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April 24, 2024

How Cactus Ransomware Was Detected and Stopped

Discover the tactics used to uncover a Cactus ransomware infection and the implications for cybersecurity defenses.
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
Senior Cyber Analyst & Team Lead
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24
Apr 2024

What is CACTUS Ransomware?

In May 2023, Kroll Cyber Threat Intelligence Analysts identified CACTUS as a new ransomware strain that had been actively targeting large commercial organizations since March 2023 [1]. CACTUS ransomware gets its name from the filename of the ransom note, “cAcTuS.readme.txt”. Encrypted files are appended with the extension “.cts”, followed by a number which varies between attacks, e.g. “.cts1” and “.cts2”.

As the cyber threat landscape adapts to ever-present fast-paced technological change, ransomware affiliates are employing progressively sophisticated techniques to enter networks, evade detection and achieve their nefarious goals.

How does CACTUS Ransomware work?

In the case of CACTUS, threat actors have been seen gaining initial network access by exploiting Virtual Private Network (VPN) services. Once inside the network, they may conduct internal scanning using tools like SoftPerfect Network Scanner, and PowerShell commands to enumerate endpoints, identify user accounts, and ping remote endpoints. Persistence is maintained by the deployment of various remote access methods, including legitimate remote access tools like Splashtop, AnyDesk, and SuperOps RMM in order to evade detection, along with malicious tools like Cobalt Strike and Chisel. Such tools, as well as custom scripts like TotalExec, have been used to disable security software to distribute the ransomware binary. CACTUS ransomware is unique in that it adopts a double-extortion tactic, stealing data from target networks and then encrypting it on compromised systems [2].

At the end of November 2023, cybersecurity firm Arctic Wolf reported instances of CACTUS attacks exploiting vulnerabilities on the Windows version of the business analytics platform Qlik, specifically CVE-2023-41266, CVE-2023-41265, and CVE-2023-48365, to gain initial access to target networks [3]. The vulnerability tracked as CVE-2023-41266 can be exploited to generate anonymous sessions and perform HTTP requests to unauthorized endpoints, whilst CVE-2023-41265 does not require authentication and can be leveraged to elevate privileges and execute HTTP requests on the backend server that hosts the application [2].

Darktrace’s Coverage of CACTUS Ransomware

In November 2023, Darktrace observed malicious actors leveraging the aforementioned method of exploiting Qlik to gain access to the network of a customer in the US, more than a week before the vulnerability was reported by external researchers.

Here, Qlik vulnerabilities were successfully exploited, and a malicious executable (.exe) was detonated on the network, which was followed by network scanning and failed Kerberos login attempts. The attack culminated in the encryption of numerous files with extensions such as “.cts1”, and SMB writes of the ransom note “cAcTuS.readme.txt” to multiple internal devices, all of which was promptly identified by Darktrace DETECT™.

While traditional rules and signature-based detection tools may struggle to identify the malicious use of a legitimate business platform like Qlik, Darktrace’s Self-Learning AI was able to confidently identify anomalous use of the tool in a CACTUS ransomware attack by examining the rarity of the offending device’s surrounding activity and comparing it to the learned behavior of the device and its peers.

Unfortunately for the customer in this case, Darktrace RESPOND™ was not enabled in autonomous response mode during their encounter with CACTUS ransomware meaning that attackers were able to successfully escalate their attack to the point of ransomware detonation and file encryption. Had RESPOND been configured to autonomously act on any unusual activity, Darktrace could have prevented the attack from progressing, stopping the download of any harmful files, or the encryption of legitimate ones.

Cactus Ransomware Attack Overview

Holiday periods have increasingly become one of the favoured times for malicious actors to launch their attacks, as they can take advantage of the festive downtime of organizations and their security teams, and the typically more relaxed mindset of employees during this period [4].

Following this trend, in late November 2023, Darktrace began detecting anomalous connections on the network of a customer in the US, which presented multiple indicators of compromise (IoCs) and tactics, techniques and procedures (TTPs) associated with CACTUS ransomware. The threat actors in this case set their attack in motion by exploiting the Qlik vulnerabilities on one of the customer’s critical servers.

Darktrace observed the server device making beaconing connections to the endpoint “zohoservice[.]net” (IP address: 45.61.147.176) over the course of three days. This endpoint is known to host a malicious payload, namely a .zip file containing the command line connection tool PuttyLink [5].

Darktrace’s Cyber AI Analyst was able to autonomously identify over 1,000 beaconing connections taking place on the customer’s network and group them together, in this case joining the dots in an ongoing ransomware attack. AI Analyst recognized that these repeated connections to highly suspicious locations were indicative of malicious command-and-control (C2) activity.

Cyber AI Analyst Incident Log showing the offending device making over 1,000 connections to the suspicious hostname “zohoservice[.]net” over port 8383, within a specific period.
Figure 1: Cyber AI Analyst Incident Log showing the offending device making over 1,000 connections to the suspicious hostname “zohoservice[.]net” over port 8383, within a specific period.

The infected device was then observed downloading the file “putty.zip” over a HTTP connection using a PowerShell user agent. Despite being labelled as a .zip file, Darktrace’s detection capabilities were able to identify this as a masqueraded PuttyLink executable file. This activity resulted in multiple Darktrace DETECT models being triggered. These models are designed to look for suspicious file downloads from endpoints not usually visited by devices on the network, and files whose types are masqueraded, as well as the anomalous use of PowerShell. This behavior resembled previously observed activity with regards to the exploitation of Qlik Sense as an intrusion technique prior to the deployment of CACTUS ransomware [5].

The downloaded file’s URI highlighting that the file type (.exe) does not match the file's extension (.zip). Information about the observed PowerShell user agent is also featured.
Figure 2: The downloaded file’s URI highlighting that the file type (.exe) does not match the file's extension (.zip). Information about the observed PowerShell user agent is also featured.

Following the download of the masqueraded file, Darktrace observed the initial infected device engaging in unusual network scanning activity over the SMB, RDP and LDAP protocols. During this activity, the credential, “service_qlik” was observed, further indicating that Qlik was exploited by threat actors attempting to evade detection. Connections to other internal devices were made as part of this scanning activity as the attackers attempted to move laterally across the network.

Numerous failed connections from the affected server to multiple other internal devices over port 445, indicating SMB scanning activity.
Figure 3: Numerous failed connections from the affected server to multiple other internal devices over port 445, indicating SMB scanning activity.

The compromised server was then seen initiating multiple sessions over the RDP protocol to another device on the customer’s network, namely an internal DNS server. External researchers had previously observed this technique in CACTUS ransomware attacks where an RDP tunnel was established via Plink [5].

A few days later, on November 24, Darktrace identified over 20,000 failed Kerberos authentication attempts for the username “service_qlik” being made to the internal DNS server, clearly representing a brute-force login attack. There is currently a lack of open-source intelligence (OSINT) material definitively listing Kerberos login failures as part of a CACTUS ransomware attack that exploits the Qlik vulnerabilities. This highlights Darktrace’s ability to identify ongoing threats amongst unusual network activity without relying on existing threat intelligence, emphasizing its advantage over traditional security detection tools.

Kerberos login failures being carried out by the initial infected device. The destination device detected was an internal DNS server.
Figure 4: Kerberos login failures being carried out by the initial infected device. The destination device detected was an internal DNS server.

In the month following these failed Kerberos login attempts, between November 26 and December 22, Darktrace observed multiple internal devices encrypting files within the customer’s environment with the extensions “.cts1” and “.cts7”. Devices were also seen writing ransom notes with the file name “cAcTuS.readme.txt” to two additional internal devices, as well as files likely associated with Qlik, such as “QlikSense.pdf”. This activity detected by Darktrace confirmed the presence of a CACTUS ransomware infection that was spreading across the customer’s network.

The model, 'Ransom or Offensive Words Written to SMB', triggered in response to SMB file writes of the ransom note, ‘cAcTuS.readme.txt’, that was observed on the customer’s network.
Figure 5: The model, 'Ransom or Offensive Words Written to SMB', triggered in response to SMB file writes of the ransom note, ‘cAcTuS.readme.txt’, that was observed on the customer’s network.
CACTUS ransomware extensions, “.cts1” and “.cts7”, being appended to files on the customer’s network.
Figure 6: CACTUS ransomware extensions, “.cts1” and “.cts7”, being appended to files on the customer’s network.

Following this initial encryption activity, two affected devices were observed attempting to remove evidence of this activity by deleting the encrypted files.

Attackers attempting to remove evidence of their activity by deleting files with appendage “.cts1”.
Figure 7: Attackers attempting to remove evidence of their activity by deleting files with appendage “.cts1”.

Conclusion

In the face of this CACTUS ransomware attack, Darktrace’s anomaly-based approach to threat detection enabled it to quickly identify multiple stages of the cyber kill chain occurring in the customer’s environment. These stages ranged from ‘initial access’ by exploiting Qlik vulnerabilities, which Darktrace was able to detect before the method had been reported by external researchers, to ‘actions on objectives’ by encrypting files. Darktrace’s Self-Learning AI was also able to detect a previously unreported stage of the attack: multiple Kerberos brute force login attempts.

If Darktrace’s autonomous response capability, RESPOND, had been active and enabled in autonomous response mode at the time of this attack, it would have been able to take swift mitigative action to shut down such suspicious activity as soon as it was identified by DETECT, effectively containing the ransomware attack at the earliest possible stage.

Learning a network’s ‘normal’ to identify deviations from established patterns of behaviour enables Darktrace’s identify a potential compromise, even one that uses common and often legitimately used administrative tools. This allows Darktrace to stay one step ahead of the increasingly sophisticated TTPs used by ransomware actors.

Credit to Tiana Kelly, Cyber Analyst & Analyst Team Lead, Anna Gilbertson, Cyber Analyst

Appendices

References

[1] https://www.kroll.com/en/insights/publications/cyber/cactus-ransomware-prickly-new-variant-evades-detection

[2] https://www.bleepingcomputer.com/news/security/cactus-ransomware-exploiting-qlik-sense-flaws-to-breach-networks/

[3] https://explore.avertium.com/resource/new-ransomware-strains-cactus-and-3am

[4] https://www.soitron.com/cyber-attackers-abuse-holidays/

[5] https://arcticwolf.com/resources/blog/qlik-sense-exploited-in-cactus-ransomware-campaign/

Darktrace DETECT Models

Compromise / Agent Beacon (Long Period)

Anomalous Connection / PowerShell to Rare External

Device / New PowerShell User Agent

Device / Suspicious SMB Scanning Activity

Anomalous File / EXE from Rare External Location

Anomalous Connection / Unusual Internal Remote Desktop

User / Kerberos Password Brute Force

Compromise / Ransomware / Ransom or Offensive Words Written to SMB

Unusual Activity / Anomalous SMB Delete Volume

Anomalous Connection / Multiple Connections to New External TCP Port

Compromise / Slow Beaconing Activity To External Rare  

Compromise / SSL Beaconing to Rare Destination  

Anomalous Server Activity / Rare External from Server  

Compliance / Remote Management Tool On Server

Compromise / Agent Beacon (Long Period)  

Compromise / Suspicious File and C2  

Device / Internet Facing Device with High Priority Alert  

Device / Large Number of Model Breaches  

Anomalous File / Masqueraded File Transfer

Anomalous File / Internet facing System File Download  

Anomalous Server Activity / Outgoing from Server

Device / Initial Breach Chain Compromise  

Compromise / Agent Beacon (Medium Period)  

Compromise / Agent Beacon (Long Period)  

List of IoCs

IoC - Type - Description‍

zohoservice[.]net: 45.61.147[.]176 - Domain name: IP Address - Hosting payload over HTTP

Mozilla/5.0 (Windows NT; Windows NT 10.0; en-US) WindowsPowerShell/5.1.17763.2183 - User agent -PowerShell user agent

.cts1 - File extension - Malicious appendage

.cts7- File extension - Malicious appendage

cAcTuS.readme.txt - Filename -Ransom note

putty.zip – Filename - Initial payload: ZIP containing PuTTY Link

MITRE ATT&CK Mapping

Tactic - Technique  - SubTechnique

Web Protocols: COMMAND AND CONTROL - T1071 -T1071.001

Powershell: EXECUTION - T1059 - T1059.001

Exploitation of Remote Services: LATERAL MOVEMENT - T1210 – N/A

Vulnerability Scanning: RECONAISSANCE     - T1595 - T1595.002

Network Service Scanning: DISCOVERY - T1046 - N/A

Malware: RESOURCE DEVELOPMENT - T1588 - T1588.001

Drive-by Compromise: INITIAL ACCESS - T1189 - N/A

Remote Desktop Protocol: LATERAL MOVEMENT – 1021 -T1021.001

Brute Force: CREDENTIAL ACCESS        T – 1110 - N/A

Data Encrypted for Impact: IMPACT - T1486 - N/A

Data Destruction: IMPACT - T1485 - N/A

File Deletion: DEFENSE EVASION - T1070 - T1070.004

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
Senior Cyber Analyst & Team Lead

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November 3, 2026

From One Alert to a Wider Campaign: Uncovering Novel Threats Through Behavioral Analysis

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Key Findings

  • Darktrace’s Threat Research team is exploring a new method to identify malicious campaigns by correlating similar anomalous activity across its customer fleet.
  • The method uses unsupervised clustering to identify shared behavioral patterns across multiple customer deployments without relying on prior indicators of compromise (IoCs).
  • The approach identified shared infrastructure across dozens of customers, with activity linked to the likely POPA botnet.
  • A second cluster identified anomalous activity associated with Monero cryptocurrency mining.

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How does Darktrace conduct threat research?

The Darktrace Threat Research team aims to identify malicious campaign activity affecting multiple customers. By their nature, these campaigns will lead to shared behavioral patterns across multiple victims.

In this piece, we describe a method for identifying malicious campaign activity that uses this simple observation as a guiding principle. We begin by outlining a few key facts about the modern threat landscape and why behavioral detection is necessary to meet the challenges it presents. We then explore how fleet-wide behavioral detections can be leveraged using the principle above to systematically identify multi-deployment campaigns impacting the Darktrace customer fleet. Finally, we demonstrate that this research is not purely theoretical, using real examples of campaign activity detected through this novel approach.

Shifting to a behavioral-focused approach

The modern era of cyber-defense necessitates detection capabilities beyond traditional signature-based methods. Technologies such as antivirus signatures, hash-based malware identification, and IP blocklists have historically been successful in defending against known threats. However, they are easily circumvented by attackers and inherently limited in defending against the novel attack techniques that today's threat landscape is producing.

Recent breakthroughs in AI represent a transformational risk multiplier that cannot be ignored. AI systems do not merely execute existing attacks at machine speed; there are signs they can also synthesize novel tradecraft [1], increasing the likelihood that defenders will encounter attack patterns that have never previously been observed. Meanwhile vulnerability disclosures continue to accelerate. More than 48,000 CVEs were published in 2025, and published statistics to date indicate that 2026 is already on track to significantly exceed that figure [2]. While multiple factors may contribute to vulnerability discovery, AI is seen as a key factor in this rapid growth. Organizations should expect a growing proportion of malicious activity to fall outside the scope of detections that rely solely on prior knowledge of known threats.

By design, Darktrace’s behavioral and anomaly-focused detection capabilities are well-suited to this testing landscape. With a focus on detecting unknown and unexpected activity that deviates from the baseline of “normal” behavior, detection of CVE exploitation without prior knowledge of the vulnerability and before public disclosure, for example, is achievable [3][4].

Darktrace’s diverse customer base benefits from a further layer of protection: working with only deidentified alert metadata, our threat researchers hunt proactively across the fleet. Beyond the level of the individual customer, there is a second, larger vantage to be leveraged.

Darktrace data provides unique insight into the unexpected behavioral patterns that occur across its customer fleet. What can we see if we look at this fleet-wide telemetry and hunt for systematic behavioral campaigns that impact our customer base?

Correlating across the customer base

At the deployment level, Darktrace focuses on whether activity is unusual in the context of an organization's normal behavior, but as we zoom out and look at these alerts at the fleet level, the problem fundamentally changes . We are no longer seeking anomalies in largely normal data; we are seeking systematic patterns within data already known to be anomalous. An isolated behavior anomaly may be notable for a single customer; the same fingerprint across dozens is a signal of a structured campaign. Hunting for such campaigns and sharing our findings are key areas of focus for Darktrace’s Threat Research team.  In this spirit, Darktrace is  actively exploring a a new research approach that leverages deidentified alert metadata to increase campaign detection ability.

This approach is based on the premise that an expert human analyst presented with a set of alerts will identify likely related activity by assessing whether the metadata fields indicate a relationship. For example, two connections to a rare endpoint that exhibits naming structure that is likely from a single algorithm are a strong indicator, as is the use of an unusual port carrying a given protocol (e.g. port 6000 for SSL). Darktrace’s approach to campaign detection encodes this expert human judgement process through deterministic embedding functions that obtain reproducible vector representations of alert data. Unsupervised clustering is then applied to these vector representations to obtain groups of alerts that describe semantically similar alert data across multiple customers. These clusters therefore represent similar anomalous activity that has occurred across multiple customers. In other words, these clusters are candidates for malicious campaign activity.

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Figure 1: Layers of AI-based analysis provided through Darktrace products and cross-customer correlation.

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Case study 1 – unusual connections to shared underlying infrastructure

In one recent case, the clustering produced several tight groups of alerts spanning dozens of customers. Each group centered on a single domain whose subdomains were algorithmically generated (e.g. s01699, s1736, s91). Examined side by side, these clusters shared an unmistakable behavioral shape: each involved a domain with a clear naming pattern (e.g. s016841786.net-echo[.]com, s1670.pixellog[.]io, s217.pixellog[.]io) , with connections over SSL on the unusual port 6000 to servers hosted by non-mainstream providers (e.g. OVH, Hetzner, GTHost, Leaseweb), rather than generally expected content-delivery networks.

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Figure 2: An example model alert triggering on unusual outbound connections and data transfer to s1670.pixellog[.]io.

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Closer inspection revealed that the same subdomain label appeared under different domains (e.g. s1786.net-echo[.]com and s1786.pixellog[.]io). Following this lead, Darktrace’s threat researchers pivoted across the customer base and found numerous distinct subdomain labels reused under more than one registered domain. In several cases, the same label resolved to the same IP across different domains (e.g. s1704 under both pixellog[.]io and net-echo[.]com → 148.113.222[.]244; s01684 → 15.235.67[.]95), suggesting the use of ephemeral subdomain infrastructure in an attempt to avoid signature-based defense techniques.

This example demonstrates how multi-deployment data can uncover shared infrastructure that may be difficult to identify at the individual deployment level alone. In particular, the presented method facilitated this discovery by producing coherent, tight clusters of geometrically similar vector embeddings of malicious activity from large-scale fleet data, which could then be presented to a researcher for further investigation. This  activity highlighted across the Darktrace customer base was ultimately linked to likely POPA botnet activity through use of open-source intelligence (OSINT) [5].

Case Study 2 – anomalous user agent and txt URI

A second example shows the method surfacing a single, self-contained cluster. The clustering was not given any indicators to look for; instead, it grouped devices that shared an unusual combination of features. On inspection, that shared consisted of:

-      unusual user agent (tes)

-      specific request path (/md5_GIP.txt)

-      uncommon destination port (83)

-      hostname impersonating Google (matching regular expression ^www\.google\.com\.[a-zA-Z0-9]+\.fast-dns-host\.com$)

Treating these shared features as IoCs, Darktrace’s threat researchers then pivoted to an exploration across the customer base to investigate the full breadth of the campaign. This search identified further commonalities; additional domains which shared the same IP as the domain family highlighted in the cluster, as well as evidence of cryptocurrency mining on affected devices. Additional OSINT research also aligned with these findings, linking the discovered payloads and infrastructure to Monero cryptocurrency mining [6].

Conclusion

The method outlined in this blog is under active development, with ongoing technical refinement providing opportunities to further enhance its capabilities. While the capability continues to mature, this approach to threat hunting leverages the powerful vantage point of fleetwide telemetry across a diverse customer base to help protect Darktrace customers. This method allows campaigns that at the deployment level appear as isolated alerts to be seen at their true scale and spread. It enables proactive fleet-wide analysis without prior IoCs to identify campaigns impacting Darktrace customers.

This is possible because of what the method is built on: the atomic unit is the Darktrace alert, a signal that encodes years of cyber expertise, while the multi-deployment nature of the method allows organizations to indirectly benefit from findings from other networks through shared intelligence by Darktrace’s Threat Research team.

Credit to Daniel Levy (Threat Hunting Data Scientist), Paul Jennings (Principal Cyber Analyst), Emma Foulger (Global Head, Threat Operations)

Edited by Ryan Traill (Content Manager)

References

1. https://www.aisi.gov.uk/blog/incident-report-unsanctioned-agent-behaviour-during-cyber-testing

2. https://www.cvefind.com/en/cve-statistic-date.html

3. https://www.darktrace.com/blog/security-after-signatures-operating-in-a-world-of-pre-cve-disclosure-exploitation-collapsed-trust-boundaries-and-autonomous-systems

4. https://www.darktrace.com/blog/pre-cve-threat-detection-10-examples-identifying-malicious-activity-prior-to-public-disclosure-of-a-vulnerability

5. https://github.com/synthient/public-research/blob/main/2026/06/popa/Popa.md

6. https://www.deepwatch.com/blog/pirated-adobe-photoshop-2023-installers-lead-to-monero-cryptocurrency-mining/

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About the author
Daniel Levy
Threat Hunting Data Scientist

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November 2, 2026

PHP Vulnerabilities, ARTEX and the Growing Role of AI in Cyber Attacks

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The disclosure of CVE-2026-109618 and CVE-2026-109619 placed immediate pressure on organizations running PHP. Both vulnerabilities can allow unauthenticated remote code execution, including in products and appliances where PHP is embedded, and updates depend on third-party vendors [1].

Early guidance focused on patching internet-facing systems and monitoring for behavior associated with successful exploitation, including unexpected command execution, Webroot changes and outbound connections from PHP servers.

Darktrace observed widespread scanning across monitored environments involving hundreds of distinct source IP addresses that public reporting has associated with activity targeting the PHP vulnerabilities. The volume of scanning was significantly greater than the evidence available for successful exploitation. For analysts, that distinction is important. Scanning demonstrates interest in exposed infrastructure; establishing compromise requires evidence of subsequent behavior on the targeted system, including command execution, file modification or unexpected outbound communication.

PHP is not an isolated example. Imperva subsequently demonstrated remote code execution against a vulnerable Node.js build through malicious Brotli data, reproducing execution through compressed HTTP responses and configured request parsers. The same inputs were rejected by the patched runtime. Imperva linked its Node2Shell and PHP2Shell research to the increasing speed of vulnerability discovery and exploit development. [2]

While Darktrace has not observed direct evidence of CVE-2026-109618 or CVE-2026-109619 exploitation, on October 21st we observed a six-month high in detections consistent with zero-day exploitation activity, representing a 64% increase compared to historic data. This increase has not been confirmed as related to the PHP vulnerabilities. Darktrace’s behavioral approach is designed to detect anomalous activity without relying solely on rules written for a specific exploit. Comparable increases were observed around the Log4j disclosure and other globally significant vulnerability disclosures.

AI-assisted vulnerability research

The PHP disclosure arrives as AI systems have become more capable at vulnerability research [3]. OpenAI launched Daybreak in June 2026, combining GPT-5.5-Cyber, Codex Security and partnerships with security researchers and software maintainers. OpenAI says its models have been applied to discovering and generating patches for vulnerabilities in browsers, network infrastructure, FreeBSD and the Linux kernel. Darktrace joined the OpenAI Daybreak Cyber Partner Program in June to explore how OpenAI's cyber capabilities could be integrated within Darktrace products and services [4][10].

OpenAI reported in August that Codex Security Cloud had analyzed more than 30 million commits across more than 30,000 codebases. According to OpenAI, Cloudflare uses models accessed through Daybreak to investigate customer-authorized code and combines findings with live traffic and security signals to assess whether affected routes are active or receiving suspicious traffic, with proposed mitigations and patches remaining subject to customer review [5][6].

Faster discovery still leaves defenders with the work of locating affected software, testing fixes and completing remediation. The PHP case shows that gap clearly, particularly when vulnerable runtimes are embedded inside other products.

Enterprise agents as an attack surface

Darktrace Signal Labs has also examined how a trusted enterprise agent could be abused after an attacker has already obtained access to an environment. In a controlled simulation, researchers demonstrated that, in that post-compromise scenario, the Claude platform’s memory stores feature could be abused to establish a live C2 channel between an external operator and internal Claude Code agents. The external operator was able to dynamically assign network discovery, credential access, and data exfiltration tasks to the agents via this C2 channel. Detection of the agents’ activities relied on the correlation of process creation and network traffic activity from agent harness processes, alongside behavioral analysis to identify deviations from expected behavior. Darktrace has not claimed it observed this memory-store command-and-control technique in operational attacks [7].

AI-assisted attacks in Japan

Evidence from Japan indicates AI being used for vulnerability scanning and attacks outside controlled research. On 21 October, JPCERT/CC published findings from an investigation into recent unauthorized access incidents affecting organizations in Japan. JPCERT/CC states that it confirmed attackers had used AI to scan for known vulnerabilities and conduct attacks through APIs. According to JPCERT/CC, its examination of attack infrastructure found evidence of Android application analysis, API discovery and testing for weaknesses including server-side request forgery, and the infrastructure also targeted services intended for users outside Japan [8].

JPCERT/CC does not identify ARTEX by name in that publication. The named ARTEX attribution comes from separate investigations, including Microsoft's analysis of Storm-0940.

AI in offensive operations

Microsoft describes ARTEX as an open-source, multi-agent penetration-testing system capable of automating activity with limited human interaction. Microsoft reported that Storm-0940, which it assesses to be a China state-aligned actor active since 2021, used ARTEX against hundreds of organizations, and Microsoft attributed the ConnectWise supply-chain compromise [9].

Microsoft observed ARTEX accelerating scanning, reconnaissance, password spraying and OAuth application abuse. Several ARTEX-driven operations reached privileged cloud access less than three hours after initial targeting. Following the ConnectWise compromise, Storm-0940 attempted to authenticate to more than 2,250 tenants at rates of up to 2,900 attempts per minute [9].

Darktrace Threat Research found activity in its own telemetry involving infrastructure later associated with the campaign. On 13 October, Darktrace recorded failed authentication activity involving 144.172.64[.]128, one of the addresses Microsoft later identified as performing sign-ins and Microsoft Graph activity in ConnectWise customer environments. Darktrace analysis identified 65 failed authentication attempts in around 20 minutes.

Figure 1: Darktrace Advanced Search showing failed authentication events involving 144.172.64[.]128 on 13 October 2026, (customer-identifying information redacted).

The telemetry establishes repeated failed authentication from infrastructure later associated with the campaign. It does not establish ARTEX execution or successful compromise. At the time of observation, Microsoft's later attribution was unavailable. Analysts therefore had the behavior itself: repeated failed authentication from the same source over a short period, together with any related identity, application or network activity inside the environment.

Microsoft documented a wider password-spray campaign against 327 accounts across eight organizations between 10 and 14 October. It recorded more than 151,000 failed logons, including more than 111,000 on 11 October, but no successful authentication, token issuance, Graph call or directory change from that campaign. Microsoft also reported that most Storm-0940 targeting was unsuccessful [9].

Where the actor progressed beyond authentication, Microsoft observed service-principal sign-ins followed by Graph and directory operations. Activity included reconnaissance, application credential changes and attempts to modify privileges. Microsoft recommends correlating service-principal sign-ins with Graph activity, directory changes and resource access [9].

Behavior before attribution

The PHP and ARTEX cases begin with different information. PHP defenders knew which software required urgent remediation but initially had limited information about exploitation. Process execution, file modification and outbound communication could still provide evidence of compromise.

The PHP and ARTEX observations also illustrate the difference between volume and impact. Darktrace observed broad scanning around the PHP disclosure, while the ARTEX-associated infrastructure produced concentrated authentication activity. Neither observation independently demonstrates compromise and in each case examining the behavior that follows the initial interaction is the investigative clue.

The Darktrace ARTEX-related observation began with authentication behavior. Microsoft publicly attributed the source infrastructure eight days later. That attribution added context, but it did not change what had originally been recorded in the environment.

AI is now present at several points in this cycle. Daybreak applies models to vulnerability discovery and remediation. Darktrace Signal Labs demonstrated how a trusted enterprise agent could be co-opted in a controlled environment. JPCERT/CC confirmed AI-assisted vulnerability scanning and API attacks in recent incidents. Microsoft documented ARTEX being used by Storm-0940 in active operations [4][7][8][9].

Microsoft's findings also show why scale and impact must be assessed separately. One ARTEX-associated campaign produced more than 151,000 failed logons without successful access, while other operations reached privileged cloud access in less than three hours. Security teams have to distinguish high-volume attempts from activity that progresses through authentication, privilege changes and resource access.

The evidence required to assess these cases remains familiar: authentication records, process execution, application and directory changes, file activity and network communication. AI can increase the rate at which those behaviors occur. Defenders still need to establish their sequence and impact.

Credit to Emma Foulger, Sam Lister, Dylan Evans, Moishe Tajtelbaum

References

[1] NCSC-NL, php2shell vulnerabilities (CVE-2026-109618, CVE-2026-109619), 21 October 2026. https://github.com/NCSC-NL/php2shell

[2] Imperva, https://www.imperva.com/blog/node2shell-from-brotli-data-to-remote-code-execution/

[3] Cyber Security Agency of Singapore, https://www.csa.gov.sg/alerts-and-advisories/alerts/al-2026-151/

[4] OpenAI, Daybreak: Tools for securing every organization in the world, 22 June 2026. https://openai.com/index/daybreak-securing-the-world/

[5] OpenAI Developers, Scaling cyber defenders with Daybreak, 21 August 2026. https://developers.openai.com/blog/scaling-cyber-defenders-with-daybreak

[6] OpenAI, Cloudflare links vulnerability discovery to defense with OpenAI, 21 October 2026. https://openai.com/index/cloudflare-cyber/

[7] Darktrace Signal Labs, Shared Memories as a Covert C2 Channel, draft research supplied for review.

[8] JPCERT/CC, Recent AI-Assisted Cyber Attacks in Japan: Investigating Attack Infrastructure and Techniques, 21 October 2026. https://blogs.jpcert.or.jp/en/2026/10/web_api_attacks.html

[9] Microsoft Security Research and Microsoft Threat Intelligence, AI-driven, large-scale nation-state campaign using ARTEX enables supply chain compromise, 21 October 2026. https://www.microsoft.com/en-us/security/blog/2026/10/21/storm-0940-uses-artex-agentic-ai-connectwise-supply-chain-compromise/

[10] Darktrace, Advancing the Use of Frontier AI in Cybersecurity: Darktrace Joins the OpenAI Daybreak Cyber Partner Program to Explore Defensive AI Integrations, 22 June 2026. https://www.darktrace.com/blog/advancing-the-use-of-frontier-ai-in-cybersecurity-darktrace-joins-the-openai-daybreak-cyber-partner-program-to-explore-defensive-ai-integrations

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About the author
Nathaniel Jones
SVP, Global Threat Intelligence
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