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May 23, 2023

Darktrace’s Detection of a Hive Ransomware-as-Service

This blog investigates a new strain of ransomware, Hive, a ransomware-as-a-service. Darktrace was able to provide full visibility over the attacks.
Inside the SOC
Darktrace cyber analysts are world-class experts in threat intelligence, threat hunting and incident response, and provide 24/7 SOC support to thousands of Darktrace customers around the globe. Inside the SOC is exclusively authored by these experts, providing analysis of cyber incidents and threat trends, based on real-world experience in the field.
Written by
Emily Megan Lim
Cyber Analyst
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23
May 2023

Update: On January 26, 2023, the Hive ransomware group was dismantled and servers associated with the sale of the ransomware were taken offline following an investigation by the FBI, German law enforcement and the National Crime Agency (NCA). The activity detailed in this blog took place in 2022, whilst the group was still active.

RaaS in Cyber Security

The threat of ransomware continues to be a constant concern for security teams across the cyber threat landscape. With the growing popularity of Ransomware-as-a-Service (RaaS), it is becoming more and more accessible for even inexperienced would-be attackers. As a result of this low barrier to entry, the volume of ransomware attacks is expected to increase significantly.

What’s more, RaaS is a highly tailorable market in which buyers can choose from varied kits and features to use in their ransomware deployments meaning attacks will rarely behave the same. To effectively detect and safeguard against these differentiations, it is crucial to implement security measures that put the emphasis on detecting anomalies and focusing on deviations in expected behavior, rather than relying on depreciated indicators of compromise (IoC) lists or playbooks that focus on attack chains unable to keep pace with the increasing speed of ransomware evolution.

In early 2022, Darktrace DETECT/Network™ identified several instances of Hive ransomware on the networks of multiple customers. Using its anomaly-based detection, Darktrace was able to successfully detect the attacks and multiple stages of the kill chain, including command and control (C2) activity, lateral movement, data exfiltration, and ultimately data encryption and the writing of ransom notes.

Hive Ransomware 

Hive ransomware is a relatively new strain that was first observed in the wild in June 2021. It is known to target a variety of industries including healthcare, energy providers, and retailers, and has reportedly attacked over 1,500 organizations, collecting more than USD 100m in ransom payments [1].

Hive is distributed via a RaaS model where its developers update and maintain the code, in return for a percentage of the eventual ransom payment, while users (or affiliates) are given the tools to carry out attacks using a highly sophisticated and complex malware they would otherwise be unable to use. Hive uses typical tactics, techniques and procedures (TTPs) associated with ransomware, though they do vary depending on the Hive affiliate carrying out the attack.

In most cases a double extortion attack is carried out, whereby data is first exfiltrated and then encrypted before a ransom demand is made. This gives attackers extra leverage as victims are at risk of having their sensitive data leaked to the public on websites such as the ‘HiveLeaks’ TOR website.

Attack Timeline

Owing to the highly customizable nature of RaaS, the tactics and methods employed by Hive actors are expected to differ on a case-by-case basis. Nonetheless in the majority of Hive ransomware incidents identified on Darktrace customer environments, Darktrace DETECT observed the following general attack stages and features. This is possibly indicative of the attacks originating from the same threat actor(s) or from a widely sold batch with a particular configuration to a variety of actors.

Figure 1: A typical timeline of a Hive attack observed by Darktrace.

Initial Access 

Although Hive actors are known to gain initial access to networks through multiple different vectors, the two primary methods reported by security researchers are the exploitation of Microsoft Exchange vulnerabilities, or the distribution of phishing emails with malicious attachments [2][3].

In the early stages of one Hive ransomware attack observed on the network of a Darktrace customer, for example, Darktrace detected a device connecting to the rare external location 23.81.246[.]84, with a PowerShell user agent via HTTP. During this connection, the device attempted to download an executable file named “file.exe”. It is possible that the file was initially accessed and delivered via a phishing email; however, as Darktrace/Email was not enabled at the time of the attack, this was outside of Darktrace’s purview. Fortunately, the connection failed the proxy authentication was thus blocked as seen in the packet capture (PCAP) in Figure 2. 

Shortly after this attempted download, the same device started to receive a high volume of incoming SSL connections from a rare external endpoint, namely 146.70.87[.]132. Darktrace logged that this endpoint was using an SSL certificate signed by Go Daddy CA, an easily obtainable and accessible SSL certificate, and that the increase in incoming SSL connections from this endpoint was unusual behavior for this device. 

It is likely that this highly anomalous activity detected by Darktrace indicates when the ransomware attack began, likely initial payload download.  

Darktrace DETECT models:

  • Anomalous Connection / Powershell to Rare External
  • Anomalous Server Activity / New Internet Facing System
Figure 2: PCAP of the HTTP connection to the rare endpoint 23.81.246[.]84 showing the failed proxy authentication.

C2 Beaconing 

Following the successful initial access, Hive actors begin to establish their C2 infrastructure on infected networks through numerous connections to C2 servers, and the download of additional stagers. 

On customer networks infected by Hive ransomware, Darktrace identified devices initiating a high volume of connections to multiple rare endpoints. This very likely represented C2 beaconing to the attacker’s infrastructure. In one particular example, further open-source intelligence (OSINT) investigation revealed that these endpoints were associated with Cobalt Strike.

Darktrace DETECT models:

  • Anomalous Connection / Multiple Connections to New External TCP
  • Anomalous Server Activity / Anomalous External Activity from Critical Network Device
  • Compromise / High Volume of Connections with Beacon Score
  • Compromise / Sustained SSL or HTTP Increase
  • Compromise / Suspicious HTTP Beacons to Dotted Quad 
  • Compromise / SSL or HTTP Beacon
  • Device / Lateral Movement and C2 Activity

Internal Reconnaissance, Lateral Movement and Privilege Escalation

After C2 infrastructure has been established, Hive actors typically begin to uninstall antivirus products in an attempt to remain undetected on the network [3]. They also perform internal reconnaissance to look for vulnerabilities and open channels and attempt to move laterally throughout the network.

Amid the C2 connections, Darktrace was able to detect network scanning activity associated with the attack when a device on one customer network was observed initiating an unusually high volume of connections to other internal devices. A critical network device was also seen writing an executable file “mimikatz.exe” via SMB which appears to be the Mimikatz attack tool commonly used for credential harvesting. 

There were also several detections of lateral movement attempts via RDP and DCE-RPC where the attackers successfully authenticated using an “Administrator” credential. In one instance, a device was also observed performing ITaskScheduler activity. This service is used to remotely control tasks running on machines and is commonly observed as part of malicious lateral movement activity. Darktrace DETECT understood that the above activity represented a deviation from the devices’ normal pattern of behavior and the following models were breached:

Darktrace DETECT models:

  • Anomalous Connection / Anomalous DRSGetNCChanges Operation
  • Anomalous Connection / New or Uncommon Service Control
  • Anomalous Connection / Unusual Admin RDP Session
  • Anomalous Connection / Unusual SMB Version 1 Connectivity
  • Compliance / SMB Drive Write
  • Device / Anomalous ITaskScheduler Activity
  • Device / Attack and Recon Tools
  • Device / Attack and Recon Tools In SMB
  • Device / EXE Files Distributed to Multiple Devices
  • Device / Suspicious Network Scan Activity
  • Device / Increase in New RPC Services
  • User / New Admin Credentials on Server

Data Exfiltration

At this stage of the attack, Hive actors have been known to carry out data exfiltration activity on infected networks using a variety of different methods. The Cybersecurity & Infrastructure Security Agency (CISA) reported that “Hive actors exfiltrate data likely using a combination of Rclone and the cloud storage service Mega[.]nz” [4]. Darktrace DETECT identified an example of this when a device on one customer network was observed making HTTP connections to endpoints related to Mega, including “w.apa.mega.co[.]nz”, with the user agent “rclone/v1.57.0” with at least 3 GiB of data being transferred externally (Figure 3). The same device was also observed transferring at least 3.6 GiB of data via SSL to the rare external IP, 158.51.85[.]157.

Figure 3: A summary of a device’s external connections to multiple endpoints and the respective amounts of data exfiltrated to Mega storage endpoints.

In another case, a device was observed uploading over 16 GiB of data to a rare external endpoint 93.115.27[.]71 over SSH. The endpoint in question was seen in earlier beaconing activity suggesting that this was likely an exfiltration event. 

However, Hive ransomware, like any other RaaS kit, can differ greatly in its techniques and features, and it is important to note that data exfiltration may not always be present in a Hive ransomware attack. In one incident detected by Darktrace, there were no signs of any data leaving the customer environment, indicating data exfiltration was not part of the Hive actor’s objectives.

Darktrace DETECT models:

  • Anomalous Connection / Data Sent to Rare Domain
  • Anomalous Connection / Lots of New Connections
  • Anomalous Connection / Multiple HTTP POSTs to Rare Hostname
  • Anomalous Connection / Suspicious Self-Signed SSL
  • Anomalous Connection / Uncommon 1 GiB Outbound
  • Device / New User Agent and New IP
  • Unusual Activity / Unusual External Data to New Endpoints
  • Unusual Activity / Unusual External Data Transfer
  • Unusual Activity / Enhanced Unusual External Data Transfer

Ransomware Deployment

In the final stage of a typical Hive ransomware attack, the ransomware payload is deployed and begins to encrypt files on infected devices. On one customer network, Darktrace detected several devices connecting to domain controllers (DC) to read a file named “xxx.exe”. Several sources have linked this file name with the Hive ransomware payload [5].

In another example, Darktrace DETECT observed multiple devices downloading the executable files “nua64.exe” and “nua64.dll” from a rare external location, 194.156.90[.]25. OSINT investigation revealed that the files are associated with Hive ransomware.

Figure 4: Security vendor analysis of the malicious file hash [6] associated with Hive ransomware. 

Shortly after the download of this executable, multiple devices were observed performing an unusual amount of file encryption, appending randomly generated strings of characters to file extensions. 

Although it has been reported that earlier versions of Hive ransomware encrypted files with a “.hive” extension [7], Darktrace observed across multiple customers that encrypted files had extensions that were partially-randomized, but consistently 20 characters long, matching the regular expression “[a-zA-Z0-9\-\_]{8}[\-\_]{1}[A-Za-z0-9\-\_]{11}”.

Figure 5: Device Event Log showing SMB reads and writes of encrypted files with a randomly generated extension of 20 characters. 

Following the successful encryption of files, Hive proceeds to drop a ransom note, named “HOW_TO_DECRYPT.txt”, into each affected directory. Typically, the ransom note will contain a link to Hive’s “sales department” and, in the event that exfiltration took place, a link to the “HiveLeaks” site, where attackers threaten to publish exfiltrated data if their demands are not met (Figure 6).  In cases of Hive ransomware detected by Darktrace, multiple devices were observed attempting to contact “HiveLeaks” TOR domains, suggesting that endpoint users had followed links provided to them in ransom notes.

Figure 6: Sample of a Hive ransom note [4].

Examples of file extensions:

  • 36C-AT9-_wm82GvBoCPC
  • 36C-AT9--y6Z1G-RFHDT
  • 36C-AT9-_x2x7FctFJ_q
  • 36C-AT9-_zK16HRC3QiL
  • 8KAIgoDP-wkQ5gnYGhrd
  • kPemi_iF_11GRoa9vb29
  • kPemi_iF_0RERIS1m7x8
  • kPemi_iF_7u7e5zp6enp
  • kPemi_iF_y4u7pB3d3f3
  • U-9Xb0-k__T0U9NJPz-_
  • U-9Xb0-k_6SkA8Njo5pa
  • zm4RoSR1_5HMd_r4a5a9 

Darktrace DETECT models:

  • Anomalous Connection / SMB Enumeration
  • Anomalous Connection / Sustained MIME Type Conversion
  • Anomalous Connection / Unusual Admin SMB Session
  • Anomalous File / Internal / Additional Extension Appended to SMB File
  • Compliance / SMB Drive Write
  • Compromise / Ransomware / Suspicious SMB Activity
  • Compromise / Ransomware / Ransom or Offensive Words Written to SMB
  • Compromise / Ransomware / Possible Ransom Note Write
  • Compromise / High Priority Tor2Web
  • Compromise / Tor2Web
  • Device / EXE Files Distributed to Multiple Devices

Conclusion

As Hive ransomware attacks are carried out by different affiliates using varying deployment kits, the tactics employed tend to vary and new IoCs are regularly identified. Furthermore, in 2022 a new variant of Hive was written using the Rust programming language. This represented a major upgrade to Hive, improving its defense evasion techniques and making it even harder to detect [8]. 

Hive is just one of many RaaS offerings currently on the market, and this market is only expected to grow in usage and diversity of presentations.  As ransomware becomes more accessible and easier to deploy it is essential for organizations to adopt efficient security measures to identify ransomware at the earliest possible stage. 

Darktrace DETECT’s Self-Learning AI understands customer networks and learns the expected patterns of behavior across an organization’s digital estate. Using its anomaly-based detection Darktrace is able to identify emerging threats through the detection of unusual or unexpected behavior, without relying on rules and signatures, or known IoCs. 

Credit to: Emily Megan Lim, Cyber Analyst, Hyeongyung Yeom, Senior Cyber Analyst & Analyst Team Lead.

Appendices

MITRE AT&CK Mapping

Reconnaissance

T1595.001 – Scanning IP Blocks

T1595.002 – Vulnerability Scanning

Resource Development

T1583.006 – Web Services

Initial Access

T1078 – Valid Accounts

T1190 – Exploit Public-Facing Application

T1200 – Hardware Additions

Execution

T1053.005 – Scheduled Task

T1059.001 – PowerShell

Persistence/Privilege Escalation

T1053.005 – Scheduled Task

T1078 – Valid Accounts

Defense Evasion

T1078 – Valid Accounts

T1207 – Rogue Domain Controller

T1550.002 – Pass the Hash

Discovery

T1018 – Remote System Discovery

T1046 – Network Service Discovery

T1083 – File and Directory Discovery

T1135 – Network Share Discovery

Lateral Movement

T1021.001 – Remote Desktop Protocol

T1021.002 – SMB/Windows Admin Shares

T1021.003 – Distributed Component Object Model

T1080 – Taint Shared Content

T1210 – Exploitation of Remote Services

T1550.002 – Pass the Hash

T1570 – Lateral Tool Transfer

Collection

T1185 – Man in the Browser

Command and Control

T1001 – Data Obfuscation

T1071 – Application Layer Protocol

T1071.001 – Web Protocols

T1090.003 – Multi-hop proxy

T1095 – Non-Application Layer Protocol

T1102.003 – One-Way Communication

T1571 – Non-Standard Port

Exfiltration

T1041 – Exfiltration Over C2 Channel

T1567.002 – Exfiltration to Cloud Storage

Impact

T1486 – Data Encrypted for Impact

T1489 – Service Stop

List of IoCs 

23.81.246[.]84 - IP Address - Likely Malicious File Download Endpoint

146.70.87[.]132 - IP Address - Possible Ransomware Endpoint

5.199.162[.]220 - IP Address - C2 Endpoint

23.227.178[.]65 - IP Address - C2 Endpoint

46.166.161[.]68 - IP Address - C2 Endpoint

46.166.161[.]93 - IP Address - C2 Endpoint

93.115.25[.]139 - IP Address - C2 Endpoint

185.150.1117[.]189 - IP Address - C2 Endpoint

192.53.123[.]202 - IP Address - C2 Endpoint

209.133.223[.]164 - IP Address - Likely C2 Endpoint

cltrixworkspace1[.]com - Domain - C2 Endpoint

vpnupdaters[.]com - Domain - C2 Endpoint

93.115.27[.]71 - IP Address - Possible Exfiltration Endpoint

158.51.85[.]157 - IP Address - Possible Exfiltration Endpoint

w.api.mega.co[.]nz - Domain - Possible Exfiltration Endpoint

*.userstorage.mega.co[.]nz - Domain - Possible Exfiltration Endpoint

741cc67d2e75b6048e96db9d9e2e78bb9a327e87 - SHA1 Hash - Hive Ransomware File

2f9da37641b204ef2645661df9f075005e2295a5 - SHA1 Hash - Likely Hive Ransomware File

hiveleakdbtnp76ulyhi52eag6c6tyc3xw7ez7iqy6wc34gd2nekazyd[.]onion - TOR Domain - Likely Hive Endpoint

References

[1] https://www.justice.gov/opa/pr/us-department-justice-disrupts-hive-ransomware-variant

[2] https://www.varonis.com/blog/hive-ransomware-analysis

[3] https://www.trendmicro.com/vinfo/us/security/news/ransomware-spotlight/ransomware-spotlight-hive 

[4]https://www.cisa.gov/news-events/cybersecurity-advisories/aa22-321a

[5] https://www.trendmicro.com/en_us/research/22/c/nokoyawa-ransomware-possibly-related-to-hive-.html

[6] https://www.virustotal.com/gui/file/60f6a63e366e6729e97949622abd9de6d7988bba66f85a4ac8a52f99d3cb4764/detection

[7] https://heimdalsecurity.com/blog/what-is-hive-ransomware/

[8] https://www.microsoft.com/en-us/security/blog/2022/07/05/hive-ransomware-gets-upgrades-in-rust/ 

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
Emily Megan Lim
Cyber Analyst

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June 26, 2026

How Darktrace Transformed Cybersecurity at Our Health Center: A CIO’s Perspective

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How Darktrace Transformed Cybersecurity at Our Health Center: A CIO’s Perspective

In my role as CIO, I bring years of experience leading IT for healthcare organizations. I’ve seen firsthand the unique cybersecurity challenges that nonprofit health centers face: limited budgets, small IT teams, and the constant pressure to prioritize patient care over technology investments. Yet, the threat landscape for health is relentless, and the stakes for protecting patient data and ensuring operational continuity have never been higher. It’s a balancing act.

The search for a better solution

Like many nonprofits, organizations I work at start with Microsoft’s security stack. The discounted pricing for nonprofits makes it an obvious choice, and Microsoft Defender provided a solid foundation for endpoint and email security. However, I quickly realized that relying on a single vendor, even one as robust as Microsoft, left gaps in our defenses. Cybersecurity is never one-size-fits-all, which is why my preference was to layer an additional solution on top of our native security to improve our security posture.

Teams needed a solution that could layer seamlessly on top of Microsoft, without adding complexity or draining limited resources. That’s when I found Darktrace. I had heard of their reputation after seeing how other organizations used Darktrace to secure their infrastructure and was impressed by their AI-native, agentless approach and agreed to a proof of value (POV).

Our goal was to elavate Microsoft with an additional layer of intelligence- one that could seamlessly integrate, operate autonomously, and support a small team without increasing overhead. We turned to Darktrace because its AI-native, agentless approach offered a fundamentally different way to detect and respond to threats, learning our environment in real time and filling gaps that traditional tools can miss. With a quick POV, we were able to validate how effectively Darktrace works alongside Microsoft to deliver a more complete and resilient security architecture.

Why Darktrace stood out

From the start, Darktrace differentiated itself in several critical ways:

  • Deep visibility: Unlike other solutions that rely simply on host-based monitoring with endpoint agents, Darktrace operates passively at the network layer and integrates via APIs for email and identity security. This gave full visibility into network traffic that we previously didn’t have, going beyond our existing endpoint-based tools without adding additional maintenance overhead for our small IT team.
  • AI-native from the ground up: Darktrace wasn’t just layering AI on top of an existing product; it was built with AI at its core. Their autonomous detection and response to threats immediately reduced the need for constant human supervision. In a world where cyber-attacks are increasingly sophisticated and subtle, having an AI that learns our environment and adapts in real time is invaluable.
  • Comprehensive coverage: We started with a POV focused on email security, but quickly expanded to full deployment across our entire infrastructure. Darktrace’s products now protect our email, network, and identity layers, providing visibility and defense against lateral movement and abnormal behavior that traditional tools often miss.

Integration and workflow: Smooth and simple

One of the most impressive aspects of Darktrace is how easy it was to integrate into an existing environment. For network security, it was as simple as plugging an appliance into our top-of-rack switch – no downtime, no complex configuration. For email and identity, API integrations meant we could be up and running in hours, not weeks.

This simplicity extended to day-to-day operations. Our IT team received regular security reports, and any time we had questions or needed to adjust policies, Darktrace’s support team was there with white-glove service. Their responsiveness- even in the middle of the night- gave us confidence that we had true partners, not just a vendor.

Real-world impact: Threats stopped, time saved

The results spoke for themselves. During the time with Darktrace, I did not experience any security incidents. The team slept better at night knowing that Darktrace was monitoring for anomalies and proactively blocking suspicious activity, alerting us even before we noticed anything was wrong.

A memorable example was during an Electronic Health Record (EHR) upgrade, when my team forgot to adjust the policy in advance. Darktrace’s autonomous response was so effective that it blocked our upgrade activities- proof that nothing, not even internal changes, could slip by unnoticed. This level of vigilance meant that ransomware, data exfiltration attempts, or insider threats would be detected and contained before causing harm.

While I can’t share specific ROI numbers, the value was clear: we’ve avoided costly breaches, reduced the time spent investigating alerts, and eliminated the performance drag of agent-based tools. With Darktrace layered on top of Microsoft, I’ve hit the right balance of maximum protection with minimal spending. The cost of Darktrace / EMAIL was competitive, especially when factoring in the included Managed Detection and Response (MDR) service, which provides expert human oversight on top of the AI.

Key differentiators over the competition

  • Extending visibility beyond the endpoint: Traditional host-based monitoring solutions, such as EDR, play a critical role in securing individual devices. By adding a network detection and response (NDR) layer, we gained visibility into activity across our wider digital environment, surfacing threats that move laterally, operate between devices, or bypass endpoint controls. Darktrace also stood out for its ability to learn our normal patterns of behavior and identify subtle deviations in real time, not just known indicators of compromise. Because this is delivered through passive, non-disruptive monitoring, we were able to strengthen our defenses without adding complexity or impacting performance.
  • Layered security without complexity: Darktrace elevated our Microsoft foundation without creating conflicts or requiring us to disable existing protections. This layered approach maximized our security posture without adding operational burden.
  • Expert partnership: Beyond technology, Darktrace’s team acted as true partners, guiding us through deployment, providing ongoing support, and helping us interpret findings. This partnership was as valuable as the technology itself.

Advice for other nonprofits

If you’re an IT leader in a nonprofit, my advice is simple: look for solutions that are easy to deploy, intelligent in their response, and cost-effective. Don’t settle for more endpoint based tools that overlap with what you already have. Seek out a layered approach that covers your blind spots – especially at the network and email layers- at a price point that suits your organization.

Most importantly, don’t be afraid to evaluate new solutions. Even if you’re inundated with vendor pitches, you owe it to your organization to explore options that could save you time, money, and sleepless nights.

For organizations I work at, combining Microsoft’s security stack with Darktrace’s AI-native, platform struck the right balance between protection and practicality. We gained enterprise-grade security without sacrificing performance or stretching our budget. In the end, that meant more resources for what matters most: delivering care to our patients. If you’re facing similar challenges, I encourage you to consider how Darktrace could transform your security posture, and give your team the peace of mind they deserve.

For the organization I work in, combining Microsoft with Darktrace delivered a clear step-change in our security posture. Microsoft provided the foundation, while Darktrace’s behavioral intelligence added visibility into the unknown, surfacing emerging threats based on deviations in real-time activity, not just known indicators.

The result was enterprise-grade protection without added overhead, allowing us to stay focused on patient outcomes, not security operations. For organizations facing similar pressures, this layered approach offers a smarter, more efficient path to securing modern environments.

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Mice Chen
Chief Information Security Officer

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June 25, 2026

Shadow AI Detection: The First Step Toward Securing AI

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Why shadow AI is emerging  

Imagine you’re an employee under pressure, deadlines stacking up, repetitive tasks piling higher by the day. You find a free AI tool online that promises to automate the work in seconds; no approvals are needed. It feels like a simple win, paste in some data, write a quick prompt, and move faster.

But in that moment, something changed.  

Sensitive customer information is entered into a tool your organization doesn’t monitor, doesn’t govern, and can’t see and suddenly, that data is no longer where it should be, and no one knows where it’s gone.

This is the reality of Shadow AI: employees using unsanctioned AI tools to move faster, while unintentionally creating risk that exists entirely outside visibility and control.  

This is not just a one off case, research across businesses indicate that nearly half of employees report using unsanctioned AI tools, often prioritizing speed and productivity over security. Additionally, 51% of employees report connecting AI tools to work systems or apps without IT approval, creating significant operational risk where the average cost of security incidents in organizations with a high level of shadow AI usage can reach $670k.

While shadow AI is often top of mind for security professionals, it is just one component of how AI use can increase risk. Understanding and managing shadow AI use should be considered as part of a broader, comprehensive risk management strategy that aims to secure AI systems, including human and agent identities, interactions, human-AI partnerships, and behaviors operating across the digital enterprise from visibility and governance through detection, response, and recovery.  

Effective risk management calls for a layered and interdisciplinary strategy. It requires addressing issues across governance and visibility; identity, access and agent control, data security and privacy, secure MLOps / LLMOps, runtime security, behavior-based detection, autonomous response and recovery.  

This blog explores a specific governance and visibility use case linked to shadow AI and reveals the challenges it presents as well as the defensive strategies that security teams can adopt.

Why shadow AI is hard to detect  

When it comes to AI, what organizations can easily see does not always reflect the full scope of AI activity occurring within the tools, applications, and workflows used across an enterprise. As a result, organizations using traditional rule-based methods to flag unusual activity may struggle to distinguish unsanctioned AI usage from legitimate operational behavior, particularly as SaaS applications, APIs, and orchestration layers increasingly have AI embedded into normal business workflows. Identifying threats using previously observed intelligence or depending on hard to maintain allow and block lists does not provide a dynamic enough strategy to manage risk. Also, many organizations are focusing on identifying Shadow AI in their governed infrastructure, like gateways, endpoints, or SASE, which is foundational. But, organizations require visibility and Shadow AI detection across all networked infrastructure from on-prem, hybrid, data centers, and cloud infrastructure that may not have endpoint agent visibility. This uncovers the utilization of MCP, data flows, and autonomous agents across these domains.

For example, employees interact with AI assistants across approved SaaS platforms every day. However, browser extensions and other types of plug-ins can route prompts that include enterprise data to embedded AI services in ways that are not visible to the security team. AI enabled workflows may invoke multiple APIs, orchestration layers, and cloud services behind the scenes, making it difficult for traditional security tooling to determine where data is processed, stored, or retransmitted. Because much of this activity occurs within trusted browser sessions and encrypted SaaS traffic, conventional network monitoring, DLP, and application allowlisting controls often lack the context needed to accurately identify or govern these interactions

Identifying AI tools in the environment is one part of the equation. Understanding the behavior surrounding their use is where the real challenge lies. An AI application is not inherently risky, but the way users or other assets interact with it may be. Sensitive data exposure, abnormal access patterns, and misuse of AI-assisted workflows often appear legitimate in isolation and only become visible through behavioral analysis across the broader environment.  

What Shadow AI visibility does and doesn’t show

Comprehensive Shadow AI visibility allows organizations to answer several important questions:

  • What types of AI are we using? What AI platforms, agents, MCP clients/servers, and services are active across the enterprise?  
  • Who is using AI services? Which users, business units, or systems are interacting with those AI services?  
  • Is our data safe? Is sensitive or regulated data being exposed through prompts, workflows, or integrations?  
  • Are AI systems behaving as expected? Are AI systems behaving anomalously or operating outside approved governance processes?  
  • Are our AI systems under attack? Is an attacker attempting to manipulate prompts, influence agent behavior, or abuse AI-enabled workflows?

Answering these questions is foundational to broader AI governance efforts. However, it is limited to helping teams understand initial interactions and fails to offer insight into dependencies and outcomes that are critical to securing AI across an enterprise.  

Deeper visibility that includes the ability to understand dependencies and outcomes are not always available in AI security point products. Answering the questions below requires understanding runtime behavior and operational outcomes:  

  • What actions did the AI interaction trigger?  
  • What systems, applications, or data did it access? Did the AI operate beyond its intended permissions or scope?  
  • Could a low-risk interaction lead to high-risk outcomes?  
  • What is the risk and context understanding of an anomalous activity to assist in prioritization of analysis and autonomous response action?

The distinction between these two sets of questions offers two different layers of AI security. The first set of questions focuses on discovery and interaction visibility. The second set focuses on providing visibility that includes the context and outcomes that are critical for managing follow-on risks associated with obfuscated downstream activities.  

Together, these layers help organizations move beyond simply identifying AI usage toward understanding how AI behaves operationally across the enterprise.

How organizations are addressing shadow AI

Most organizations still approach shadow AI as an application control problem, relying on policies, browser restrictions, and allow/block lists. However, AI adoption is evolving faster than most governance processes can realistically keep pace with. New assistants, plugins, and embedded AI features appear continuously, creating pressure to enable business productivity while simultaneously containing risk.  

Existing governance processes were designed for a more traditional SaaS adoption cycle, where new applications could be reviewed, approved, and monitored over longer time horizons. AI adoption operates differently. New capabilities can appear overnight inside existing platforms employees already use, making it difficult for security and governance teams to maintain an accurate understanding of enterprise AI exposure. This means that many organizations are experiencing significant operational overhead, particularly in large environments where AI usage is decentralized across teams, departments, and third-party services.  

Where should organizations start when securing their AI systems?

Shadow AI identification is an on-going critical component for AI Risk/Governance Boards as well as security organizations. As organizations seek AI certifications like ISO 42001 AI Management Systems, visibility into all AI adoption from enterprise use to custom innovation and development is crucial. Shadow AI identification provides organizations with the visibility needed to decide whether an AI tool should be brought into governed environments to reduce data loss (DLP) risks or whether policies should be established and enforced to restrict their use.

As organizations rapidly innovate and adopt AI, they are taking on more and more risk. Organizations need to have a strategy in place to mitigate the assumed risk, especially with third-party adoption. Visibility, monitoring, governance enforcement, behavioral-based detection of non-deterministic systems, and autonomous investigation and containment becomes critical to mitigating the risk of AI systems.  

How Darktrace secures AI and shadow AI

Attackers are using AI to move faster, scale tactics, and make threats more adaptive and convincing. Internally, organizations are grappling with new forms of risk created by generative AI, autonomous agents, shadow AI, and increasingly complex digital environments.

Darktrace helps organizations protect both people and AI in a world where AI is now central to how business gets done. Darktrace / SECURE AI helps organizations discover and control shadow AI by surfacing unsanctioned or unexpected AI activity where it appears – including MCP detections, distinguishing misuse of legitimate tools and unapproved services, and applying policy to contain data exposure while guiding users toward sanctioned options.

Stay up to date on AI security

Sign up for the Secure AI Readiness Program here: This gives you exclusive access to the latest news on the latest AI threats, updates on emerging approaches shaping AI security, and insights into the latest innovations, including Darktrace’s ongoing work in this area.

Ready to talk with a Darktrace expert on securing AI? Register here to receive practical guidance on the AI risks that matter most to your business, paired with clarity on where to focus first across governance, visibility, risk reduction, and long-term readiness.  

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