConnect vulnerabilities being exploited across the Darktrace fleet, Darktrace was able to pre-emptively identify and contain network compromises from the onset, offering vital protection against disruptive cyber-attacks.

While much of the post-exploitation activity observed by Darktrace remained the same across different customer environments, important deviations were also identified suggesting that threat actors may be adapting their tactics, techniques and procedures (TTPs) from campaign to campaign.

While new vulnerabilities will inevitably surface and threat actors will continually look for novel ways to evolve their methods, Darktrace’s Self-Learning AI and behavioral analysis offers organizations full visibility over new or unknown threats. Rather than relying on existing threat intelligence or static lists of “known bads”, Darktrace is able to detect emerging activity based on anomaly and respond to it without latency, safeguarding customer environments whilst causing minimal disruption to business operations.

Credit: Emma Foulger, Principal Cyber Analyst for their contribution to this blog.

Appendices

Darktrace Model Coverage

DETECT Models

Compromise / Agent Beacon (Medium Period)

Compromise / Agent Beacon (Long Period)

Anomalous File / EXE from Rare External Location

Device / New PowerShell User Agent

Anomalous Connection / Powershell to Rare External

Anomalous Connection / New User Agent to IP Without Hostname

User / New Admin Credentials on Client

Device / New User Agent

Anomalous Connection / Multiple HTTP POSTs to Rare Hostname

Anomalous Server Activity / Anomalous External Activity from Critical Network Device

Compromise / Suspicious Request Data

Compliance / Remote Management Tool On Server

Anomalous File / Anomalous Octet Stream (No User Agent)

RESPOND Models

Antigena / Network::External Threat::Antigena Suspicious File Block

Antigena / Network::External Threat::Antigena File then New Outbound Block

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

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

Antigena / Network::Significant Anomaly::Antigena Controlled and Model Breach

Antigena / Network::Insider Threat::Antigena Unusual Privileged User Activities Block

Antigena / Network / External Threat / Antigena Suspicious File Pattern of Life Block

Antigena / Network / Insider Threat / Antigena Unusual Privileged User Activities Pattern of Life Block

List of IoCs

IoC - Type - Description + Confidence

185.62.58[.]132 – IP- IP linked with threat actors exploiting CVE-2024-1708 and CVE-2024-1709

108.61.210[.]72- IP - IP linked with threat actors exploiting CVE-2024-1708 and CVE-2024-1709

116.0.56[.]101    - IP - IP linked with threat actors exploiting CVE-2024-1708 and CVE-2024-1709

/MyUserName_ DEVICEHOSTNAME – URI - URI linked with threat actors exploiting CVE-2024-1708 and CVE-2024-1709

/images/Distribution.exe – URI - URI linked with threat actors exploiting CVE-2024-1708 and CVE-2024-1709

24780657328783ef50ae0964b23288e68841a421 - SHA1 Filehash - Filehash linked with threat actors exploiting CVE-2024-1708 and CVE-2024-1709

a21768190f3b9feae33aaef660cb7a83 - MD5 Filehash - Filehash linked with threat actors exploiting CVE-2024-1708 and CVE-2024-1709

MITRE ATT&CK Mapping

Technique – Tactic – ID - Sub-technique of

Web Protocols - COMMAND AND CONTROL - T1071.001 - T1071

Web Services      - RESOURCE DEVELOPMENT - T1583.006 - T1583

Drive-by Compromise - INITIAL ACCESS - T1189 – NA

Ingress Tool Transfer   - COMMAND AND CONTROL - T1105 - NA

Malware - RESOURCE DEVELOPMENT - T1588.001- T1588

Exploitation of Remote Services - LATERAL MOVEMENT - T1210 – NA

PowerShell – EXECUTION - T1059.001 - T1059

Pass the Hash      - DEFENSE EVASION, LATERAL MOVEMENT     - T1550.002 - T1550

Valid Accounts - DEFENSE EVASION, PERSISTENCE, PRIVILEGE ESCALATION, INITIAL ACCESS - T1078 – NA

Man in the Browser – COLLECTION - T1185     - NA

Exploit Public-Facing Application - INITIAL ACCESS - T1190         - NA

Exfiltration Over C2 Channel – EXFILTRATION - T1041 – NA

IP Addresses – RECONNAISSANCE - T1590.005 - T1590

Remote Access Software - COMMAND AND CONTROL - T1219 – NA

Lateral Tool Transfer - LATERAL MOVEMENT - T1570 – NA

Application Layer Protocol - COMMAND AND CONTROL - T1071 – NA

References:

[1] https://unit42.paloaltonetworks.com/connectwise-threat-brief-cve-2024-1708-cve-2024-1709/  

[2] https://www.huntress.com/blog/slashandgrab-screen-connect-post-exploitation-in-the-wild-cve-2024-1709-cve-2024-1708    

[3] https://www.huntress.com/blog/a-catastrophe-for-control-understanding-the-screenconnect-authentication-bypass

[4] https://www.speedguide.net/port.php?port=8041  

[5] https://www.connectwise.com/company/announcements/labtech-now-connectwise-automate

[6] https://www.connectwise.com/solutions/software-for-internal-it/automate

[7] https://www.securityweek.com/slashandgrab-screenconnect-vulnerability-widely-exploited-for-malware-delivery/

[8] https://arcticwolf.com/resources/blog/cve-2024-1709-cve-2024-1708-follow-up-active-exploitation-and-pocs-observed-for-critical-screenconnect-vulnerabilities/https://success.trendmicro.com/dcx/s/solution/000296805?language=en_US&sfdcIFrameOrigin=null

[9] https://www.connectwise.com/company/trust/security-bulletins/connectwise-screenconnect-23.9.8

[10] https://socradar.io/critical-vulnerabilities-in-connectwise-screenconnect-postgresql-jdbc-and-vmware-eap-cve-2024-1597-cve-2024-22245/

[11] https://www.trendmicro.com/en_us/research/24/b/threat-actor-groups-including-black-basta-are-exploiting-recent-.html

[12] https://otx.alienvault.com/indicator/ip/185.62.58.132

[13] https://www.virustotal.com/gui/ip-address/185.62.58.132/community

[14] https://www.virustotal.com/gui/ip-address/108.61.210.72/community

[15] https://otx.alienvault.com/indicator/ip/108.61.210.72

[16] https://www.virustotal.com/gui/ip-address/116.0.56[.]101/community

[17] https://otx.alienvault.com/indicator/ip/116.0.56[.]101

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
Justin Torres
Cyber Analyst

More in this series

No items found.

Blog

/

Network

/

November 26, 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/

Continue reading
About the author
Tyler Rhea
Senior Cyber Analyst

Blog

/

Compliance

/

November 26, 2025

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

Default blog imageDefault blog image

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.

[related-resource]

Continue reading
About the author
The Darktrace Community
Your data. Our AI.
Elevate your network security with Darktrace AI