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December 16, 2024

Breaking Down Nation State Attacks on Supply Chains

Explore how nation-state supply chain attacks like 3CX, NotPetya, and SolarWinds exploited trusted providers to cause global disruption, highlighting the urgent need for robust security measures.
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
Benjamin Druttman
Cyber Security AI Technical Instructor
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16
Dec 2024

Introduction: Nation state attacks on supply chains

In recent years, supply chain attacks have surged in both frequency and sophistication, evolving into one of the most severe threats to organizations across almost every industry. By exploiting third-party vendors and service providers, these attacks can inflict widespread disruption with a single breach. They have become a go-to choice for nation state actors and show no signs of slowing down. According to Gartner, the costs from these attacks will skyrocket “from $46 billion in 2023 to $138 billion by 2031” [1].  

But why are supply chains specifically such an irresistible target for threat actors? Dwight D. Eisenhower, the General of the US Army in World War II and former US President, once said, “you won’t find it difficult to prove that battles, campaigns, and even wars have been won or lost primarily because of logistics.”

The same is true in cyberspace and cyberwarfare. We live in an increasingly interconnected world. The provision of almost every service integral to our daily lives relies on a complex web of interdependent third parties.  

Naturally, threat actors gravitate towards these service providers. By compromising just one of them, they can spread through supply chains downstream to other organizations and raise the odds of winning their battle, campaign, or war.  

software supply chain sequence
Figure 1: Software supply chain attack cycle

A house built on open-source sand

Software developers face immense pressure to produce functional code quickly, often under tight deadlines. Adding to this challenge is the need to comply with stringent security requirements set by their DevSecOps counterparts, who aim to ensure that code is safe from vulnerabilities.  

Open-source repositories alleviate some of this pressure by providing pre-built packages of code and fully functioning tools that developers can freely access and integrate. These highly accessible resources enhance productivity and boost innovation. As a result, they have a huge, diverse user base spanning industries and geographies. However, given their extensive adoption, any security lapse can result in widespread compromise across businesses.

Cautionary tales for open-source dependencies

This is exactly what happened in December 2021 when a remote code execution vulnerability was discovered in Log4J’s software. In simple terms, it exposed an alarmingly straightforward way for attackers to take control of any system using Log4J.  

The scope for potential attack was unprecedented. Some estimates say up to 3 billion devices were affected worldwide, in what was quickly labelled the “single biggest, most critical vulnerability of the last decade” [2].

What ensued was a race between opportunistic nefarious actors and panicked security professionals. The astronomical number of vulnerable devices laid expansive groundwork for attackers, who quickly began probing potentially exploitable systems. 48% of corporate networks globally were scanned for the vulnerability, while security teams scrambled to apply the remediating patch [3].

The vulnerability attracted nation states like a moth to a flame, who, unsurprisingly, beat many security teams to it. According to the FBI and the US Cybersecurity and Infrastructure Agency (CISA), Iranian government-sponsored threat groups were found using the Log4J vulnerability to install cryptomining software, credential stealers and Ngrok reverse proxies onto no less than US Federal networks [4].  

Research from Microsoft and Mandiant revealed nation state groups from China, North Korea and Turkey also taking advantage of the Log4J vulnerability to deploy malware on target systems [5].  

If Log4j taught us anything, it’s that vulnerabilities in open-source technologies can be highly attractive target for nation states. When these technologies are universally adopted, geopolitical adversaries have a much wider net of opportunity to successfully weaponize them.  

It therefore comes as no surprise that nation states have ramped up their operations targeting the open-source link of the supply chain in recent years.  

Since 2020, there has been a 1300% increase in malicious threats circulating on open-source repositories. PyPI is the official open-source code repository for programming done in the Python language and used by over 800,000 developers worldwide. In the first 9 months of 2023 alone, 7,000 malicious packages were found on PyPI, some of which were linked to the North Korea state-sponsored threat group, Lazarus [6].  

Most of them were found using a technique called typosquatting, in which the malicious payloads are disguised with names that very closely resemble those of legitimate packages, ready for download by an unwitting software developer. This trickery of the eye is an example of social engineering in the supply chain.  

A hop, skip, and a jump into the most sensitive networks on earth

One of the most high-profile supply chain attacks in recent history occurred in 2023, targeting 3CX’s Desktop App – a widely used video communications by over 600,000 customers in various sectors such as aerospace, healthcare and hospitality.

The incident gained notoriety as a double supply chain attack. The initial breach originated from financial trading software called X_Trader, which had been infected with a backdoor.  A 3CX employee unknowingly downloaded the compromised X_Trader software onto a corporate device. This allowed attackers to steal the employee’s credentials and use them to gain access to 3CX’s network, spread laterally and compromising Windows and Mac systems.  

The attack moved along another link of the supply chain to several of 3CX’s customers, impacting critical national infrastructure like energy sector in US and Europe.  

For the average software provider, this attack shed more light on how a compromise of their technology could cause chaos for their customers.  

But nation states already knew this. The 3CX attack was attributed, yet again, to Lazarus, the same North Korean nation state blamed for implanting malicious packages in the Python repository.  

It’s also worth mentioning the astounding piece of evidence in a separate social engineering campaign which linked the 3CX hack to North Korea. It was an attack worthy of a Hollywood cyber block buster. The threat group, Lazarus, lured hopeful job candidates on LinkedIn into clicking on malicious ZIP file disguised as an attractive PDF offer for a position as a Developer at HSBC. The malware’s command and control infrastructure, journalide[.]org, was the same one discovered in the 3CX campaign.  

Though not strictly a supply chain attack, the LinkedIn campaign illustrates how nation states employ a diverse array of methods that span beyond the supply chain to achieve their goals. These sophisticated and well-resourced adversaries are adaptable and capable of repurposing their command-and-control infrastructure to orchestrate a range of attacks. This attack, along with the typosquatting attacks found in PyPI, serve as a critical reminder for security teams: supply chain attacks are often coupled with another powerful tactic – social engineering of human teams.

When the cure is worse than the disease

Updates to the software are a core pillar of cybersecurity, designed to patch vulnerabilities like Log4J and ensure it is safe. However, they have also proven to serve as alarmingly efficient delivery vessels for nation states to propagate their cyberattacks.  

Two of the most prolific supply chain breaches in recent history have been deployed through malicious updates, illustrating how they can be a double-edged sword when it comes to cyber defense.  

NotPetya (2017) and Solarwinds (2020)

The 2017 NotPetya ransomware attack exemplified the mass spread of ransomware via a single software update. A Russian military group injected malware on accounting software used by Ukrainian businesses for tax reporting. Via an automatic update, the ransomware was pushed out to thousands of customers within hours, crippled Ukrainian infrastructure including airports, financial institutions and government agencies.  

Some of the hardest hit victims were suppliers themselves. Maersk, the global shipping giant responsible for shipping one fifth of the world’s goods, had their entire global operations brought to a halt and their 76 ports temporarily shut down. The interruptions to global trade were then compounded when a FedEx subsidiary was hit by the same ransomware. Meanwhile, Merck, a pharmaceutical company, was unable to supply vaccines to the Center for Disease Control and Prevention due to the attack.  

In 2020, another devastating supply chain attack unfolded in a similar way. Threat actors tied to Russian intelligence embedded malicious code into Solarwinds’ Orion IT software, which was then distributed as an update to 18,000 organizations. Victims included at least eight U.S. government agencies, as well as several major tech companies.  

These two attacks highlighted two key lessons. First, in a hyperconnected digital world, nation states will exploit the trust organizations place in software updates to cause a ripple effect of devastation downstream. Secondly, the economies of scale for the threat actor themselves are staggering: a single malicious update provided the heavy lifting work of dissemination to the attacker. A colossal number of originations were infected, and they obtained the keys to the world’s most sensitive networks.

The conclusion is obvious, albeit challenging to implement; organizations must rigorously scrutinize the authenticity and security of updates to prevent far-reaching consequences.  

Some of the biggest supply chain attacks in recent history and the nation state actor they are attributed to
Figure 2: Some of the biggest supply chain attacks in recent history and the nation state actor they are attributed to

Geopolitics and nation States in 2024: Beyond the software supply chain

The threat to our increasingly complex web of global supply is real. But organizations must look beyond their software to successfully mitigate supply chain disruption. Securing hardware and logistics is crucial, as these supply chain links are also in the crosshairs of nation states.  

In July 2024, suspicious packages caused a warehouse fire at a depot belonging to courier giant DHL in Birmingham, UK. British counter-terrorism authorities investigated Russian involvement in this fire, which was linked to a very similar incident that same month at a DHL facility in Germany.  

In September 2024, camouflaged explosives were hidden in walkie talkies and pagers in Lebanon and Syria – a supply chain attack widely believed to be carried out by Israel.

While these attacks targeted hardware and logistics rather than software, the underlying rule of thumb remained the same: the compromise of a single distributor can provide the attackers with considerable economies of scale.

These attacks sparked growing concerns of coordinated efforts to sabotage the supply chain. This sentiment was reflected in a global survey carried out by HP in August 2024, in which many organisations reported “nation-state threat actors targeting physical supply chains and tampering with device hardware and firmware integrity” [7].

More recently, in November 2024, the Russian military unit 29155 vowed to “turn the lights out for millions” by threatening to launch cyberattacks on the blood supply of NATO countries, critical national infrastructure (CNI). Today, CNI encompasses more than the electric grid and water supply; it includes ICT services and IT infrastructure – the digital systems that underpin the foundations of modern society.    

This is nothing new. The supply and logistics-focused tactic has been central to warfare throughout history. What’s changed is that cyberspace has merely expanded the scale and efficiency of these tactics, turning single software compromises into attack multipliers. The supply chain threat is now more multi-faceted than ever before.  

Learnings from the supply chain threat landscape

Consider some of the most disastrous nation-state supply chain attacks in recent history – 3CX, NotPetya and Solarwinds. They share a remarkable commonality: the attackers only needed to compromise a single piece of software to cause rampant disruption. By targeting a technology provider whose products were deeply embedded across industries, threat actors leveraged the trust inherent in the supply chain to infiltrate networks at scale.

From a nation-state’s perspective, targeting a specific technology, device or service used by vast swathes of society amplifies operational efficiency. For software, hardware and critical service suppliers, these examples serve as an urgent wake-up call. Without rigorous security measures, they risk becoming conduits for global disruption. Sanity-checking code, implementing robust validation processes, and fostering a culture of security throughout the supply chain are no longer optional—they are essential.  

The stakes are clear: in the interconnected digital age, the safety of countless systems, industries and society at large depends on their vigilance.  

Screenshot of supply chain security whitepaper

Gain a deeper understanding of the evolving risks in supply chain security and explore actionable strategies to protect your organization against emerging threats. Download the white paper to empower your decision-making with expert insights tailored for CISOs

Download: Securing the Supply Chain White Paper

References

  1. https://www.gartner.com/en/documents/5524495
  1. CISA Insights “Remediate Vulnerabilities for Internet-Accessible Systems.”
  1. https://blog.checkpoint.com/security/the-numbers-behind-a-cyber-pandemic-detailed-dive/
  1. https://www.cisa.gov/news-events/cybersecurity-advisories/aa22-320a  
  1. https://www.microsoft.com/en-us/security/blog/2021/12/11/guidance-for-preventing-detecting-and-hunting-for-cve-2021-44228-log4j-2-exploitation/  
  1. https://content.reversinglabs.com/state-of-sscs-report/the-state-of-sscs-report-24  
  1. https://www.hp.com/us-en/newsroom/press-releases/2024/hp-wolf-security-study-supply-chains.html
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
Benjamin Druttman
Cyber Security AI Technical Instructor

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June 9, 2026

Always On, Always Defending: Inside the AI-Driven SOC

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Today’s SOC: A system under pressure

The SOC has been described as the:

  • Control center for security systems management  
  • Operations center for log analysis and alert response
  • Command center for network monitoring and investigation

But the CISO at a manufacturer of industrial power solutions says today’s SOC is far more dynamic:

“The SOC is an active player in a never-ending chess match where the pieces are always moving, the rules are constantly changing, and we’re continuously adjusting our tactical and strategic approaches to keep up.”

This has created a balancing act for cybersecurity professionals:

  • Support expanding digital estates to fuel innovation…or risk limiting business growth
  • Stop advanced cyberattacks at scale…or risk severe financial and reputational impacts

But balancing these responsibilities is increasingly difficult. Attackers are operating at machine speed and scale using sophisticated, adaptive techniques that overwhelm teams and bypass legacy defenses. At the same time, more than half of cybersecurity teams are understaffed, and 65% have unfilled cybersecurity positions (ISACA).

“The SOC is hitting its breaking point,” admits the VP of IT at a U.S.-based risk management services provider.”

“That’s the hard reality,” affirms a Chief Digital and Technology Officer at a North American financial services organization. “SOC teams are drowning in alerts, wasting time researching the most benign incidents while missing critical threats.”

Traditional tools lack the context and autonomous reasoning needed to determine which ones are truly dangerous, requiring analysts to manually review and respond. But with thousands of alerts hitting SOCs daily, the task exceeds human capacity, with recent industry research revealing that 40% to 42% of security alerts now go uninvestigated.

“Our old governance models of throwing bodies at it, that’s not going to work,” says the Group CIO of a multinational holding company. “Attackers move at machine speed, and our defenses have to operate at the same pace. Using AI for cybersecurity is the only way to do that.”

Why AI is essential

AI is about speed, scale, and context.

SOC teams are still expected to find the proverbial “needle in a haystack”, but the haystack keeps growing. As digital infrastructures expand and threat actors use AI to rapidly scale attacks and exploit vulnerabilities, success isn’t about keeping up but changing the approach.

This is where AI comes in, enabling security teams to operate at machine speed and scale by:

  • Analyzing vast amounts of data and correlating signals across domains within seconds
  • Detecting possible threats in real time and taking immediate action to mitigate risk
  • Prioritizing threats by severity and uncovering contextual details for rapid triage

The power of AI isn’t theoretical; it is transforming how today’s businesses operate.

The Chief Digital and Technology Officer at a financial services firm says within a single month of using Darktrace, the solution tracked billions of network events, autonomously investigated tens of millions of those incidents, and added the equivalent of 1,000 analyst hours of investigation. It also found threats that bypassed traditional tools, autonomously responding to contain or disrupt the threat on over 30,000 emails, including 18,000 the firm’s native email filter missed.

When Darktrace says it “takes action on a threat,” it generally means its platform can move beyond just detecting suspicious activity and automatically respond to contain or disrupt the threat—such as isolating a device, slowing or blocking suspicious network traffic, disabling risky user activity, or triggering security workflows—depending on how the system is configured.

AI isn’t about displacing humans.

AI is a powerful tool for handling large-scale data analysis, pattern detection, and repetitive tasks, but it cannot replace human critical thinking. By removing mindless work that does not require judgment, AI frees analysts to focus on what humans do best: applying reasoning, context, and sound decision-making to complex threats.

“AI is a workforce maximizer,” says the Chief Digital and Technology Officer. “It augments our team by monitoring and detecting threats at a scale beyond human capacity while providing the critical context we need to make faster, more confident decisions.

Rather than replacing people, AI is changing how security professionals work. Analysts can reclaim time previously spent on tedious, manual triage to focus on higher priorities and proactive initiatives like advanced threat hunting, strategic risk management, and security enablement and training.

“Aside from risk mitigation, our biggest ROI is in efficiency,” says the Head of Security at global business services provider. “What used to take 90% of our investigation time is now handled automatically, so we can focus on the final 10%, which requires critical thinking."

For SOC teams under pressure, the impact can be transformative, with security leaders reporting significant real-world outcomes using Darktrace Self-Learning AITM, including:

  • Phishing emails reduced by 99%
  • 1 million+ emails autonomously analyzed each month, with no email-based incidents reported
  • Potential threats autonomously neutralized in under four seconds, on average  
  • 99% of investigations conducted autonomously, surfacing only the high-priority 1% of threats for analyst review

How AI optimizes the SOC

To protect the modern enterprise, you absolutely need the right tools,” says CTO at leading European fashion brand. “Without them you’re a victim. With them, you’re a defender. AI and the machine speed detect/response it enables makes it the most critical tool.”

Replacing chaos with clarity and control  

It’s important to note that different AI solutions address different needs. Companies should clearly understand their specific use case and select the solution that best aligns with their goals, requirements, and operational needs.  

When it comes to choosing cybersecurity in a machine-speed threat landscape, time is the most valuable resource. Organizations require AI that can move from insight to action by:

  • Learning an organization’s unique behavioral patterners
  • Correlating signals across domains to detect anomalous activity
  • Prioritizing events and autonomously responding at scale to the vast majority
  • Quarantining high-impact threats until the SOC can investigate
  • Arming analysts with deep, contextual information to accelerate investigations

“Darktrace AI gives us threat detections based on facts, not guesses,” says the Group CIO. “It moves the SOC beyond alert overload to confident, informed decision-making. When Darktrace flags something, we pay attention. False positives are very rare, so we act with speed and confidence without second-guessing.”

Replacing anxiety with confidence and peace of mind

Every missed alert can have real-world consequences.

The strain of maintaining constant vigilance at scale without holistic visibility and automation is taking its toll on security professionals: 66% report increased stress, and nearly half say it’s the reason they’re leaving the field (ISACA).

The CIO at a professional sports organization says that’s not surprising: “If you don’t know what’s going on, anything could be happening. Operating with that level of uncertainty and control is incredibly stressful.”

AI gives SOCs the power to be proactive by unifying telemetry across network, email, identity, and cloud environments to provide a complete picture and a stronger foundation for action. The benefits for analysts, both personally and professionally, are significant:

  • Achieve greater work-life balance: “Knowing that Darktrace has our backs 24/7 and will take immediate action to stop threats  means we can now work normal hours and take vacations without worrying,” says the Chief Digital and Technology Officer.
  • Feel in control with deeper insights: “It not only stops and quarantines threats but also provides the deep context we need to quickly investigate and respond,” explains the Head of Security.  
  • Gain confidence the business is protected 24/7: “We can sleep at night. With Darktrace I’m confident that even with a small team we can protect the business 24/7,” adds the former retail CIO.

The modern SOC: A system of balance

Elevated to a core pillar of business strategy, the modern SOC is now considered:

  • The nerve center of cyber risk and proactive defense
  • The AI-powered command center for operational resilience
  • The strategic hub for contextual decision-making at scale

The SOC has evolved from a reactive center responsible for managing systems into a proactive, frontline defender and strategic business enabler—integral to innovation and growth.

AI is the key to balancing these responsibilities.

“We can only grow as fast as we can secure the business,” says the Head of Security. “AI gives us the speed, scale, and confidence to do both.”

*Metrics are based on the customer’s interview, data and sourced from its monthly Cyber AI Insights reporting.

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June 3, 2026

Stopping Stealth Attacks with Precision: How Núclea Prevented a Breach Without Disruption

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Núclea is a Brazilian data and technology company that supports the country’s financial system by delivering digital services exclusively to banks and financial institutions. Operating in an environment where trust, availability, and data integrity are critical, the company faces a threat landscape that has evolved rapidly—particularly with the rise of AI-driven cyberattacks.

Brazil has experienced a wave of successful cyber incidents targeting financial institutions, many of them enabled by insiders or compromised credentials. The result was a noticeable shift in attacker strategy: instead of focusing on end customers, threat actors began targeting the institutions and platforms that underpin the financial ecosystem itself.

“Attacks became far more directed and contextual,” explains Guilherme, who leads incident response within Núclea’s security platform engineering team. “They weren’t noisy or obviously malicious—they were precise, patient, and designed to blend into normal operations.”

That precision was on full display in January 2026, when Núclea faced one of the most convincing phishing attacks the team had seen.

A real attack, built on trust and context

The attack began with a seemingly routine email.

It was sent from a real Brazilian government institution, using legitimate infrastructure and valid credentials that were later confirmed to have been compromised. Núclea had an established, ongoing relationship with this organization, and the email’s language, tone, and subject matter aligned perfectly with the type of communication the recipient team handled every day.

Attached to the email was a PDF document containing content that looked entirely legitimate.

The problem? A single URL embedded inside that PDF.

“The message itself was correct. The sender was real. The context was familiar. Even the document content made sense,” Guilherme explains. “There was just one small element that didn’t belong.”

That small detail was enough to initiate a full attack chain.

What the attackers were trying to do

If clicked, the URL would have downloaded a malicious payload designed to:

  • Collect information about the user and device
  • Identify where the system was located within the financial ecosystem
  • Install remote access tools to maintain control
  • Deploy an infostealer to extract sensitive data
  • Execute anti-forensic scripts to erase traces of the intrusion

In other words, it was a carefully engineered operation designed for persistence and stealth, not immediate disruption.

The attack also employed urgency—a classic social engineering technique. When the link didn’t open as expected, employees requested assistance from the security team, insisting the document was important and needed to be accessed quickly.

This is precisely the kind of scenario where traditional security tools struggle: almost everything about the interaction is legitimate.

Where Darktrace made the difference

Instead of blocking the entire message or relying on known indicators of compromise, Darktrace focused on behavioral context.

Darktrace recognized:

  • That the sending organization was normally trusted
  • That the communication pattern matched historical behavior
  • That the PDF content itself was not suspicious

But it also identified that the URL embedded within the document deviated from established behavioral patterns.

Rather than disrupting business operations, Darktrace took precise action: it rewrote the URL, preventing the malicious download while leaving the rest of the email untouched.

“When we analyzed it afterward, it became clear how dangerous the attack would have been,” says Guilherme. “But it never progressed—because Darktrace acted at exactly the right point.”

Subsequent forensic analysis confirmed the payload’s malicious intent. The attack never succeeded.

Precision over disruption

For Núclea, this incident reinforced a critical lesson: modern attacks don’t always look malicious—they hide within normal activity.

“What stands out to me is the precision,” Guilherme says. “Darktrace doesn’t rely on big, obvious signals. It’s effective in situations that fall outside the standard patterns we all know.”

Building resilience in a high trust ecosystem

For Núclea, cybersecurity is not just a defensive measure—it’s a business enabler.

Availability failures or successful breaches in the financial ecosystem can have immediate, large-scale consequences, from financial loss to reputational damage. Preventing those outcomes protects not just Núclea, but its partners and customers as well.

“Cyber resilience means keeping the business running—even under attack,” Guilherme explains. “And that requires people, processes, and technology working together.”

As AI continues to accelerate both attacks and defenses, the role of security is evolving. Precision, behavioral understanding, and intelligent automation are no longer optional—they’re essential.

“The easy days were yesterday,” Guilherme says. “The challenges ahead are bigger. We need to be prepared—internally and with partners that help us build resilience.”

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