Blog
/
/
October 1, 2017

Feodo Banking Trojan Threatens Government Network

Learn how AI detected new Feodo banking Trojan on a government network and the resurgence of the Feodo banking trojan on a government network.
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
Andrew Tsonchev
VP, Security & AI Strategy, Field CISO
Default blog imageDefault blog imageDefault blog imageDefault blog imageDefault blog imageDefault blog image
01
Oct 2017

Famous malware like Zeus, Conficker, and CryptoLocker are still some of the most common threats globally. By repurposing and repackaging known threats like these, attackers can create unknown variants that bypass signature-based security tools.

For instance, an older class of banking Trojans – known as Feodo – recently cropped up again on the network of a local US government. However, this particular strain had a key differentiator.

Darktrace detected the malware when it first was downloaded onto the government’s network. After analysis, the malware was found to be consistent with two well-documented Trojans in the Feodo family: Dridex and Emotet.

Traditionally, Trojans in the Feodo family will infect just a single device, but this attack immediately began propagating on the network, spreading to over 200 devices in a matter of hours.

The incident is part of an emerging trend of similar infections, suggesting that the Feodo family of Trojans is undergoing a resurgence, but this time retooled with ability to rapidly spread across the network.

Darktrace first detected the threat when an internal device made a series of anomalous SSL connections to IPs with self-signed certificates. The abnormal connections were a deviation from what Darktrace’s AI algorithms had learned to be normal, triggering Darktrace to raise the first in a series of alerts.

Time: 2017-04-26 11:38:05 [UTC]
Source: 172.16.14.39
Destination: 76.164.161.46
Destination Port: 995
Protocol: SSL
Version: TLSv12 [Considered HIGH security]
Cipher: TLS_RSA_WI TH_AES_256_ GCM_SHA384 [Considered HIGH security]
UID: CbenK822ViUMxJok00

The identical IP certificate subject and issuer:
Subject: CN=euwtrdjuee.biz,OU=Tslspyqh Dfxdekt Brftapckwr,O=Kaqt Aooscr LLC.,street=132 Vfjteuadivm Fklhnxdmza.,L=Elqazgap Nvax,ST=XI,C=PO
Issuer: CN=euwtrdjuee.biz,OU=Tslspyqh Dfxdekt Brftapckwr,O=Kaqt Aooscr LLC.,street=132 Vfjteuadivm Fklhnxdmza.,L=Elqazgap Nvax,ST=XI,C=PO

The device proceeded to download an anomalous ZIP file from an unusual external server. The email purported to be a notification from FedEx, and the file was disguised as an attachment containing tracking numbers. The download was nearly identical to the malicious files usually seen in Dridex and Emotet infections.

Time: 2017-04-28 16:01:03 [UTC]
Source: 172.16.14.39
Destination: 89.38.128.232
Destination Port: 80/tcp
Protocol: HTTP
Path: hxxp://XX[.]ro/UPS__Ship__Notification__Tracking__Number__2SM099383266006810/Y0894C/FEDEX-TRACK/track-tracknumbers-673639733202/
Filename: fedex-track-tracknumbers-133977976498-language-en.zip
Mime Type: application/zip

After downloading the ZIP, the device wrote an executable file to a second device via SMB. This strongly suggested that the infection was spreading, and quickly.

Time: 2017-04-28 16:52:57 [UTC]
Source: 172.16.14.39
Destination: 172.16.10.41
Destination Port: 445/tcp
Protocol: SMB
Action: write
Filename: tptzfqa.exe
Path: \\PU12881\C$
Write Size: 65536
UID: Cxq64s3tCi1vq4Uo00

The graph shows the internal connectivity of the initial device. The spike in activity, which includes numerous alerts due to unusual behavior, occurs immediately following the SMB write made by the original device.

Devices across the network started to mimic this activity by performing the same type of SMB write, each time with the same amount of data – 65536B – and a random string of characters followed by the .exe filetype.

Meanwhile, the initial device was flagged for making a large number of SMB and Kerberos login attempts. At this point, the infection had spread to over 200 devices, which were all attempting to bruteforce passwords using the same credentials as the original device, in addition to standard usernames like ‘Administrator’ and ‘misadmin’.

Bruteforcing over SMB is consistent with lateral movement seen in recent instances of Emotet, in which the Trojan was seen with new, built-in functionality designed for network propagation.

As the malware continued to spread in the government network, devices began making anomalous SSL connections without SNI (Server Name Indication).

This series of anomalies represented a massive deviation from the network’s normal ‘pattern of life’, causing the Enterprise Immune System to raise three high-priority alerts in real time: one alert for the SMB session bruteforce, another for the Kerberos activity, and another for the anomalous SSL connections without SNI.

The final anomaly occurred when devices made a flurry of unusual DNS requests for DGA-generated domains, often involving rare TLDs such as .biz and .info. The DNS requests illustrate a sophisticated method to disguise communications to the attacker’s command and control centers. Darktrace’s AI algorithms deemed this domain fluxing activity to be highly unusual compared to ordinary behavior, thus raising one final alert before the security team was able to intervene.

A sample of the DNS requests:

15:33:00 hd12530.mi.SALTEDHAZE.org made a successful DNS request for rbqfkjjemttqumeobxb.org to dc1-2012.mi.[REDACTED].org
15:33:10 hd12530.mi.SALTEDHAZE.org made a successful DNS request for tmmiqtsdnkjdcqr.biz to dc1-2012.mi.SALTEDHAZE.org
15:33:20 hd12530.mi.SALTEDHAZE.org made a successful DNS request for mehqdlodsgggehchxdwfsmmoq.biz to dc1-2012.mi.SALTEDHAZE.org

Taken on their own, each of these anomalies could be explained as an isolated incident or perhaps a false-positive. But taken together, they form a broader picture of a widespread and aggressive infection, in which an external hacker had taken control of over 200 devices and was using them to attempt to harvest the users’ banking credentials and transfer funds into their own account.

In accordance with the Feodo family of banking Trojans, the malware was likely attempting to steal banking credentials by intercepting web form submissions. Yet, by adding the ability to spread through the network, the attacker was able to create a completely novel attack type that circumvented the perimeter security controls and infected over 200 devices.

As the threat progressed, the Enterprise Immune System raised real-time alerts and revealed in-depth details on the nature of the compromise. Using this information, the government’s security team was able to remediate the situation before any banking credentials could be stolen.

To learn more about the threats Darktrace finds, check out our Threat Use Cases page which discusses a host of other novel infections that were stopped by the Enterprise Immune System.

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
Andrew Tsonchev
VP, Security & AI Strategy, Field CISO

More in this series

No items found.

Blog

/

AI

/

April 28, 2026

State of AI Cybersecurity 2026: 87% of security professionals are seeing more AI-driven threats, but few feel ready to stop them

Default blog imageDefault blog image

The findings in this blog are taken from Darktrace’s annual State of AI Cybersecurity Report 2026.

In part 1 of this blog series, we explored how AI is remaking the attack surface, with new tools, models, agents — and vulnerabilities — popping up just about everywhere. Now embedded in workflows across the enterprise, and often with far-reaching access to sensitive data, AI systems are quickly becoming a favorite target of cyber threat actors.

Among bad actors, though, AI is more often used as a tool than a target. Nearly 62% of organizations  experienced a social engineering attack involving a deepfake, or an incident in which bad actors used AI-generated video or audio to try to trick a biometric authentication system, compared to 32% that reported an AI prompt injection attack.

In the hands of attackers, AI can do many things. It’s being used across the entire kill chain: to supercharge reconnaissance, personalize phishing, accelerate lateral movement, and automate data exfiltration. Evidence from Anthropic demonstrates that threat actors have harnessed AI to orchestrate an entire cyber espionage campaign from end to end, allegedly running it with minimal human involvement.

CISOs inhabit a world where these increasingly sophisticated attacks are ubiquitous. Naturally, combatting AI-powered threats is top of mind among security professionals, but many worry about whether their capabilities are up to the challenge.

AI-powered threats at scale: no longer hypothetical

AI-driven threats share signature characteristics. They operate at speed and scale. Automated tools can probe multiple attack paths, search for multiple vulnerabilities and send out a barrage of phishing emails, all within seconds. The ability to attack everywhere at once, at a pace that no human operator could sustain, is the hallmark of an AI-powered threat. AI-powered threats are also dynamic. They can adapt their behavior to spread across a network more efficiently or rewrite their own code to evade detection.

Security teams are seeing the signs that they’re fighting AI-powered threats at every stage of the kill chain, and the sophistication of these threats is testing their resolve and their resources.

  • 73% say that AI-powered cyber threats are having a significant impact on their organization
  • 92% agree that these threats are forcing them to upgrade their defenses
  • 87% agree that AI is significantly increasing the sophistication and success rate of malware
  • 87% say AI is significantly increasing the workload of their security operations team

These teams now confront a challenge unlike anything they’ve seen before in their careers, and the risks are compounding across workflows, tools, data, and identities. It’s no surprise that 66% of security professionals say their role is more stressful today than it was five years ago, or that 47% report feeling overwhelmed at work.

Up all night: Security professionals’ worry list is long

Traditional security methods were never built to handle the complexity and subtlety of AI-driven behavior. Working in the trenches, defenders have deep firsthand experience of how difficult it can be to detect and stop AI-assisted threats.

Increasingly effective social engineering attacks are among their top concerns. 50% of security leaders mentioned hyper-personalized phishing campaigns as one of their biggest worries, while 40% voiced apprehension about deepfake voice fraud. These concerns are legitimate: AI-generated phishing emails are increasingly tailored to individual organizations, business activities, or individuals. Gone are the telltale signs – like grammar or spelling mistakes – that once distinguished malicious communications. Notably, 33% of the malicious emails Darktrace observed in 2025 contained over 1,000 characters, indicating probable LLM usage.

Security leaders also worry about how bad actors can leverage AI to make attacks even faster and more dynamic. 45% listed automated vulnerability scanning and exploit chaining among their biggest concerns, while 40% mentioned adaptive malware.

Confidence is lacking

Protecting against AI demands capabilities that many organizations have not yet built. It requires interpreting new indicators, uncovering the subtle intent within interactions, and recognizing when AI behavior – human or machine – could be suspicious. Leaders know that their current tools aren’t prepared for this. Nearly half don’t feel confident in their ability to defend against AI-powered attacks.

We’ve asked participants in our survey about their confidence for the last three years now. In 2024, 60% said their organizations were not adequately prepared to defend against AI-driven threats. Last year, that percentage shrunk to 45%, a possible indicator that security programs were making progress. Since then, however, the progress has apparently stalled. 46% of security leaders now feel inadequately prepared to protect their organizations amidst the current threat landscape.

Some of these differences are accentuated across different cultures. Respondents in Japan are far less confident (77% say they are not adequately prepared) than respondents in Brazil (where only 21% don’t feel prepared).

Where security programs are falling short

It’s no longer the case that cybersecurity is overlooked or underfunded by executive leadership. Across industries, management recognizes that AI-powered threats are a growing problem, and insufficient budget is near the bottom of most CISO’s list of reasons that they struggle to defend against AI-powered threats.  

It’s the things that money can’t buy – experience, knowledge, and confidence – that are holding programs back. Near the top of the list of inhibitors that survey participants mention is “insufficient knowledge or use of AI-driven countermeasures.” As bad actors embrace AI technologies en masse, this challenge is coming into clearer focus: attack-centric security tools, which rely on static rules, signatures, and historical attack patterns, were never designed to handle the complexity and subtlety of AI-driven attacks. These challenges feel new to security teams, but they are the core problems Darktrace was built to solve.  

Our Self-Learning AI develops a deep understanding of what “normal” looks like for your organization –including unique traffic patterns, end user habits, application and device profiles – so that it can detect and stop novel, dynamic threats at the first encounter. By focusing on learning the business, rather than the attack, our AI can keep pace with AI-powered threats as they evolve.

Explore the full State of AI Cybersecurity 2026 report for deeper insights into how security leaders are responding to AI-driven risks.

Learn more about securing AI in your enterprise.

[related-resource]

Continue reading
About the author
The Darktrace Community

Blog

/

Email

/

April 24, 2026

Email-Borne Cyber Risk: A Core Challenge for the CISO in the Age of Volume and Sophistication

Default blog imageDefault blog image

The challenge for CISOs

Despite continuous advances in security technologies, humans continue to be exploited by attackers. Credential abuse and social actions like phishing are major factors, accounting for around 60% of all breaches. These attacks rely less on technical vulnerabilities and more on exploiting human behavior and organizational processes. 

From my perspective as a former CISO, protecting humans concentrates three of today’s most pressing challenges: the sheer volume of email-based threats, their increasing sophistication, and the limitations of traditional employee awareness programs in moving the needle on risk. 

My personal experience of security awareness training as a CISO

With over 20 years’ experience as an ICT and Cybersecurity leader across various international organizations, I’ve seen security awareness training (SAT) in many guises. And while the cyber landscape is evolving in every direction, the effectiveness of SAT is reaching a plateau.  

Most programs I’ve seen follow a familiar pattern. Training is delivered through a combination of eLearning modules and internal sessions designed to reinforce IT policies. Employees are typically required to complete a slide deck or video, followed by a multiple-choice quiz. Occasional phishing simulations are distributed throughout the year.

The content is often static and unpersonalized, based on known threats that may already be outdated. Every employee regardless of role or risk exposure receives the same training and the same simulated phishing templates, from front-desk staff to the CEO.

The problem with traditional SAT programs

The issue with the approach to SAT outlined above is that the distribution of power is imbalanced. Humans will always be fallible, particularly when faced with increasingly sophisticated attacks. Providing generic, low-context training risks creating false confidence rather than genuine resilience. Let’s look at some of the problems in detail.

Timing and delivery

Employees today operate under constant cognitive load, making lots of rapid decisions every day to reduce their email volumes. Yet if employees are completing training annually, or on an ad hoc basis, it becomes a standalone occurrence rather than a continuous habit.  

As a result, retention is low. Employees often forget the lessons within weeks, a phenomenon known as the ‘Ebbinghaus Forgetting Curve.’

The graph illustrates that when you first learn something, the information disappears at an exponential rate without retention. In fact, according to the curve, you forget 50% of all new information within a day, and 90% of all new information within a week.  

Simultaneously, most training is conducted within a separate interface. Because it takes place away from the actual moment of decision-making, the "teachable moment" is lost. There is a cognitive disconnect between the action (clicking a link in Outlook) and the education (watching a video in a browser). 

People

In the context of professional risk management, the risks faced by different users are different. Static learning such as everyone receiving the same ‘Password Reset’ email doesn’t help users prepare for the specific threats they are likely to face. It also contributes to user fatigue, driven by repetitive training. And if users receive tests at the same time, news spreads among colleagues, hurting the efficacy of the test.  

Staff turnover introduces further risk. In many organizations, new employees gain access to systems before receiving meaningful training, reducing onboarding to little more than policy acknowledgment.

Measuring success

In my experience, solutions are standalone, without any correlation to other tools in the security stack. In some cases, the programs are delivered by HR rather than the security team, creating a complete silo.  

As a result, SAT is often perceived as a compliance exercise rather than a capability building function. The result is that poor-quality training does little to reduce the likelihood of compromise, regardless of completion rates or quiz performance.

What a modern SAT solution should look like

For today’s CISO, email represents the convergence point of high-volume, high-impact, and human-centric threats. Despite significant security investments, it remains one of the most difficult channels to secure effectively. Given these constraints, CISOs must evolve their approach to SAT.

Success lies in a balanced strategy one that combines advanced technology, attack surface reduction, and pragmatic user enablement, without over-relying on human vigilance as the final line of defense.

This means moving beyond traditional SAT toward continuous, contextual awareness, realistic simulations, and tight integration with security outcomes.

Three requirements for a modern SAT solution

  • Invisible protection: The optimum security solution is one that assists users without impeding their experience. The objective is to enhance human capabilities, rather than simply delivering a lecture. 
  • Real-time feedback: Rather than a monthly quiz, the ideal system would provide a prompt or warning when a user is about to engage with something suspicious. 
  • Positive culture: Shifting the focus away from a "gotcha" culture, which is a contributing factor to a resentment, and instead empowers employees to serve as "sensors" for the company. 

Discover how personalized security coaching can strengthen your human layer and make your email defenses more resilient. Explore Darktrace / Adaptive Human Defense.

Continue reading
About the author
Karim Benslimane
VP, Field CISO
Your data. Our AI.
Elevate your network security with Darktrace AI