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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.

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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 2026.

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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July 22, 2026

When AI Agents Go Off Script: What the OpenAI and Hugging Face Incident Means for Defenders

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The recent security incident disclosed jointly by OpenAI and Hugging Face is quickly becoming one of the most discussed AI security stories of the year; it's one that has generated great discussion amongst our researchers and technical teams here at Darktrace.

During an internal evaluation of advanced OpenAI models, an autonomous agent reportedly escaped its intended testing boundaries, obtained internet access, and compromised Hugging Face infrastructure while attempting to evaluate and benchmark the model's cyber capabilities. OpenAI has described it as an unprecedented cyber incident and is collaborating with Hugging Face to investigate and share its findings publicly to help defenders understand the implications and improve AI safety across the community.

What this means for organizations deploying AI agents

The most important takeaway for security leaders is not that the AI model is capable of complex and effective chained attacks. It's what this tells us about the guardrails and protections that need to be put in place to ensure these increasingly capable models are safely used within our businesses.

According to OpenAI's investigation, the models were not acting with malicious intent. They were attempting to achieve a legitimate assigned objective. In pursuing that objective, they identified a path that involved obtaining information from a third party's environment and followed it to completion. From the model's perspective, that appears to have been an effective solution to the problem it was given.

Many organizations still hold the assumption that giving an AI agent a legitimate goal will naturally result in legitimate behavior. Increasingly, that is not something defenders can safely assume.

A human who encounters a "permission denied" message generally understands the technical restriction as well as the social meaning behind it. An agent may interpret that message only as evidence that one method to achieve its objective has failed. What makes this incident notable is the agent’s ability to keep pursuing the objective, revise its plan, and combine many individually useful actions into an outcome its designers did not intend.

This is not an isolated challenge. Recent research from the UK's AI Security Institute found that frontier models often attempt to "cheat" evaluations by finding unintended shortcuts to success. More interestingly, that behavior is not always reflected in chain-of-thought outputs and is not always admitted when models are questioned about their actions. One lesson for defenders is that understanding what an AI system says it is doing is not always the same as understanding its behavior and what it is actually doing.

Why behavioral security is an essential security foundation

That's the principle behind Darktrace / SECURE AI and our broader approach to behavioral security. Understanding intent or putting in place static guardrails is not enough; security teams need visibility into how agents behave over time, what resources they interact with, how their behavior changes, and whether they begin pursuing objectives in unexpected ways. Research released by NIST earlier this summer reinforced that rules alone are not sufficient to defend against AI threats, with one conclusion being that "there will always be a way to prompt an AI system to disregard its rules - it's just a matter of finding it."

Another interesting lesson is that nothing described in OpenAI's preliminary findings appears fundamentally impossible for a skilled human attacker. But it does highlight the accessibility and scale that could be unlocked for attackers as increasingly capable models become more widely available. Resource constraints that attackers deal with will decrease as frontier models can help execute elements of those attack workflows autonomously, persist through failure, and iterate towards an objective. Capabilities that were once limited to skilled attackers can increasingly be supplemented with these systems, lowering the barrier to entry to conduct complex cyber operations.

It is incredibly positive to see OpenAI and Hugging Face investigating this incident collaboratively and sharing their findings publicly. Transparency and collaboration around incidents like these helps the entire security community better understand how rapidly AI capabilities are evolving and where we need to improve safeguards. It also reinforces why Darktrace is excited to be partnering with OpenAI through the Daybreak Cyber Partner Program: to explore how advanced AI can be used safely and responsibly in support of defenders while developing the visibility, governance, and security controls needed for increasingly autonomous systems.

This incident is an important reminder that capable AI systems will not always behave in the ways we expect. As organizations deploy AI agents across critical workflows, understanding behavior is an even more important foundation for effective security.

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July 22, 2026

How to Secure AI in Stadium Operations?

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Key takeaways

  • AI is entering high-impact stadium functions such as access control, crowd management, ticketing, facilities, and surveillance.  
  • Shadow AI and third-party AI use can create risks that stadium security teams cannot readily see.  
  • Security teams must understand not only which AI systems exist, but also what they can access and what actions they can take.  
  • Live-event resilience requires continuous monitoring and response across AI, IT, OT, identities, and third parties.

Modern stadiums are infrastructure unlike any other. I’ve written before on event day sparking stadiums into life with shops and food stands, transport hubs, vast telecommunications infrastructure, field-side technology and beyond, acting as one super-sized, connected ecosystem. Stadiums’ scale and complexity make them some of the toughest environments in cybersecurity. Now, we’re adding AI to those operations and bringing a new dimension of risk.

The benefits of AI in stadium operations are easy to see. It can help stadium operators move fans safely through crowded gates, forecast demand at concession stands, support biometric entry, identify suspicious behavior on CCTV, and manage heating and ventilation. Used well, it can make live events safer, faster, and more efficient.

But it also changes the security model.

In Darktrace’s recent research into the threat landscape surrounding sports, we asked cybersecurity professionals protecting professional sports organizations where in their footprint a cyber compromise would have the greatest impact. The area they named most, highlighted by 34% of the professionals we spoke to, was stadium operations. At the same time, 35% said their organizations are already using AI in stadium operations, or plan to do so in the next 12 months.

Security teams are no longer just protecting traditional IT systems around a stadium. They are increasingly being asked to protect AI systems that are operating in the stadium’s most fundamental functions.

Approved AI vs. shadow AI in stadium operations

There is a clear difference between AI a stadium’s security team knows about and AI it does not.

Approved AI is the AI that has been reviewed, tested, and integrated into the venue’s operating environment. It may support CCTV analytics, access control, facility management, ticketing, logistics, broadcast operations, or anti-piracy monitoring. It should have clear ownership, access controls, logging, vendor review, and data protection rules. That does not make it risk-free, but it allows security teams to institute proper governance.

Shadow AI is different. It is the unapproved use of AI tools by employees, contractors, or suppliers. It often starts with good intent. Someone wants to work faster. A staff member pastes internal information into a public AI tool to draft a briefing. A developer uses an AI assistant to debug ticketing code. A supplier connects an AI scheduling tool to delivery routes. A designer uploads unreleased venue plans or sponsor material to generate a mockup.

None of those actions may feel like a security decision to the person doing them. But each one can move sensitive operational data into an environment the stadium does not control, creating hidden risk.

The approved AI stack may be visible to security teams. The shadow AI stack often is not.

Why game day increases AI cybersecurity risk

In a typical enterprise environment, a security team may have hours to investigate a strange login or an unexpected connection to a third-party service. Within a stadium, the moment an incident is likely to occur is also the moment when teams are at their most stretched and the incident can have the greatest repercussions: game day.

If an AI system used for crowd management behaves unexpectedly, the issue is not only technical. It may affect physical movement inside the venue.

If a supplier tool is sending operational data to an unapproved AI platform, the issue is not only data governance. It may expose delivery routes, restricted access schedules, or staffing plans.

The most dangerous scenario is not always a loud, dramatic attack but a hidden dependency that no one has mapped such as a vendor adding an AI feature through a software update or a staff workflow using an unapproved tool.

By the time the venue is live, those hidden connections can become operational risk.

The supply chain is part of the stadium attack surface

Any major sporting event is made by its supply chain and partnerships: catering firms, transport providers, broadcast systems, facilities teams. Every piece is necessary and each creates a security channel. The risk of supply chain compromise has been well established for some time and has been the source of some of the most high-profile breaches we’ve seen. The data breach at MSG Entertainment, owner of Madison Square Garden, that was widely reported in March, originated in a breach of Oracle’s E-Business Suite, used in MSG Entertainment’s back-office systems, while the 2018 Olympic Destroyer attack on the Pyeongchang Winter Olympics reportedly began with the compromise of the main IT service provider for the Games. The addition of AI is heightening the risk.

A stadium can have strict rules for its own AI systems, but its vendors may be using separate tools. Some may use AI to manage staffing, delivery windows, inventory, or customer communications. Others may not realize that AI features have been added into software they already use.

This is one of the hardest parts of securing AI in stadium operations. The risk does not always come from a tool the venue selected. It may come from a tool a supplier selected or a feature the supplier did not know had been turned on.

Security teams need to treat vendor AI the same way they treat vendor access. They need to know what suppliers can connect to, what data they can see, what tools they use, and whether those tools introduce new routes for data exposure or lateral movement.

A third-party AI tool does not need deep access to create risk. Sometimes it only needs the right operational detail at the wrong time.

Four questions for securing AI in stadium operations

As AI becomes part of stadium operations, security teams need to move beyond basic approval lists. There are four questions they need to ask:

1. Where is AI being used?

This includes obvious tools, such as computer vision, access control, ticketing, logistics, and facility management. But it also includes less visible AI inside SaaS platforms, vendor tools, browser extensions, developer workflows, smart building systems, and collaboration tools.

2. What can the AI access?

Can it see incident logs, staffing plans, ticketing data, video feeds, building controls, fan information, credentials, or supplier systems? Can it only analyze information, or can it also trigger actions?

3. What can the AI do?

AI agents are not just passive tools. Some can call APIs, update records, generate instructions, trigger workflows, or act with the permissions of a user or service account. In a stadium, that distinction is critical. There is a big difference between an AI system that recommends an action and one that can take an action.

4. What does normal look like?

In your security architecture, static rules will not be enough. AI use changes quickly: tools appear inside existing platforms, vendors add new services, and staff find workarounds when they are under pressure. Security teams need to understand normal behavior across people, identities, devices, networks, cloud services, suppliers, and AI tools so they can spot when something changes.

That is especially important in live-event environments, where small anomalies can matter. A connection to an unapproved AI service may be harmless in one context and serious in another, and an AI agent taking action at 3 a.m. may be expected during setup but suspicious during a match. Context is what turns raw activity into useful security insight. It’s also what enables rapid response. Your own AI-based security systems can respond to threats at machine speed if they can build the live context to know action needs to be taken.

AI can make stadiums safer, but only if it is secured

AI has a real role to play in stadium operations. It can help teams detect crowd pressure earlier, reduce bottlenecks, manage facilities more efficiently, improve the fan experience, and support event teams during high-pressure moments.

The answer is not to slow all AI adoption. That's not the goal. The answer is to make AI visible, governed, and secure before it becomes part of match-day operations.

For stadium operators and event organizers, that means mapping AI use across the venue and supplier ecosystem. It means understanding what each AI system can access and what actions it can take. It means giving staff approved tools that meet their needs, rather than leaving them to find workarounds. It means writing AI use into vendor contracts and audits. And it means monitoring behavior across the full environment, not only the systems that are easiest to see. A stadium cannot secure what it cannot see.

When AI becomes part of how a stadium moves people, controls access, manages facilities, supports suppliers, and protects media rights, it stops being a side project. It becomes part of the event infrastructure.

Event infrastructure must be thoroughly prepared before venue gates open and sustained with the operational resilience required to support a secure, seamless, and reliable event experience.

How Darktrace helps secure AI in stadium operations

Darktrace brings more than a decade of behavioral AI expertise, built on an enterprise‑wide platform designed to operate in complex, ambiguous environments. We protect the large-scale integrated IT and OT environments that underpin stadium operations from the 2022 FIFA World Cup in Qatar, to Formula 1 Grand Prixes around the world and stadiums across the USA.

Other cybersecurity technologies try to predict each new attack based on historical attacks. The problem is that AI operates like humans do. Every action introduces new information that changes how AI behaves, making it unpredictable in nature. Historical attack tactics are now only a small part of the equation, forcing vendors to retrofit unproven acquisitions to secure AI.  

Darktrace is fundamentally different. Our Adaptive AI continuously learns how your people and AI behave, building an understanding of your organization so it can detect and respond autonomously when behavior deviates. Our Behavioral Defense Platform secures your AI, people, and infrastructure as you onboard new workflows, agents, and applications, enabling your AI transformation at scale.

As AI changes what organizations can do, Darktrace helps them move forward with confidence. We give the security teams defending the people and technology within stadium infrastructure the understanding, visibility, and autonomous action they need to protect new technologies as they are integrated into operations, so their organizations drive the progress that will define the AI era.

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