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October 10, 2021

AI Uncovered Outlaw's Crypto Mining Operation

Discover how Darktrace AI technology exposed a hidden cryptocurrency mining scheme. Learn about the power of Darktrace AI in cybersecurity.
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
Oakley Cox
Director of Product
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10
Oct 2021

Infamy is a paradoxical calling for cyber-criminals. While for some, bragging rights are a motivation for cyber-crime in and of themselves, notoriety is usually not a sensible goal for those hoping to avoid detection. This is what threat actors behind the prolific Emotet botnet learned earlier in 2021, for instance, when a coordinated effort was launched by eight national law enforcement agencies to take down their operation. There are, however, certain names which appear again and again in cyber security media and consistently avoid detection – names like Outlaw.

How Outlaw plans an ambush

Despite being active since 2018, very little is known about the hacking group Outlaw, which has staged numerous botnet and crypto-jacking attacks in China and internationally. The group is recognized by a variety of calling cards, be they repeated filenames or a tendency to illicitly mine Monero cryptocurrency, but its success ultimately lies in its tendency to adapt and evolve during months of dormancy between attacks.

Outlaw’s attacks are marked by constant changes and updates, which they work on in relative silence, before targeting security systems which are too-often defeated by the unfamiliarity of the threat.

In 2020, Outlaw gained attention when they updated their botnet toolset to find and eradicate other criminals’ crypto-jacking software, maximizing their own payout from infected devices. While it might come as no surprise that there’s no honor among cyber-thieves, this update also implemented more troubling changes which allowed Outlaw’s malware to evade traditional security defenses.

By switching disguises between each big robbery, and laying low with the loot, Outlaw ensures that traditional security systems which rely on historical attack data will never be ready for them, no matter how much notoriety is attached to their name. When organizations move beyond these systems’ rules-based approaches, however, adopting Self-Learning AI to protect their digital estates, they can begin to turn the tables on groups like Outlaw.

This blog explores how two pre-infected zombie devices in two very different parts of the world were activated by Outlaw’s botnet in the summer of 2021, and how Darktrace was able to detect the activity despite the devices being pre-infected.

Bounty hunting: First signs of attack

Figure 1: Timeline of the attack.

When a new device was added to the network of a Central American telecomms company in July, Darktrace detected a series of regular connections to two suspicious endpoints which it identified as beaconing behavior. The same behavior was noticed independently, but almost simultaneously, at a financial company in the APAC region, which was implementing Darktrace for the first time. Darktrace’s Self-Learning AI was able to identify the pre-infected devices by clustering similarly-behaving devices into peer groups within the local digital estates and therefore recognize that both were acting unusually based on a range of behaviors.

The first sign that the zombie devices had been activated by Outlaw was the initiation of cryptocurrency mining. Both devices, despite their geographical distance, were discovered to be connected to a single crypto-account, exemplifying the indiscriminate and exponential nature by which a botnet grows.

Outlaw has in the past restricted its activities to devices within China in what was assumed to be a show of caution, but recent activities like this one speak to a growing confidence.

The botnet recruitment process

The subsequent initiation of Internet Relay Chat (IRC) connections across port 443, a port more often associated with HTTPS activity, was perfectly characteristic of the Outlaw botnet’s earlier activity in 2020. IRC is a tool regularly used for communication between botmasters and zombie devices, but by using port 443 the attacker was attempting to blend into normal Internet traffic.

Soon after this exchange, the devices downloaded a shell script. Darktrace’s Cyber AI Analyst was able to intercept and recreate this shell script as it passed through the network, revealing its full function. Intriguingly, the script identified and excluded devices utilizing ARM architecture from the botnet. Due to its notably low battery consumption, ARM architecture is used primarily by portable mobile devices.

This selectivity is evidence that malicious crypto-mining remains Outlaw’s primary objective. By circumventing smaller devices which offer limited crypto-mining capabilities, this shell script focuses the botnet on the most high-powered, and therefore profitable, devices, such as desktop computers and servers. In this way, it reduces the Indicators of Compromise (IOCs) left behind by the wider botnet without greatly affecting the scale of its crypto-mining operation.

The two devices in question did not employ ARM architecture, and minutes later received a secondary payload containing a file named dota3[.]tar[.]gz, a sequel of sorts to the previous incarnation of the Outlaw botnet, ‘dota2’, which itself referenced a popular video game of the same name. With the arrival of this file, the devices appear to have been updated with the latest version of Outlaw’s world-spanning botnet.

This download was made possible in part by the attacker’s use of ‘Living off the Land’ tactics. By using only common Linux programs already present on the devices (‘curl’ and ‘Wget’ respectively), Outlaw had avoided having its activity flagged by traditional security systems. Wget, for instance, is ostensibly a reputable program used for retrieving content from web servers, and was never previously recorded as part of Outlaw’s TTPs (Tactics, Techniques, and Procedures).

By evolving and adapting its approach, Outlaw is continually able to outsmart and outrun rules-based security. Darktrace’s Self-Learning AI, however, kept pace, immediately identifying this Wget connection as suspicious and advising further investigation.

Figure 2: Cyber AI Analyst identifies Wget use on the morning of July 15 as suspicious and begins investigating potentially related HTTP connections made on the morning of July 14. In this way, it builds a complete picture of the attack.

The botnet unchained

In the following 36 hours, Darktrace detected over 6 million TCP and SSH connections directed to rare external IP addresses using ports often associated with SSH, such as 22, 2222, and 2022.

Exactly what the botnet was undertaking with these connections can only be speculated on. The devices may have been made part of a DDoS (Distributed Denial of Service) attack, bruteforce attempts on targeted SSH accounts, or simply have taken up the task of seeking and infecting new targets, further expanding the botnet. Darktrace recognized that neither device had made SSH connections prior to this event and, had Antigena been in active mode, would have enacted measures to stop them.

Figure 3: The behavior on the device before and after the bot was activated on July 14, 2021. The large spike in model breaches shows clear deviation from the established ‘pattern of life’.

Thankfully, the owners of both devices responded to Darktrace’s detection alerts soon enough to prevent any serious damage to their own digital estates. Had these devices remained under the influence of the botnet, the ramifications may have been far graver.

The use of SSH protocol would have allowed Outlaw to pivot into any number of activities, potentially compromising each device’s network further and causing data or monetary loss to their respective organizations.

Call the sheriff: Self-Learning AI

Rules-based security solutions operate much like the ‘wanted’ posters of the old west, looking out for the criminals who came through town last week without preparing for those riding over the hill today. When black hats and outlaws are adopting new looks and employing new techniques with every attack, a new way of responding to threats is needed.

Darktrace doesn’t need to know the name ‘Outlaw’, or the group’s history of evolving attacks, in order to stop them. With its fundamental self-learning approach, Darktrace learns its surroundings from the ground up, and identifies subtle deviations indicative of a cyber-threat. And with Autonomous Response, it will even take targeted action to neutralize the threat at machine speed, without the need for human intervention.

Thanks to Darktrace analyst Jun Qi Wong for his insights on the above threat find.

Learn more about how Cyber AI Analyst sheds light on complex attacks

Technical details

Darktrace model detections

  • Compliance / Crypto Currency Mining Activity
  • Compromise / High Priority Crypto Currency Mining [Enhanced Monitoring]
  • Anomalous Connection / New User Agent to IP Without Hostname
  • Anomalous File / Zip or Gzip from Rare External Location
  • Anomalous Connection / Application Protocol on Uncommon Port
  • Device / Increased External Connectivity
  • Unusual Activity / Unusual External Activity
  • Compromise / SSH Beacon
  • Compromise / High Frequency SSH Beacon
  • Anomalous Connection / Multiple Connections to New External TCP Port

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
Oakley Cox
Director of Product

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May 12, 2026

Resilience at the Speed of AI: Defending the Modern Campus with Darktrace

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Why higher education is a different cybersecurity battlefield

After four decades in IT, now serving as both CIO and CISO, I’ve learned one simple truth: cybersecurity is never “done.” It’s a constant game of cat and mouse. Criminals evolve. Technologies advance. Regulations expand. But in higher education, the challenge is uniquely complex.

Unlike a bank or a military installation, we can’t lock down networks to a narrow set of approved applications. Higher education environments are open by design. Students collaborate globally, faculty conduct cutting-edge research, and administrators manage critical operations, all of which require seamless access to the internet, global networks, cloud platforms, and connected systems.

Combine that openness with expanding regulatory mandates and tight budgets, and the balancing act becomes clear.

Threat actors don’t operate under the same constraints. Often well-funded and sponsored by nation-states with significant resources, they’re increasingly organized, strategic, and innovative.

That sophistication shows up in the tactics we face every day, from social engineering and ransomware to AI-driven impersonation attacks. We’re dealing with massive volumes of data, countless signals, and a very small window between detection and damage.

No human team, no matter how talented or how numerous, can manually sift through that noise at the speed required.

Discovering a force multiplier

Nothing in cybersecurity is 100% foolproof. I never “set it and forget it.” But for institutions balancing rising threats and finite resources, the Darktrace ActiveAI Security Platform™ offers something incredibly valuable: peace of mind through speed and scale.

It closes the gap between detection and response in a way humans can’t possibly match. At the speed of light, it can quarantine, investigate, and contain anomalous activity.

I’ve purchased and deployed Darktrace three separate times at three different institutions because I’ve seen firsthand what it can do and what it enables teams like mine to achieve.

I first encountered Darktrace while serving as CIO for a large multi-campus college system. What caught my attention was Darktrace's Self-Learning AI, and its ability to learn what "normal" looked like across our network. Instead of relying solely on static signatures or rigid rules, Darktrace built a behavioral baseline unique to our environment and alerted us in real time when something simply didn’t look right.

In higher education, where strict lockdowns aren’t realistic, that behavioral model made all the difference. We deployed it across five campuses, and the impact was immediate. Operating 24/7, Darktrace surfaced threats in ways our team couldn’t replicate manually.

Over time, the Darktrace platform evolved alongside the changing threat landscape, expanding into intrusion prevention, cloud visibility, and email security. At subsequent institutions, including Washington College, Darktrace was one of my first strategic investments.

Revealing the hidden threat other tools missed

One of the most surprising investigations of my career involved a data leak. Leadership suspected sensitive information from high-level meetings was being exposed, but our traditional tools couldn’t provide any answers.

Using Darktrace’s deep network visibility, down to packet-level data, we traced unusual connections to our CCTV camera system, which had been configured with a manufacturer’s default password. A small group of employees had hacked into the CCTV cameras, accessed audio-enabled recordings from boardroom meetings, and stored copies locally.

No other tool in our environment could have surfaced those connections the way Darktrace did. It was a clear example of why using AI to deeply understand how your organization, systems, and tools normally behave, matters: threats and risks don’t always look the way we expect.

Elevating a D-rating into a A-level security program

When I arrived at my last CISO role, the institution had recently experienced a significant ransomware attack. Attackers located  data  which informed their setting  ransom demands to an amount they knew would likely result in payment. It was a sobering example of how calculated and strategic modern cybercriminals have become.

Third-party cyber ratings reflected that reality, with a  D rating.

To raise the bar, we implemented a comprehensive security program and integrated layered defenses; -deploying state of the art tools and methods-  across the environment, with Darktrace at its core.

After a 90-day learning period to establish our behavioral baseline, we transitioned the platform into fully autonomous mode. In a single 30-day span, Darktrace conducted more than 2,500 investigations and autonomously resolved 92% of all false positives.

For a small team, that’s transformative. Instead of drowning in alerts, my staff focused on less than  200 meaningful cases that warranted human review.

Today, we maintain a perfect A rating from third-party assessors and have remained cybersafe.

Peace of mind isn’t about complacency

The effect of Darktrace as a force multiplier has a real human impact.

With the time reclaimed through automation, we expanded community education programs and implemented simulated phishing exercises. Through sustained training and awareness efforts, we reduced social engineering susceptibility from nearly 45% to under 5%.

On a personal level, Darktrace allows me to sleep better at night and take time off knowing we have intelligent systems monitoring and responding around the clock. For any CIO or CISO carrying institutional risk on their shoulders, that matters.

The next era: AI vs. AI

A new chapter in cybersecurity is unfolding as adversaries leverage AI to enhance scale, speed, and believability. Phishing campaigns are more personalized, impersonation attempts are more precise, and deepfake video technology, including live video, is disturbingly authentic. At the same time, organizations are rapidly adopting AI across their own environments —from GenAI assistants to embedded tools to autonomous agents. These systems don’t operate within fixed rules. They act across email, cloud, SaaS, and identity systems, often with broad permissions, and their behavior can evolve over time in ways that are difficult to predict or control.

That creates a new kind of security challenge. It’s not just about defending against AI-powered threats but understanding and governing how AI behaves within your environment, including what it can access, how it acts, and where risk begins to emerge.

From my perspective, this is a natural next step for Darktrace.

Darktrace brings a level of maturity and behavioral understanding uniquely suited to the complexity of AI environments. Self-Learning AI learns the normal patterns of each business to interpret context, uncover subtle intent, and detect meaningful deviations without relying on predefined rules or signatures. Extending into securing AI by bringing real-time visibility and control to GenAI assistants, AI agents, development environments and Shadow AI, feels like the logical evolution of what Darktrace already does so well.

Just as importantly, Darktrace is already built for dynamic, cross-domain environments where risk doesn’t sit in a single tool or control plane. In higher education, activity already spans multiple systems and, with AI, that interconnection only accelerates.

Having deployed Darktrace multiple times, I have confidence it’s uniquely positioned to lead in this space and help organizations adopt AI with greater visibility and control.

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Since authoring this blog, Irving Bruckstein has transitioned to the role of Chief Executive Officer of the Cyberaigroup.

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About the author
Irving Bruckstein
CEO CyberAIgroup

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May 11, 2026

The Next Step After Mythos: Defending in a World Where Compromise is Expected

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Is Anthropic’s Mythos a turning point for cybersecurity?

Anthropic’s recent announcements around their Mythos model, alongside the launch of Project Glasswing, have generated significant interest across the cybersecurity industry.

The closed-source nature of the Mythos model has understandably attracted a degree of skepticism around some of the claims being made. Additionally, Project Glasswing was initially positioned as a way for software vendors to accelerate the proactive discovery of vulnerabilities in their own code; however, much of the attention has focused on the potential for AI to identify exploitable vulnerabilities for those with malicious intent.

Putting questions around the veracity of those claims to one side – which, for what it’s worth, do appear to be at least partially endorsed by independent bodies such as the UK’s AI Security Institute – this should not be viewed as a critical turning point for the industry. Rather, it reflects the natural direction of travel.

How Mythos affects cybersecurity teams  

At Darktrace, extolling the virtues of AI within cybersecurity is understandably close to our hearts. However, taking a step back from the hype, we’d like to consider what developments like this mean for security teams.

Whether it’s Mythos or another model yet to be released, it’s worth remembering that there is no fundamental difference between an AI discovered vulnerability and one discovered by a human. The change is in the pace of discovery and, some may argue, the lower the barrier to entry.

In the hands of a software developer, this is unquestionably positive. Faster discovery enables earlier remediation and more proactive security. But in the hands of an attacker, the same capability will likely lead to a greater number of exploitable vulnerabilities being used in the wild and, critically, vulnerabilities that are not yet known to either the vendor or the end user.

That said, attackers have always been able to find exploitable vulnerabilities and use them undetected for extended periods of time. The use of AI does not fundamentally change this reality, but it does make the process faster and, unfortunately, more likely to occur at scale.

While tools such as Darktrace / Attack Surface Management and / Proactive Exposure Management  can help security teams prioritize where to patch, the emergence of AI-driven vulnerability discovery reinforces an important point: patching alone is not a sufficient control against modern cyber-attacks.

Rethinking defense for a world where compromise is expected

Rather than assuming vulnerabilities can simply be patched away, defenders are better served by working from the assumption that their software is already vulnerable - and always will be -and build their security strategy accordingly.

Under that assumption, defenders should expect initial access, particularly across internet exposed assets, to become easier for attackers. What matters then is how quickly that foothold is detected, contained, and prevented from expanding.

For defenders, this places renewed emphasis on a few core capabilities:

  • Secure-by-design architectures and blast radius reduction, particularly around identity, MFA, segmentation, and Zero Trust principles
  • Early, scalable detection and containment, favoring behavioral and context-driven signals over signatures alone
  • Operational resilience, with the expectation of more frequent early-stage incidents that must be managed without burning out teams

How Darktrace helps organizations proactively defend against cyber threats

At Darktrace, we support security teams across all three of these critical capabilities through a multi-layered AI approach. Our Self-Learning AI learns what’s normal for your organization, enabling real-time threat detection, behavioral prediction, incident investigation and autonomous response. - all while empowering your security team with visibility and control.

To learn more about Darktrace’s application of AI to cybersecurity download our White Paper here.  

Reducing blast radius through visibility and control

Secure-by-design principles depend on understanding how users, devices, and systems behave. By learning the normal patterns of identity and network activity, Darktrace helps teams identify when access is being misused or when activity begins to move beyond expected boundaries. This makes it possible to detect and contain lateral movement early, limiting how far an attacker can progress even after initial access.

Detecting and containing threats at the earliest stage  

As AI accelerates vulnerability discovery, defenders need to identify exploitation before it is formally recognized. Darktrace’s behavioral understanding approach enables detection of subtle deviations from normal activity, including those linked to previously unknown vulnerabilities.

A key example of this is our research on identifying cyber threats before public CVE disclosures, demonstrating that assessing activity against what is normal for a specific environment, rather than relying on predefined indicators of compromise, enables detection of intrusions exploiting previously unknown vulnerabilities days or even weeks before details become publicly available.

Additionally, our Autonomous Response capability provides fast, targeted containment focused on the most concerning events, while allowing normal business operations to continue. This has consistently shown that even when attackers use techniques never seen before, Darktrace’s Autonomous Response can contain threats before they have a chance to escalate.

Scaling response without increasing operational burden

As early-stage incidents become more frequent, the ability to investigate and respond efficiently becomes critical. Darktrace’s Cyber AI Analyst’s AI-driven investigation capabilities automatically correlate activity across the environment, prioritizing the most significant threats and reducing the need for manual triage. This allows security teams to respond faster and more consistently, without increasing workload or burnout.

What effective defense looks like in an AI-accelerated landscape

Developments like Mythos highlight a reality that has been building for some time: the window between exposure and exploitation is shrinking, and in many cases, it may disappear entirely. In that environment, relying on patching alone becomes increasingly reactive, leaving little room to respond once access has been established.

The more durable approach is to assume that compromise will occur and focus on controlling what happens next. That means identifying early signs of misuse, containing threats before they spread, and maintaining visibility across the environment so that isolated signals can be understood in context.

AI plays a role on both sides of this equation. While it enables attackers to move faster, it also gives defenders the ability to detect subtle changes in behavior, prioritize what matters, and respond in real time. The advantage will not come from adopting AI in isolation, but from applying it in a way that reduces the gap between detection and action.

AI may be accelerating parts of the attack lifecycle, but the fundamentals of defense, detection, and containment still apply. If anything, they matter more than ever – and AI is just as powerful a tool for defenders as it is for attackers.

To learn more about Darktrace and Mythos read more on our blog: Mythos vs Ethos: Defending in an Era of AI‑Accelerated Vulnerability Discovery

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About the author
Toby Lewis
Head of Threat Analysis
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