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October 26, 2022

Strategies to Prolong Quantum Ransomware Attacks

Learn more about how Darktrace combats Quantum Ransomware changing strategy for cyberattacks. Explore the power of AI-driven network cyber security!
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
Nicole Wong
Cyber Security Analyst
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26
Oct 2022

Within science and engineering, the word ‘quantum’ may spark associations with speed and capability, referencing a superior computer that can perform tasks a classical computer cannot. In cyber security, some may recognize ‘quantum’ in relation to cryptography or, more recently, as the name of a new ransomware group, which achieved network-wide encryption a mere four hours after an initial infection.   

Although this group now has a reputation for carrying out fast and efficient attacks, speed is not their only tactic. In August 2022, Darktrace detected a Quantum Ransomware incident where attackers remained in the victim’s network for almost a month after the initial signs of infection, before detonating ransomware. This was a stark difference to previously reported attacks, demonstrating that as motives change, so do threat actors’ strategies. 

The Quantum Group

Quantum was first identified in August 2021 as the latest of several rebrands of MountLocker ransomware [1]. As part of this rebrand, the extension ‘.quantum’ is appended to filenames that are encrypted and the associated ransom notes are named ‘README_TO_DECRYPT.html’ [2].  

From April 2022, media coverage of this group has increased following a DFIR report detailing an attack that progressed from initial access to domain-wide ransomware within four hours [3]. To put this into perspective, the global median dwell time for ransomware in 2020 and 2021 is 5 days [4]. In the case of Quantum, threat actors gained direct keyboard access to devices merely 2 hours after initial infection. The ransomware was staged on the domain controller around an hour and a half later, and executed 12 minutes after that.   

Quantum’s behaviour bears similarities to other groups, possibly due to their history and recruitment. Several members of the disbanded Conti ransomware group are reported to have joined the Quantum and BumbleBee operations. Security researchers have also identified similarities in the payloads and C2 infrastructure used by these groups [5 & 6].  Notably, these are the IcedID initial payload and Cobalt Strike C2 beacon used in this attack. Darktrace has also observed and prevented IcedID and Cobalt Strike activity from BumbleBee across several customer environments.

The Attack

From 11th July 2022, a device suspected to be patient zero made repeated DNS queries for external hosts that appear to be associated with IcedID C2 traffic [7 & 8]. In several reported cases [9 & 10], this banking trojan is delivered through a phishing email containing a malicious attachment that loads an IcedID DLL. As Darktrace was not deployed in the prospect’s email environment, there was no visibility of the initial access vector, however an example of a phishing campaign containing this payload is presented below. It is also possible that the device was already infected prior to joining the network. 

Figure 1- An example phishing email used to distribute IcedID. If configured, Darktrace/Email would be able to detect that the email was sent from an anomalous sender, was part of a fake reply chain, and had a suspicious attachment containing compressed content of unusual mime type [11].    

 

Figure 2- The DNS queries to endpoints associated with IcedID C2 servers, taken from the infected device’s event log.  Additional DNS queries made to other IcedID C2 servers are in the list of IOCs in the appendices.  The repeated DNS queries are indicative of beaconing.


It was not until 22nd July that activity was seen which indicated the attack had progressed to the next stage of the kill chain. This contrasts the previously seen attacks where the progression to Cobalt Strike C2 beaconing and reconnaissance and lateral movement occurred within 2 hours of the initial infection [12 & 13]. In this case, patient zero initiated numerous unusual connections to other internal devices using a compromised account, connections that were indicative of reconnaissance using built-in Windows utilities:

·      DNS queries for hostnames in the network

·      SMB writes to IPC$ shares of those hostnames queried, binding to the srvsvc named pipe to enumerate things such as SMB shares and services on a device, client access permissions on network shares and users logged in to a remote session

·      DCE-RPC connections to the endpoint mapper service, which enables identification of the ports assigned to a particular RPC service

These connections were initiated using an existing credential on the device and just like the dwelling time, differed from previously reported Quantum group attacks where discovery actions were spawned and performed automatically by the IcedID process [14]. Figure 3 depicts how Darktrace detected that this activity deviated from the device’s normal behaviour.  

Figure 3- This figure displays the spike in active internal connections initiated by patient zero. The coloured dots represent the Darktrace models that were breached, detecting this unusual reconnaissance and lateral movement activity.

Four days later, on the 26th of July, patient zero performed SMB writes of DLL and MSI executables to the C$ shares of internal devices including domain controllers, using a privileged credential not previously seen on the patient zero device. The deviation from normal behaviour that this represents is also displayed in Figure 3. Throughout this activity, patient zero made DNS queries for the external Cobalt Strike C2 server shown in Figure 4. Cobalt Strike has often been seen as a secondary payload delivered via IcedID, due to IcedID’s ability to evade detection and deploy large scale campaigns [15]. It is likely that reconnaissance and lateral movement was performed under instructions received by the Cobalt Strike C2 server.   

Figure 4- This figure is taken from Darktrace’s Advanced Search interface, showing a DNS query for a Cobalt Strike C2 server occurring during SMB writes of .dll files and DCE-RPC requests to the epmapper service, demonstrating reconnaissance and lateral movement.


The SMB writes to domain controllers and usage of a new account suggests that by this stage, the attacker had achieved domain dominance. The attacker also appeared to have had hands-on access to the network via a console; the repetition of the paths ‘programdata\v1.dll’ and ‘ProgramData\v1.dll’, in lower and title case respectively, suggests they were entered manually.  

These DLL files likely contained a copy of the malware that injects into legitimate processes such as winlogon, to perform commands that call out to C2 servers [16]. Shortly after the file transfers, the affected domain controllers were also seen beaconing to external endpoints (‘sezijiru[.]com’ and ‘gedabuyisi[.]com’) that OSINT tools have associated with these DLL files [17 & 18]. Moreover, these SSL connections were made using a default client fingerprint for Cobalt Strike [19], which is consistent with the initial delivery method. To illustrate the beaconing nature of these connections, Figure 5 displays the 4.3 million daily SSL connections to one of the C2 servers during the attack. The 100,000 most recent connections were initiated by 11 unique source IP addresses alone.

Figure 5- The Advanced Search interface, querying for external SSL connections from devices in the network to an external host that appears to be a Cobalt Strike C2 server. 4.3 million connections were made over 8 days, even after the ransomware was eventually detonated on 2022-08-03.


Shortly after the writes, the attack progressed to the penultimate stage. The next day, on the 27th of July, the attackers moved to achieve their first objective: data exfiltration. Data exfiltration is not always performed by the Quantum ransomware gang. Researchers have noted discrepancies between claims of data theft made in their ransom notes versus the lack of data seen leaving the network, although this may have been missed due to covert exfiltration via a Cobalt Strike beacon [20]. 

In contrast, this attack displayed several gigabytes of data leaving internal devices including servers that had previously beaconed to Cobalt Strike C2 servers. This data was transferred overtly via FTP, however the attacker still attempted to conceal the activity using ephemeral ports (FTP in EPSV mode). FTP is an effective method for attackers to exfiltrate large files as it is easy to use, organizations often neglect to monitor outbound usage, and it can be shipped through ports that will not be blocked by traditional firewalls [21].   

Figure 6 displays an example of the FTP data transfer to attacker-controlled infrastructure, in which the destination share appears structured to identify the organization that the data was stolen from, suggesting there may be other victim organizations’ data stored. This suggests that data exfiltration was an intended outcome of this attack. 

Figure 6- This figure is from Darktrace’s Advanced Search interface, displaying some of the data transferred from an internal device to the attacker’s FTP server.

 
Data was continuously exfiltrated until a week later when the final stage of the attack was achieved and Quantum ransomware was detonated. Darktrace detected the following unusual SMB activity initiated from the attacker-created account that is a hallmark for ransomware (see Figure 7 for example log):

·      Symmetric SMB Read to Write ratio, indicative of active encryption

·      Sustained MIME type conversion of files, with the extension ‘.quantum’ appended to filenames

·      SMB writes of a ransom note ‘README_TO_DECRYPT.html’ (see Figure 8 for an example note)

Figure 7- The Model Breach Event Log for a device that had files encrypted by Quantum ransomware, showing the reads and writes of files with ‘.quantum’ appended to encrypted files, and an HTML ransom note left where the files were encrypted.

 

Figure 8- An example of the ransom note left by the Quantum gang, this one is taken from open-sources [22].


The example in Figure 8 mentions that the attacker also possessed large volumes of victim data.  It is likely that the gigabytes of data exfiltrated over FTP were leveraged as blackmail to further extort the victim organization for payment.  

Darktrace Coverage

 

Figure 9- Timeline of Quantum ransomware incident


If Darktrace/Email was deployed in the prospect’s environment, the initial payload (if delivered through a phishing email) could have been detected and held from the recipient’s inbox. Although DETECT identified anomalous network behaviour at each stage of the attack, since the incident occurred during a trial phase where Darktrace could only detect but not respond, the attack was able to progress through the kill chain. If RESPOND/Network had been configured in the targeted environment, the unusual connections observed during the initial access, C2, reconnaissance and lateral movement stages of the attack could have been blocked. This would have prevented the attackers from delivering the later stage payloads and eventual ransomware into the target network.

It is often thought that a properly implemented backup strategy is sufficient defense against ransomware [23], however as discussed in a previous Darktrace blog, the increasing frequency of double extortion attacks in a world where ‘data is the new oil’ demonstrates that backups alone are not a mitigation for the risk of a ransomware attack [24]. Equally, the lack of preventive defenses in the target’s environment enabled the attacker’s riskier decision to dwell in the network for longer and allowed them to optimize their potential reward. 

Recent crackdowns from law enforcement on ransomware groups have shifted these groups’ approaches to aim for a balance between low risk and significant financial rewards [25]. However, given the Quantum gang only have a 5% market share in Q2 2022, compared to the 13.2% held by LockBit and 16.9% held by BlackCat [26], a riskier strategy may be favourable, as a longer dwell time and double extortion outcome offers a ‘belt and braces’ approach to maximizing the rewards from carrying out this attack. Alternatively, the gaps in-between the attack stages may imply that more than one player was involved in this attack, although this group has not been reported to operate a franchise model before [27]. Whether assisted by others or driving for a risk approach, it is clear that Quantum (like other actors) are continuing to adapt to ensure their financial success. They will continue to be successful until organizations dedicate themselves to ensuring that the proper data protection and network security measures are in place. 

Conclusion 

Ransomware has evolved over time and groups have merged and rebranded. However, this incident of Quantum ransomware demonstrates that regardless of the capability to execute a full attack within hours, prolonging an attack to optimize potential reward by leveraging double extortion tactics is sometimes still the preferred action. The pattern of network activity mirrors the techniques used in other Quantum attacks, however this incident lacked the continuous progression of the group’s attacks reported recently and may represent a change of motives during the process. Knowing that attacker motives can change reinforces the need for organizations to invest in preventative controls- an organization may already be too far down the line if it is executing its backup contingency plans. Darktrace DETECT/Network had visibility over both the early network-based indicators of compromise and the escalation to the later stages of this attack. Had Darktrace also been allowed to respond, this case of Quantum ransomware would also have had a very short dwell time, but a far better outcome for the victim.

Thanks to Steve Robinson for his contributions to this blog.

Appendices

References

[1] https://community.ibm.com/community/user/security/blogs/tristan-reed/2022/07/13/ibm-security-reaqta-vs-quantum-locker-ransomware

 

[2] https://www.bleepingcomputer.com/news/security/quantum-ransomware-seen-deployed-in-rapid-network-attacks/

 

[3], [12], [14], [16], [20] https://thedfirreport.com/2022/04/25/quantum-ransomware/

 

[4] https://www.mandiant.com/sites/default/files/2022-04/M-Trends%202022%20Executive%20Summary.pdf

 

[5] https://cyware.com/news/over-650-healthcare-organizations-affected-by-the-quantum-ransomware-attack-d0e776bb/

 

[6] https://www.kroll.com/en/insights/publications/cyber/bumblebee-loader-linked-conti-used-in-quantum-locker-attacks

 

[7] https://github.com/pan-unit42/tweets/blob/master/2022-06-28-IOCs-for-TA578-IcedID-Cobalt-Strike-and-DarkVNC.txt 

 

[8] https://github.com/stamparm/maltrail/blob/master/trails/static/malware/icedid.txt

 

[9], [15] https://www.cynet.com/blog/shelob-moonlight-spinning-a-larger-web-from-icedid-to-conti-a-trojan-and-ransomware-collaboration/

 

[10] https://www.microsoft.com/security/blog/2021/04/09/investigating-a-unique-form-of-email-delivery-for-icedid-malware/

 

[11] https://twitter.com/0xToxin/status/1564289244084011014

 

[13], [27] https://cybernews.com/security/quantum-ransomware-gang-fast-and-furious/

 

[17] https://www.virustotal.com/gui/domain/gedabuyisi.com/relations

 

[18] https://www.virustotal.com/gui/domain/sezijiru.com/relations.

 

[19] https://github.com/ByteSecLabs/ja3-ja3s-combo/blob/master/master-list.txt 

 

[21] https://www.darkreading.com/perimeter/ftp-hacking-on-the-rise

 

[22] https://www.pcrisk.com/removal-guides/23352-quantum-ransomware

 

[23] https://www.cohesity.com/resource-assets/tip-sheet/5-ways-ransomware-renders-backup-useless-tip-sheet-en.pdf

 

[24] https://www.forbes.com/sites/nishatalagala/2022/03/02/data-as-the-new-oil-is-not-enough-four-principles-for-avoiding-data-fires/ 

 

[25] https://www.bleepingcomputer.com/news/security/access-to-hacked-corporate-networks-still-strong-but-sales-fall/

 

[26] https://www.bleepingcomputer.com/news/security/ransom-payments-fall-as-fewer-victims-choose-to-pay-hackers/ 

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
Nicole Wong
Cyber Security Analyst

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April 29, 2025

MFA Under Attack: AiTM Phishing Kits Abusing Legitimate Services

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In late 2024 and early 2025, the Darktrace Security Operations Center (SOC) investigated alerts regarding separate cases of Software-as-a-Service (SaaS) account compromises on two customer environments that presented several similarities, suggesting they were part of a wider phishing campaign.

This campaign was found to leverage the project collaboration and note-taking application, Milanote, and the Tycoon 2FA phishing kit.

Legitimate services abused

As highlighted in Darktrace's 2024 Annual Threat Report [1], threat actors are abusing legitimate services, like Milanote, in their phishing campaigns. By leveraging these trusted platforms and domains, malicious actors can bypass traditional security measures, making their phishing emails appear benign and increasing the likelihood of successful attacks.

Darktrace categorizes these senders and platforms as free content senders. These services allow users to send emails containing custom content (e.g., files) from fully validated, fixed service address belonging to legitimate corporations. Although some of these services permit full body and subject customization by attackers, the structure of these emails is generally consistent, making it challenging to differentiate between legitimate and malicious emails.

What is Tycoon 2FA?

Tycoon 2FA is an Adversary-in-the-Middle (AitM) phishing kit, first seen in August 2023 and distributed via the Phishing-as-a-Service (PhaaS) model [2]. It targets multi-factor authentication (MFA) by intercepting credentials and MFA tokens during authentication on fake Microsoft or Google login pages. The attacker captures session cookies after MFA is completed, allowing them to replay the session and access the user account, even if credentials are reset. The rise in MFA use has increased the popularity of AitM phishing kits like Tycoon 2FA and Mamba 2FA, another AiTM phishing kit investigated by Darktrace.

Initial access via phishing email

At the beginning of 2025, Darktrace observed phishing emails leveraging Milanote being sent to multiple internal recipients in an organization. In this attack, the same email was sent to 19 different users, all of which were held by Darktrace.

The subject line of the emails mentioned both a legitimate internal user of the company, the company name, as well as a Milanote board regarding a “new agreement” in German. It is a common social engineering technique to mention urgent matters, such as unpaid invoices, expired passwords, or awaiting voicemails, in the subject line to prompt immediate action from the user. However, this tactic is now widely covered in phishing awareness training, making users more suspicious of such emails. In this case, while the subject mentioned a “new agreement,” likely raising the recipient’s curiosity, the tone remained professional and not overly alarming. Additionally, the mention of a colleague and the standardized language typical of free content sender emails further helped dispel concerns regarding the email.

These emails were sent by the legitimate address support@milanote[.]com and referenced "Milanote" in the personal field of the header but originated from the freemail address “ahnermatternk.ef.od.13@gmail[.]com”. Darktrace / EMAIL recognized that none of the recipients had previously received a file share email from Milanote, making this sender unfamiliar in the customer's email environment

The emails contained several benign links to legitimate Milanote endpoints (including an unsubscribe link) which were not flagged by Darktrace. However, they also included a malicious link designed to direct recipients to a pre-filled credential harvesting page hosted on Milanote, prompting them to register for an account. Despite not blocking the legitimate Milanote links in the same email, Darktrace locked the malicious link, preventing users from visiting the credential harvester.

Credential harvesting page sent to recipients, as seen in. sandbox environment.
Figure 1: Credential harvesting page sent to recipients, as seen in. sandbox environment.

Around one minute later, one recipient received a legitimate email from Milanote confirming their successful account registration, indicating they had accessed the phishing page. This email had a lower anomaly score and was not flagged by Darktrace / EMAIL because, unlike the first email, it did not contain any suspicious links and was a genuine account registration notification. Similarly, in the malicious Milanote email, only the link leading to the phishing page was blocked, while the benign and legitimate Milanote links remained accessible, demonstrating Darktrace’s precise and targeted actioning.

A legitimate and a malicious Milanote email received by one recipient.
Figure 2: A legitimate and a malicious Milanote email received by one recipient.

Around the same time, Darktrace / NETWORK observed the same user’s device making DNS query for the domain name “lrn.ialeahed[.]com” , which has been flagged as a Tycoon 2FA domain [2], suggesting the use of this phishing platform.

Once the user had entered their details in the credential harvester, it is likely that they were presented a document hosted on Milanote that contained the final payload link – likely hidden behind text instructing users to access a “new agreement” document.

External research indicates that the user was likely directed to a Cloudflare Turnstile challenge meant to reroute unwanted traffic, such as automated security scripts and penetration testing tools [2] [3]. After these checks and other background processes are completed, the user is directed to the final landing page. In this case, it was likely a fake login prompt hosted on the attacker’s server, where the user is asked to authenticate to their account using MFA. By burrowing malicious links and files in this manner, threat actors can evade analysis by traditional security email gateways, effectively bypassing their protection.

Darktrace’s analysis of the structure and word content of the phishing emails resulted in an 82% probability score that the email was malicious, and the email further received a 67% phishing inducement score, representing how closely the structure and word content of the emails compared to typical phishing emails.

All these unusual elements triggered multiple alerts in Darktrace / EMAIL, focusing on two main suspicious aspects: a new, unknown sender with no prior correspondence with the recipients or the environment, and the inclusion of a link to a previously unseen file storage solution.

Milanote phishing email as seen within Darktrace / EMAIL.
Figure 3: Milanote phishing email as seen within Darktrace / EMAIL.

After detecting the fifth email, the “Sender Surge” model alert was triggered in Darktrace / EMAIL due to a significant number of recipients being emailed by this new suspicious sender in a short period. These recipients were from various departments across the customer’s organization, including sales, marketing, purchasing, and production. Darktrace / EMAIL determined that the emails were sent to a highly unusual group of internal recipients, further raising doubts about the business legitimacy.

Darktrace / EMAIL suggested actions to contain the attack by holding all Milanote phishing emails back from recipient’s inboxes, except for the detailed email with locked links. However, autonomous actions were not enabled at the time, allowing the initial email to reach recipients' inboxes, providing a brief window for interaction. Unfortunately, during this window, one recipient clicked on the Milanote payload link, leading to the compromise of their account.

SaaS account takeover

About three minutes after the malicious Milanote email was received, Darktrace / IDENTITY detected an unusual login to the email recipient’s SaaS account. The SaaS actor was observed accessing files from their usual location in Germany, while simultaneously, a 100% rare login occurred from a location in the US that had never been seen in the customer’s environment before. This login was also flagged as suspicious by Microsoft 365, triggering a 'Conditional Access Policy' that required MFA authentication, which was successfully completed.

Tycoon 2FA adnimistration panel login page dated from October 2023 [3].
Figure 4: Tycoon 2FA adnimistration panel login page dated from October 2023 [3].

Despite the successful authentication, Darktrace / IDENTITY recognized that the login from this unusual location, coupled with simultaneous activity in another geographically distant location, were highly suspicious. Darktrace went on to observe MFA-validated logins from three separate US-based IP addresses: 89.185.80[.]19, 5.181.3[.]68, and 38.242.7[.]252. Most of the malicious activity was performed from the latter, which is associated with the Hide My Ass (HMA) VPN network [5].

Darktrace’s detection of the suspicious login from the US while the legitimate user was logged in from Germany.
Figure 5: Darktrace’s detection of the suspicious login from the US while the legitimate user was logged in from Germany.
Darktrace’s detection of the suspicious login following successful MFA authentication.
Figure 6: Darktrace’s detection of the suspicious login following successful MFA authentication.

Following this, the malicious actor accessed the user’s inbox and created a new mailbox rule named “GTH” that deleted any incoming email containing the string “milanote” in the subject line or body. Rules like this are a common technique used by attackers to leverage compromised accounts for launching phishing campaigns and concealing replies to phishing emails that might raise suspicions among legitimate account holders. Using legitimate, albeit compromised, accounts to send additional phishing emails enhances the apparent legitimacy of the malicious emails. This tactic has been reported as being used by Tycoon 2FA attackers [4].

The attacker accessed over 140 emails within the legitimate user’s inbox, including both the inbox and the “Sent Items” folder. Notably, the attacker accessed five emails in the “Sent Items” folder and modified their attachments. These emails were mainly related to invoices, suggesting the threat actor may have been looking to hijack those email threads to send fake invoices or replicate previous invoice emails.

Darktrace’s Cyber AI AnalystTM launched autonomous investigations into the individual events surrounding this suspicious activity. It connected these separate events into a single, broad account takeover incident, providing the customer with a clearer view of the ongoing compromise.

Cyber AI Analyst’s detection of unusual SaaS account activities in a single incident.
Figure 7: Cyber AI Analyst’s detection of unusual SaaS account activities in a single incident.
Cyber AI Analyst investigation of suspicious activities performed by the attacker.
Figure 8: Cyber AI Analyst investigation of suspicious activities performed by the attacker.

Darktrace's response

Within three minutes of the first unusual login alert, Darktrace’s Autonomous Response intervened, disabling the compromised user account for two hours.

As the impacted customer was subscribed to the Managed Threat Detection Service, Darktrace’s SOC team investigated the activity further and promptly alerted the customer’s security team. With the user’s account still disabled by Autonomous Response, the attack was contained, allowing the customer’s security team valuable time to investigate and remediate. Within ten minutes of receiving the alert from Darktrace’s SOC, they reset the user’s password, closed all active SaaS sessions, and deleted the malicious email rule. Darktrace’s SOC further supported the customer through the Security Operations Service Support service by providing information about the data accessed and identifying any other affected users.

Autonomous Response actions carried out by Darktrace / IDENTITY to contain the malicious activity
Figure 9: Autonomous Response actions carried out by Darktrace / IDENTITY to contain the malicious activity.

A wider Milanote phishing campaign?

Around a month before this compromise activity, Darktrace alerted another customer to similar activities involving two compromised user accounts. These accounts created new inbox rules named “GFH” and “GVB” to delete all incoming emails containing the string “milanote” in their subject line and/or body.

The phishing emails that led to the compromise of these user accounts were similar to the ones discussed above. Specifically, these emails were sent via the Milanote platform and referenced a “new agreement” (in Spanish) being shared by a colleague. Additionally, the payload link included in the phishing emails showed the same UserPrincipalName (UPN) attribute (i.e., click?upn=u001.qLX9yCzR), which has been seen in other Milanote phishing emails leveraging Tycoon 2FA reported by OSINT sources [6]. Interestingly, in some cases, the email also referenced a “new agreement” in Portuguese, indicating a global campaign.

Based on the similarities in the rule’s naming convention and action, as well as the similarities in the phishing email subjects, it is likely that these were part of the same campaign leveraging Milanote and Tycoon 2FA to compromise user accounts. Since its introduction, the Tycoon 2FA phishing kit has undergone several enhancements to increase its stealth and obfuscation methods, making it harder for security tools to detect. For example, the latest versions contain special source code to obstruct web page analysis by defenders, prevent users from copying meaningful text from the phishing webpages, and disable the right-click menu to prevent offline analysis [4].

Conclusion

Threat actors are continually employing new methods to bypass security detection tools and measures. As highlighted in this blog, even robust security mechanisms like MFA can be compromised using AitM phishing kits. The misuse of legitimate services such as Milanote for malicious purposes can help attackers evade traditional email security solutions by blurring the distinction between legitimate and malicious content.

This is why security tools based on anomaly detection are crucial for defending against such attacks. However, user awareness is equally important. Delays in processing can impact the speed of response, making it essential for users to be informed about these threats.

Appendices

References

[1] https://www.darktrace.com/resources/annual-threat-report-2024

[2] https://www.validin.com/blog/tycoon_2fa_analyzing_and_hunting_phishing-as-a-service_domains

[3] https://blog.sekoia.io/tycoon-2fa-an-in-depth-analysis-of-the-latest-version-of-the-aitm-phishing-kit/#h-iocs-amp-technical-details

[4] https://blog.barracuda.com/2025/01/22/threat-spotlight-tycoon-2fa-phishing-kit

[5] https://spur.us/context/38.242.7.252    

[6] https://any.run/report/5ef1ac94e4c6c1dc35579321c206453aea80d414108f9f77abd2e2b03ffbd658/be5351d9-53c0-470b-8708-ee2e29300e70

Indicators of Compromise (IoCs)

IoC         Type      Description + Probability

89.185.80[.]19 - IP Address - Malicious login

5.181.3[.]68 - IP Address -Malicious login

38.242.7[.]252 - IP Address - Malicious login and new email inbox rule creation -  Hide My Ass VPN

lrn.ialeahed[.]com – Hostname - Likely Tycoon 2FA domain

Darktrace Model Detections

Email alerts

Platforms / Free Content Sender + High Sender Surge

Platforms / Free Content Sender + Sender Surge

Platforms / Free Content Sender + Unknown Initiator

Platforms / Free Content Sender

Platforms / Free Content Sender + First Time Recipient

Unusual / New Sender Surge

Unusual / Sender Surge

Antigena Anomaly / High Antigena Anomaly

Association / Unknown Sender

History / New Sender

Link / High Rarity Link to File Storage

Link/ Link To File Storage

Link / Link to File Storage + Unknown Sender

Link / Low Link Association

Platforms / Free Content Sender + First Time Initiator

Platforms / Free Content Sender + Unknown Initiator + Freemail

Platforms / Free Content Sender Link

Unusual / Anomalous Association

Unusual / Unlikely Recipient Association

IDENTITY

SaaS / Access / Unusual External Source for SaaS Credential Use

SaaS / Compromise / Login from Rare High Risk Endpoint

SaaS / Access / M365 High Risk Level Login

SaaS / Compromise / Login From Rare Endpoint While User Is Active

SaaS / Access / MailItemsAccessed from Rare Endpoint

SaaS / Unusual Activity / Multiple Unusual SaaS Activities

SaaS / Unusual Activity / Multiple Unusual External Sources For SaaS Credential

SaaS / Compliance / Anomalous New Email Rule

SaaS / Compromise / Unusual Login and New Email Rule

SaaS / Compromise / SaaS Anomaly Following Anomalous Login

Antigena / SaaS / Antigena Suspicious SaaS Activity Block

Antigena / SaaS / Antigena Enhanced Monitoring from SaaS User Block

Antigena / SaaS / Antigena Unusual Activity Block

Antigena / SaaS / Antigena Suspicious SaaS and Email Activity Block

Cyber AI Analyst Incident

Possible Hijack of Office365 Account

MITRE ATT&CK Mapping

Tactic – Technique

DEFENSE EVASION, PERSISTENCE, PRIVILEGE ESCALATION, INITIAL ACCESS - Cloud Accounts

INITIAL ACCESS - Phishing

CREDENTIAL ACCESS - Steal Web Session Cookie

PERSISTENCE - Account Manipulation

PERSISTENCE - Outlook Rules

RESOURCE DEVELOPMENT - Email Accounts

RESOURCE DEVELOPMENT - Compromise Accounts

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About the author
Alexandra Sentenac
Cyber Analyst

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April 29, 2025

The Importance of NDR in Resilient XDR

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As threat actors become more adept at targeting and disabling EDR agents, relying solely on endpoint detection leaves critical blind spots.

Network detection and response (NDR) offers the visibility and resilience needed to catch what EDR can’t especially in environments with unmanaged devices or advanced threats that evade local controls.

This blog explores how threat actors can disable or bypass EDR-based XDR solutions and demonstrates how Darktrace’s approach to NDR closes the resulting security gaps with Self-Learning AI that enables autonomous, real-time detection and response.

Threat actors see local security agents as targets

Recent research by security firms has highlighted ‘EDR killers’: tools that deliberately target EDR agents to disable or damage them. These include the known malicious tool EDRKillShifter, the open source EDRSilencer, EDRSandblast and variants of Terminator, and even the legitimate business application HRSword.

The attack surface of any endpoint agent is inevitably large, whether the software is challenged directly, by contesting its local visibility and access mechanisms, or by targeting the Operating System it relies upon. Additionally, threat actors can readily access and analyze EDR tools, and due to their uniformity across environments an exploit proven in a lab setting will likely succeed elsewhere.

Sophos have performed deep research into the EDRShiftKiller tool, which ESET have separately shown became accessible to multiple threat actor groups. Cisco Talos have reported via TheRegister observing significant success rates when an EDR kill was attempted by ransomware actors.

With the local EDR agent silently disabled or evaded, how will the threat be discovered?

What are the limitations of relying solely on EDR?

Cyber attackers will inevitably break through boundary defences, through innovation or trickery or exploiting zero-days. Preventive measures can reduce but not completely stop this. The attackers will always then want to expand beyond their initial access point to achieve persistence and discover and reach high value targets within the business. This is the primary domain of network activity monitoring and NDR, which includes responsibility for securing the many devices that cannot run endpoint agents.

In the insights from a CISA Red Team assessment of a US CNI organization, the Red Team was able to maintain access over the course of months and achieve their target outcomes. The top lesson learned in the report was:

“The assessed organization had insufficient technical controls to prevent and detect malicious activity. The organization relied too heavily on host-based endpoint detection and response (EDR) solutions and did not implement sufficient network layer protections.”

This proves that partial, isolated viewpoints are not sufficient to track and analyze what is fundamentally a connected problem – and without the added visibility and detection capabilities of NDR, any downstream SIEM or MDR services also still have nothing to work with.

Why is network detection & response (NDR) critical?

An effective NDR finds threats that disable or can’t be seen by local security agents and generally operates out-of-band, acquiring data from infrastructure such as traffic mirroring from physical or virtual switches. This means that the security system is extremely inaccessible to a threat actor at any stage.

An advanced NDR such as Darktrace / NETWORK is fully capable of detecting even high-end novel and unknown threats.

Detecting exploitation of Ivanti CS/PS with Darktrace / NETWORK

On January 9th 2025, two new vulnerabilities were disclosed in Ivanti Connect Secure and Policy Secure appliances that were under malicious exploitation. Perimeter devices, like Ivanti VPNs, are designed to keep threat actors out of a network, so it's quite serious when these devices are vulnerable.

An NDR solution is critical because it provides network-wide visibility for detecting lateral movement and threats that an EDR might miss, such as identifying command and control sessions (C2) and data exfiltration, even when hidden within encrypted traffic and which an EDR alone may not detect.

Darktrace initially detected suspicious activity connected with the exploitation of CVE-2025-0282 on December 29, 2024 – 11 days before the public disclosure of the vulnerability, this early detection highlights the benefits of an anomaly-based network detection method.

Throughout the campaign and based on the network telemetry available to Darktrace, a wide range of malicious activities were identified, including the malicious use of administrative credentials, the download of suspicious files, and network scanning in the cases investigated.

Darktrace / NETWORK’s autonomous response capabilities played a critical role in containment by autonomously blocking suspicious connections and enforcing normal behavior patterns. At the same time, Darktrace Cyber AI Analyst™ automatically investigated and correlated the anomalous activity into cohesive incidents, revealing the full scope of the compromise.

This case highlights the importance of real-time, AI-driven network monitoring to detect and disrupt stealthy post-exploitation techniques targeting unmanaged or unprotected systems.

Unlocking adaptive protection for evolving cyber risks

Darktrace / NETWORK uses unique AI engines that learn what is normal behavior for an organization’s entire network, continuously analyzing, mapping and modeling every connection to create a full picture of your devices, identities, connections, and potential attack paths.

With its ability to uncover previously unknown threats as well as detect known threats Darktrace is an essential layer of the security stack. Darktrace has helped secure customers against attacks including 2024 threat actor campaigns against Fortinet’s FortiManager , Palo Alto firewall devices, and more.  

Stay tuned for part II of this series which dives deeper into the differences between NDR types.

Credit to Nathaniel Jones VP, Security & AI Strategy, FCISO & Ashanka Iddya, Senior Director of Product Marketing for their contribution to this blog.

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About the author
Nathaniel Jones
VP, Security & AI Strategy, Field CISO
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