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September 23, 2025

ShadowV2: An emerging DDoS for hire botnet

Darktrace exposed a cybercrime-as-a-service campaign using Python and Go-based malware, Docker containerization, and a full operator UI. With DDoS-as-a-service features, modular APIs, and advanced evasion, this platform highlights the need for defenders to monitor cloud workloads, container orchestration, and API activity to counter evolving threats.
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
Nate Bill
Threat Researcher
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23
Sep 2025

Introduction: ShadowV2 DDoS

Darktrace's latest investigation uncovered a novel campaign that blends traditional malware with modern devops technology.

At the center of this campaign is a Python-based command-and-control (C2) framework hosted on GitHub CodeSpaces. This campaign also utilizes a Python based spreader with a multi-stage Docker deployment as the initial access vector.

The campaign further makes use of a Go-based Remote Access Trojan (RAT) that implements a RESTful registration and polling mechanism, enabling command execution and communication with its operators.

ShadowV2 attack techniques

What sets this campaign apart is the sophistication of its attack toolkit.

The threat actors employ advanced methods such as HTTP/2 rapid reset, a Cloudflare under attack mode (UAM) bypass, and large-scale HTTP floods, demonstrating a capability to combine distributed denial-of-service (DDoS) techniques with targeted exploitation.

With the inclusion of an OpenAPI specification, implemented with FastAPI and Pydantic and a fully developed login panel and operator interface, the infrastructure seems to resemble a “DDoS-as-a-service” platform rather than a traditional botnet, showing the extent to which modern malware increasingly mirrors legitimate cloud-native applications in both design and usability.

Analysis of a ShadowV2 attack

Initial access

The initial compromise originates from a Python script hosted on GitHub CodeSpaces. This can be inferred from the observed headers:

User-Agent: docker-sdk-python/7.1.0

X-Meta-Source-Client: github/codespaces

The user agent shows that the attacker is using the Python Docker SDK, a library for Python programs that allows them to interact with Docker to create containers. The X-Meta-Source-Client appears to have been injected by GitHub into the request to allow for attribution, although there is no documentation online about this header.

The IP the connections originate from is 23.97.62[.]139, which is a Microsoft IP based in Singapore. This aligns with expectations as GitHub is owned by Microsoft.

This campaign targets exposed Docker daemons, specifically those running on AWS EC2. Darktrace runs a number of honeypots across multiple cloud providers and has only observed attacks against honeypots running on AWS EC2. By default, Docker is not accessible to the Internet, however, can be configured to allow external access. This can be useful for managing complex deployments where remote access to the Docker API is needed.

Typically, most campaigns targeting Docker will either take an existing image from Docker Hub and deploy their tools within it, or upload their own pre-prepared image to deploy. This campaign works slightly differently; it first spawns a generic “setup” container and installs a number of tools within it. This container is then imaged and deployed as a live container with the malware arguments passed in via environmental variables.

Attacker creates a blank container from an Ubuntu image.
Figure 1: Attacker creates a blank container from an Ubuntu image.
Attacker sets up their tools for the attack.
Figure 2: Attacker sets up their tools for the attack.
 Attacker deploys a new container using the image from the setup container.
Figure 3: Attacker deploys a new container using the image from the setup container.

It is unclear why the attackers chose this approach - one possibility is that the actor is attempting to avoid inadvertently leaving forensic artifacts by performing the build on the victim machine, rather than building it themselves and uploading it.

Malware analysis

The Docker container acts as a wrapper around a single binary, dropped in /app/deployment. This is an ELF binary written in Go, a popular choice for modern malware. Helpfully, the binary is unstripped, making analysis significantly easier.

The current version of the malware has not been reported by OSINT providers such as VirusTotal. Using the domain name from the MASTER_ADDR variable and other IoCs, we were able to locate two older versions of the malware that were submitted to VirusTotal on the June 25 and July 30 respectively [1] [2].  Neither of these had any detections and were only submitted once each using the web portal from the US and Canada respectively. Darktrace first observed the attack against its honeypot on June 24, so it could be a victim of this campaign submitting the malware to VirusTotal. Due to the proximity of the start of the attacks, it could also be the attacker testing for detections, however it is not possible to know for certain.

The malware begins by phoning home, using the MASTER_ADDR and VPS_NAME identifiers passed in from the Docker run environmental variables. In addition, the malware derives a unique VPS_ID, which is the VPS_NAME concatenated with the current unix timestamp. The VPS_ID is used for all communications with the C2 server as the identifier for the specific implant. If the malware is restarted, or the victim is re-infected, the C2 server will inform the implant of its original VPS_ID to ensure continuity.

Snippet that performs the registration by sending a POST request to the C2 API with a JSON structure.
Figure 4: Snippet that performs the registration by sending a POST request to the C2 API with a JSON structure.

From there, the malware then spawns two main loops that will remain active for the lifetime of the implant. Every second, it sends a heartbeat to the C2 by sending the VPS_ID to hxxps://shadow.aurozacloud[.]xyz/api/vps/heartbeat via POST request. Every 5 seconds, it retrieves hxxps://shadow.aurozacloud[.]xyz/api/vps/poll/<VPS ID> via a GET request to poll for new commands.

The poll mechanism shadow v2
Figure 5: The poll mechanism.

At this stage, Darktrace security researchers wrote a custom client that ran on the server infected by the attacker that mimicked their implant. The goal was to intercept commands from the C2. Based on this, it was observed initiating an attack against chache08[.]werkecdn[.]me using a 120 thread HTTP2 rapid reset attack. This site appears to be hosted on an Amsterdam VPS provided by FDCServers, a server hosting company. It was not possible to identify what normally runs on this site, as it returns a 403 Forbidden error when visited.

Darktrace’s code analysis found that the returned commands contain the following fields:

  • Method (e.g. GET, POST)
  • A unique ID for the attack
  • A URL endpoint used to report attack statistics
  • The target URL & port
  • The duration of the attack
  • The number of threads to use
  • An optional proxy to send HTTP requests through

The malware then spins up several threads, each running a configurable number of HTTP clients using Valyala’s fasthttp library, an open source Go library for making high-performance HTTP requests. After this is complete, it uses these clients to perform an HTTP flood attack against the target.

A snippet showing the fasthttp client creation loop, as well as a function to report the worker count back to the C2.
Figure 6: A snippet showing the fasthttp client creation loop, as well as a function to report the worker count back to the C2.

In addition, it also features several flags to enable different bypass mechanisms to augment the malware:

  • WordPress bypass (does not appear to be implemented - the flag is not used anywhere)
  • Random query strings appended to the URL
  • Spoofed forwarding headers with random IP addresses
  • Cloudflare under-attack-mode (UAM) bypass
  • HTTP2 rapid reset

The most interesting of these is the Cloudflare UAM bypass mechanism. When this is enabled, the malware will attempt to use a bundled ChromeDP binary to solve the Cloudflare JavaScript challenge that is presented to new visitors. If this succeeds, the clearance cookie obtained is then included in subsequent requests. This is unlikely to work in most cases as headless Chrome browsers are often flagged, and a regular CAPTCHA is instead served.

The UAM bypass success snippet.
Figure 7: The UAM bypass success snippet.

Additionally, the malware has a flag to enable an HTTP2 rapid reset attack mode instead of a regular HTTP flood. In HTTP2, a client can create thousands of requests within a single connection using multiplexing, allowing sites to load faster. The number of request streams per connection is capped however, so in a rapid reset attack many requests are made and then immediately cancelled to allow more requests to be created. This allows a single client to execute vastly more requests per second and use more server resources than it otherwise would, allowing for more effective denial-of-service (DoS) attacks.

 The HTTP2 rapid reset snippet from the main attack function.
Figure 8: The HTTP2 rapid reset snippet from the main attack function.

API/C2 analysis

As mentioned throughout the malware analysis section, the malware communicates with a C2 server using HTTP. The server is behind Cloudflare, which obscures its hosting location and prevents analysis. However, based on analysis of the spreader, it's likely running on GitHub CodeSpaces.

When sending a malformed request to the API, an error generated by the Pydantic library is returned:

{"detail":[{"type":"missing","loc":["body","vps_id"],"msg":"Field required","input":{"vps_name":"xxxxx"},"url":"https://errors.pydantic.dev/2.11/v/missing"}]}

This shows they are using Python for the API, which is the same language that the spreader is written in.

One of the larger frameworks that ships with Pydantic is FastAPI, which also ships with Swagger. The malware author left this publicly exposed, and Darktrace’s researchers were able to obtain a copy of their API documentation. The author appears to have noticed this however, as subsequent attempts to access it now returns a HTTP 404 Not Found error.

Swagger UI view based on the obtained OpenAPI spec.
Figure 9: Swagger UI view based on the obtained OpenAPI spec.

This is useful to have as it shows all the API endpoints, including the exact fields they take and return, along with comments on each endpoint written by the attacker themselves.

It is very likely a DDoS for hire platform (or at the very least, designed for multi-tenant use) based on the extensive user API, which features authentication, distinctions between privilege level (admin vs user), and limitations on what types of attack a user can execute. The screenshot below shows the admin-only user create endpoint, with the default limits.

The admin-only user create endpoint shadow v2
Figure 10: The admin-only user create endpoint.

The endpoint used to launch attacks can also be seen, which lines up with the options previously seen in the malware itself. Interestingly, this endpoint requires a list of zombie systems to launch the attack from. This is unusual as most DDoS for hire services will decide this internally or just launch the attack from every infected host (zombie). No endpoints that returned a list of zombies were found, however, it’s possible one exists as the return types are not documented for all the API endpoints.

The attack start endpoint shadow v2
Figure 11: The attack start endpoint.

There is also an endpoint to manage a blacklist of hosts that cannot be attacked. This could be to stop users from launching attacks against sites operated by the malware author, however it’s also possible the author could be attempting to sell protection to victims, which has been seen previously with other DDoS for hire services.

Blacklist endpoints shadow v2 DDoS
Figure 12: Blacklist endpoints.

Attempting to visit shadow[.]aurozacloud[.]xyz results in a seizure notice. It is most likely fake the same backend is still in use and all of the API endpoints continue to work. Appending /login to the end of the path instead brings up the login screen for the DDoS platform. It describes itself as an “advanced attack platform”, which highlights that it is almost certainly a DDoS for hire service. The UI is high quality, written in Tailwind, and even features animations.

The fake seizure notice.
Figure 13: The fake seizure notice.
The login UI at /login.
Figure 14: The login UI at /login.

Conclusion

By leveraging containerization, an extensive API, and with a full user interface, this campaign shows the continued development of cybercrime-as-a-service. The ability to deliver modular functionality through a Go-based RAT and expose a structured API for operator interaction highlights how sophisticated some threat actors are.

For defenders, the implications are significant. Effective defense requires deep visibility into containerized environments, continuous monitoring of cloud workloads, and behavioral analytics capable of identifying anomalous API usage and container orchestration patterns. The presence of a DDoS-as-a-service panel with full user functionality further emphasizes the need for defenders to think of these campaigns not as isolated tools but as evolving platforms.

Appendices

References

1. https://www.virustotal.com/gui/file/1b552d19a3083572bc433714dfbc2b75eb6930a644696dedd600f9bd755042f6

2. https://www.virustotal.com/gui/file/1f70c78c018175a3e4fa2b3822f1a3bd48a3b923d1fbdeaa5446960ca8133e9c

IoCs

Malware hashes (SHA256)

●      2462467c89b4a62619d0b2957b21876dc4871db41b5d5fe230aa7ad107504c99

●      1b552d19a3083572bc433714dfbc2b75eb6930a644696dedd600f9bd755042f6

●      1f70c78c018175a3e4fa2b3822f1a3bd48a3b923d1fbdeaa5446960ca8133e9c

C2 domain

●      shadow.aurozacloud[.]xyz

Spreader IPs

●      23.97.62[.]139

●      23.97.62[.]136

Yara rule

rule ShadowV2 {

meta:

author = "nathaniel.bill@darktrace.com"

description = "Detects ShadowV2 botnet implant"

strings:

$string1 = "shadow-go"

$string2 = "shadow.aurozacloud.xyz"

$string3 = "[SHADOW-NODE]"

$symbol1 = "main.registerWithMaster"

$symbol2 = "main.handleStartAttack"

$symbol3 = "attacker.bypassUAM"

$symbol4 = "attacker.performHTTP2RapidReset"

$code1 = { 48 8B 05 ?? ?? ?? ?? 48 8B 1D ?? ?? ?? ?? E8 ?? ?? ?? ?? 48 8D 0D ?? ?? ?? ?? 48 89 8C 24 38 01 00 00 48 89 84 24 40 01 00 00 48 8B 4C 24 40 48 BA 00 09 6E 88 F1 FF FF FF 48 8D 04 0A E8 ?? ?? ?? ?? 48 8D 0D ?? ?? ?? ?? 48 89 8C 24 48 01 00 00 48 89 84 24 50 01 00 00 48 8D 05 ?? ?? ?? ?? BB 05 00 00 00 48 8D 8C 24 38 01 00 00 BF 02 00 00 00 48 89 FE E8 ?? ?? ?? ?? }

$code2 = { 48 89 35 ?? ?? ?? ?? 0F B6 94 24 80 02 00 00 88 15 ?? ?? ?? ?? 0F B6 94 24 81 02 00 00 88 15 ?? ?? ?? ?? 0F B6 94 24 82 02 00 00 88 15 ?? ?? ?? ?? 0F B6 94 24 83 02 00 00 88 15 ?? ?? ?? ?? 48 8B 05 ?? ?? ?? ?? }

$code3 = { 48 8D 15 ?? ?? ?? ?? 48 89 94 24 68 04 00 00 48 C7 84 24 78 04 00 00 15 00 00 00 48 8D 15 ?? ?? ?? ?? 48 89 94 24 70 04 00 00 48 8D 15 ?? ?? ?? ?? 48 89 94 24 80 04 00 00 48 8D 35 ?? ?? ?? ?? 48 89 B4 24 88 04 00 00 90 }

condition:

uint16(0) == 0x457f and (2 of ($string*) or 2 of ($symbol*) or any of ($code*))

}

The content provided in this blog is published by Darktrace for general informational purposes only and reflects our understanding of cybersecurity topics, trends, incidents, and developments at the time of publication. While we strive to ensure accuracy and relevance, the information is provided “as is” without any representations or warranties, express or implied. Darktrace makes no guarantees regarding the completeness, accuracy, reliability, or timeliness of any information presented and expressly disclaims all warranties.

Nothing in this blog constitutes legal, technical, or professional advice, and readers should consult qualified professionals before acting on any information contained herein. Any references to third-party organizations, technologies, threat actors, or incidents are for informational purposes only and do not imply affiliation, endorsement, or recommendation.

Darktrace, its affiliates, employees, or agents shall not be held liable for any loss, damage, or harm arising from the use of or reliance on the information in this blog.

The cybersecurity landscape evolves rapidly, and blog content may become outdated or superseded. We reserve the right to update, modify, or remove any content without notice.

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
Nate Bill
Threat Researcher

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January 30, 2026

ClearFake: From Fake CAPTCHAs to Blockchain-Driven Payload Retrieval

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What is ClearFake?

As threat actors evolve their techniques to exploit victims and breach target networks, the ClearFake campaign has emerged as a significant illustration of this continued adaptation. ClearFake is a campaign observed using a malicious JavaScript framework deployed on compromised websites, impacting sectors such as e‑commerce, travel, and automotive. First identified in mid‑2023, ClearFake is frequently leveraged to socially engineer victims into installing fake web browser updates.

In ClearFake compromises, victims are steered toward compromised WordPress sites, often positioned by attackers through search engine optimization (SEO) poisoning. Once on the site, users are presented with a fake CAPTCHA. This counterfeit challenge is designed to appear legitimate while enabling the execution of malicious code. When a victim interacts with the CAPTCHA, a PowerShell command containing a download string is retrieved and executed.

Attackers commonly abuse the legitimate Microsoft HTML Application Host (MSHTA) in these operations. Recent campaigns have also incorporated Smart Chain endpoints, such as “bsc-dataseed.binance[.]org,” to obtain configuration code. The primary payload delivered through ClearFake is typically an information stealer, such as Lumma Stealer, enabling credential theft, data exfiltration, and persistent access [1].

Darktrace’s Coverage of ClearFake

Darktrace / ENDPOINT first detected activity likely associated with ClearFake on a single device on over the course of one day on November 18, 2025. The system observed the execution of “mshta.exe,” the legitimate Microsoft HTML Application Host utility. It also noted a repeated process command referencing “weiss.neighb0rrol1[.]ru”, indicating suspicious external activity. Subsequent analysis of this endpoint using open‑source intelligence (OSINT) indicated that it was a malicious, domain generation algorithm (DGA) endpoint [2].

The process line referencing weiss.neighb0rrol1[.]ru, as observed by Darktrace / ENDPOINT.
Figure 1: The process line referencing weiss.neighb0rrol1[.]ru, as observed by Darktrace / ENDPOINT.

This activity indicates that mshta.exe was used to contact a remote server, “weiss.neighb0rrol1[.]ru/rpxacc64mshta,” and execute the associated HTA file to initiate the next stage of the attack. OSINT sources have since heavily flagged this server as potentially malicious [3].

The first argument in this process uses the MSHTA utility to execute the HTA file hosted on the remote server. If successful, MSHTA would then run JavaScript or VBScript to launch PowerShell commands used to retrieve malicious payloads, a technique observed in previous ClearFake campaigns. Darktrace also detected unusual activity involving additional Microsoft executables, including “winlogon.exe,” “userinit.exe,” and “explorer.exe.” Although these binaries are legitimate components of the Windows operating system, threat actors can abuse their normal behavior within the Windows login sequence to gain control over user sessions, similar to the misuse of mshta.exe.

EtherHiding cover

Darktrace also identified additional ClearFake‑related activity, specifically a connection to bsc-testnet.drpc[.]org, a legitimate BNB Smart Chain endpoint. This activity was triggered by injected JavaScript on the compromised site www.allstarsuae[.]com, where the script initiated an eth_call POST request to the Smart Chain endpoint.

Example of a fake CAPTCHA on the compromised site www.allstarsuae[.]com.
Figure 2: Example of a fake CAPTCHA on the compromised site www.allstarsuae[.]com.

EtherHiding is a technique in which threat actors leverage blockchain technology, specifically smart contracts, as part of their malicious infrastructure. Because blockchain is anonymous, decentralized, and highly persistent, it provides threat actors with advantages in evading defensive measures and traditional tracking [4].

In this case, when a user visits a compromised WordPress site, injected base64‑encoded JavaScript retrieved an ABI string, which was then used to load and execute a contract hosted on the BNB Smart Chain.

JavaScript hosted on the compromised site www.allstaruae[.]com.
Figure 3: JavaScript hosted on the compromised site www.allstaruae[.]com.

Conducting malware analysis on this instance, the Base64 decoded into a JavaScript loader. A POST request to bsc-testnet.drpc[.]org was then used to retrieve a hex‑encoded ABI string that loads and executes the contract. The JavaScript also contained hex and Base64‑encoded functions that decoded into additional JavaScript, which attempted to retrieve a payload hosted on GitHub at “github[.]com/PrivateC0de/obf/main/payload.txt.” However, this payload was unavailable at the time of analysis.

Darktrace’s detection of the POST request to bsc-testnet.drpc[.]org.
Figure 4: Darktrace’s detection of the POST request to bsc-testnet.drpc[.]org.
Figure 5: Darktrace’s detection of the executable file and the malicious hostname.

Autonomous Response

As Darktrace’s Autonomous Response capability was enabled on this customer’s network, Darktrace was able to take swift mitigative action to contain the ClearFake‑related activity early, before it could lead to potential payload delivery. The affected device was blocked from making external connections to a number of suspicious endpoints, including 188.114.96[.]6, *.neighb0rrol1[.]ru, and neighb0rrol1[.]ru, ensuring that no further malicious connections could be made and no payloads could be retrieved.

Autonomous Response also acted to prevent the executable mshta.exe from initiating HTA file execution over HTTPS from this endpoint by blocking the attempted connections. Had these files executed successfully, the attack would likely have resulted in the retrieval of an information stealer, such as Lumma Stealer.

Autonomous Response’s intervention against the suspicious connectivity observed.
Figure 6: Autonomous Response’s intervention against the suspicious connectivity observed.

Conclusion

ClearFake continues to be observed across multiple sectors, but Darktrace remains well‑positioned to counter such threats. Because ClearFake’s end goal is often to deliver malware such as information stealers and malware loaders, early disruption is critical to preventing compromise. Users should remain aware of this activity and vigilant regarding fake CAPTCHA pop‑ups. They should also monitor unusual usage of MSHTA and outbound connections to domains that mimic formats such as “bsc-dataseed.binance[.]org” [1].

In this case, Darktrace was able to contain the attack before it could successfully escalate and execute. The attempted execution of HTA files was detected early, allowing Autonomous Response to intervene, stopping the activity from progressing. As soon as the device began communicating with weiss.neighb0rrol1[.]ru, an Autonomous Response inhibitor triggered and interrupted the connections.

As ClearFake continues to rise, users should stay alert to social engineering techniques, including ClickFix, that rely on deceptive security prompts.

Credit to Vivek Rajan (Senior Cyber Analyst) and Tara Gould (Malware Research Lead)

Edited by Ryan Traill (Analyst Content Lead)

Appendices

Darktrace Model Detections

Process / New Executable Launched

Endpoint / Anomalous Use of Scripting Process

Endpoint / New Suspicious Executable Launched

Endpoint / Process Connection::Unusual Connection from New Process

Autonomous Response Models

Antigena / Network::Significant Anomaly::Antigena Significant Anomaly from Client Block

List of Indicators of Compromise (IoCs)

  • weiss.neighb0rrol1[.]ru – URL - Malicious Domain
  • 188.114.96[.]6 – IP – Suspicious Domain
  • *.neighb0rrol1[.]ru – URL – Malicious Domain

MITRE Tactics

Initial Access, Drive-by Compromise, T1189

User Execution, Execution, T1204

Software Deployment Tools, Execution and Lateral Movement, T1072

Command and Scripting Interpreter, T1059

System Binary Proxy Execution: MSHTA, T1218.005

References

1.        https://www.kroll.com/en/publications/cyber/rapid-evolution-of-clearfake-delivery

2.        https://www.virustotal.com/gui/domain/weiss.neighb0rrol1.ru

3.        https://www.virustotal.com/gui/file/1f1aabe87e5e93a8fff769bf3614dd559c51c80fc045e11868f3843d9a004d1e/community

4.        https://www.packetlabs.net/posts/etherhiding-a-new-tactic-for-hiding-malware-on-the-blockchain/

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Vivek Rajan
Cyber Analyst

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January 30, 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.  

6. 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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