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June 23, 2023

How Darktrace Quickly Foiled An Information Stealer

Discover how Darktrace thwarted the CryptBot malware in just 2 seconds. Learn about this fast-moving threat and the defense strategies employed.
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
Alexandra Sentenac
Cyber Analyst
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23
Jun 2023

The recent trend of threat actors using information stealer malware, designed to gather and exfiltrate confidential data, shows no sign of slowing. With new or updated info-stealer strains appearing in the wild on a regular basis, it came as no surprise to see a surge in yet another prolific variant in late 2022, CryptBot.

What is CryptBot?

CryptBot is a Windows-based trojan malware that was first discovered in the wild in December 2019. It belongs to the prolific category of information stealers whose primary objective, as the name suggests, is to gather information from infected devices and send it to the threat actor.

ZeuS was reportedly the first info-stealer to be discovered, back in 2006. After its code was leaked, many other variants came to light and have been gaining popularity amongst cyber criminals [1] [2] [3]. Indeed, Inside the SOC has discussed multiple infections across its customer base associated with several types of stealers in the past months [4] [5] [6] [7]. 

The Darktrace Threat Research team investigated CryptBot infections on the digital environments of more than 40 different Darktrace customers between October 2022 and January 2023. Darktrace DETECT™ and its anomaly-based approach to threat detection allowed it to successfully identify the unusual activity surrounding these info-stealer infections on customer networks. Meanwhile, Darktrace RESPOND™, when enabled in autonomous response mode, was able to quickly intervene and prevent the exfiltration of sensitive company data.

Why is info-stealer malware popular?

It comes as no surprise that info-stealers have “become one of the most discussed malware types on the cybercriminal underground in 2022”, according to Accenture’s Cyber Threat Intelligence team [10]. This is likely in part due to the fact that:

More sensitive data on devices

Due to the digitization of many aspects of our lives, such as banking and social interactions, a trend accelerated by the COVID-19 pandemic.

Cost effective

Info-stealers provide a great return on investment (ROI) for threat actors looking to exfiltrate data without having to do the traditional internal reconnaissance and data transfer associated with data theft. Info-stealers are usually cheap to purchase and are available through Malware-as-a-Service (MaaS) offerings, allowing less technical and resourceful threat actors in on the stealing action. This makes them a prevalent threat in the malware landscape. 

How does CryptBot work?

The techniques employed by info-stealers to gather and exfiltrate data as well as the type of data targeted vary from malware to malware, but the data targeted typically includes login credentials for a variety of applications, financial information, cookies and global information about the infected computer [8]. Given its variety and sensitivity, threat actors can leverage the stolen data in several ways to make a profit. In the case of CryptBot, the data obtained is sold on forums or underground data marketplaces and can be later employed in higher profile attacks [9]. For example, stolen login information has previously been leveraged in credential-based attacks, which can successfully bypass authentication-based security measures, including multi-factor authentication (MFA). 

CryptBot functionalities

Like many information stealers, CryptBot is designed to steal a variety of sensitive personal and financial information such as browser credentials, cookies and history information and social media accounts login information, as well as cryptocurrency wallets and stored credit card information [11]. General information (e.g., OS, installed applications) about the infected computer is also retrieved. Browsers targeted by CryptBot include Chrome, Firefox, and Edge. In early 2022, CryptBot’s code was revamped in order to streamline its data extraction capabilities and improve its overall efficiency, an update that coincided with a rise in the number of infections [11] [12].

Some of CryptBot's functionalities were removed and its exfiltration process was streamlined, which resulted in a leaner payload, around half its original size and a quicker infection process [11]. Some of the features removed included sandbox detection and evasion functionalities, the collection of desktop text files and screen captures, which were deemed unnecessary. At the same time, the code was improved in order to include new Chrome versions released after CryptBot’s first appearance in 2019. Finally, its exfiltration process was simplified: prior to its 2022 update, the malware saved stolen data in two separate folders before sending it to two separate command and control (C2) domains. Post update, the data is only saved in one location and sent to one C2 domain, which is hardcoded in the C2 transmission function of the code. This makes the infection process much more streamlined, taking only a few minutes from start to finish. 

Aside from the update to its malware code, CryptBot regularly updates and refreshes its C2 domains and dropper websites, making it a highly fluctuating malware with constantly new indicators of compromise and distribution sites. 

Even though CryptBot is less known than other info-stealers, it was reportedly infecting thousands of devices daily in the first months of 2020 [13] and its continued prevalence resulted in Google taking legal action against its distribution infrastructure at the end of April 2023 [14].  

How is CryptBot obtained?

CryptBot is primarily distributed through malicious websites offering free and illegally modified software (i.e., cracked software) for common commercial programs (e.g., Microsoft Windows and Office, Adobe Photoshop, Google Chrome, Nitro PDF Pro) and video games. From these ‘malvertising’ pages, the user is redirected through multiple sites to the actual payload dropper page [15]. This distribution method has seen a gain in popularity amongst info-stealers in recent months and is also used by other malware families such as Raccoon Stealer and Vidar [16] [17].

A same network of cracked software websites can be used to download different malware strains, which can result in multiple simultaneous infections. Additionally, these networks often use search engine optimization (SEO) in order to make adverts for their malware distributing sites appear at the top of the Google search results page, thus increasing the chances of the malicious payloads being downloaded.

Furthermore, CryptBot leverages Pay-Per-Install (PPI) services such as 360Installer and PrivateLoader, a downloader malware family used to deliver payloads of multiple malware families operated by different threat actors [18] [19] [20]. The use of this distribution method for CryptBot payloads appears to have stemmed from its 2022 update. According to Google, 161 active domains were associated with 360Installer, of which 90 were associated with malware delivery activities and 29 with the delivery of CryptBot malware specifically. Google further identified hundreds of domains used by CryptBot as C2 sites, all of which appear to be hosted on the .top top-level domain [21].

This simple yet effective distribution tactic, combined with the MaaS model and the lucrative prospects of selling the stolen data resulted in numerous infections. Indeed, CryptBot was estimated to have infected over 670,000 computers in 2022 [14]. Even though the distribution method chosen means that most of the infected devices are likely to be personal computers, bring your own device (BYOD) policies and users’ tendency to reuse passwords means that corporate environments are also at risk. 

CryptBot Attack Overview

In some cases observed by Darktrace, after connecting to malvertising websites, devices were seen making encrypted SSL connections to file hosting services such as MediaFire or Mega, while in others devices were observed connecting to an endpoint associated with a content delivery network. This is likely the location from where the malware payload was downloaded alongside cracked software, which is executed by the unsuspecting user. As the user expects to run an executable file to install their desired software, the malware installation often happens without the user noticing.

Some of the malvertising sites observed by Darktrace on customer deployments were crackful[.]com, modcrack[.]net, windows-7-activator[.]com and office-activator[.]com. However, in many cases detected by Darktrace, CryptBot was propagated via websites offering trojanized KMSPico software (e.g., official-kmspico[.]com, kmspicoofficial[.]com). KMSPico is a popular Microsoft Windows and Office product activator that emulates a Windows Key Management Services (KMS) server to activate licenses fraudulently. 

Once it has been downloaded and executed, CryptBot will search the system for confidential information and create a folder with a seemingly randomly generated name, matching the regex [a-zA-Z]{10}, to store the gathered sensitive data, ready for exfiltration. 

Figure 1: Packet capture (PCAP) of an HTTP POST request showing the file with the stolen data being sent over the connection.
Figure 1: Packet capture (PCAP) of an HTTP POST request showing the file with the stolen data being sent over the connection.

This data is then sent to the C2 domain via HTTP POST requests on port 80 to the URI /gate.php. As previously stated, CryptBot C2 infrastructure is changed frequently and many of the domains seen by Darktrace had been registered within the previous 30 days. The domain names detected appeared to have been generated by an algorithm, following the regex patterns [a-z]{6}[0-9]{2,3}.top or [a-z]{6}[0-9]{2,3}.cfd. In several cases, the C2 domain had not been flagged as malicious by other security vendors or had just one detection. This is likely because of the frequent changes in the C2 infrastructure operated by the threat actors behind CryptBot, with new malicious domains being created periodically to avoid detection. This makes signature-based security solutions much less efficient to detect and block connections to malicious domains. Additionally, the fact that the stolen data is sent over regular HTTP POST requests, which are used daily as part of a multitude of legitimate processes such as file uploads or web form submissions, allows the exfiltration connections to blend in with normal and legitimate traffic making it difficult to isolate and detect as malicious activity. 

In this context, anomaly-based security detections such as Darktrace DETECT are the best way to pick out these anomalous connections amidst legitimate Internet traffic. In the case of CryptBot, two DETECT models were seen consistently breaching for CryptBot-related activity: ‘Device / Suspicious Domain’, breaching for connections to 100% rare C2 .top domains, and ‘Anomalous Connection / POST to PHP on New External Host’, breaching on the data exfiltration HTTP POST request. 

In deployments where Darktrace RESPOND was deployed, a RESPOND model breached within two seconds of the first HTTP POST request. If enabled in autonomous mode, RESPOND would block the data exfiltration connections, thus preventing the data safe from being sold in underground forums to other threat actors. In one of the cases investigated by Darktrace’s Threat Research team, DETECT was able to successfully identify and alert the customer about CryptBot-related malicious activity on a device that Darktrace had only begun to monitor one day before, showcasing how fast Darktrace’s Self-Learning AI learns every nuance of customer networks and the devices within it.

In most cases investigated by Darktrace, fewer than 5 minutes elapsed between the first connection to the endpoint offering free cracked software and the data being exfiltrated to the C2 domain. For example, in one of the attack chains observed in a university’s network, a device was seen connecting to the 100% rare endpoint official-kmspico[.]com at 16:53:47 (UTC).

Device Event Log showing SSL connections to the official-kmspico[.]com malvertising website.
Figure 2: Device Event Log showing SSL connections to the official-kmspico[.]com malvertising website.

One minute later, at 16:54:19 (UTC), the same device was seen connecting to two mega[.]co[.]nz subdomains and downloading around 13 MB of data from them. As mentioned previously, these connections likely represent the CryptBot payload and cracked software download.

Device Event Log showing SSL connections to mega[.]com endpoints following the connection to the malvertising site.
Figure 3: Device Event Log showing SSL connections to mega[.]com endpoints following the connection to the malvertising site.

At 16:56:01 (UTC), Darktrace detected the device making a first HTTP POST request to the 100% rare endpoint, avomyj24[.]top, which has been associated with CryptBot’s C2 infrastructure [22]. This initial HTTP POST connection likely represents the transfer of confidential data to the attacker’s infrastructure.

Device Event Log showing HTTP connections made by the infected device to the C2 domain. 
Figure 4: Device Event Log showing HTTP connections made by the infected device to the C2 domain. 

The full attack chain, from visiting the malvertising website to the malicious data egress, took less than three minutes to complete. In this circumstance, the machine-speed detection and response capabilities offered by Darktrace DETECT and RESPOND are paramount in order to stop CryptBot before it can successfully exfiltrates sensitive data. This is an incredibly quick infection timeline, with no lateral movement nor privilege escalation required to carry out the malware’s objective. 

Device Event Log showing the DETECT and RESPOND models breached during the attack. 
Figure 5: Device Event Log showing the DETECT and RESPOND models breached during the attack. 

Darktrace Cyber AI Analyst incidents were also generated as a result of this activity, displaying all relevant information in one panel for easy review by customer security teams.

Cyber AI Analyst event log showing the HTTP connections made by the breach device to the C2 endpoint.
Figure 6: Cyber AI Analyst event log showing the HTTP connections made by the breach device to the C2 endpoint.

Conclusion 

CryptBot info-stealer is fast, efficient, and apt at evading detection given its small size and swift process of data gathering and exfiltration via legitimate channels. Its constantly changing C2 infrastructure further makes it difficult for traditional security tools that really on rules and signatures or known indicators of compromise (IoCs) to detect these infections. 

In the face of such a threat, Darktrace’s anomaly-based detection allows it to recognize subtle deviations in a device’s pattern of behavior that may signal an evolving threat and instantly bring it to the attention of security teams. Darktrace DETECT is able to distinguish between benign activity and malicious behavior, even from newly monitored devices, while Darktrace RESPOND can move at machine-speed to prevent even the fastest moving threat actors from stealing confidential company data, as it demonstrated here by stopping CryptBot infections in as little as 2 seconds.

Credit to Alexandra Sentenac, Cyber Analyst, Roberto Romeu, Senior SOC Analyst

Darktrace Model Detections  

AI Analyst Coverage 

  • Possible HTTP Command and Control  

DETECT Model Breaches  

  • Device / Suspicious Domain 
  • Anomalous Connection / POST to PHP on New External Host 
  • Anomalous Connection / Multiple HTTP POSTs to Rare Hostname 
  • Compromise / Multiple SSL to Rare DGA Domains

List of IOCs

Indicator Type Description
luaigz34[.]top Hostname CryptBot C2 endpoint
watibt04[.]top Hostname CryptBot C2 endpoint
avolsq14[.]top Hostname CryptBot C2 endpoint

MITRE ATT&CK Mapping

Category Technique Tactic
INITIAL ACCESS Drive-by Compromise - T1189 N/A
COMMAND AND CONTROL Web Protocols - T1071.001 N/A
COMMAND AND CONTROL Domain Generation Algorithm - T1568.002 N/A

References

[1] https://www.malwarebytes.com/blog/threats/info-stealers

[2] https://cybelangel.com/what-are-infostealers/

[3] https://ke-la.com/information-stealers-a-new-landscape/

[4] https://darktrace.com/blog/vidar-info-stealer-malware-distributed-via-malvertising-on-google

[5] https://darktrace.com/blog/a-surge-of-vidar-network-based-details-of-a-prolific-info-stealer 

[6] https://darktrace.com/blog/laplas-clipper-defending-against-crypto-currency-thieves-with-detect-respond

[7] https://darktrace.com/blog/amadey-info-stealer-exploiting-n-day-vulnerabilities 

[8] https://cybelangel.com/what-are-infostealers/

[9] https://webz.io/dwp/the-top-10-dark-web-marketplaces-in-2022/

[10] https://www.accenture.com/us-en/blogs/security/information-stealer-malware-on-dark-web

[11] https://www.bleepingcomputer.com/news/security/revamped-cryptbot-malware-spread-by-pirated-software-sites/

[12] https://blogs.blackberry.com/en/2022/03/threat-thursday-cryptbot-infostealer

[13] https://www.deepinstinct.com/blog/cryptbot-how-free-becomes-a-high-price-to-pay

[14] https://blog.google/technology/safety-security/continuing-our-work-to-hold-cybercriminal-ecosystems-accountable/

[15] https://asec.ahnlab.com/en/31802/

[16] https://darktrace.com/blog/the-last-of-its-kind-analysis-of-a-raccoon-stealer-v1-infection-part-1

[17] https://www.trendmicro.com/pt_br/research/21/c/websites-hosting-cracks-spread-malware-adware.html

[18] https://intel471.com/blog/privateloader-malware

[19] https://cyware.com/news/watch-out-pay-per-install-privateloader-malware-distribution-service-is-flourishing-888273be 

[20] https://regmedia.co.uk/2023/04/28/handout_google_cryptbot_complaint.pdf

[21] https://www.bankinfosecurity.com/google-wins-court-order-to-block-cryptbot-infrastructure-a-21905

[22] https://github.com/stamparm/maltrail/blob/master/trails/static/malware/cryptbot.txt

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
Alexandra Sentenac
Cyber Analyst

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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/

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About the author
Tyler Rhea
Senior 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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