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
Jamie Woodland
Head of Technology at Community Housing Limited
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04
Mar 2024
About Community Housing Limited
Community Housing Limited is a non-profit organization based in Australia that focuses on providing affordable, long-term housing and creating employment opportunities where possible. We give people the security of having a home so that they can focus on other essential pathways. As such, we are responsible for sensitive information on our clients.
As part of our commitment to strengthening our cyber security, we sought to simplify and unify our incident response plans and equip our engineers and desktop support teams with all the information we need at our fingertips.
Why Community Housing Limited chose Darktrace
Our team hoped to achieve a response procedure that allowed us to have oversight over any potential security risks, even cases that don’t overtly seem like a security risk. For example, an incident could start as a payroll issue and end up in the hands of HR, instead of surfacing as a security problem. In this case, our security team has no way of knowing the real number of events or how the threat had actually started and played out, making incident response and mitigation even more challenging.
AI-generated playbooks save time during incident response
I wanted to reduce the time and resources it took our security team to appropriately respond to a threat. Darktrace automates several steps of the recovery process to accelerate the rate of incident response by using AI that learns the granular details of the specific organization, building a dynamic understanding of the devices, connections, and user behaviors that make up the normal “pattern of life.”
The AI then uses this understanding to create bespoke, AI-generated incident response playbooks that leverage an evolving understanding of our organization to determine recovery steps that are tailored not only to the specific incident but also to our unique environment.
For my security team, this means having access to all the information we need to respond to a threat. When running through an incident, rather than going to different places to synthesize relevant information, which takes up valuable resources and time, we can speed up its remediation with Darktrace.
The playbooks created by Darktrace help lower the technical skills required to respond to incidents by elevating the workload of the staff, tripling our capacity for incident response.
Realistic attack simulations upskill teams while saving resources
We have differing levels of experience on the team which means some members know exactly what to do during incident response while others are slower and need more guidance. Thus, we have to either outsource skilled security professionals or add a security solution that could lower the technical skills bar.
You don’t want to be second guessing and searching for the right move – it’s urgent – there should be certainty. Our goal with running attack simulations is to test and train our team's response capabilities in a “realistic” scenario. But this takes considerable time to plan and execute or can be expensive if outsourced, which can be a challenge for organizations short on resources.
Darktrace provides AI-assisted incident response and cyber-attack simulation using AI that understands the organization to run simulations that effectively map onto the real digital environment and the assets within it, providing training for actual incidents.
It is one thing to sit together in a meeting and discuss various outcomes of a cyber-attack, talking through the best response strategies. It is a huge benefit being able to run attack simulations that emulate real-world scenarios.
Our team can now see how an incident would play out over several days to resemble a real-world scenario or it can play through the simulation quickly to ascertain outcomes immediately. It then uses these insights to strengthen its technology, processes, and training.
AI-Powered Incident Response
Darktrace helps my security team save resources and upskill staff using AI to generate bespoke playbooks and run realistic simulations. Its real-time understanding of our business ensures incident preparedness and incident response are tailored to not only the specific threat in question, but also to the contextual infrastructure of the organization.
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.
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In today's threat landscape, blending in to normal activity is the key to success for attackers and the growing reliance on residential proxies shows a significant shift in how threat actors are attempting to bypass IP detection tools.
The increasing dependency on residential proxies has exposed how prevalent proxy services are and how reliant a diverse range of threat actors are on them. From cybercriminal groups to state‑sponsored actors, the need to bypass IP detection tools is fundamental to the success of these groups. One malware that has quietly become notorious for its ability to avoid anomaly detection is GhostSocks, a malware that turns compromised devices into residential proxies.
What is GhostSocks?
Originally marketed on the Russian underground forum xss[.]is as a Malware‑as‑a‑Service (MaaS), GhostSocks enables threat actors to turn compromised devices into residential proxies, leveraging the victim's internet bandwidth to route malicious traffic through it.
How does Ghostsocks malware work?
The malware offers the threat actor a “clean” IP address, making it look like it is coming from a household user. This enables the bypassing of geographic restrictions and IP detection tools, a perfect tool for avoiding anomaly detection. It wasn’t until 2024, when a partnership was announced with the infamous information stealer Lumma Stealer, that GhostSocks surged into widespread adoption and alluded to who may be the author of the proxy malware.
Written in GoLang, GhostSocks utilizes the SOCKS5 proxy protocol, creating a SOCKS5 connection on infected devices. It uses a relay‑based C2 implementation, where an intermediary server sits in between the real command-and-control (C2) server and the infected device.
How does Ghostsocks malware evade detection?
To further increase evasion, the Ghostsocks malware wraps its SOCKS5 tunnels in TLS encryption, allowing its malicious traffic to blend into normal network traffic.
Early variants of GhostSocks do not implement a persistence mechanism; however, later versions achieve persistence via registry run keys, ensuring sustained proxy operational time [1].
While proxying is its primary purpose, GhostSocks also incorporates backdoor functionality, enabling malicious actors to run arbitrary commands and download and deploy additional malicious payloads. This was evident with the well‑known ransomware group Black Basta, which reportedly used GhostSocks as a way of maintaining long‑term access to victims’ networks [1].
Darktrace’s detection of GhostSocks Malware
Darktrace observed a steady increase in GhostSocks activity across its customer base from late 2025, with its Threat Research team identifying multiple incidents involving the malware. In one notable case from December 2025, Darktrace detected GhostSocks operating alongside Lumma Stealer, reinforcing that the partnership between Lumma and GhostSocks remains active despite recent attempts to disrupt Lumma’s infrastructure.
Darktrace’s first detection of GhostSocks‑related activity came when a device on the network of a customer in the education sector began making connections to an endpoint with a suspicious self‑signed certificate that had never been seen on the network before.
The endpoint in question, 159.89.46[.]92 with the hostname retreaw[.]click, has been flagged by multiple open‑source intelligence (OSINT) sources as being associated with Lumma Stealer’s C2 infrastructure [2], indicating its likely role in the delivery of malicious payloads.
Figure 1: Darktrace’s detection of suspicious SSL connections to retreaw[.]click, indicating an attempted link to Lumma C2 infrastructure.
Less than two minutes later, Darktrace observed the same device downloading the executable (.exe) file “Renewable.exe” from the IP 86.54.24[.]29, which Darktrace recognized as 100% rare for this network.
Figure 2: Darktrace’s detection of a device downloading the unusual executable file “Renewable.exe”.
Both the file MD5 hash and the executable itself have been identified by multiple OSINT vendors as being associated with the GhostSocks malware [3], with the executable likely the backdoor component of the GhostSocks malware, facilitating the distribution of additional malicious payloads [4].
Following this detection, Darktrace’s Autonomous Response capability recommended a blocking action for the device in an early attempt to stop the malicious file download. In this instance, Darktrace was configured in Human Confirmation Mode, meaning the customer’s security team was required to manually apply any mitigative response actions. Had Autonomous Response been fully enabled at the time of the attack, the connections to 86.54.24[.]29 would have been blocked, rendering the malware ineffective at reaching its C2 infrastructure and halting any further malicious communication.
Figure 3: Darktrace’s Autonomous Response capability suggesting blocking the suspicious connections to the unusual endpoint from which the malicious executable was downloaded.
As the attack was able to progress, two days later the device was detected downloading additional payloads from the endpoint www.lbfs[.]site (23.106.58[.]48), including “Setup.exe”, “,.exe”, and “/vp6c63yoz.exe”.
Figure 4: Darktrace’s detection of a malicious payload being downloaded from the endpoint www.lbfs[.]site.
Once again, Darktrace recognized the anomalous nature of these downloads and suggested that a “group pattern of life” be enforced on the offending device in an attempt to contain the activity. By enforcing a pattern of life on a device, Darktrace restricts its activity to connections and behaviors similar to those performed by peer devices within the same group, while still allowing it to carry out its expected activity, effectively preventing deviations indicative of compromise while minimizing disruption. As mentioned earlier, these mitigative actions required manual implementation, so the activity was able to continue. Darktrace proceeded to suggest further actions to contain subsequent malicious downloads, including an attempt to block all outbound traffic to stop the attack from progressing.
Figure 5: An overview of download activity and the Autonomous Response actions recommended by Darktrace to block the downloads.
Around the same time, a third executable download was detected, this time from the hostname hxxp[://]d2ihv8ymzp14lr.cloudfront.net/2021-08-19/udppump[.]exe, along with the file “udppump.exe”.While GhostSocks may have been present only to facilitate the delivery of additional payloads, there is no indication that these CloudFront endpoints or files are functionally linked to GhostSocks. Rather, the evidence points to broader malicious file‑download activity.
Shortly after the multiple executable files had been downloaded, Darktrace observed the device initiating a series of repeated successful connections to several rare external endpoints, behavior consistent with early-stage C2 beaconing activity.
Cyber AI Analyst’s investigation
Figure 7: Darktrace’s detection of additional malicious file downloads from malicious CloudFront endpoints.
Throughout the course of this attack, Darktrace’s Cyber AI Analyst carried out its own autonomous investigation, piecing together seemingly separate events into one wider incident encompassing the first suspicious downloads beginning on December 4, the unusual connectivity to many suspicious IPs that followed, and the successful beaconing activity observed two days later. By analyzing these events in real-time and viewing them as part of the bigger picture, Cyber AI Analyst was able to construct an in‑depth breakdown of the attack to aid the customer’s investigation and remediation efforts.
Figure 8: Cyber AI Analyst investigation detailing the sequence of events on the compromised device, highlighting its extensive connectivity to rare endpoints, the related malicious file‑download activity, and finally the emergence of C2 beaconing behavior.
Conclusion
The versatility offered by GhostSocks is far from new, but its ability to convert compromised devices into residential proxy nodes, while enabling long‑term, covert network access—illustrates how threat actors continue to maximise the value of their victims’ infrastructure. Its growing popularity, coupled with its ongoing partnership with Lumma, demonstrates that infrastructure takedowns alone are insufficient; as long as threat actors remain committed to maintaining anonymity and can rapidly rebuild their ecosystems, related malware activity is likely to persist in some form.
Credit to Isabel Evans (Cyber Analyst), Gernice Lee (Associate Principal Analyst & Regional Consultancy Lead – APJ) Edited by Ryan Traill (Content Manager)
AI is already embedded in day-to-day enterprise activity, with 78% of participants in one recent survey reporting that their organizations are using generative AI in at least one business function. Generative AI now acts as an always-on assistant, researcher, creator, and coach across an expanding array of departments and functions. Autonomous agents are performing multi-step operational workflows from end to end. AI features have been layered on top of every SaaS application. And vibe coding is making it possible for employees without deep technical expertise to build their own AI-powered automations.
According to Gartner, more than 80% of enterprises will have deployed GenAI models, applications, or APIs in production environments by the end of this year, up from less than 5% in 2023. Companies report a 130% increase in spending on AI over the same period, with 72% of business leaders using AI tools at least weekly. The outsized efficiency and productivity gains that were once a future vision are quickly becoming everyday reality.
AI is currently driving business growth and innovation, and organizations risk falling behind peers if they don’t keep up with the pace of adoption, but it is also quietly expanding the enterprise attack surface. The modern CISO is challenged to both enable innovation and protect the business from these emerging threats.
AI agents introduce new risks and vulnerabilities
AI agents are playing growing roles in enterprise production environments. In many cases, these agents act with broad permissions across multiple software systems and platforms. This means they’re granted far-reaching access – to sensitive data, business-critical applications, tokens and APIs, and IT and security tools. With this access comes risk for security leaders – 92% are concerned about the use of AI agents across the workforce and their impact on security.
These agents must be governed as identities, with least-privilege access and ongoing monitoring. They can’t be thought of as invisible aspects of the application estate. Understanding how AI agents behave, and how to manage their permissions, control their behavior, and limit their data access will be a top security priority throughout 2026.
Generative AI prompts: The next frontier
Prompts are how users – both human and agentic – interact with AI systems, and they’re where natural language gets translated into model behavior. Natural language is infinite in its potential combinations and permutations, making this aspect of the attack surface open-ended and far more complex than traditional CVEs. With carefully crafted prompts, bad actors may be able to coax models into disclosing sensitive data, bypassing guardrails, or initiating undesirable actions.
Among security leaders, the biggest worries about AI usage in their environments all involve ways that systems might be manipulated to bypass traditional controls.
61% are most concerned about the exposure of sensitive data
56% are most concerned about potential data security and policy violations
51% are most concerned about the misuse or abuse of AI tools
The more employees rely on AI in their day-to-day workflows, the more critical it becomes for security teams to understand how prompt behavior determines model behavior – and where that behavior could go wrong.
What does “securing AI” mean in practice?
AI adoption opens new security risks that blur the boundaries between traditional security disciplines. A single malicious interaction with an AI model could involve identity misuse, sensitive data exposure, application logic abuse, and supply chain risk – all within a single workflow. Protecting this dynamic and rapidly evolving attack surface requires an approach that spans identity security, cloud security, application security, data security, software development security, and more.
The task for security leaders is to implement the tools, policies, and frameworks to mitigate these novel, expansive, and cross-disciplinary risks.
However, within most enterprises, AI policy creation remains in its infancy. Just 37% of security leaders report that their organization has a formal AI policy, representing a small but worrisome decrease from last year. Conversations about AI abound: in 52% of organizations, there’s discussion about an AI policy. Still, talk is cheap, and leaders will need to take action if they’re to successfully enable secure AI innovation.
To govern and protect their AI systems, organizations must take a multi-pronged approach. This requires building out policies, but it also demands that they are able to:
Monitor the prompts driving GenAI assistants and agents in real time. Organizations must be able to inspect prompts, sessions, and responses across enterprise GenAI tools, low- and high-code environments, and SaaS and SASE so that they can detect clever conversational prompt attacks and malicious chaining.
Secure all business AI agent identities. Security teams need to identify all the agents acting within their environment and supply chain, map their connections and interactions via MCP and services like Amazon S3, and audit their behavior across the cloud, SaaS environments, and on the network and endpoint devices.
Maintain centralized, comprehensive visibility. Understanding intent, assessing risks, and enforcing policies all require that security teams have a single view that spans AI interactions across the entire business.
Discover and control shadow AI. Teams need to be able to identify unsanctioned AI activities, distinguish the misuse of legitimate tools from their appropriate use, and apply policies to protect data, while guiding users towards approved solutions.
Scaling AI safely and responsibly
The approach that most cybersecurity vendors have taken – using historical patterns to predict future threats – doesn’t work well for AI systems. Because AI changes its behavior in response to the information it encounters while taking action, previous patterns don’t indicate what it will do next. Looking at past attacks can’t tell you how complex models will behave in your individual business.
Securing AI requires interpreting ambiguous interactions, uncovering subtleties that reveal intent within extended conversations, understanding how access accumulates over time, and recognizing when behavior – both human and machine – begins to drift towards areas of risk. To do this, you need to understand what “normal” looks like in each unique organization: how users, systems, applications, and AI agents behave, how they communicate, and how data flows between them.
Darktrace has spent more than a decade designing AI-powered solutions that can understand and adapt to evolving behavior in complex environments. This technology learns directly from the environment it protects, identifying malicious actions that deviate from normal operations, so that it can stop AI-related threats on the very first encounter.
As AI adoption reshapes enterprise operations, humans and machines will collaborate more and more often. This collaboration might dramatically expand the attack surface, but it also has the potential to be a force multiplier for defenders.
Explore the full State of AI Cybersecurity 2026 report for deeper insights into how security leaders are responding to AI-driven risks.
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![Darktrace’s detection of suspicious SSL connections to retreaw[.]click, indicating an attempted link to Lumma C2 infrastructure.](https://cdn.prod.website-files.com/626ff4d25aca2edf4325ff97/69c5739b43fdfed6f1b02053_Screenshot%202026-03-26%20at%2010.57.44%E2%80%AFAM.png)
![Darktrace’s detection of a malicious payload being downloaded from the endpoint www.lbfs[.]site.](https://cdn.prod.website-files.com/626ff4d25aca2edf4325ff97/69c57465977a5ae3f07c6d69_Screenshot%202026-03-26%20at%2011.01.05%E2%80%AFAM.png)
