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December 21, 2020

How AI Stopped a WastedLocker Ransomware Intrusion & Fast

Stop WastedLocker ransomware in its tracks with Darktrace AI technology. Learn about how AI detected a recent attack using 'Living off the Land' techniques.
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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21
Dec 2020

Since first being discovered in May 2020, WastedLocker has made quite a name for itself, quickly becoming an issue for businesses and cyber security firms around the world. WastedLocker is known for its sophisticated methods of obfuscation and steep ransom demands.

Its use of ‘Living off the Land’ techniques makes a WastedLocker attack extremely difficult for legacy security tools to detect. An ever-decreasing dwell time – the time between initial intrusion and final execution – means human responders alone struggle to contain the ransomware variant before damage is done.

This blog examines the anatomy of a WastedLocker intrusion that targeted a US agricultural organization in December. Darktrace’s AI detected and investigated the incident in real time, and we can see how Darktrace RESPOND would have autonomously taken action to stop the attack before encryption had begun.

As ransomware dwell time shrinks to hours rather than days, security teams are increasingly relying on artificial intelligence to stop threats from escalating at the earliest signs of compromise – containing attacks even when they strike at night or on the weekend.

How the WastedLocker attack unfolded

Figure 1: A timeline of the attack

Initial intrusion

The initial infection appears to have taken place when an employee was deceived into downloading a fake browser update. Darktrace AI was monitoring the behavior of around 5,000 devices at the organization, continuously adapting its understanding of the evolving ‘pattern of life’. It detected the first signs of a threat when a virtual desktop device started making HTTP and HTTPS connections to external destinations that were deemed unusual for the organization. The graph below depicts how the patient zero device exhibited a spike in internal connections around December 4.

Figure 2: The patient zero device exhibiting a spike in internal connections, with orange dots indicating model breaches of varying severity

Reconnaissance

Attempted reconnaissance began just 11 minutes after the initial intrusion. Again, Darktrace immediately picked up on the activity, detecting unusual ICMP ping scans and targeted address scans on ports 135, 139 and 445; presumably as the attacker looked for potential further Windows targets. The below demonstrates the scanning detections based on the unusual number of new failed connections.

Figure 3: Darktrace detecting an unusual number of failed connections

Lateral movement

The attacker used an existing administrative credential to authenticate against a Domain Controller, initiating new service control over SMB. Darktrace picked this up immediately, identifying it as unusual behavior.

Figure 4: Darktrace identifying the DCE-RPC requests
Figure 5: Darktrace surfacing the SMB writes

Several hours later – and in the early hours of the morning – the attacker used a temporary admin account ‘tempadmin’ to move to another Domain Controller over SMB. Darktrace instantly detected this as it was highly unusual to use a temporary admin account to connect from a virtual desktop to a Domain Controller.

Figure 6: Further anomalous connections detected the following day

Lock and load: WastedLocker prepares to strike

During the beaconing activity, the attacker also conducted internal reconnaissance and managed to establish successful administrative and remote connections to other internal devices by using tools already present. Soon after, a transfer of suspicious .csproj files was detected by Darktrace, and at least four other devices began exhibiting similar command and control (C2) communications.

However, with Darktrace’s real-time detections – and Cyber AI Analyst investigating and reporting on the incident in a number of minutes, the security team were able to contain the attack, taking the infected devices offline.

Automated investigations with Cyber AI Analyst

Darktrace’s Cyber AI Analyst launched an automatic investigation around every anomaly detection, forming hypotheses, asking questions about its own findings, and forming accurate answers at machine speed. It then generated high-level, intuitive incident summaries for the security team. Over the 48 hour period, the AI Analyst surfaced just six security incidents in total, with three of these directly relating to the WastedLocker intrusion.

Figure 7: The Cyber AI Analyst threat tray

The snapshot below shows a VMWare device (patient zero) making repeated external connections to rare destinations, scanning the network and using new admin credentials.

Figure 8: Cyber AI Analyst investigates

Darktrace RESPOND: AI that responds when the security team cannot

Darktrace RESPOND – the world’s first and only Autonomous Response technology – was configured in passive mode, meaning it did not actively interfere with the attack, but if we dive back into the Threat Visualizer we can see that Antigena in fully autonomous mode would have responded to the attack at this early stage, buying the security team valuable time.

In this case, after the initial unusual SSL C2 detection (based on a combination of destination rarity, JA3 unusualness and frequency analysis), RESPOND (formerly known as 'Antigena', as shown in the screenshots below) suggested instantly blocking the C2 traffic on port 443 and parallel internal scanning on port 135.

Figure 9: The Threat Visualizer reveals the action Antigena would have taken

When beaconing was later observed to bywce.payment.refinedwebs[.]com, this time over HTTP to /updateSoftwareVersion, RESPOND escalated its response by blocking the further C2 channels.

Figure 10: Antigena escalates its response

The vast majority of response tools rely on hard-coded, pre-defined rules, formulated as ‘If X, do Y’. This can lead to false positives that unnecessarily take devices offline and hamper productivity. Darktrace RESPOND's actions are proportionate, bespoke to the organization, and not created in advance. Darktrace Antigena autonomously chose what to block and the severity of the blocks based on the context of the intrusion, without a human pre-eminently hard-coding any commands or set responses.

Every response over the 48 hours was related to the incident – RESPOND did not try to take action on anything else during the intrusion period. It simply would have actioned a surgical response to contain the threat, while allowing the rest of the business to carry on as usual. There were a total of 59 actions throughout the incident time period – excluding the ‘Watched Domain Block’ actions shown below – which are used during incident response to proactively shut down C2 communication.

Figure 11: All Antigena action attempts during the intrusion period across the whole organization

RESPOND would have delivered those blocks via whatever integration is most suitable for the organization – whether that be Firewall integrations, NACL integrations or other native integrations. The technology would have blocked the malicious activity on the relevant ports and protocols for several hours – surgically interrupting the threat actors’ intrusion activity, thus preventing further escalation and giving the security team air cover.

Stopping WastedLocker ransomware before encryption ensues

This attack used many notable Tools, Techniques and Procedures (TTPs) to bypass signature-based tools. It took advantage of ‘Living off the Land’ techniques, including Windows Management Instrumentation (WMI), Powershell, and default admin credential use. Only one of the involved C2 domains had a single hit on Open Source Intelligence Lists (OSINT); the others were unknown at the time. The C2 was also encrypted with legitimate Thawte SSL Certificates.

For these reasons, it is plausible that without Darktrace in place, the ransomware would have been successful in encrypting files, preventing business operations at a critical time and possibly inflicting huge financial and reputational losses to the organization in question.

Darktrace’s AI detects and stops ransomware in its tracks without relying on threat intelligence. Ransomware has thrived this year, with attackers constantly coming up with new attack TTPs. However, the above threat find demonstrates that even targeted, sophisticated strains of ransomware can be stopped with AI technology.

Thanks to Darktrace analyst Signe Zaharka for her insights on the above threat find.

Learn more about Autonomous Response

Darktrace model detections:

  • Compliance / High Priority Compliance Model Breach
  • Compliance / Weak Active Directory Ticket Encryption
  • Anomalous Connection / Cisco Umbrella Block Page
  • Anomalous Server Activity / Anomalous External Activity from Critical Network Device
  • Compliance / Default Credential Usage
  • Compromise / Suspicious TLS Beaconing To Rare External
  • Anomalous Server Activity / Rare External from Server
  • Device / Lateral Movement and C2 Activity
  • Compromise / SSL Beaconing to Rare Destination
  • Device / New or Uncommon WMI Activity
  • Compromise / Watched Domain
  • Antigena / Network / External Threat / Antigena Watched Domain Block
  • Compromise / HTTP Beaconing to Rare Destination
  • Compromise / Slow Beaconing Activity To External Rare
  • Device / Multiple Lateral Movement Model Breaches
  • Compromise / High Volume of Connections with Beacon Score
  • Device / Large Number of Model Breaches
  • Compromise / Beaconing Activity To External Rare
  • Antigena / Network / Significant Anomaly / Antigena Controlled and Model Breach
  • Anomalous Connection / New or Uncommon Service Control
  • Antigena / Network / Significant Anomaly / Antigena Significant Anomaly from Client Block
  • Compromise / SSL or HTTP Beacon
  • Antigena / Network / External Threat / Antigena Suspicious Activity Block
  • Antigena / Network / Significant Anomaly / Antigena Breaches Over Time Block
  • Compromise / Sustained SSL or HTTP Increase
  • Unusual Activity / Unusual Internal Connections
  • Device / ICMP Address Scan

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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June 1, 2026

Defend What You Trust: Stories from the Front Lines of Modern Cyber Defense

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Modern attacks don’t always announce themselves, follow obvious patterns, or rely on known malware. Often, they move quietly inside trusted systems, authenticated sessions, and everyday behavior.

They don’t break in. They blend in.

That’s why an AI-powered defense is essential. It turns invisible signals into actionable insights at a scale neither analysts nor traditional tools can achieve alone.

Confidence is creating risk

One of the most dangerous assumptions in cybersecurity today is that strong controls equal strong protection.

Multi-factor authentication (MFA), for example, is widely viewed as a foundational safeguard. But as the CISO for a professional sports organization explains, that confidence can be misplaced. “A lot of organizations assume that once you have MFA, those accounts are safe. That’s not true.”

In one instance, his team identified a sophisticated attack where a threat actor bypassed MFA entirely, not by breaking it, but by going around it. A user’s authenticated session was hijacked and re-used, allowing the attacker to impersonate them without triggering traditional controls.

“Darktrace picked up that a session had been re-injected by the hacker, and we were able to block it right away,” he explains.

Attackers anticipate what we miss

Even well-trained users can become entry points.

“An email bypassed our existing security tools,” shares the VP of IT at a U.S.-based risk management services provider.  “The user missed one signal and entered their credentials into a malicious site. That’s what the bad guys count on.”

The organization responded quickly, but not before damage was done. Crucially, this occurred while Darktrace was in “watch mode,” before autonomous response was fully enabled. “Darktrace would have seen that and shut it down immediately,” he notes.

Mistakes and oversights like misconfigurations, forgotten machines, and missed patches can create serious vulnerabilities.

The CIO of a utility services organization shares an instance when Darktrace detected a breach to a client’s network via their ZTNA VPN due to misconfigured MFA. “Darktrace alerted us and autonomously blocked the scanning, preventing what could have been a ransomware-type incident.”  

The most dangerous threats are already inside

The Head of Security at a global business services provider knows firsthand how blind spots can persist inside environments. His team uncovered evidence of dormant ransomware artifacts sitting unnoticed within a company’s environment ¬¬– long before modern detection was in place.

“During a routine file transfer, Darktrace flagged the suspicious activity, identified the ransomware, and immediately quarantined the server,” he recalls.  While the attack was never executed, the implication was significant: the risk existed long before it was finally detected.

Cyber threats are also successful because they take advantage of normal human behavior, exploiting moments of cognitive overload, urgency, and trust.

The Executive Director of IT and Business Applications at a pharmaceutical lab describes the time Darktrace flagged an employee logging into Microsoft 365 from Singapore, despite him being physically located in the U.S. Darktrace immediately cut off his access and within minutes revealed that the employee’s son was using a VPN to play a video game.

While the threat was benign, it demonstrated the strength of AI to use contextual information to detect threats other tools miss. The information also saved security analysts hours of investigation and minimized downtime for the employee. “That level of precision and speed isn’t just convenient, it’s game changing.”

“Unusual” behavior is the new red flag

Detecting modern threats requires an understanding of what “normal” looks like and recognizing when something subtly deviates.

One security leader  at an AI technology enterprise described a scenario in which an employee connected to a proxy service in China. The service itself was legitimate, and although traditional tools didn’t flag it, the behavior was unusual for that user specifically.

“That’s what Darktrace picked up on. The activity turned out to be benign, but without visibility into behavioral deviations, it could just as easily have been something more serious.”

AI shifts defense from reaction to anticipation

These stories point to a fundamental shift by cyber attackers, both tactically and strategically. Because traditional security tools were built to detect what’s already known, modern attacks are often:

  • Credential-based, not malware-based
  • Behavioral, not signature-based
  • Subtle, not overt

They may operate within the boundaries of what appears normal, exploiting what organizations trust, not what they block:

  • Trusted sessions
  • Legitimate services
  • Human error

This is where AI is changing the equation. Rather than relying on predefined rules or known threat signatures, AI can:

  • Establish a baseline of normal behavior
  • Detect subtle anomalies in real time
  • Act autonomously to contain potential threats

Resilience, not perfection, is the new security standard

As these frontline experiences show, the organizations that lead are those that move beyond reactive defense and embrace AI as a core part of their strategy.

It eliminates the blind spots and uncertainty, says the CISO of a professional sports organization. “If you lack visibility, you’re not managing risk, you’re assuming it. AI gives you the actionable insights needed to turn uncertainty into control.”

And it provides the speed and agility that are vital when seconds matter, says the Executive Director of IT and Business Applications. “When Darktrace alerted us at 3:00 am to a ransomware attack, it had already quarantined the affected systems, blocked the attacker’s access, and provided us with the critical details and time needed to investigate. That action likely saved us hundreds of thousands, if not millions, of dollars.”

The modern SOC has become a cornerstone of enterprise resilience, responsible for protecting data and operational continuity while enabling digital growth and innovation. For today’s security professional, that means success is no longer measured by what they keep out, but by what they protect: revenue, reputation, and trust.

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May 28, 2026

From Efficiency to Exposure: How AI Adoption Is Creating Unseen Vulnerabilities on the Factory Floor

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How AI agents impact the manufacturing industry

Security teams and IT personnel across the manufacturing industry are under constant pressure to protect production, maintain uptime, and safeguard critical assets but the rise of AI is bringing huge new opportunities alongside new cyber risks. Across manufacturing, AI is embedded into workflows, decision-making, and increasingly, autonomous AI agents are acting on behalf of employees and systems.  

Agentic systems are powerful because they can act independently, but that same autonomy also creates cyber and operational risk. Agents have extensive permissions and are capable of carrying out complex tasks, making decisions, and interacting with tools or external systems with little to no human intervention.

Unlike traditional AI models that perform predefined tasks, AI agents use advanced techniques to mimic human decision-making processes, dynamically adapting to new challenges, making decision and taking action based on their own judgement. They look like employees operationally but lack judgment, ethics, or fear of consequences like humans do. This means they can be easily manipulated by cybercriminals, and an AI agent embedded across an OT network creates threats that extend well beyond data exposure. For example, at BMW, AI identifies faults in welding processes as they occur. At its Spartanburg plant, AI monitors the weld of 300-400 metal studs onto every SUV frame to detect misplaced or faulty studs and correct them instantly. Corruption of BMW’s AI system could lead to catastrophic quality control errors.

Adopting agentic AI systems across manufacturing raises some concerns across security teams. New data from our State of AI Cybersecurity survey shows that 78% of manufacturing security professionals are worried about employee use of AI agents – their top concern. That’s followed by employee use of generative AI tools like CoPilot and ChatGPT, a worry for 76% of security professionals at manufacturing organizations. As these tools gain more access to business data and processes, and more autonomy within organizations, security teams, who today have minimal visibility of agent activity in their environments, increasingly have sensitive data exposure (a worry for 60%) and accidental policy and regulatory violations (59%) on their minds.

External AI-powered threats are evolving just as quickly

The same capabilities transforming manufacturing are also reshaping cyberattacks.

AI is enabling attackers to automate reconnaissance, refine targeting, and adapt in real time. What once required time and manual effort can now be executed continuously and at scale. Manufacturers are already seeing the impact. According to manufacturing security professionals we surveyed, 76% are already being impacted by AI-powered threats and 90% see AI increasing the success of social engineering attacks.

And the techniques themselves are evolving. Concerns across the manufacturing sector show growing anxiety about the range of AI-powered attack routes, most pressingly of adaptive malware that evolves in real-time – a prospect half (49%) of manufacturing security professionals we surveyed are worried by, a full 9% more than the average across industries. AI adaptive malware is followed by:

  • Automated vulnerability scanning and exploit chaining (48%) which has become even more pressing as Anthropic’s new Mythos AI Model supercharges vulnerability discovery
  • Hyper-personalized phishing campaigns (46%), which remain a mainstay in hackers’ arsenals, and AI has amplified their effectiveness by making phishing emails more convincing and harder to detect.

This is not just an increase in volume, it is a shift toward threats that evolve as they unfold - often faster than static defenses can respond.

Despite rising awareness, many manufacturers are not yet equipped to manage this shift. More than half (51%) say they are not adequately prepared for AI-driven threats, and only 37% have formal policies governing AI deployment.  

Securing AI through visibility, context, and guardrails

Addressing this challenge does not require manufacturers to slow innovation. It requires a different approach to security, one that can operate at the same speed and scale as AI. Three specific priorities are emerging for manufacturers looking to take advantage of the power of AI.

Visibility is foundational.  

Organizations need to understand where AI is being used, what it can access, and how it behaves across both IT and OT environments. Without that, risk cannot be measured or managed. It is no surprise that Darktrace’s research found that 91% of manufacturing security professionals said that they need to understand how AI makes decisions before trusting it. This is even more critical in operational settings where disruption has safety, environmental, financial, and reputational impacts.

Context is what turns visibility into action.  

In environments shaped by AI, normal behavior is constantly shifting. Detecting threats requires a behavioral approach; understanding patterns of life across the organization and identifying subtle deviations in real time – a step change in organizations’ traditional approach to security and risk management.

Guardrails ensure that agency does not become exposure  

As AI systems take on greater responsibility, organizations need clear boundaries around what they can do and when they can act independently. These controls must be embedded into systems themselves, not applied after the fact.  

Securing AI Agents Across Manufacturing IT and OT

The rise of agentic AI is transforming manufacturing - powering next-generation operations while reshaping the security landscape. This is not just an increase in threats, but a shift to autonomous systems, continuously evolving behaviors, and risks moving at machine speed. For organizations trying to grapple with the challenge of enabling AI while managing the risk, visibility, context and guardrails should be foundational.

Darktrace helps manufacturers build secure AI approaches by making those foundations possible. It provides visibility and real-time detection and response to unusual activity across IT and OT environments and allows organizations to understand AI activity from the prompts employees use and the agents they build to how those agents are behaving across the environment. For manufacturers scaling AI, this delivers a foundation for innovation without sacrificing control.

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Oakley Cox
Director of Product
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