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July 11, 2023

Detecting and Responding to Vendor Email Compromises (VEC)

Learn how Darktrace detected and responded to a March 2023 Vendor Email Compromise (VEC) attacks on customer in the energy industry. Read more here!
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
Tiana Kelly
Deputy Team Lead, London & Cyber Analyst
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11
Jul 2023

Threat Trends: Email Landscape

As organizations and security teams around the world continue to improve their cyber hygiene and strengthen the defenses of their digital environments, threat actors are being forced to adapt and employ more advanced, sophisticated attack methods to achieve their goals.

Vendor Email Compromise (VEC) is one such elaborate and sophisticated type of Business Email Compromise (BEC) attack which exploits pre-existing trusted business relationships to impersonate vendors, with the goal of launching a targeted attack on the vendor’s customers [1].  

In March 2023, Darktrace/Email™ detected an example of a VEC attack on the network of a customer in the energy sector. Darktrace’s Self-Learning AI worked to successfully neutralize the VEC attack before it was able to take hold, by blocking the malicious emails so that they did not reach the inboxes of the intended recipients.

Business Email Compromise (BEC)

BEC is the practice of using deceitful emails to trick an organization into transferring funds or divulging sensitive information to a malicious actor. BEC attacks can have devastating financial consequences for organizations, with the FBI reporting a total of USD 2.7 billion in losses from BEC attacks in 2022 [2].  Along with ransomware attacks, BEC attacks are one of the greatest cyber threats facing organizations.

Vendor Email Compromise (VEC)

VEC represents a “new milestone in the evolution of BEC attacks” having taken BEC attacks “to a whole new level of sophistication” [3]. Traditional BEC attacks involve the impersonation of an upper or middle-management employee by a cybercriminal, who attempts to trick a senior executive or employee with access to the company’s finances into transferring funds [4]. Thus, they are crafted to target a specific individual within an organization.

On the other hand, VEC attack campaigns take this attack style even further as they tend to require a greater understanding of existing vendor-customer business relationships. A cyber-criminal gains access to a legitimate vendor account, the process of which may take months to design and fully implement, and uses the account to spread malicious emails to the vendor’s customers. VEC attacks are complex and difficult to detect, however they share some common features [1,3]:

1. Reconnaissance on the vendor and their customer base – the threat actor conducts in-depth research in an attempt to be as convincing as possible in their impersonation efforts. This process may take weeks or months to complete.

2. Credential stealing through phishing campaigns – the threat actor tricks the vendor’s employees into revealing confidential data or corporate credentials in order to gain access to one of the email accounts belonging to the vendor.

3. Account takeover - once the attacker has gained access to one of the vendor’s email accounts, they will create mailbox rules which forward emails meeting certain conditions (such as having ‘Invoice’ in their subject line) to the threat actor’s inbox. This is typically a lengthy process and requires the malicious actors to harvest as much sensitive information as they need in order to successfully masquerade as vendor employees.

4. Deceitful emails are sent to the vendor’s customers – the attacker crafts and sends a highly sophisticated and difficult to detect email campaign to targeted individuals amongst the vendor’s customers. These emails, which may be embedded into existing email threads, will typically contain instructions on how to wire money to the bank account of an attacker.

There have been many high-profile cases of BEC attacks over the years, one of the most famous being the vendor-impersonating BEC attacks carried out between 2013 and 2015 [5]. This BEC campaign resulted in victim companies transferring a total of USD 120 million to bank accounts under the attacker’s control. As the threat of BEC, and in particular VEC, attacks continue to rise, so too does the importance of being able to detect and respond to them.

Observed VEC Attack  

In March 2023, Darktrace/Email observed a VEC attack on an energy company. Email communication between this customer and one of their third-party vendors was common and took place as part of expected business activity, earning previous emails tags such as “Known Domain Relationship”, “Known Correspondent”, and “Established Domain Relationship”. These tags identify the sender relationship as trusted, causing Darktrace’s AI to typically attribute an anomaly score of 0% to emails from this third-party sender.

Just fifty minutes after the above legitimate email was observed, a group of suspicious emails were sent from the same domain, indicating that the trusted third-party had been compromised. Darktrace’s AI picked up on the peculiarity of these emails straight away, detecting elements of the mails which were out of character compared to the sender’s usual pattern of life, and as a result attributing these emails a 100% anomaly score despite the trusted relationship between the customer and sender domain. These suspicious emails were part of a targeted phishing attack, sent to high value individuals such as the company’s CTO and various company directors.  

Figure 1: Darktrace/Email's interface highlighting tags indicating the trusted relationship between the third-party domain and the customer.

Using methods outside of Darktrace’s visibility, a malicious actor managed to hijack the corporate account of a senior employee of this vendor company. The actor abused this email account to send deceitful emails to multiple employees at the energy company, including senior executives.

Figure 2: This screenshot shows Darktrace/Email’s assessment of emails from the vendor account pre-compromise and post-compromise.

Each of the emails sent by the attacker contained a link to a malicious file hosted inside a SharePoint repository associated with a university that had no association with the energy company. The malicious actor therefore appears to have leveraged a previously hijacked SharePoint repository to host their payload.

Cyber-criminals frequently use legitimate file storage domains to host malicious payloads as traditional gateways often fail to defend against them using reputation checks. The SharePoint file which the attacker sought to distribute to employees of the energy company likely provided wire transfer or bank account update instructions. If the attacker had succeeded in delivering these emails to these employees’ mailboxes, then the employees may have been tricked into performing actions resulting in the transfer of funds to a malicious actor. However, the attacker’s attempts to deliver these emails were thwarted by Darktrace/Email.

Darktrace Coverage

Despite the malicious actor sending their deceitful emails from a trusted vendor account, a range of anomalies were detected by Darktrace’s AI, causing the malicious emails to be given a 100% anomaly score and thus held from their recipients’ mailboxes. Such abnormalities, which represented a deviation in normal behavior, included:

  • The presence of an unexpected, out of character file storage link (known to be used for hosting malicious content)
  • The geographical source of the email
  • The anomalous linguistic structure and content of the email body, which earned the emails a high inducement score
Figure 3: Darktrace/Email’s overview of one of the malicious VEC emails it observed.

Darktrace has a series of models designed to trigger when anomalous features, such as those described above, are detected. The emails which made up this particular VEC attack breached a number of notable Darktrace/Email models. The presence of the suspicious link in the emails caused multiple link-related models to breach, which in turn elicited Darktrace RESPOND™ to perform its ‘double lock link’ action – an action which ensures that a user who has clicked on it cannot follow it to its original source. Models which breached due to the suspicious SharePoint link include:

Link / Link To File Storage

  • Link / Low Link Association
  • Link / New Unknown Link
  • Link / Outlook Hijack
  • Link / Relative Sender Anomaly + New Unknown Link
  • Link / Unknown Storage Service
  • Link / Visually Prominent Link Unexpected for Sender
  • Unusual / Unusual Login Location + Unknown Link

The out-of-character and suspicious linguistic aspects of the emails caused the following Darktrace/Email models to breach:

  • High Anomaly Sender
  • Proximity / Phishing
  • Proximity / Phishing and New Activity
  • Unusual / Inducement Shift High
  • Unusual / Undisclosed Recipients
  • Unusual / Unusual Login Location
  • Unusual / Off Topic

Due to the combination of suspicious features that were detected, tags such as ‘Phishing Link’ and ‘Out of Character’ were also added to these emails by Darktrace/Email. Darktrace’s coverage of these emails’ anomalous features ultimately led Darktrace RESPOND to perform its most severe inhibitive action, ‘hold message’. Applying this action stopped the emails from entering their recipients’ mailboxes. By detecting deviations from the sender’s normal email behavior, Darktrace/Email was able to completely neutralize the emails, and prevent them from potentially leading to significant financial harm.

Conclusion

Despite bypassing the customer’s other security measures, Darktrace/Email successfully identified and held these malicious emails, blocking them from reaching the inboxes of the intended recipients and thus preventing a successful targeted VEC attack. The elaborate and sophisticated nature of VEC attacks makes them particularly perilous to customers, and they can be hard to detect due to their exploitation of trusted relationships, and in this case, their use of legitimate services to host malicious files.

Darktrace’s anomaly-based approach to threat detection means it is uniquely placed to identify deviations in common email behavior, while its autonomous response capabilities allow it to take preventative action against emerging threats without latency.

Credits to: Sam Lister, Senior Analyst, for his contributions to this blog.

Appendices

MITRE ATT&CK Mapping

Tactic - Techniques

Resource Development

  • T1586.002 – Compromise Accounts: Email Accounts
  • T1584.006 – Compromise Infrastructure: Web Services
  • T1608.005 – Stage Capabilities: Link Target

Initial Access

  • T1195 – Supply Chain Compromise
  • T1566.002 – Phishing : Spearphishing Link

References

[1] https://www.cloudflare.com/en-gb/learning/email-security/what-is-vendor-email-compromise/

[2] https://www.ic3.gov/Media/PDF/AnnualReport/2022_IC3Report.pdf

[3] https://heimdalsecurity.com/blog/vendor-email-compromise-vec/

[4] https://www.ncsc.gov.uk/files/Business-email-compromise-infographic.pdf  

[5] https://www.justice.gov/usao-sdny/pr/lithuanian-man-sentenced-5-years-prison-theft-over-120-million-fraudulent-business

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
Tiana Kelly
Deputy Team Lead, London & Cyber Analyst

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July 2, 2025

Pre-CVE Threat Detection: 10 Examples Identifying Malicious Activity Prior to Public Disclosure of a Vulnerability

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Vulnerabilities are weaknesses in a system that can be exploited by malicious actors to gain unauthorized access or to disrupt normal operations. Common Vulnerabilities and Exposures (or CVEs) are a list of publicly disclosed cybersecurity vulnerabilities that can be tracked and mitigated by the security community.

When a vulnerability is discovered, the standard practice is to report it to the vendor or the responsible organization, allowing them to develop and distribute a patch or fix before the details are made public. This is known as responsible disclosure.

With a record-breaking 40,000 CVEs reported for 2024 and a predicted higher number for 2025 by the Forum for Incident Response and Security Teams (FIRST) [1], anomaly-detection is essential for identifying these potential risks. The gap between exploitation of a zero-day and disclosure of the vulnerability can sometimes be considerable, and retroactively attempting to identify successful exploitation on your network can be challenging, particularly if taking a signature-based approach.

Detecting threats without relying on CVE disclosure

Abnormal behaviors in networks or systems, such as unusual login patterns or data transfers, can indicate attempted cyber-attacks, insider threats, or compromised systems. Since Darktrace does not rely on rules or signatures, it can detect malicious activity that is anomalous even without full context of the specific device or asset in question.

For example, during the Fortinet exploitation late last year, the Darktrace Threat Research team were investigating a different Fortinet vulnerability, namely CVE 2024-23113, for exploitation when Mandiant released a security advisory around CVE 2024-47575, which aligned closely with Darktrace’s findings.

Retrospective analysis like this is used by Darktrace’s threat researchers to better understand detections across the threat landscape and to add additional context.

Below are ten examples from the past year where Darktrace detected malicious activity days or even weeks before a vulnerability was publicly disclosed.

ten examples from the past year where Darktrace detected malicious activity days or even weeks before a vulnerability was publicly disclosed.

Trends in pre-cve exploitation

Often, the disclosure of an exploited vulnerability can be off the back of an incident response investigation related to a compromise by an advanced threat actor using a zero-day. Once the vulnerability is registered and publicly disclosed as having been exploited, it can kick off a race between the attacker and defender: attack vs patch.

Nation-state actors, highly skilled with significant resources, are known to use a range of capabilities to achieve their target, including zero-day use. Often, pre-CVE activity is “low and slow”, last for months with high operational security. After CVE disclosure, the barriers to entry lower, allowing less skilled and less resourced attackers, like some ransomware gangs, to exploit the vulnerability and cause harm. This is why two distinct types of activity are often seen: pre and post disclosure of an exploited vulnerability.

Darktrace saw this consistent story line play out during several of the Fortinet and PAN OS threat actor campaigns highlighted above last year, where nation-state actors were seen exploiting vulnerabilities first, followed by ransomware gangs impacting organizations [2].

The same applies with the recent SAP Netweaver exploitations being tied to a China based threat actor earlier this spring with subsequent ransomware incidents being observed [3].

Autonomous Response

Anomaly-based detection offers the benefit of identifying malicious activity even before a CVE is disclosed; however, security teams still need to quickly contain and isolate the activity.

For example, during the Ivanti chaining exploitation in the early part of 2025, a customer had Darktrace’s Autonomous Response capability enabled on their network. As a result, Darktrace was able to contain the compromise and shut down any ongoing suspicious connectivity by blocking internal connections and enforcing a “pattern of life” on the affected device.

This pre-CVE detection and response by Darktrace occurred 11 days before any public disclosure, demonstrating the value of an anomaly-based approach.

In some cases, customers have even reported that Darktrace stopped malicious exploitation of devices several days before a public disclosure of a vulnerability.

For example, During the ConnectWise exploitation, a customer informed the team that Darktrace had detected malicious software being installed via remote access. Upon further investigation, four servers were found to be impacted, while Autonomous Response had blocked outbound connections and enforced patterns of life on impacted devices.

Conclusion

By continuously analyzing behavioral patterns, systems can spot unusual activities and patterns from users, systems, and networks to detect anomalies that could signify a security breach.

Through ongoing monitoring and learning from these behaviors, anomaly-based security systems can detect threats that traditional signature-based solutions might miss, while also providing detailed insights into threat tactics, techniques, and procedures (TTPs). This type of behavioral intelligence supports pre-CVE detection, allows for a more adaptive security posture, and enables systems to evolve with the ever-changing threat landscape.

Credit to Nathaniel Jones (VP, Security & AI Strategy, Field CISO), Emma Fougler (Global Threat Research Operations Lead), Ryan Traill (Analyst Content Lead)

References and further reading:

  1. https://www.first.org/blog/20250607-Vulnerability-Forecast-for-2025
  2. https://cloud.google.com/blog/topics/threat-intelligence/fortimanager-zero-day-exploitation-cve-2024-47575
  3. https://thehackernews.com/2025/05/china-linked-hackers-exploit-sap-and.html

Related Darktrace blogs:

*Self-reported by customer, confirmed afterwards.

**Updated January 2024 blog now reflects current findings

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June 27, 2025

Patch and Persist: Darktrace’s Detection of Blind Eagle (APT-C-36)

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What is Blind Eagle?

Since 2018, APT-C-36, also known as Blind Eagle, has been observed performing cyber-attacks targeting various sectors across multiple countries in Latin America, with a particular focus on Colombian organizations.

Blind Eagle characteristically targets government institutions, financial organizations, and critical infrastructure [1][2].

Attacks carried out by Blind Eagle actors typically start with a phishing email and the group have been observed utilizing various Remote Access Trojans (RAT) variants, which often have in-built methods for hiding command-and-control (C2) traffic from detection [3].

What we know about Blind Eagle from a recent campaign

Since November 2024, Blind Eagle actors have been conducting an ongoing campaign targeting Colombian organizations [1].

In this campaign, threat actors have been observed using phishing emails to deliver malicious URL links to targeted recipients, similar to the way threat actors have previously been observed exploiting CVE-2024-43451, a vulnerability in Microsoft Windows that allows the disclosure of a user’s NTLMv2 password hash upon minimal interaction with a malicious file [4].

Despite Microsoft patching this vulnerability in November 2024 [1][4], Blind Eagle actors have continued to exploit the minimal interaction mechanism, though no longer with the intent of harvesting NTLMv2 password hashes. Instead, phishing emails are sent to targets containing a malicious URL which, when clicked, initiates the download of a malicious file. This file is then triggered by minimal user interaction.

Clicking on the file triggers a WebDAV request, with a connection being made over HTTP port 80 using the user agent ‘Microsoft-WebDAV-MiniRedir/10.0.19044’. WebDAV is a transmission protocol which allows files or complete directories to be made available through the internet, and to be transmitted to devices [5]. The next stage payload is then downloaded via another WebDAV request and malware is executed on the target device.

Attackers are notified when a recipient downloads the malicious files they send, providing an insight into potential targets [1].

Darktrace’s coverage of Blind Eagle

In late February 2025, Darktrace observed activity assessed with medium confidence to be  associated with Blind Eagle on the network of a customer in Colombia.

Within a period of just five hours, Darktrace / NETWORK detected a device being redirected through a rare external location, downloading multiple executable files, and ultimately exfiltrating data from the customer’s environment.

Since the customer did not have Darktrace’s Autonomous Response capability enabled on their network, no actions were taken to contain the compromise, allowing it to escalate until the customer’s security team responded to the alerts provided by Darktrace.

Darktrace observed a device on the customer’s network being directed over HTTP to a rare external IP, namely 62[.]60[.]226[.]112, which had never previously been seen in this customer’s environment and was geolocated in Germany. Multiple open-source intelligence (OSINT) providers have since linked this endpoint with phishing and malware campaigns [9].

The device then proceeded to download the executable file hxxp://62[.]60[.]226[.]112/file/3601_2042.exe.

Darktrace’s detection of the affected device connecting to an unusual location based in Germany.
Figure 1: Darktrace’s detection of the affected device connecting to an unusual location based in Germany.
Darktrace’s detection of the affected device downloading an executable file from the suspicious endpoint.
Figure 2: Darktrace’s detection of the affected device downloading an executable file from the suspicious endpoint.

The device was then observed making unusual connections to the rare endpoint 21ene.ip-ddns[.]com and performing unusual external data activity.

This dynamic DNS endpoint allows a device to access an endpoint using a domain name in place of a changing IP address. Dynamic DNS services ensure the DNS record of a domain name is automatically updated when the IP address changes. As such, malicious actors can use these services and endpoints to dynamically establish connections to C2 infrastructure [6].

Further investigation into this dynamic endpoint using OSINT revealed multiple associations with previous likely Blind Eagle compromises, as well as Remcos malware, a RAT commonly deployed via phishing campaigns [7][8][10].

Darktrace’s detection of the affected device connecting to the suspicious dynamic DNS endpoint, 21ene.ip-ddns[.]com.
Figure 3: Darktrace’s detection of the affected device connecting to the suspicious dynamic DNS endpoint, 21ene.ip-ddns[.]com.

Shortly after this, Darktrace observed the user agent ‘Microsoft-WebDAV-MiniRedir/10.0.19045’, indicating usage of the aforementioned transmission protocol WebDAV. The device was subsequently observed connected to an endpoint associated with Github and downloading data, suggesting that the device was retrieving a malicious tool or payload. The device then began to communicate to the malicious endpoint diciembrenotasenclub[.]longmusic[.]com over the new TCP port 1512 [11].

Around this time, the device was also observed uploading data to the endpoints 21ene.ip-ddns[.]com and diciembrenotasenclub[.]longmusic[.]com, with transfers of 60 MiB and 5.6 MiB observed respectively.

Figure 4: UI graph showing external data transfer activity.

This chain of activity triggered an Enhanced Monitoring model alert in Darktrace / NETWORK. These high-priority model alerts are designed to trigger in response to higher fidelity indicators of compromise (IoCs), suggesting that a device is performing activity consistent with a compromise.

 Darktrace’s detection of initial attack chain activity.
Figure 5: Darktrace’s detection of initial attack chain activity.

A second Enhanced Monitoring model was also triggered by this device following the download of the aforementioned executable file (hxxp://62[.]60[.]226[.]112/file/3601_2042.exe) and the observed increase in C2 activity.

Following this activity, Darktrace continued to observe the device beaconing to the 21ene.ip-ddns[.]com endpoint.

Darktrace’s Cyber AI Analyst was able to correlate each of the individual detections involved in this compromise, identifying them as part of a broader incident that encompassed C2 connectivity, suspicious downloads, and external data transfers.

Cyber AI Analyst’s investigation into the activity observed on the affected device.
Figure 6: Cyber AI Analyst’s investigation into the activity observed on the affected device.
Figure 7: Cyber AI Analyst’s detection of the affected device’s broader connectivity throughout the course of the attack.

As the affected customer did not have Darktrace’s Autonomous Response configured at the time, the attack was able to progress unabated. Had Darktrace been properly enabled, it would have been able to take a number of actions to halt the escalation of the attack.

For example, the unusual beaconing connections and the download of an unexpected file from an uncommon location would have been shut down by blocking the device from making external connections to the relevant destinations.

Conclusion

The persistence of Blind Eagle and ability to adapt its tactics, even after patches were released, and the speed at which the group were able to continue using pre-established TTPs highlights that timely vulnerability management and patch application, while essential, is not a standalone defense.

Organizations must adopt security solutions that use anomaly-based detection to identify emerging and adapting threats by recognizing deviations in user or device behavior that may indicate malicious activity. Complementing this with an autonomous decision maker that can identify, connect, and contain compromise-like activity is crucial for safeguarding organizational networks against constantly evolving and sophisticated threat actors.

Credit to Charlotte Thompson (Senior Cyber Analyst), Eugene Chua (Principal Cyber Analyst) and Ryan Traill (Analyst Content Lead)

Appendices

IoCs

IoC – Type - Confidence
Microsoft-WebDAV-MiniRedir/10.0.19045 – User Agent

62[.]60[.]226[.]112 – IP – Medium Confidence

hxxp://62[.]60[.]226[.]112/file/3601_2042.exe – Payload Download – Medium Confidence

21ene.ip-ddns[.]com – Dynamic DNS Endpoint – Medium Confidence

diciembrenotasenclub[.]longmusic[.]com  - Hostname – Medium Confidence

Darktrace’s model alert coverage

Anomalous File / Suspicious HTTP Redirect
Anomalous File / EXE from Rare External Location
Anomalous File / Multiple EXE from Rare External Location
Anomalous Server Activity / Outgoing from Server
Unusual Activity / Unusual External Data to New Endpoint
Device / Anomalous Github Download
Anomalous Connection / Multiple Connections to New External TCP Port
Device / Initial Attack Chain Activity
Anomalous Server Activity / Rare External from Server
Compromise / Suspicious File and C2
Compromise / Fast Beaconing to DGA
Compromise / Large Number of Suspicious Failed Connections
Device / Large Number of Model Alert

Mitre Attack Mapping:

Tactic – Technique – Technique Name

Initial Access - T1189 – Drive-by Compromise
Initial Access - T1190 – Exploit Public-Facing Application
Initial Access ICS - T0862 – Supply Chain Compromise
Initial Access ICS - T0865 – Spearphishing Attachment
Initial Access ICS - T0817 - Drive-by Compromise
Resource Development - T1588.001 – Malware
Lateral Movement ICS - T0843 – Program Download
Command and Control - T1105 - Ingress Tool Transfer
Command and Control - T1095 – Non-Application Layer Protocol
Command and Control - T1571 – Non-Standard Port
Command and Control - T1568.002 – Domain Generation Algorithms
Command and Control ICS - T0869 – Standard Application Layer Protocol
Evasion ICS - T0849 – Masquerading
Exfiltration - T1041 – Exfiltration Over C2 Channel
Exfiltration - T1567.002 – Exfiltration to Cloud Storage

References

1)    https://research.checkpoint.com/2025/blind-eagle-and-justice-for-all/

2)    https://assets.kpmg.com/content/dam/kpmgsites/in/pdf/2025/04/kpmg-ctip-blind-eagle-01-apr-2025.pdf.coredownload.inline.pdf

3)    https://www.checkpoint.com/cyber-hub/threat-prevention/what-is-remote-access-trojan/#:~:text=They%20might%20be%20attached%20to,remote%20access%20or%20system%20administration

4)    https://msrc.microsoft.com/update-guide/vulnerability/CVE-2024-43451

5)    https://www.ionos.co.uk/digitalguide/server/know-how/webdav/

6)    https://vercara.digicert.com/resources/dynamic-dns-resolution-as-an-obfuscation-technique

7)    https://threatfox.abuse.ch/ioc/1437795

8)    https://www.checkpoint.com/cyber-hub/threat-prevention/what-is-malware/remcos-malware/

9)    https://www.virustotal.com/gui/url/b3189db6ddc578005cb6986f86e9680e7f71fe69f87f9498fa77ed7b1285e268

10) https://www.virustotal.com/gui/domain/21ene.ip-ddns.com

11) https://www.virustotal.com/gui/domain/diciembrenotasenclub.longmusic.com/community

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Charlotte Thompson
Cyber Analyst
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