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June 10, 2024

Darktrace Investigation Into Medusa Ransomware

See how Darktrace empowers organizations to fight back against Medusa ransomware, enhancing their cybersecurity posture with advanced technology.
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
Maria Geronikolou
Cyber Analyst
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10
Jun 2024

What is Living off the Land attack?

In the face of increasingly vigilant security teams and adept defense tools, attackers are continually looking for new ways to circumvent network security and gain access to their target environments. One common tactic is the leveraging of readily available utilities and services within a target organization’s environment in order to move through the kill chain; a popular method known as living off the land (LotL). Rather than having to leverage known malicious tools or write their own malware, attackers are able to easily exploit the existing infrastructure of their targets.

The Medusa ransomware group in particular are known to extensively employ LotL tactics, techniques and procedures (TTPs) in their attacks, as one Darktrace customer in the US discovered in early 2024.

What is Medusa Ransomware?

Medusa ransomware (not to be confused with MedusaLocker) was first observed in the wild towards the end of 2022 and has been a popular ransomware strain amongst threat actors since 2023 [1]. Medusa functions as a Ransomware-as-a-Service (RaaS) platform, providing would-be attackers, also know as affiliates, with malicious software and infrastructure required to carry out disruptive ransomware attacks. The ransomware is known to target organizations across many different industries and countries around the world, including healthcare, education, manufacturing and retail, with a particular focus on the US [2].

How does Medusa Ransomware work?

Medusa affiliates are known to employ a number of TTPs to propagate their malware, most predominantly gaining initial access by exploiting vulnerable internet-facing assets and targeting valid local and domain accounts that are used for system administration.

The ransomware is typically delivered via phishing and spear phishing campaigns containing malicious attachments [3] [4], but it has also been observed using initial access brokers to access target networks [5]. In terms of the LotL strategies employed in Medusa compromises, affiliates are often observed leveraging legitimate services like the ConnectWise remote monitoring and management (RMM) software and PDQ Deploy, in order to evade the detection of security teams who may be unable to distinguish the activity from normal or expected network traffic [2].

According to researchers, Medusa has a public Telegram channel that is used by threat actors to post any data that may have been stolen, likely in an attempt to extort organizations and demand payment [2].  

Darktrace’s Coverage of Medusa Ransomware

Established Foothold and C2 activity

In March 2024, Darktrace / NETWORK identified over 80 devices, including an internet facing domain controller, on a customer network performing an unusual number of activities that were indicative of an emerging ransomware attack. The suspicious behavior started when devices were observed making HTTP connections to the two unusual endpoints, one of which is “go-sw6-02.adventos[.]de”, with the PowerShell and JWrapperDownloader user agents.

Darktrace’s Cyber AI Analyst™ launched an autonomous investigation into the connections and was able to connect the seemingly separate events into one wider incident spanning multiple different devices. This allowed the customer to visualize the activity in chronological order and gain a better understanding of the scope of the attack.

At this point, given the nature and rarity of the observed activity, Darktrace /NETWORK's autonomous response would have been expected to take autonomous action against affected devices, blocking them from making external connections to suspicious locations. However, autonomous response was not configured to take autonomous action at the time of the attack, meaning any mitigative actions had to be manually approved by the customer’s security team.

Internal Reconnaissance

Following these extensive HTTP connections, between March 1 and 7, Darktrace detected two devices making internal connection attempts to other devices, suggesting network scanning activity. Furthermore, Darktrace identified one of the devices making a connection with the URI “/nice ports, /Trinity.txt.bak”, indicating the use of the Nmap vulnerability scanning tool. While Nmap is primarily used legitimately by security teams to perform security audits and discover vulnerabilities that require addressing, it can also be leveraged by attackers who seek to exploit this information.

Darktrace / NETWORK model alert showing the URI “/nice ports, /Trinity.txt.bak”, indicating the use of Nmap.
Figure 1: Darktrace /NETWORK model alert showing the URI “/nice ports, /Trinity.txt.bak”, indicating the use of Nmap.

Darktrace observed actors using multiple credentials, including “svc-ndscans”, which was also seen alongside DCE-RPC activity that took place on March 1. Affected devices were also observed making ExecQuery and ExecMethod requests for IWbemServices. ExecQuery is commonly utilized to execute WMI Query Language (WQL) queries that allow the retrieval of information from WI, including system information or hardware details, while ExecMethod can be used by attackers to gather detailed information about a targeted system and its running processes, as well as a tool for lateral movement.

Lateral Movement

A few hours after the first observed scanning activity on March 1, Darktrace identified a chain of administrative connections between multiple devices, including the aforementioned internet-facing server.

Cyber AI Analyst was able to connect these administrative connections and separate them into three distinct ‘hops’, i.e. the number of administrative connections made from device A to device B, including any devices leveraged in between. The AI Analyst investigation was also able to link the previously detailed scanning activity to these administrative connections, identifying that the same device was involved in both cases.

Cyber AI Analyst investigation into the chain of lateral movement activity.
Figure 2: Cyber AI Analyst investigation into the chain of lateral movement activity.

On March 7, the internet exposed server was observed transferring suspicious files over SMB to multiple internal devices. This activity was identified as unusual by Darktrace compared to the device's normal SMB activity, with an unusual number of executable (.exe) and srvsvc files transferred targeting the ADMIN$ and IPC$ shares.

Cyber AI Analyst investigation into the suspicious SMB write activity.
Figure 3: Cyber AI Analyst investigation into the suspicious SMB write activity.
Graph highlighting the number of successful SMB writes and the associated model alerts.
Figure 4: Graph highlighting the number of successful SMB writes and the associated model alerts.

The threat actor was also seen writing SQLite3*.dll files over SMB using a another credential this time. These files likely contained the malicious payload that resulted in the customer’s files being encrypted with the extension “.s3db”.

Darktrace’s visibility over an affected device performing successful SMB writes.
Figure 5: Darktrace’s visibility over an affected device performing successful SMB writes.

Encryption of Files

Finally, Darktrace observed the malicious actor beginning to encrypt and delete files on the customer’s environment. More specifically, the actor was observed using credentials previously seen on the network to encrypt files with the aforementioned “.s3db” extension.

Darktrace’s visibility over the encrypted files.
Figure 6: Darktrace’s visibility over the encrypted files.


After that, Darktrace observed the attacker encrypting  files and appending them with the extension “.MEDUSA” while also dropping a ransom note with the file name “!!!Read_me_Medusa!!!.txt”

Darktrace’s detection of threat actors deleting files with the extension “.MEDUSA”.
Figure 7: Darktrace’s detection of threat actors deleting files with the extension “.MEDUSA”.
Darktrace’s detection of the Medusa ransom note.
Figure 8: Darktrace’s detection of the Medusa ransom note.

At the same time as these events, Darktrace observed the attacker utilizing a number of LotL techniques including SSL connections to “services.pdq[.]tools”, “teamviewer[.]com” and “anydesk[.]com”. While the use of these legitimate services may have bypassed traditional security tools, Darktrace’s anomaly-based approach enabled it to detect the activity and distinguish it from ‘normal’ network activity. It is highly likely that these SSL connections represented the attacker attempting to exfiltrate sensitive data from the customer’s network, with a view to using it to extort the customer.

Cyber AI Analyst’s detection of “services.pdq[.]tools” usage.
Figure 9: Cyber AI Analyst’s detection of “services.pdq[.]tools” usage.

If this customer had been subscribed to Darktrace's Proactive Threat Notification (PTN) service at the time of the attack, they would have been promptly notified of these suspicious activities by the Darktrace Security Operation Center (SOC). In this way they could have been aware of the suspicious activities taking place in their infrastructure before the escalation of the compromise. Despite this, they were able to receive assistance through the Ask the Expert service (ATE) whereby Darktrace’s expert analyst team was on hand to assist the customer by triaging and investigating the incident further, ensuring the customer was well equipped to remediate.  

As Darktrace /NETWORK's autonomous response was not enabled in autonomous response mode, this ransomware attack was able to progress to the point of encryption and data exfiltration. Had autonomous response been properly configured to take autonomous action, Darktrace would have blocked all connections by affected devices to both internal and external endpoints, as well as enforcing a previously established “pattern of life” on the device to stop it from deviating from its expected behavior.

Conclusion

The threat actors in this Medusa ransomware attack attempted to utilize LotL techniques in order to bypass human security teams and traditional security tools. By exploiting trusted systems and tools, like Nmap and PDQ Deploy, attackers are able to carry out malicious activity under the guise of legitimate network traffic.

Darktrace’s Self-Learning AI, however, allows it to recognize the subtle deviations in a device’s behavior that tend to be indicative of compromise, regardless of whether it appears legitimate or benign on the surface.

Further to the detection of the individual events that made up this ransomware attack, Darktrace’s Cyber AI Analyst was able to correlate the activity and collate it under one wider incident. This allowed the customer to track the compromise and its attack phases from start to finish, ensuring they could obtain a holistic view of their digital environment and remediate effectively.

[related-resource]

Appendices

Credit to Maria Geronikolou, Cyber Analyst, Ryan Traill, Threat Content Lead

Darktrace DETECT Model Detections

Anomalous Connection / SMB Enumeration

Device / Anomalous SMB Followed By Multiple Model Alerts

Device / Suspicious SMB Scanning Activity

Device / Attack and Recon Tools

Device / Suspicious File Writes to Multiple Hidden SMB Share

Compromise / Ransomware / Ransom or Offensive Words Written to SMB

Device / Internet Facing Device with High Priority Alert

Device / Network Scan

Anomalous Connection / Powershell to Rare External

Device / New PowerShell User Agent

Possible HTTP Command and Control

Extensive Suspicious DCE-RPC Activity

Possible SSL Command and Control to Multiple Endpoints

Suspicious Remote WMI Activity

Scanning of Multiple Devices

Possible Ransom Note Accessed over SMB

List of Indicators of Compromise (IoCs)

IoC – Type – Description + Confidence

207.188.6[.]17      -     IP address   -      C2 Endpoint

172.64.154[.]227 - IP address -        C2 Endpoint

go-sw6-02.adventos[.]de.  Hostname  - C2 Endpoint

.MEDUSA             -        File extension     - Extension to encrypted files

.s3db               -             File extension    -  Created file extension

SQLite3-64.dll    -        File           -               Used tool

!!!Read_me_Medusa!!!.txt - File -   Ransom note

Svc-ndscans         -         Credential     -     Possible compromised credential

Svc-NinjaRMM      -       Credential      -     Possible compromised credential

MITRE ATT&CK Mapping

Discovery  - File and Directory Discovery - T1083

Reconnaissance    -  Scanning IP            -          T1595.001

Reconnaissance -  Vulnerability Scanning -  T1595.002

Lateral Movement -Exploitation of Remote Service -  T1210

Lateral Movement - Exploitation of Remote Service -   T1210

Lateral Movement  -  SMB/Windows Admin Shares     -    T1021.002

Lateral Movement   -  Taint Shared Content          -            T1080

Execution   - PowerShell     - T1059.001

Execution  -   Service Execution   -    T1059.002

Impact   -    Data Encrypted for Impact  -  T1486

References

[1] https://unit42.paloaltonetworks.com

[2] https://thehackernews.com

[3] https://trustwave.com

[4] https://www.sangfor.com

[5] https://thehackernews.com

[6]https://any.run

Get the latest insights on emerging cyber threats

This report explores the latest trends shaping the cybersecurity landscape and what defenders need to know in 2025.

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
Maria Geronikolou
Cyber Analyst

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October 24, 2025

Patch Smarter, Not Harder: Now Empowering Security Teams with Business-Aligned Threat Context Agents

Patch Smarter, Not Harder: Now Empowering Security Teams with Business-Aligned Threat Context Agents Default blog imageDefault blog image

Most risk management programs remain anchored in enumeration: scanning every asset, cataloging every CVE, and drowning in lists that rarely translate into action. Despite expensive scanners, annual pen tests, and countless spreadsheets, prioritization still falters at two critical points.

Context gaps at the device level: It’s hard to know which vulnerabilities actually matter to your business given existing privileges, what software it runs, and what controls already reduce risk.

Business translation: Even when the technical priority is clear, justifying effort and spend in financial terms—especially across many affected devices—can delay action. Especially if it means halting other areas of the business that directly generate revenue.

The result is familiar: alert fatigue, “too many highs,” and remediation that trails behind the threat landscape. Darktrace / Proactive Exposure Management addresses this by pairing precise, endpoint‑level context with clear, financial insight so teams can prioritize confidently and mobilize faster.

A powerful combination: No-Telemetry Endpoint Agent + Cost-Benefit Analysis

Darktrace / Proactive Exposure Management now uniquely combines technical precision with business clarity in a single workflow.  With this release, Darktrace / Proactive Exposure Management delivers a more holistic approach, uniting technical context and financial insight to drive proactive risk reduction. The result is a single solution that helps security teams stay ahead of threats while reducing noise, delays, and complexity.

  • No-Telemetry Endpoint: Collects installed software data and maps it to known CVEs—without network traffic—providing device-level vulnerability context and operational relevance.
  • Cost-Benefit Analysis for Patching: Calculates ROI by comparing patching effort with potential exploit impact, factoring in headcount time, device count, patch difficulty, and automation availability.

Introducing the No-Telemetry Endpoint Agent

Darktrace’s new endpoint agent inventories installed software on devices and maps it to known CVEs without collecting network data so you can prioritize using real device context and available security controls.

By grounding vulnerability findings in the reality of each endpoint, including its software footprint and existing controls, teams can cut through generic severity scores and focus on what matters most. The agent is ideal for remote devices, BYOD-adjacent fleets, or environments standardizing on Darktrace, and is available without additional licensing cost.

Darktrace / Proactive Exposure Management user interface
Figure 1: Darktrace / Proactive Exposure Management user interface

Built-In Cost-Benefit Analysis for Patching

Security teams often know what needs fixing but stakeholders need to understand why now. Darktrace’s new cost-benefit calculator compares the total cost to patch against the potential cost of exploit, producing an ROI for the patch action that expresses security action in clear financial terms.

Inputs like engineer time, number of affected devices, patch difficulty, and automation availability are factored in automatically. The result is a business-aligned justification for every patching decision—helping teams secure buy-in, accelerate approvals, and move work forward with one-click ticketing, CSV export, or risk acceptance.

Darktrace / Proactive Exposure Management Cost Benefit Analysis
Figure 2: Darktrace / Proactive Exposure Management Cost Benefit Analysis

A Smarter, Faster Approach to Exposure Management

Together, the no-telemetry endpoint and Cost–Benefit Analysis advance the CTEM motion from theory to practice. You gain higher‑fidelity discovery and validation signals at the device level, paired with business‑ready justification that accelerates mobilization. The result is fewer distractions, clearer priorities, and faster measurable risk reduction. This is not from chasing every alert, but by focusing on what moves the needle now.

  • Smarter Prioritization: Device‑level context trims noise and spotlights the exposures that matter for your business.
  • Faster Decisions: Built‑in ROI turns technical urgency into executive clarity—speeding approvals and action.
  • Practical Execution: Privacy‑conscious endpoint collection and ticketing/export options fit neatly into existing workflows.
  • Better Outcomes: Close the loop faster—discover, prioritize, validate, and mobilize—on the same operating surface.

Committed to innovation

These updates are part of the broader Darktrace release, which also included:

1. Major innovations in cloud security with the launch of the industry’s first fully automated cloud forensics solution, reinforcing Darktrace’s leadership in AI-native security.

2. Darktrace Network Endpoint eXtended Telemetry (NEXT) is revolutionizing NDR with the industry’s first mixed-telemetry agent using Self-Learning AI.

3. Improvements to our OT product, purpose built for industrial infrastructure, Darktrace / OT now brings dedicated OT dashboard, segmentation-aware risk modeling, and expanded visibility into edge assets and automation protocols.

Join our Live Launch Event

When? 

December 9, 2025

What will be covered?

Join our live broadcast to experience how Darktrace is eliminating blind spots for detection and response across your complete enterprise with new innovations in Agentic AI across our ActiveAI Security platform. Industry leaders from IDC will join Darktrace customers to discuss challenges in cross-domain security, with a live walkthrough reshaping the future of Network Detection & Response, Endpoint Detection & Response, Email Security, and SecOps in novel threat detection and autonomous investigations.

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October 24, 2025

Darktrace Announces Extended Visibility Between Confirmed Assets and Leaked Credentials from the Deep and Dark Web

Darktrace Announces Extended Visibility Between Confirmed Assets and Leaked Credentials from the Deep and Dark Web Default blog imageDefault blog image

Why exposure management needs to evolve beyond scans and checklists

The modern attack surface changes faster than most security programs can keep up. New assets appear, environments change, and adversaries are increasingly aided by automation and AI. Traditional approaches like periodic scans, static inventories, or annual pen tests are no longer enough. Without a formal exposure program, many businesses are flying blind, unaware of where the next threat may emerge.

This is where Continuous Threat Exposure Management (CTEM) becomes essential. Introduced by Gartner, CTEM helps organizations continuously assess, validate, and improve their exposure to real-world threats. It reframes the problem: scope your true attack surface, prioritize based on business impact and exploitability, and validate what attackers can actually do today, not once a year.

With two powerful new capabilities, Darktrace / Attack Surface Management helps organizations evolve their CTEM programs to meet the demands of today’s threat landscape. These updates make CTEM a reality, not just a strategy.

Too much data, not enough direction

Modern Attack Surface Management tools excel at discovering assets such as cloud workloads, exposed APIs, and forgotten domains. But they often fall short when it comes to prioritization. They rely on static severity scores or generic CVSS ratings, which do not reflect real-world risk or business impact.

This leaves security teams with:

  • Alert fatigue from hundreds of “critical” findings
  • Patch paralysis due to unclear prioritization
  • Blind spots around attacker intent and external targeting

CISOs need more than visibility. They need confidence in what to fix first and context to justify those decisions to stakeholders.

Evolving Attack Surface Management

Attack Surface Management (ASM) must evolve from static lists and generic severity scores to actionable intelligence that helps teams make the right decision now.

Joining the recent addition of Exploit Prediction Assessment, which debuted in late June 2025, today we’re introducing two capabilities that push ASM into that next era:

  • Exploit Prediction Assessment: Continuously validates whether top-priority exposures are actually exploitable in your environment without waiting for patch cycles or formal pen tests.  
  • Deep & Dark Web Monitoring: Extends visibility across millions of sources in the deep and dark web to detect leaked credentials linked to your confirmed domains.
  • Confidence Score: our newly developed AI classification platform will compare newly discovered assets to assets that are known to belong to your organization. The more these newly discovered assets look similar to assets that belong to your organization, the higher the score will be.

Together, these features compress the window from discovery to decision, so your team can act with precision, not panic. The result is a single solution that helps teams stay ahead of attackers without introducing new complexities.

Exploit Prediction Assessment

Traditional penetration tests are invaluable, but they’re often a snapshot of that point-in-time, are potentially disruptive, and compliance frameworks still expect them. Not to mention, when vulnerabilities are present, teams can act immediately rather than relying solely on information from CVSS scores or waiting for patch cycles.  

Unlike full pen tests which can be obtrusive and are usually done only a couple times per year, Exploit Prediction Assessment is surgical, continuous, and focused only on top issues Instead of waiting for vendor patches or the next pen‑test window. It helps confirm whether a top‑priority exposure is actually exploitable in your environment right now.  

For more information on this visit our blog: Beyond Discovery: Adding Intelligent Vulnerability Validation to Darktrace / Attack Surface Management

Deep and Dark Web Monitoring: Extending the scope

Customers have been asking for this for years, and it is finally here. Defense against the dark web. Darktrace / Attack Surface Management’s reach now spans millions of sources across the deep and dark web including forums, marketplaces, breach repositories, paste sites, and other hard‑to‑reach communities to detect leaked credentials linked to your confirmed domains.  

Monitoring is continuous, so you’re alerted as soon as evidence of compromise appears. The surface web is only a fraction of the internet, and a sizable share of risk hides beyond it. Estimates suggest the surface web represents roughly ~10% of all online content, with the rest gated or unindexed—and the TOR-accessible dark web hosts a high proportion of illicit material (a King’s College London study found ~57% of surveyed onion sites contained illicit content), underscoring why credential leakage and brand abuse often appear in places traditional monitoring doesn’t reach. Making these spaces high‑value for early warning signals when credentials or brand assets appear. Most notably, this includes your company’s reputation, assets like servers and systems, and top executives and employees at risk.

What changes for your team

Before:

  • Hundreds of findings, unclear what to start with
  • Reactive investigations triggered by incidents

After:

  • A prioritized backlog based on confidence score or exploit prediction assessment verification
  • Proactive verification of exposure with real-world risk without manual efforts

Confidence Score: Prioritize based on the use-case you care most about

What is it?

Confidence Score is a metric that expresses similarity of newly discover assets compared to the confirmed asset inventory. Several self-learning algorithms compare features of assets to be able to calculate a score.

Why it matters

Traditional Attack Surface Management tools treat all new discovery equally, making it unclear to your team how to identify the most important newly discovered assets, potentially causing you to miss a spoofing domain or shadow IT that could impact your business.

How it helps your team

We’re dividing newly discovered assets into separate insight buckets that each cover a slightly different business case.

  • Low scoring assets: to cover phishing & spoofing domains (like domain variants) that are just being registered and don't have content yet.
  • Medium scoring assets: have more similarities to your digital estate, but have better matching to HTML, brand names, keywords. Can still be phishing but probably with content.
  • High scoring assets: These look most like the rest of your confirmed digital estate, either it's phishing that needs the highest attention, or the asset belongs to your attack surface and requires asset state confirmation to enable the platform to monitor it for risks.

Smarter Exposure Management for CTEM Programs

Recent updates to Darktrace / Attack Surface Management directly advance the core phases of Continuous Threat Exposure Management (CTEM): scope, discover, prioritize, validate, and mobilize. The new Exploit Prediction Assessment helps teams validate and prioritize vulnerabilities based on real-world exploitability, while Deep & Dark Web Monitoring extends discovery into hard-to-reach areas where stolen data and credentials often surface. Together, these capabilities reduce noise, accelerate remediation, and help organizations maintain continuous visibility over their expanding attack surface.

Building on these innovations, Darktrace / Attack Surface Management empowers security teams to focus on what truly matters. By validating exploitability, it cuts through the noise of endless vulnerability lists—helping defenders concentrate on exposures that represent genuine business risk. Continuous monitoring for leaked credentials across the deep and dark web further extends visibility beyond traditional asset discovery, closing critical blind spots where attackers often operate. Crucially, these capabilities complement, not replace, existing security controls such as annual penetration tests, providing continuous, low-friction validation between formal assessments. The result is a more adaptive, resilient security posture that keeps pace with an ever-evolving threat landscape.

If you’re building or maturing a CTEM program—and want fewer open exposures, faster remediation, and better outcomes, Darktrace / Attack Surface Management’s new Exploit Prediction Assessment and Deep & Dark Web Monitoring are ready to help.

  • Want a more in-depth look at how Exploit Prediction Assessment functions? Read more here

Committed to innovation

These updates are part of the broader Darktrace release, which also included:

1. Major innovations in cloud security with the launch of the industry’s first fully automated cloud forensics solution, reinforcing Darktrace’s leadership in AI-native security.

2. Darktrace Network Endpoint eXtended Telemetry (NEXT) is revolutionizing NDR with the industry’s first mixed-telemetry agent using Self-Learning AI.

3. Improvements to our OT product, purpose built for industrial infrastructure, Darktrace / OT now brings dedicated OT dashboard, segmentation-aware risk modeling, and expanded visibility into edge assets and automation protocols.

Join our Live Launch Event

When? 

December 9, 2025

What will be covered?

Join our live broadcast to experience how Darktrace is eliminating blind spots for detection and response across your complete enterprise with new innovations in Agentic AI across our ActiveAI Security platform. Industry leaders from IDC will join Darktrace customers to discuss challenges in cross-domain security, with a live walkthrough reshaping the future of Network Detection & Response, Endpoint Detection & Response, Email Security, and SecOps in novel threat detection and autonomous investigations.

Continue reading
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