Data and the Dark Web: What is it, where is it, and why should we care?

June 07, 2023

Alison Connolly Halland, DarkOwl’s CBO, and Andrew Bayers, Head of Threat Intel at Resilience, discuss the ways data is collected on the darknet and the tools protecting business information, on Building Cyber Resilience Podcast brought to you by Resilience.

What you’ll learn:

  • The ways tools like DarkOwl use threat intelligence to improve resilience.
  • The importance of having layers in your security strategy.
  • Action steps for using darknet information for good.

For those that would rather read the conversation, we have transcribed it below.

NOTE: Some content has been edited for length and clarity.


Alison: We searched for the organization’s email addresses that had been exposed. Those came up. There were plain text passwords associated with them for someone that was actually on the, on the call, which happens all the time. But the part that was embarrassing is their plane text password was not something you would want. My guess was they made it as a 17 year old teenage boy and hadn’t changed it yet.


Ann: Welcome to the Building Cyber Resilience Podcast by resilience. I’m Dr. Ann Irvine Chief Data Scientist and Vice President of Product Management.

Richard: And I’m Richard Seiersen, Chief Risk Officer.

Ann: That was DarkOwl’s Chief Business Officer, Allison Connolly Halland, at the top of the show sharing why it may be time to update your password if you haven’t changed it since high school. It’s because of her company’s innovations that her joke is just that and not a breach that destroyed a business.

Alison: We are essentially darknet experts. So what we do 24/7 is we pull content off of the darknet, we park it in our own database, and then we provide our clients who are companies, not individuals, access to that data. Where our expertise lies is in the act of the collection – collecting data off of the darknet is not an easy task. And then number two, in filtering it, sorting it, layering on all of the bells and whistles on top of it so that you could go into our database and type in your social security number, up is gonna hopefully pop nothing, but if it does, it would show you those pages on the darknet that we, DarkOwl, have discovered that has that number present.

Ann: Alison originally started out in finance but was intrigued by some of her consulting clients in the security space. She eventually took the leap and joined the DarkOwl team in Denver, Colorado.

Alison: I’ve been here 6 years and we’ve been through a bunch of iterations and it’s been a really fun company to grow with. There’s just so much happening in the cybersecurity landscape that it’s great. I love it.

Richard: Allison’s work on the front lines helping security professionals use data from the darknet to inform their day-to-day operations is a very specific niche asset to the cybersecurity industry. But it’s important to define exactly why your work is so critical.

Andrew: Why would the CISO at a company care about what happens on the dark web? They have a website on the surface web, they don’t operate on the dark web. But seeing what’s happening today and where the conversations are going, that can help in the prioritization of how you address vulnerabilities. So threat intelligence, I like to say, puts a lot of the why behind a lot of the security controls we and our partners recommend to companies.

Richard: That’s Andrew Beires, Head of Threat Intel at Resilience, before this role, however, he wore several hats.

Andrew: I started in film school in New York City working at HBO on Sopranos and Sex and the City. And 9-11 happened and I rushed to a Marine Corps recruiting station and shipped off to Paris Island where I went through bootcamp and the Marine Corps sent me to the Defense Language Institute where I learned Korean and Chinese Mandarin. And then I worked on behalf of the Department of Defense and Marine Corps at the National Security Agency for the majority of my adult life. And that’s how I got into the cybersecurity space. So most of my work prior to rejoining resilience was as a nation sponsored, advanced persistent threat actor collecting foreign intelligence against our nation’s and allied nations foreign adversaries. So yeah, that’s me.

Richard: Andrew is in the trenches at Resilience, using threat intelligence tools like DarkOwl to not only protect our company but also to achieve our mission – to help our clients stay ahead of the bad guys.

Andrew: You know an organization that wants to protect their posture and their critical business functions, looking at the darkweb for those types of threats is critical.

Ann: In this episode with Allison and Andrew, we explore both sides of the security workflow from learning how the data is collected and organized to why it is necessary for making business decisions both proactively and reactively. What is the dark net and why should we care about it? Why are layers so important to build into your cybersecurity strategy? Do you have to work in a basement and wear a black hoodie in order to access this information?

Richard: Alison and Andrew answer these questions and offer valuable action steps for how this underworld of information can be used for good and know, in case you are wondering, a basement office and black hoodie are not required unless that’s your style, of course, which is totally cool. Anyways, let’s get into it.

Alison: In some ways, people are overly confident on the darknet because they believe that given the lack of IP addresses and cookies and what not, remaining anonymous is kind of it’s defining feature so there is kinda some false sense of security there, that even if people are looking at that content, they can’t trace it back. The other thing I think is really funny, or I don’t know why it is funny because I was an econ major and I should know that all these market rules apply wether it is legal or illegal, is that the quest to be the best in the customer success department in the darknet is very much present. So there’s a lot of credit card forums, my favorite one says “we are here to serve our customers, we are the best! We ship overnight, free shipping, we are extremely reliable…” you know reading the verbiage just makes you laugh, because you think these are criminals, but like any business they are trying to win and maintain customers.

Ann: Same with ransomware gangs, right? They have entire customer success divisions.

Alison: Yup!

Andrew: Bad guys are in the business of business too, right?

Alison: Exactly.

Ann: Mm-hmm.

Richard: The darknet is an encrypted layer of the internet that cannot be found through regular search engines like Google. It is used mostly for illegal activities and is a breeding ground for data leaks. Laughs aside, the darknet is not a space you want to enter without proper preparation tools and support.

Alison: You know, you run the risk of potentially running into content you don’t want to see, visually, you also run the risk of ending up in maybe a marketplace or a forum and potentially exposing your own identity without knowing it. And I think the other one, the third one, which is the reason we, DarkOwl, is in business is it’s an extremely, extremely inefficient place to navigate. So if you think about the surface web, you go onto Google type in your search term, and there are all the results and we all trust that Google has gotten that right. That’s why they are who they are. The darknet is not structured in that way. So if you were to go onto Tor, which you can, that is not an illegal act in itself. It’s just very hard to navigate. There’s not nice clean URLs to find, there’s no pretty search engines or search bars, so you’re gonna burn a lot of time frankly.

Ann: While the anonymous factor that Alison highlighted earlier is certainly part of the draw to the darknet, it’s not entirely true. Leaders like DarkOwl are making the data more searchable to help companies identify specific actors on the darknet through graphing.

Alison: So I mean, part of it is us, as we collect all of this data and we’re indiscriminate in how we do that. And what I mean by that is we don’t look at, look at a page on the darknet and say, oh, this is outside of our industry – we’re not gonna grab it. We always grab it. And then once we do, the first thing we do is just tokenize everything that we see. Do we see social security number? Do we see an email address? Do we see a domain? Do we see an IP address? And obviously there’s tons of free text in between there, but we’re gonna tokenize as many items as we can, right? Is there an ampersand, like a threat actor name? And then once you’ve done that, like you said, it becomes really interesting when you can graphically represent the information, right? If you are a seller on a marketplace and we can connect you to a different seller that has a similar name that was, you start to play that game, which becomes really powerful in the investigation space. We are extremely strong on the identification of entities within the data. The graphing piece we are adamantly working on and have made some huge strides, but we haven’t, we definitely, if I’m being honest, we haven’t perfected that piece yet. And some of our clients actually use their own graphing abilities on top of our data.

Richard: So very interesting business model. And I’m just curious, maybe you can tell me about the type of clients you have and the threat intelligence groups and folks like that, that are in these organizations. I just have to assume their use cases are varied, but I’d like to hear more about that.

Alison: I like to bucket our clients into three groups. There’s one that people don’t often think of, that is where the majority of our clients sit. So number one, we do serve government and law enforcement. If you work for the DEA and you are in charge of tracking down folks selling fentanyl, you would wanna have access to the darknet where they’re actually doing that. And the DEA is not a client for the record, but that is one bucket of our clients – although the smallest.

Number 2 is large enough corporations where the risk of having their own organization exposed on the darknet is worth looking at this data set. So think Fortune 1000, you’re the CISO of Nike, and you wanna know, is someone targeting my executives? Is someone going after my IP address? Is someone talking about a ransomware attack or are my newest designs of my Nike shoes being sold. Counterfeiting is a big use case for us. So clients that have products that are being sold in counterfeit markets. So those are companies that are purchasing DarkOwl data and they’re looking at it for their own edification. That’s bucket number two.

And then interestingly, the biggest bucket of our clients are clients that are purchasing DarkOwl data, aggregating it and looking at it on behalf of their clients. So most of those folks sit in the cybersecurity industry. So it’s other cybersecurity companies that are, and we are essentially that darknet component. So I sort of like to think of it – you buy a Dell computer and it, you know, they used on the ad, they’d be like, powered by Intel and then it would make that little noise. So, it’s DarkOwl or their darknet is powered by DarkOwl. So, and that runs the gamut. They could be layering it on top of social media data. They could be just doing penetration testing and they’re using our data. They could be like you all in the cyber insurance space and they’re looking at DarkOwl across tons of potential companies. So that’s where the majority of our data and our clients reside is those that are looking at added on behalf of their clients.

Ann: At Resilience, this is how we utilize DarkOwl. Andrew Beires, Head of Threat Intel, is quick to point out that what he is looking for in his role falls right in between the bad activity happening on the darknet. And the good activity.

Andrew: You hear about the dark web and the news and really all the conversations you hear about it are about most of the bad things that are happening, right? So, you know, the illicit financing, the money laundering, the drug, narcotics sales, the gang activity, the criminal underbelly, sort of like place of communication. But there are actually a lot of good things going on where people in more oppressed nations who have, you know, a difficult time getting information out of their countries and sharing that with the world, that’s a great place to do that. There are journalists there, whistleblowers, there are people doing good on the dark web. So there’s good stuff too, if that’s what you meant by good. Now there’s a lot of juicy stuff that we care about, but none of it is good. None of that is good, right?

Richard: So the juicy stuff goes under the general rubric of threat intelligence. I always like asking people what is threat intelligence and how would I know it’s happening to me?

I always like asking people that question because the answer points to why we do what we do at resilience, Andrew highlights exactly how this plays out in his day-to-day workflow.

Andrew: You know, it’s like know your enemy, right? So knowing the people behind the keyboards that are attacking you, or have the potential to attack you, what their behaviors are. Like, what are the types of malware that people are purchasing? What are the trending vulnerabilities that are being discussed? So we had pretty strict criteria about the things that we want to engage directly with our customers about, and it has to meet three pieces of criteria. One, the vulnerability, so we are consistently evaluating the posture of our book of business. And so, and that’s company by company. And with the help of a lot of great people in engineering and data science, we are able to do this on a regular basis that a lot of it is automated. And so for us, when we see a company that, let’s say we, we see a vulnerability that is associated with some asset that they have exposed to the internet.

So first, is it remotely accessible. Like is it exposed to the internet or is this some local vulnerability that there would be a sort of a higher bar of entry in order to get to that asset. So those aren’t those types of things we wouldn’t really see from what we do. So it has to be remotely accessible. So remotely exploitable, right? It has to be our customers. So, you know, not a CVSS score, right, of critical. It doesn’t necessarily have to be a critical vulnerability, but if it becomes a critical vulnerability to us, if we know attackers are exploiting it actively in the wild or a proof of concept has been released on how to exploit that vulnerability. The third piece is there is actionable mitigation or remediation measures that have either been released by the vendor or a security researcher or somebody. So there is a specific action that the customer can take to mitigate or remediate. And then when we identify those, so it meets those criteria, we engage directly with the customer to notify them and help them through the process of remediation.

Richard: One follow on to that. So one vector of course is the remote. But many bad guys these days, particularly ransomware, they’re attacking what we call layer A, the human right? So be it spear phishing or phishing in general, or you think about business email compromise, all these other vectors. What’s the bridge between that threat intelligence and how you work with your customers?

Andrew: Sure, the dark web is a great place to hunt for potential insider threats. And that doesn’t necessarily mean it has to be a malicious insider. Maybe it’s a negligent or unintentional error on the part of an insider that led to something like their credentials being exposed. Maybe it’s something through their own personal life that was exposed and then somehow that is, you know, associated to it enabling some sort of access to that organization. So another piece on the malicious sort of insider that the dark web is the place where people sell access to threat actors. So it is also the place where threat actors advertise paying for access to specific things like, “hey, do you work for this type of company? If so, and you have access, we would like to buy that from you.”

Ann: Wow, that’s terrifying to think about people sort of selling their access as an employee of an organization. A comparable thing happens, of course, and working with any nation state for espionage. But how often is that really happening? Is that happening frequently?

Andrew: Every day. And it’s on the rise, I would say like more in 2022 than in 2021. And I mean, the expectation is more in 2023. So our CISO loves to make this joking comment and I find it funny, but it is scary. Like you said, it’s terrifying, right? We’re all just one bad day away from being that threat actor selling access.

Ann: Yeah. In a way, I kind of hate talking about this in a public venue like this podcast, you know, I don’t wanna advertise that this is a thing… hey, go to the dark web and you can make a quick buck with your corporate credentials. But sounds like that could be the case.

Richard: I’m just endlessly fascinated with the area of threat intelligence because the possibilities in terms of the size of data and the types of questions that can be asked are endless. Obviously you’ve made it clear that one of the most plausible places to look for badness is the dark web as if that really constrains the search surface, for information. How is it that you go about getting at actionable information? You mentioned a little bit about data science and other forms of magic and mysticism, but maybe you can unravel that a little bit for our listeners. Like how does that actually work out? Because the reality is the dark web, it’s a big mysterious place, right? So how do you do it?

Andrew: We have relationships with intelligence providers both in the private sector and in the government. So, you know, this may be story time. So we’ve got alerts set up. If there are specific keywords maybe mentioned, so I’m not having to read, our teams and having to read every chat in every forum across the entire internet. But we obviously care about the insurance industry a lot. There is a threat actor selling access and you know, of course they will anonymize it, right? Not give the keys to the kingdom in the advertisement. So the company was not named, but it was an insurance company, global insurance company. And what was given was the zip code. So just piecing that together and working with one of our co-founders, we were able to figure out exactly which company that was.

And for us on the security side, we are what we consider white hats. So there’s this ethical responsibility, a very focused moral compass. So we did what we considered the right thing, which is to contact this insurance company and let them know that this was going on. And it was through scouring LinkedIn to find, just doing a little open source intelligence like who works at this company in security and would even begin to understand like why I’m trying to message them. And so we were able to get in contact with ’em, this was a Sunday afternoon and it went until maybe 11 at night and they were incredibly thankful. So that was a success story. Maybe we were able to prevent an attack and sort of shut that down before it led to an extortion event.

Richard: That’s awesome.

Ann: Andrew’s insight shows how these tools are used at a firm like Resilience to stop an attack in its tracks. Allison provides two more examples of real world use cases from a more proactive perspective.

Alison: So there’s absolutely a way to look at this data set and sort of get ahead of it. And I think, you know, the most simple example would be, let’s say you’re an organization and all of a sudden next Tuesday you see that 200 of your employees email addresses are part of a, a breach or a compilation or someone, someone says on a forum, “I have 200 email addresses and plain text passwords associated with this company.” And oftentimes they’ll actually put those up as kind of proof of life. And you know, the use case there, Rich, is what are the, if you can get that sample, which we at DarkOwl would pull down and would be in our database, then it becomes a much easier reconnaissance game of instead of just saying, oh my goodness, we have content on the darknet – I don’t know what it is, I don’t know what to do about it, I don’t know how it got there. If you can pull down those email addresses and say, wow, it turns out all 200 of these employees started on September 1st, or all 200 of these employees attended a conference in Florida two months ago, or all 200 of these employees are no longer with the company. Those are three totally different incident responses. You know, one of ’em you don’t even have to deal with, right? One of ’em is, let’s go to our HR platform, why are they, they were all onboarded, but it gives you the context to then figure out what the problem is rather than waiting for it to show up on the front page of the Wall Street Journal that your organization has been subject to XYZ.

So I think the context can provide that proactive piece and allow companies to understand and especially that definitely follows suit in regards to some of it’s more, you mentioned qualitative versus quantitative. Some folks are just looking at it for, in sort of the way you look at Glassdoor content, right? What are people saying about our company? Is there a negative talk about it or you know, is it notorious for easy to break into? I mean there’s a lot that you can gather from sort of the sentiment about how people talk about organizations that can be telling too, for an organization. We do have a sector of, and this is more recent, but it’s growing quickly of clients who are in the TPR, third party risk platform or management, where they’re looking at, think if you’re a huge organization and you’re considering all these different vendors as you kind of want to know how risky is that, do I have some that are, have a great deal of exposure on the dark net would be an a leading indicator that they may not be as buttoned up as you think.

And then that same sort of use case translates really well to the M&A [mergers and acquisitions] space. So we have folks that are looking at the data in regards to potential mergers or acquisitions saying, you know, is this a company I wanna purchase or emerge? Or they get a sense for what their hygiene is in some ways.

Ann: I have one kind of funny question. Sometimes when I find myself in the DarkOwl UI, as I said, I search for myself, the next thing I do is just sort of look at people’s, pick a company that I care about. You know, I’ll just kind of browse plain text passwords. I find them endlessly entertaining to just read like a novel. Do you have any interesting or funny anecdotes about just like, things that you’ve read or seen or been entertained by in this data?

Alison: Yes, absolutely. So, you know, obviously we do a lot of demos of our platform for potential customers and we almost always search for their organization in front of them and show them what content we have. And we have had, I think I’ve been in the room for two, one of ’em was in person, one of ’em was on the phone, but two demos that were extremely embarrassing. And what I mean by that, Ann, is we searched for the organization’s email addresses that had been exposed. Those came up, there were plain text passwords associated with them for someone that was actually on the call and which happens all the time. But the part that was embarrassing is their plain text password was not something you would want.

Ann: Didn’t read it aloud?

Alison: Yeah, no, we did not it out loud.

Ann: Amazing.

Alison: My guess was they made it as a 17 year old teenage boy and hadn’t changed it yet. So…

Ann: Or that’s what they still are on the inside.

Alison: I’ll Leave it at that. So we’ve had some interesting passwords, but yeah, I agree with you. I also read through plain text passwords like a novel. I find it fascinating.

Richard: Embarrassing passwords aside. These examples show how having access to this data allows your organization to be proactive. As Alison highlighted, organizations are using it to hedge their bets on mergers and acquisitions. Another emerging use is occurring in the insurance underwriting space.

Alison: I think we’re kind of at stage one, right? If I was someone underwriting policies for a company, I would just want to know that baseline, like what does that presence look like on the darknet? And I think where we can head, which would be a really neat space to be in, is can we look at that data and then incentivize that company to better their practices, to lower the risk, lower the policy. You know, I think there’s, that’s kind of the proactive piece that I think would be, that we’re headed towards. And there’s obviously a lot of work to be done, but the data can be informative and I think you guys are doing a really nice job at using it.

Richard: Actually, that’s a great opportunity for me to ask Ann a question about how we use your data in our models. Yeah, I’m actually very curious. And you know what, I bet you other people are too.

Ann: Yeah, I mean we use it for underwriting. So we collect data and we look at the results, our models consider the results with exactly what you said Alison, the sort of understanding that the goal is that organizations are not the worst among their peer group.

As I shared, Resilience uses DarkOwl for everything from defensive measures to proactive underwriting insight. Now every business will use this information differently depending on your unique goals, but the key is to use it to your advantage. How do you make sure your company is taking the optimal steps towards cyber resilience? Andrew has some advice.

Andrew: It’s like trying to align your sort of cyber risk with your critical business functions and how those align and if it makes sense financially. To try to build a capability in-house, that is one way, right? But there are also businesses built, that have been members of the intelligence community previously or black hat types previously that do this every day. And so paying for that as a service is another, is another option. But there is no doubt that insight to what is going on on a lot of these forms. And then sort of back to your question as well, Dr. Ann, a lot of the groups that exist, they have very specific requirements in order for you to be let in the room really, right? So sometimes it could be proven track record of successful attacks.

So those are ways they are trying to evade obviously being on these more accessible forums. But back to your question, Rich, there are companies that are built for this. So whether or not it’s better to build an in-house capability or pay for that as a service, either way there are so many reasons why you want to know what’s going on. One, you know, is your company being targeted right now today? Do any of your credentials show up in data dumps? How do I prioritize like patching vulnerabilities? Not saying the only factor to consider is what’s being talked about, what is trending on the dark web, but that is a factor.

Richard: So let me and Ann, I have to drill in here cuz it’s like on this path of operationalizing this stuff, you know, there was the Lockheed Martin kill chain and that was fun to say, I like saying kill chain, but now there’s mitre attack, right? And you know, you have all the STIX and TAXII and you know, the idea that, log aggregators or a scene, whatever you like are now and soar are being able to consume in theory this data and you have data sharing and all that stuff with the intent. I think the belief as a buyer, this is as a consumer, as a CSO, the idea is, hey, you can scale out this sort of stuff without having to have an Andrew and you can make it actionable. That rests uneasy with me. This is maybe just to my own bias, maybe you can tell me a, what sort of value do you get out of like mitre attack, STIX and TAXII? How have you seen that get operationalized in the seam space or log aggregation space? What are your, again, getting back to the CSO or security person listening and thinking about how do I do this and what do I need to look out for? I know that was a big question, but there you go.

Andrew: Sure. So I would say, you know, specifically there is value in like the STIXs of the TAXIIs, right? So any specific indicator of compromise. That anything that I could ingest and automatically be able to detect or flag something specific that is known to be used by a threat actor, that’s great. Like how it all, so how you prioritize what to do first. Like that I think is where the human element comes in. Whether it’s from an incident response perspective or whether it’s trying to, for instance, stop an attack during the reconnaissance phase, like you mentioned the kill chain, so before initial access. Some of our partnerships enable us to have alerting from the intelligence community where they are sitting on the internet and they may see something like a staging sort of operation or preparations like planning being conducted to potentially target a company and then being able to alert that company. Like there’s such a human element to it. I don’t ever see the entire process being completely automated away. I mean that would be sign me up, I’ll find a nice warm beach to sit on.

Richard: Andrew’s point about humans being inseparable and paramount to this entire process, no matter how many autonomous upgrades and AI insights we add to it is key. To illustrate how these layers of security create a strategy that works. I shared a recent story that caught my attention.

There’s an NFT loss where the, where it was guy who’s the CEO of one of these NFT processor, he had his wallet or something hacked into, he lost millions of dollars of NFT value, but he said it didn’t impact his company. Cause they have, they have multi-factor authorization. So I was just thinking about this is the practical thing when we think about customers, like if we start seeing like there’s this campaign for business email compromise, it’s associated this, we see it that it’s a long term drain by thousands of cuts, but these are the practical things that you can do as opposed to just patching, here’s some business process you can put in place. Here’s some other things you can put in place that will, you know, that yes, it’s very shift, right? But could be remedial or really impact reduction. Cause we always get so focused on what can we do that’s innovative from a technical perspective that’s important, but there’s this whole other side of responding to actual loss.

Andrew: It does seem that with novel techniques for attacking, right? Often it comes back to the same control. If implemented correctly could prevent it.

Richard: Yeah, it could be hugely preventative. Yes, we can put great in-line controls in place. Yes, we can put great endpoint, yes, we can do great training, that’s good, but are there things that we can do that in theory can potentially mitigate this becomes harder in large organizations. Like how many people actually are able to move money around? Do you even know? And that’s, that becomes part of an attack service, right? So that’s interesting too.

Andrew: Defense in depth – like all the different layers. It’s more than just training your folks not to click on suspicious emails. Well there’s that, but then there’s also all of these like email filtering processes you can implement as well. Not one thing is gonna be the answer, but layering. I guess I’m explaining defense in depth now too. So I think that’s the answer.

Richard: I think this is a really great, like these sorts of things that people can practically do to protect themselves coming from someone like you is just so useful. All right, Anne, ask your closing question. You’ve been so good, Andrew, you’re awesome.

Ann: Last question. At Resilience, we talk a lot about what makes a company cyber resilient. I’m curious how you would answer that question.

Andrew: So a layered approach to security. It’s not one thing, it’s a lot of layers. So for instance, in business email compromise, we were talking about how training employees to not click on suspicious links or don’t click on ads that are being served up on your real estate. If you’re on an intermediary service provider like you two, right? So it’s not about always necessarily having the highest castle walls and the moat and the drawbridge and everything, but it’s like what makes a company cyber resilient is that, you know, that you might get infiltrated, so to speak, and how can you then quickly quarantine that, get them out. So yeah, a layered approach. Defense in depth. There’s critical security controls that you just have to be a part of every organization. So, you know, it takes a village.

Ann: Alison echoes Andrew’s sentiment by acknowledging the reality that you will be attacked. Having this level of humility is essential, but how you arm yourself and stay vigilant is what will determine your success.

Alison: I think anyone who thinks they have it all figured out and are all buttoned up are the most susceptible. I think we can only strive to be better than someone behind us. I mean, the analogy I like to use is, if you’re in the woods and you run into a bear, you don’t need to outrun the bear. You just need to outrun the other person with you, right? And I think in the cyber resilience space, you don’t wanna be at the bottom of the barrel because that’s the easy pickings. And if you think you’re the best, you’re probably not. There’s always holes. So I think, staying humble and making sure that you’re doing everything you can. I guess that would be my answer.

Ann: Yeah. Awesome.

Richard: So we often talk about the need for more visibility. We’ve got a lot of telemetry on the security tools that we own. It could be scanning, it could be from penetration testing, it could be from security information event management. It could be from your insurance policies and questionnaires. Adding dark web adds a lot more information about an area of extreme uncertainty. And if we get information from there about an actual attack on a specific company or perhaps even a person and or a whole segment, we’ve just really up-leveled our ability to respond. This is why having really great context, context that’s connected across the stuff that you know empirically and the stuff you know, as possibilities and bringing that information to bear with risk transfer is so key and why it’s such a key part of what we do at Resilience.

Ann: The darknet is big, it’s diverse. There are a lot of different types of people in hoodies, not in hoodies, doing a lot of different types of things with different types of data. It’s important that we all stay realistic and and humble and pay attention to what’s going on out in the internet land.

Richard: Thank you to Allison and Andrew for their time, expertise, and valuable insights. And to our production team at Come Alive Creative. Follow the Building Cyber Resilience Podcast wherever you listen so you don’t miss an episode, we’ll catch you on the next show.


Curious how darknet data applies to your use case? Contact us.

Threat Intelligence RoundUp: May

June 01, 2023

Our analyst team shares a few articles each week in our email newsletter which goes every Thursday. Make sure to register! This blog highlights those articles in order of what was the most popular in our newsletter – what our readers found the most intriguing. Stay tuned for a recap every month. We hope sharing these resources and news articles emphasizes the importance of cybersecurity and sheds light on the latest in threat intelligence.

1. Hackers swap stealth for realistic checkout forms to steal credit cards – BleepingComputer

A report by Malwarebytes highlights how MageCart skimmers are using real online stores checkout pages and hijacking them with their own fraudulent but realistic-looking forms to steal credit card information. They are displayed as modal HTML pages that are convincingly superimposed onto the original page. At checkout the malware-laden checkout page is sophisticated, sometimes appeared more legitimate than the real one. Read full article.

2. ViperSoftX info-stealing malware now targets password managers – BleepingComputer

The most recent version of the ViperSoftX infostealer has been observed targeting password managers including KneePass and 1Password. Updated and more robust detection-evasion methods are also part of the new stealer. The malware installs targets Chrome, Brave, Edge, and Opera browsers with a malicious extension called VenomSoftX. According to Trend Micro, the malware has targeted the consumer and enterprise sectors in the U.S., Italy, Brazil, India, Australia, Japan, Taiwan, Malaysia, France, and Italy. According to analysts the malware can be distributed as software cracks, activators, and key generators and hides inside the not dangerous-looking software. The new version has additional features for detection-evasion techniques. A standout feature of the malware is its byte mapping used for code encryption which remaps and changes the order of shellcode bytes. Read more.

3. Stealthy MerDoor malware uncovered after five years of attacks  – BleepingComputer

A new Advanced Persistent Threat (APT) group named LanceFly is utilizing a custom, stealthy backdoor called “Merdoor” to target organizations in South and Southeast Asia since 2018. Methods for initial access are unclear, but Symantec has observed the group using methods such as phishing emails, SSH credential brute forcing, and others. Merdoor is put into “’perfhost.exe’ or ‘svchost.exe” which are both real Windows processes through DLL side-loading. The stealthy backdoor is persistent and can remain on devices between reboots. The backdoor establishes connection with a C2 server, from which it can be given instructions. Read full article.

4. BouldSpy Android Spyware: Iranian Government’s Alleged Tool for Spying on Minority Groups – The Hacker News

With a moderate confidence level, Lookout has attributed a malware called BouldSpy (names DAAM by Cyble) to the Law Enforcement Command of the Islamic Republic of Iran. Victims of the malware’s use include minority groups such as “Kurds, Baluchis, Azeris, and Armenian Christian groups.” It is an Android-based malware family, and the intrusion vector appears to be via physical access to devices. It has a C2 panel to influence victim’s devices and creates other malicious applications masqueraded as harmless apps like a currency converter. Among other impressive features it is able to disable battery features so that the victim device will never remove the malware. It utilizes an element from the open source CryDroid, which could indicate the malware is still being developed or being used as a false flag. Read more.

5. Bad Magic’s Extended Reign in Cyber Espionage Goes Back Over a Decade – The Hacker News

Threat actor, Bad Magic (aka Red Stinger), has been linked to a new cyberattacks targeting companies in the Russo-Ukrainian area, but also to multiple activities back in May of 2016 – meaning that this threat actor has been around for longer than originally thought. Read here.

6. Malicious Windows kernel drivers used in BlackCat ransomware attacks – BleepingComputer

According to Trend Micro, the ALPHV ransomware group (aka BlackCat) has been observed employing improved signed malicious Windows kernel drivers, known as “POORTRY,” in order to not be detected while conducting cyberattacks by security software. Read more.


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Netflix Password Policy: Cybersecurity Angle

May 26, 2023

Netflix’s recently implemented password policy is receiving widespread complaints for corporate greed and increasing profit margins, but have you considered the degree to which cybersecurity was factored into this decision?

In this blog, DarkOwl analysts highlight password sharing concerns, look at current activity on the darknet targeting Netflix accounts using DarkOwl Vision and predict how the new password policy may affect fraud.

Cybersecurity Concerns

The importance of password hygiene and password protection is no secret. It is a constant topic of discussion in security trainings and amongst the security community – every day we hear of another commercial data or app breach. At this point, everyone can assume their email address and/or password has been leaked on the darknet or deep web. 

Credentials are one of the most sought after and frequently exchanged digital goods in the darknet economy. In many cases, large quantities of compromised accounts will be combined and re-shared across multiple darknet and deep web forums, including dark web adjacent platforms such as Telegram. Criminals leverage this data in a variety of ways. For example, some may use a credential cracking or “stuffing” tool to cross reference emails with other password lists – or use common password conventions to guess the password – and verify an active email and password combo.

Netflix Targeted on the Darknet

Most are guilty of it – sharing a streaming account password with friends a family. After all, there are so many streaming services and we want access to them all! We also know that password sharing is bad practice. Password sharing enables various types of threat actors to gain unauthorized access to a Netflix account. According to Dark Reading:

  • “Sharing a password undermines control over who has access to an account, potentially leading to a greater risk of unauthorized use and account compromise;
  • Once shared, a password can be further distributed or changed, locking out the original user;
  • Worse yet, if the shared password is used across multiple accounts, a malicious actor could gain access to all of them;
  • And sharing passwords can also make users more susceptible to phishing and social engineering attacks.”

Netflix is regularly targeted on the darknet. DarkOwl analysts are currently closely watching to see what happens to unauthorized account access after the new password policy.

Currently we see Netflix targeted in the following ways:

Netflix Stealer Logs

Stealer logs are typically harvested by threat actors using a form of malware known categorized as “info stealers,” such as Raccoon and Redline, and use this data to maliciously gain access to online accounts. The below is an example DarkOwl analysts found on Russian Market (Genesis market replacement).

Source: DarkOwl Vision

Selling Netflix Accounts

The vendor below found selling a Netflix account for $4.95 USD on a traditional darknet marketlace, ASAP MARKET.

Source: DarkOwl Vision

Netflix Full Access Accounts

DarkOwl analysts found Netflix full access accounts being used to to bypass 2FA on Telegram. The post below shows a Telegram user selling various types of Netflix logins in Rupees, suggesting these threat actors are from/living in India.

Conclusion

DarkOwl analysts predict that the updated Netflix password sharing policies will likely combat a lot of the fraud observed on Telegram markets where people sell another person’s Netflix account for as little as a few dollars. However, we all know that cybercriminals and cybercrime are getting more and more sophisticated and creative and it won’t take long for fraudsters to find a new way to continue nefarious activity and reap financial benefits. The DarkOwl analyst team is observing the darknet and taking notes. Keep an eye out for part 2 once the policy has been in place longer for updates of darknet activity targeting Netflix.


Curious how darknet data applies to your use case? Contact us.

Data for Sale on Leak Sites

May 23, 2023

DarkOwl analysts have observed the emergence of leak sites that are dedicated to simply posting leaked data and are not affiliated with known ransomware groups. These leak sites are similar to other darknet marketplaces and forums, but they specialize in selling other people’s data and usually don’t sell other products like malware, drugs, or weapons. The leak sites described here should not be confused with the leak sites and victim blogs used by ransomware gangs.  

Ransomware Services

Ransomware gangs use victim blogs or leak sites as part of what DarkOwl refers to as Ransomware Services: the services related to ransomware threat actors, where victims are announced and their data is leaked if they do not pay. Typically, a ransomware gang will publish the victim’s name, details, and part of the stolen data as proof of its legitimacy. 

Figure 1: Post to Ransomware Gang Leak Site; Source: Daixin Team Tor Site Tor Anonymous Browser 

Leak sites are also used as a means of communication between ransomware groups and their victims to conduct negotiations. In figure 2, Royal ransomware group’s leak page includes a contact form at the top with a list of victims below. That way a victim can check if the sample of data provided is legitimate, and then contact Royal.

Figure 2: Contact Form on Royal Ransomware Leak Site; Source: Tor Anonymous Browser 

Leak sites and victim blog sites are used by ransomware groups as part of their double-extortion techniques. In a double-extortion attack a ransomware gang will encrypt the victim’s files and demand a ransom payment for the decryption key, as well as exfiltrate the data to their own devices. The ransomware gang will then threaten to publish the sensitive data to the darknet or sell it to the highest bidder. Sensitive data published to the darknet or purchased by a darknet actor can expose the victim to future vulnerabilities, such as sophisticated social engineering and phishing attacks.  

Leak sites are a type of darknet marketplace. However, leak sites only sell data. Darknet marketplaces that are not leak sites will sell a variety of other products such as malware, cracking tools, drugs, social engineering and phishing methods, job postings, website penetration testing, detective services, and occasionally weapons. Darknet marketplaces will also sell leaked data (CVVs, ID cards and passports, company data, personal data from apps, etc) along with their other merchandise. Large marketplaces have many vendors and there will usually be a forum section to the marketplace. The leak site DataCloud only has data uploaded by the admin instead of by multiple vendors. Leak sites can be more decentralized and potentially run by a fewer number of individuals than other darknet marketplaces. Furthermore, DarkOwl analysts identified that each of the leak sites analyzed have a robust Telegram component.  

The reliance and usage of Telegram by leak sites is a distinct feature which traditional darknet marketplaces do not have. The Telegram channels associated with the leak site will typically be run by the administrator of the site. Data can be bought and sold on some of the leak site-affiliated Telegram channels. The biggest difference between a Telegram channel and a darknet marketplace is that on Telegram there is a lower bar to entry. A marketplace will usually require a login, password, and ask the user to pass anti-phishing captchas. Unless a Telegram channel is private, anyone can join a public channel. Potentially less sophisticated users with little darknet know-how could learn about and use the markets from their Telegram channel—as could law enforcement and bots.  

Leak Sites

DarkOwl analysts have seen the emergence of new leak sites which differ from leak sites and victim blogs associated with ransomware groups because they are not affiliated with any specific ransomware or hacker group. These act as third-party vendors of leaks and leaked information. Many sell stealer logs, accounts, combo lists, and proxies as well as dumps of leaked data. Accounts available for sale include accounts to VPNs, pornographic sites, streaming services, and mail access. Data can be purchased directly from the darknet leak site or from its Telegram channel. The Telegram channels attached to leak sites are for discussion and are where users can ask for data or DM the admins.

Unsafe

A leak site known as “Unsafe” calls itself a security blog with “published personal data leaks, commercial and military secrets, and compromising information on famous people and public organizations.” They include a disclaimer that they are not a hacking team, but all their data is from hackers. According to them, their blog is a platform for buyers and sellers as well as a middleman service to help parties negotiate (for a fee). 

Each listing keeps a count of the number of times the data has been viewed, the size of the data offered, a link to the company’s website, the company’s revenue, and their country of headquarters. “Proofs” are uploaded for each targeted company. Data in these proofs include full passport photos, ID cards, personal information, sensitive company information, sensitive HR information, financial information, screenshots of texts, credit cards, graphic pictures (including pornographic imagery), and more. Interested buyers can get in contact to buy the data through the Tox IDs provided; one for Support and other for a Sales Manager. All of the data posted is listed as being compromised either on October 23, 2022, or November 26, 2022. DarkOwl has not verified the authenticity of any of the data that is provided on this site.  

The information included in the proofs are open to everyone to view. This could indicate that the data in the proof may be used to attract other cybercriminals to encourage them to buy the full data-set which they can leverage for their own criminal means.  

Figure 3: Home Page for Unsafe Security Blog; Source: Tor Anonymous Browser 

DataCloud

The leak site DataCloud offers combolists, stealer logs, logs, and account access to e-mail services. Interestingly, access to a Yahoo mail account is the only product for sale (for $120), all other data from listings can be downloaded. Analysis indicates that a user can join the site via a subscription-based model. On the site all data is uploaded by the admin. DataCloud has multiple associated Telegram channels, which appear to be used for different purposes.

Figure 4: DataCloud advertising Combo Lists and Leaked Data; Source: Tor Anonymous Browser 
Figure 5: DataCloud Subscription Options; Source: Tor Anonymous Browser 

One Telegram channel is linked under the “Telegram” tab of the site and is used by the admin for posting what appears on the site. In this channel the DataCloud admin directs users to their site, referred to as their forum. Only the administrators post in this Telegram channel.

Figure 6: DataCloud Associated Telegram Channel; Source: Telegram 

The other Telegram channel is linked under the “chat” tab and acts as a forum for the site’s users and visitors. Many darknet marketplaces have a forum component where users can post questions, comments, or anything they want to about the marketplace and beyond. This Telegram channel attached to “chat” is essentially the marketplace’s forum but run on Telegram. This channel is still run by the DataCloud admin; however, it is used by members to request specific data from each other or to advertise data they have. This channel can be used to facilitate direct deals, either for free or for a fee, between users.

Figure 7: DataCloud Associated Telegram Channel; Source: Telegram 

Leak sites that use Telegram channels in conjunction with their website can use feedback and requests from Telegram to curate their data to their customer’s needs. DarkOwl analysts have observed that Telegram plays an integral role in the new leaks sites used just for data downloading and purchasing. Telegram appears to have a more integral role in leak sites than in other darknet marketplaces, almost as if Telegram was an extension of the leak site itself rather than auxiliary.

SQLi Cloud

A leak site that uses a similar structure to DataCloud is SQLi cloud. This site focuses mainly on stealer logs and combolists, which are largely offered for free. Requests can be posted in the Marketplace section where other users can respond.

Figure 8: SQLi Cloud Offers Stealer Logs; Source: Tor Anonymous Browser 

Similar requests to those found in the marketplaces section of the SQLi site can also be found on their Telegram channel. In this Telegram channel an account called “SQLi administrator” posts updates and responds to others in the chat. The channel is also used for requests for specific datasets. However, as with anywhere on the darknet, users must be wary of scammers.

Figure 9: SQLi Associated Telegram Channel; Source: Telegram 

Leak Sites on Telegram

“Cracked group” is a Telegram channel offering data for sale. The data found on this channel ranges from streaming data and stealer logs to data identified by the country it has been taken from e.g., “Vietnam data.” There is an admin for the channel which moderates the channel and posts details of the data available.

Figure 10: Cracked Group Telegram Channel; Source: Telegram 

Unsafe, DataCloud, and Cracked rely mainly on Telegram or have a site with just a few pages built out. In this aspect they are more informal or sparse than would typically be found on a darknet market. All have a Telegram channel. Those with websites have a main marketplace to download data and links to Telegram channels or contact information. Most have an “About Us” page.

Other leak sites are sophisticated marketplaces and forums specializing in the sale and downloading of leaks and personal data. This category includes sites such as Shadow Leaks. Shadow Leaks has the infrastructure of a traditional darknet forum and has features like awards, credits, a forum, and even sponsors. This site offers a larger product suite. Aside from leaks and combolists, products such as programming courses, hacking tutorials, dorks, and more are available.

Figure 11: Shadow Leaks Site; Source: Tor Anonymous Browser 
Figure 12: Data Offered on Shadow Leaks Site; Source: Tor Anonymous Browser 

The sites and Telegram channels covered in this blog post are just a fraction of what is available on the darknet and darknet-adjacent sites in terms of leak sites. Some of them specialize in one area of stolen data, such as only selling credit card information. Or a site will focus on certain parts of leaked data, like stealer logs, and sell them with a few other products.

While selling personal data on the darknet is not a new concept, DarkOwl analysts have noticed a trend of sites that specialize in selling leaked or personal data which are smaller than more well-known marketplaces, yet almost exclusively dedicated to leaked data.

These sites release their leaked information differently from ransomware groups. A wide variety of products for sale such as drugs and malware are not offered. Instead, the leak site focuses almost exclusively on personal data. They have decided to specialize in offering leaked data even though they are not ransomware gangs nor are they ransomware affiliated.

Final Thoughts  

As the widely popular Breached Forums was recently seized by law enforcement and shut down, the darknet community will be keen to see who takes the place of Breached Forums. Breached Forums offered a massive amount of data in one place, could vet the data posted, and was viewed by users of the forum as a trustworthy middleman service to facilitate transactions between vendors. While Breached Forums offered accountability to buying, selling, and downloading leaked data, its centralized nature also helped it become a massive target for law enforcement. The rise of leaks-focused Telegram channels and sites could point to a trend of decentralization. Relying on a hub and spoke model of decentralized darknet networks and darknet-adjacent channels offering leaked data would put darknet users at a higher risk of being scammed but potentially a lower risk of the site being taken down by law enforcement. Overall trends point to small groups and individuals selling leaked data, not just ransomware groups, highlighting that there are more decentralized avenues for individuals to buy, sell, and download leaked data.


Curious to learn how darknet data applies to your use case? Contact us.

[Webinar Transcription] Track Your Relative Risk on the Darknet

May 16, 2023

Or, watch on YouTube

With cyberattacks increasingly on the rise, organizations need better intelligence to safeguard themselves, employees and customers from incidents such as data breaches and ransomware attacks. This rise in illicit cyber activity only increases the need to protect against and determine the likelihood of these attacks.

Cue DarkSonar – DarkOwl’s latest product that serves as a relative risk rating that considers the nature, extent and severity of credential leakage on the darknet to provide a company with a signal that acts as a measurement for a company’s exposure.

In this webinar, attendees:

  • Reviewed the latest stats around the growth of cyberattacks
  • Learned why modeling risk is essential for all organizations of any size
  • Learned how DarkSonar can inform threat modeling, third party risk management, and cyber insurance
  • Saw first hand how DarkSonar can potentially predict the likelihood of cyberattacks

For those that would rather read the presentation, we have transcribed it below.

NOTE: Some content has been edited for length and clarity.


Kathy: I’d like to thank everyone for joining today’s webinar, Tracking Relative Cyber Risk on the Darknet. My name is Kathy. I will be your host. If you have any issues with hearing the audio or seeing the slides during the presentation, please feel free to ping me privately in the Zoom chat function or email me directly. Now I’d like to turn it over to today’s speaker, Ramesh, our Chief Technology Officer here at DarkOwl to introduce himself and to begin.

Ramesh: Great, thank you, Kathy. Good morning, good afternoon, good evening, everybody, wherever you are. So today I want to go over some very exciting innovation that we’re doing at DarkOwl as it relates to risk modeling. The topic for today is track your relative risk on the darknet. We’ll go over that in the next 35 to 40 minutes. Just a little bit about myself: I am the CTO at DarkOwl. I have over 25 years of software engineering and technology background, worked in a lot of firms as it relates to data risk mitigation, risk modeling, big data, real-time communications, and so on. So today’s agenda we’re gonna cover what is the darknet or the dark web, and where does dark, we’ll share some metrics and statistics about the cyberattacks and the growth of them over the last several years, what is risk modeling and why is it essential for your company and every organization that you partner with.

We have launched a new product, DarkSonar, which is a very interesting way to notify you about threat vectors and threat modeling, third party risk management, and if you are in the cybersecurity insurance business, this would be a very important topic as to how to quantify risk. And last, we will see some of the case studies and some of the firsthand insights that we have been gathering at DarkOwl on how DarkSonar could improve the likelihood of the prediction aspects as it relates to cyberattacks.

Darkweb 101

Okay, so without further ado, let me get started with what is the darknet. There are a lot of different terms that people throw around – some use darknet or dark web.

Essentially, these are the ones that you see in the bottom. So we go bottom to top. The darknet is a group of anonymized networks. They require proxies, and p2p type networks. They are specifically chosen by threat actors to hide their activity and they’re making a concerted effort to be a part of these networks. So that’s where you see the traditional ones, which are the onion or tor browser, I2P, ZeroNet. And there is a whole host of newer networks that get added every now and then. So that is truly the traditional darknet. But then what we have seen in the recent years is there is also a lot of activity in the deep web and the surface web. So, deep web is defined as anything that is behind an authentication wall, meaning anything that is behind a user ID and a password.

So that is where you would have things such as social media, your banking applications, but more importantly, as it relates to the darknet, a lot of the threat actors use the deep web for criminal forums and marketplaces, which we will talk more in detail, as well as any surface web links that you see that are only available once you have membership or credentials to access them. On the right hand side, you see a lot of chat platforms, for example, Discord and Telegram are very much in the news these days because that is where quite a lot of activity as it relates to darknet happens, whether it is exposing breaches or it is critical conversations, marketplaces, and so on. So chat platforms have grown in priority overall. Then the last, but not the least is what we all know as the surface web, which is everything that is indexed by search engines such as Google and Bing.

For the surface web, our focus at DarkOwl is more the high risk surface web, which is not just any webpage out there, but specifically, websites, domains, platforms that people use to collaborate, such as paste sites where you paste images or file sharing sites, discussion boards, GitHub is a big part of it. So the way it is color coded here is the ones that are in, um, the oranges and reds – they are all part of our current collection capability. The ones that are in deeper gray or black are the ones that we are having plans to go after and collect data. So that’s the picture you see on the right hand side. It truly is like an iceberg. We look at the world as what you see on the surface web – it is a very small sliver of the actual data and more interesting data and criminal activity happens on the deep web and the darknet.

Kathy: We have a question that has come in – how big is the dark net?

Ramesh: Great question. There’s no easy answer, but I would say that, a good one fourth of the web, about 25% is behind some form of user ID/password, and a subset of that would be darknet. So it’s really hard to quantify how much data there is in the darknet, but what I can tell you is as far as DarkOwl, we have over two 50 terabytes of data, which is specifically going after the deep and the dark web. So it’s quite extensive, but it is really hard to quantify as a percentage of the overall web.

DarkOwl by the Numbers

The next slide is little bit more about the metrics and numbers that we collect.

So at DarkOwl we have quite a lot of data that we’re actively collecting and we are essentially a data company, which is why we have several million documents. We have forums and marketplaces that are out there, and then we also have the Tor, I2P, ZeroNet, Telegram channels, and whatnot. So, given that, what I want to specifically draw your attention to is the amount of data that we have in terms of growth is clearly on the chat platforms side which which are pretty active as they contribute quite a lot of what we call entity data, which is the stuff that you see in the bottom: email addresses, IP addresses, credit card numbers, crypto wallets and crypto addresses and so on.

On any given day, there is between 1 to 3 million documents that we collect in a 25 hour period, and it’s a combination of crawling various sites and platforms and so on, as well as processing leaks. And leaks continue to keep increasing exponentially ever since the Ukraine conflict. So the bottom line here is the data is a whole variety of data. It is very disparate, and it all has to be collected from multiple places. We normalize it into a common data structure, and then we make it available. As far as the delivery channels, which is what you see on the right hand side, you could use our UI, which we call Vision UI. There’s a whole host of API endpoints that we make available for our customers.

You can search in the data, you can pull out entities and the recent docs, you can consume DarkSonar via API, same thing with ransomware. And if you have a customer or if you have a use case that would want our data, then we’re happy to license the data via data fees. So there’s a variety of mechanisms for you to consume all of this data that we’re collecting, curating, and making available to our customers. Okay.

Specifically this slide talks about what is in our data. So here are a few examples. So the high level way to look at it is the top left versus the bottom right, wherein the top left is the traditional things that you go after the clearnet, or even the Tor and the Onion browser.

Versus the bottom right is there where there is more and more need for us to have personas to do the authenticated access into the deep web services. So the things that you see up there, they’re just various categories of data that we have. So we go after crypto and pay sites, and darknet classifieds and blogs and ransomware gangs and so on. The authenticated ones include marketplaces, carding, going to chat rooms, ransomware gangs, social media, any discussion forms. I do wanna make sure that there’s a clear understanding – we do not touch any pornography content, or we call it CSA, which is child sexually explicit and adult material. That is not our focus. We do not want to be collecting images that are highly objectionable and criminal in nature.

Everything else, in terms of all the topics that I mentioned, we’re actively collecting. So some of the stats that you see up there, we have over 232 ransomware domains. We actively monitor 400, almost 500 marketplaces. Believe it or not, we not only have English, we have 51 other languages that we see in the darknet with Russian and Mandarin being at the top not surprisingly. So that’s kind of the diversity of data and how dispersed the networks are.

Cybercrime is Booming

Moving on, we all know that all of this data collection is there for a reason – because crime and cyber crime continues to keep booming and growing exponentially.

I’m not gonna read every one of these data points, but I think we all can agree that post Covid, the attack vector because of people working from home, the home networks are not as robust as corporate networks. So that just significantly increases the attack surface. The Russian Ukraine conflict has exploded, not just the Russian and the Ukraine side of the war and the data leaks that are out there between both parties, but it is truly a third party risk issue where every company who is dealing with a vendor who is in that part of the world is impacted one way or the other. And so we at DarkOwl keep seeing that this continues to grow, and customers and companies out there are struggling with the amount of alerts that they’re being subjected to their SOC teams and the XDR platforms and so on.

DarkOwl provides a more asymmetric and a unique insight that you don’t get from your traditional corporate security processes and procedures. So again, data is growing, crime is increasing. And we also see that ransomware gangs are becoming very sophisticated. They offer customer service and that’s why the term ransomware-as-a-service is in the vernacular these days, because it is a truly massive problem that we’re all being subjected to.

Kathy: We have had a couple of questions come in. How do you know when a company is being targeted on the dark web?

Ramesh: It’s a good question. There’s multiple things going on in the dark web. So one of the ways that a company can pay attention is, look into the darknet. For example, if you’re using our product or our Vision UI, you can set up an alert, which is basically a way to monitor your company domain and subdomains. And anytime there is any activity about your company, be it a conversation that is happening in a forum, or be it a marketplace where something is being sold, either your company credentials or your AWS keys or what have you, it’s always a good idea to set up these monitors so that you can pay attention to what’s going on. The other is, obviously we’re going to cover the DarkSonar, which is a numeric objective way to see what your risk tolerance levels are over time. You may be thinking you have really good security policies and practices, but it is super important for you to also look at products such as DarkSonar so that you know that you are either at or below the baseline of security and compliance that you should be at.

Kathy: Don’t threat actors only target larger companies?

Ramesh: You know, conventional wisdom is that threat actors would go after bigger companies that are much bigger in revenue, they have a bigger wallet and whatnot. However, you’d be surprised, there is a lot of targeting that happens with small businesses, with smaller educational institutions, from counties to hospitals to you name it, because the threat actor or the criminal is looking at two angles. One is, how much money can I make? And the other is, how little effort do I need to put? So a lot of the companies, the larger ones have gotten pretty sophisticated. So there needs to be a level of sophistication for the criminal to organize themselves and attack, versus there’s lots of much easier, smaller targets to go after. So I’d say the answer is, it really is all of the above. They go after the large ones. They also go after the small ones.

Risk Modeling

Okay. So let’s move on to what is risk modeling. Now, there’s lots of frameworks as it relates to risk modeling.

We’ve all heard of the NIST, which is the largest one in terms of a governing body that defines risk models, but there’s also other modeling tools available, such as ISO, CIS, ISACA, OWASP and so on. Depending on your company, depending on your needs, it would be good for you guys to pick your risk modeling strategy and a framework and then out of that framework, you also need to really pay attention to who are the stakeholders. Like, how do you want to make sure that between your SOC, your data protection folks, cyber governance, CISOs, if you’re in the cyber underwriting space, insurance brokers, underwriters, if you’re a startup, let’s say you might have VCs, investors, M&A things going on if you’re national security or a public government organization, the policy makers, any military operational decision makers.

It all depends on the type of stakeholders that you need to keep in mind as you build your risk modeling practice, right? So all of these type of assessments are, at end of the day, they’re defined by NIST, and these are to identify, estimate and prioritize the risk associated with your organization. So I’d highly encourage folks to take a look at these standards because they all try to achieve the same thing, which is be holistic, have a 360 view of your risk, rather than just pull in a hodgepodge of tools, to figure out what’s going on at any given point of time. So that’s kind of the risk modeling and the people that need to be be involved. And why does that matter? Because ultimately, when we talk about the darknet as it relates to ransomware just in and of itself is getting more and more sophisticated.

Ransomware

As I mentioned, there is a whole piece of the industry called ransomware as a service.

It starts with the threat signal, and you see the data flow associated with that. There is quite a bit of a lifecycle that that is involved when it comes to ransomware, and we’ve been watching the various ransomware groups and what we have seen is prior to ever executing a ransomware attack, the reconnaissance occurs either by members of the ransomware group or by a broker, the IAB. And this appears in tokenized mentions of the critical network data of your company. It could be credentials, it could even be mentions of your employees that would be targeted for social engineering. So on these forums, the threat actors are also discussing things like the common vulnerabilities like the CSV, and find ways to exploit and come up with techniques to exploit them.

They also come up with techniques to break your antivirus, evasion campaigns and so on. All of these are ways in which they’re trying to poke holes into your network, and either they do it directly or through these brokers, and then we kind of capture that as the dwell time, right? So dwell times, once they are in the network, they are gonna start poking things around. And then there is advanced operations that could take days, or it could even be done in a matter of hours. And these threat actors use the traditional Mitre attack techniques. And then once they’re in the network, they’re laterally moving and they’re elevating their privileges one step at a time, and they get more and more access into your network, and they exfiltrate more and more valuable data. So the key thing is persistence.

The level of persistence and hiding they do is very phenomenal. I mean, it’s like, it’s beyond professional. They cover their tracks, they know what they’re doing, and once the data has been removed or stolen from your network, the devices are encrypted. Then they go into the payment cycle where they’re starting to get the extortion payments that they’re demanding. So as part of that lifecycle, what we see is the announcements then go on Tor or whatever data source. They’re advertising the fact that a company has been breached, and then the data is stolen and all of the subsequent PR and all the other challenges to the business. So even though the data is not shared immediately as a data leak, it’s typically repackaged, shared and curated by the threat actors because they want to find the takers – how important is that data breach for that business?

And then they notify the suppliers, the vendors, possibly customers, any contractors, and they keep capturing more and more of the attention that this company they have targeted, they’ve been successful in targeting and exfiltrating, and now they’re looking for ransom, which means the temperature of the company that was a victim keeps going up, that they better pay the ransom amount, otherwise this keeps getting published to their customers and their partners, and it just keeps getting worse, right? So it is kind of like the threat signal always starts with somebody that has gotten access to your network, and then they’re raising their privileges, they’re grabbing the data, they’re publishing that, and then they’re collecting ransom. So given that lifecycle, and there was quite a lot of words there, but the bottom line is these attacks are on the increase.

They are on the increase globally, not just the US and UK but most of the Western regions where we can track them. A lot of the world is being subject to this, and there is also a need for a critical understanding of what are the motivators of these criminals and why are they doing what they’re doing? So understanding such type of risks is not just a nice to have, it’s a must have for any organization, large or small, and be prepared for these type of potential threats. So the takeaway here is be sure that you have a risk mitigation strategy. Look at some of these networks and protocols for risk modeling and truly understand what you and your company could be subject to as part of ransomware and the sheer fact that cyberattacks are on the increase.

DarkSonar API

Now, having said all that, what we’ve been busy in DarkOwl is building a product called DarkSonar. DarkSonar is to address some of the challenges that we have seen from our perspective. Essentially DarkSonar, we like to think of it as a signal. The signal is to inform threat modeling, third party risk assessment. It applies for cyber insurance, anything to potentially predict the likelihood of attacks. In other words, DarkSonar is a cyber risk rating. It is based on an algorithm that measures an organization’s credential exposure, primarily email password exposure over time. So it’s not just a one shot snapshot, we’re monitoring the health of your business and the credentials over time. And because emails are primarily leaked and sold in the darknet, they constitute a major vector for cyber and ransomware attacks. And we measure such exposure on an ongoing basis with DarkSonar.

This enables the organization’s customers and third party risk management folks to get an awareness and understanding of what your weaknesses are, what are your soft spots are, and you could be proactive in taking these mitigation steps rather than find out that it’s too late and you’re being subject to a ransomware attack. So it would be a mitigation step to prevent data theft, to prevent loss to your revenue, to your profits, loss of reputation, because at the time of ransomware, usually it is too late. So what we did is, as part of building the DarkSonar, we did an analysis of over 250 companies, well known companies to lesser known ones that suffered these cyberattacks. And we saw that in 65% to 75% of the cases, when we saw an elevated rating, it was having a direct correlation to a few months after an elevated rating.

There was an attack, and I repeat it is in 65% to 75% of the cases, we see a direct correlation that elevated risk rating equals elevated chances of an attack happening. So that was pretty powerful. And here is a little bit more breakdown of the data, the type of data that DarkSonar uses – so credentials, as I said, is emails and passwords, aka combos. We do see, not surprisingly, there’s quite a bit of plaintext passwords that we see in our collection efforts in our database. So that’s the big part of the pie that you see along with there are hashed passwords, and there are some where we get the email, but we don’t get a password, right?

So the way the DarkSonar model is built is, it’s primarily based on credentials. But we have a waterfall approach in the way we have designed the model. So first up is there is weightage given based on presence of emails of your company, meaning email of the domain that is in question. So they are unique plaintext passwords or hashed passwords, or just the sheer number of emails that we see. So that is weighted. The other thing that we also weight is the time and the time series. Did we get a breach recently which contributed to these emails appearing, or was it happening six months ago or nine months ago? So the older the data is, the less it is weighed in our algorithm. And we also consider duplication.

Duplication is kind of a vast topic. I technically call it correlation, but essentially is the data leak being reposted with the exact same details, in which case it’s a duplicate, or is this being reposted with additional data? Some of it is similar, meaning they’re correlated to the previous leak, but a lot of it is new information. But one way or the other, the sheer fact that threat actors are reposting, your company or your organization’s leaks over and over again is cause for concern. So our model accommodates the fact that there are these are things that are weighted both based on time as well as the number of times it gets posted, the duplication ratio, and then the baseline metrics we provide is based on the overall volume. So our API through which DarkSonar is available will give you data for the past 24 months, and it gives a relative risk rating for the organization in terms of the distance to the mean.

It’s like the bell curve that’s displayed here, you would start with zero, which is right in the middle. If it is in the negative, that means it is good. Meaning there is not that much exposure. If it is on the positive, anything that is greater than or equal to one, it means there is a cause for concern. So, one more time, back to what I just mentioned. Our results show that elevated exposure, meaning if DarkSonar were to say that the exposure is greater than one, an elevated exposure and the sustained elevated exposure over the last four months is a direct indicator that there could be a possibility of an attack in 74% of the cases. So that for us was very powerful. Any questions on this so far?

Kathy: Does DarkSonar distinguish what the username/password combos are used for?

Ramesh: The short answer is we do not distinguish at a per user username password basis, but we do collect the aggregate of all the usernames that are being exposed, specifically the emails, but not the username per se. We’re mostly focused on email and passwords.

Full statistics and chart can be found here.

One thing is DarkSonar is a good indicator of risk. I do want to highlight some of the threat factors here and what should be applied in which scenario. So if you’re looking for phishing emails, for example, and that there is quite a lot of phishing attacks, then DarkSonar would be a really good tool for us to assess. Same thing with third party risk management, third party supply chain, DarkSonar would fit pretty well, any weak or compromised credentials.

If you have any compromised credentials, then that would be directly visible in DarkSonar. However, there are things like brute force attacks, unpatched vulnerabilities, cross-site scripting, man in the middle attacks, right? These are not exactly things that are involving emails and passwords all the time, but our platform, which is the Vision UI platform, as well as the API endpoints and the entities that I talked about, these would all help in understanding such type of threat factors like the brute force or the unpatched vulnerabilities, the cross-site scripting, the man in the middle, DNS poisoning and so on. So think of it as using the right tool for the right job. It depends on what threat vectors you’re interested in. Some of these threat vectors DarkSonar would apply, and other threat vectors, you might be better off using our Vision UI or our Search API or entity lookups and so on.

Okay, so now comes kind of the interesting part. So all that theoretical risk model, what does that mean for companies? So I have some use cases and companies as examples to kind of walk you guys through.

So here is the famous Colonial Pipeline incident that happened in April of 2021.

So Colonial Pipeline is one of the largest fuel pipeline and its breach literally had created shortages for oil and gas up and down the East coast. And this was a result of compromised passwords.

The, the interesting thing is we saw an elevated level of DarkSonar. As you could see, it was kind of hovering in the negative zone, which is good. And then in September of 2020, we’re starting to see the increase and the elevated risk, and then it became 0.5 and then decline to one. Anything above one, like I mentioned, it definitely has a clear indicator of risk, and that is where in from our data, we saw that a month prior to the attack, which is back in April of 2021, we were seeing that elevated risk. And then in May, the attack happened, right? So DarkSonar was able to detect based on these credentials, which are easy to do, the account takeover and instigate that attack. So that was on the Colonial Pipeline case. The next one is General Motors.

General Motors, same thing. We see a three month window where there was an elevated signal to the time that the attack was announced. So again, part of the challenge is when big companies, and you know, big outlets have this challenge, it becomes a media issue. Many of the companies do not report it. They try to pay up the ransom or negotiate with the criminals, whatever they’re doing on the backend. It may or may not be in the news, but we capture what we gathered from General Motors from the time that they had announced, which is April of 2022. When we go back in time and look at March and February and January, there was a clear elevated risk. So our DarkSonar model detected an abnormal increase in the plaintext and hashed credentials, literally months leading up to the attack. The next one is Fujifilm.

Same type of thing where their servers were infected with ransomware and nobody would ever know when the exact ransomware was launched and what exactly happened. But according to the bot ransomware, it came through a phishing attack. And clearly the takeaway is we detected an increased email exposure prior to the actual attack happening.

The last one that I would say is back to the question, that was asked earlier about smaller companies – you’re still very much vulnerable for these type of attacks. And in the City of Tulsa’s use-case, we saw a five month attack window of elevated risk as it relates to DarkSonar. The signal was elevated for five months prior to the attack. So the reasons were really the group installed ransomware in late April, the program began to operate the city firewall and other security protocols were kicked into the city’s technology department. They took their time, but the bottom line is this was months in planning by the criminals. And we see that elevated risk as far as DarkSonar literally five months prior to the attack.

Kathy: Can you answer, what is the likelihood of a breach if the signal goes above one?

Ramesh: Anything above one, there is an increased exposure. An increased exposure would correlate to increased risk. An increased risk would correlate to, there’s much more chance of a breach. So I would say anything over one, companies need to be really, really careful. Pay attention, take the proactive steps, rotate your passwords, put in the multi-factor authentication on your servers, whatever you are doing. As for security operations and proactive things y you should, you should be careful, right? Does that mean anything below one is fine and dandy – I would say look at DarkSonar as another way and another tool in your tool chest. And if it is over one, that means the temperature is going up, right? And if the temperature goes up and it keeps going up and up and up, bad things happen. So that’s the best response I would give. Is anything over one, you better watch out.

Okay. As I mentioned, here is a little bit of technical detail on how the docs owner API is represented.

We give you the results based on a company domain and we give it to you a JSON format. And like I mentioned, we present that data for the last 24 months, and we give you the rating as well as the baseline and the signal we will indicate if it is low or elevated or high, right? And to Kathy’s earlier point, anything about one would be elevated. So if you are in the low category, that’s good, you have good security best practices. If you’re one or above, it’s time for you to pay close attention to what can you and your company do to mitigate these type of risks.

So again, it’s predominantly available via API, you can hit individual domains or you could hit multiple domains at the same time. It’s up to you. And then the results, like I mentioned, is it’s really, we did the internal analysis for the 237 publicly disclosed attacks between the last couple of years, 2021 and 2022. We see the accuracy is very strong. We were actually surprised it was this strong a correlation between the risk level and the attacks. So all attacks was 74%, ransomware was 75%, breaches was 74%. So it’s tracking pretty closely to a very high percentage accuracy for the elevated risk versus the attack. And then we also went to some of our customers. We went to some of our prospects and we call it the beta clients. And we did a pretty extensive evals on the attacks. And we see that there is a pretty strong correlation there as well.


Interested in learning how DarkSonar can help alert for potential threats to your organization? Contact us.

Urgency of Action at AFCEA’s TechNet Cyber: DarkOwl Recap

May 12, 2023

Last week, DarkOwl joined Carahsoft’s pavilion at AFCEA’s TechNet Cyber flagship event in Baltimore. AFCEA is a professional association that “brings people together from all demographics worldwide to strengthen global security, provide education and help prepare tomorrow’s science, technology, engineering and math (STEM) workforce.” They connect people, ideas, and solutions globally – because knowledge matters. Leading this year’s conversations were the U.S. Cyber Command, DISA, the DoD CIO, and many other industry and academia partners. You can check out the 2023 coverage here. This blog outlines some highlights.

TechNet Cyber 2023 Theme: The Urgency of Action: Focused, Aligned and Ready

The theme of TechNet Cyber this year was spot on. According to research, there was a 38% increase in global cyberattacks in 2022, and within the last year cybersecurity attacks against industrial control systems (ICS) have skyrocketed in volume and sophistication. Putting this into numbers, in 2022 cyber incidents cost 6 trillion dollars and it is predicated that 33 billion accounts will be breached in 2023.

The invasion of Ukraine in February of 2022 and the events of the year since have shown us that cyber is an increasingly critical component to a nation state’s military arsenal and its ability to ultimately defend it’s critical infrastructure, territory and sovereignty. As TechNet cyber claims, “The cyberspace battlefield has changed. No longer an arena where adversaries launch a single distributed denial of service attack, lob a virus or infiltrate a network, it is now a state of persistent barrages and simultaneous campaigns.” DarkOwl could not agree more. The only way to combat the shifting landscape and current political landscape where there are persistent attacks and ever-increasing sophisticated campaigns that threaten global political, economic and security interests, is to come together to share ideas, the latest in technology and solutions, and to stand together to combat the global security challenges.

Representing DarkOwl at TechNet Cyber was Matthew Kromalic, Client Operations Manager, out of DarkOwl’s Denver headquarters. Through our partner Carahsoft, DarkOwl was given a dedicated monitor to give demos of our industry leading darknet search platform Vision UI. Matt remained busy at the DarkOwl stand and shared, “The amount of in-depth conversations with real focus on product offerings and use cases with attendees and vendors this conference was way more than what I am used to at events – showing huge promise that darknet data is being seen as a must-have and no longer a nice-to-have.”

Darknet Data for Intelligence Agencies

Due to the layer of anonymity the darknet provides, it is often a hub for illegal activity. However, investigating crime on the darknet and deep web poses technical challenges, including the fact that darknet sites are continually coming on and offline with pages vanishing from one minute to the next, and are not easily searchable. These characteristics pose a severe challenge to law enforcement and government organizations wanting to effectively track criminal activity pertaining to their investigations. Even for the most technologically advanced investigators, the darknet can be a difficult and dangerous place to gather intelligence from and conduct criminal investigations.

Using DarkOwl Vision UI, investigators are able to collect intelligence about persons or subjects of interests, including usernames, aliases, chatroom activity and other potentially incriminating information, and us that data to compile evidence and solve complex crimes. Our use cases are far reaching and include tracking threat actors, criminal activity such as drugs and human trafficking, malware, hacking forums, searching marketplaces for illegal or stolen credentials, personal identifiable information and and intellectual property.

DarkOwl Vision has been used to support local and federal police investigations, as well as work done in intelligence centers and federal agencies to uncover human trafficking, opioid selling, terrorism, security issues, and other illegal activity, making TechNet Cyber the perfect event to share DarkOwl Vision. The technology DarkOwl uses to scrape on the darknet and deep web are key to maintaining proactive situational awareness in the current cybersecurity landscape. DarkOwl is proud to be able to support the global law enforcement community in their efforts to police illegal and nefarious activity on the darknet.


Learn more about how darknet intelligence informs law enforcement investigations and contact us!

Understanding the Difference Between Scams and Fraud

May 09, 2023

Many times we use the words “scam” and “fraud” interchangeably. Fraud is an umbrella term, legally referring to various types of chargeable criminal offenses. Scams, on the other hand, are a particular segment of fraud. 

One way to think about the difference between these two is from a legal perspective. Fraud is serious criminal business, while scams are considered more minor offenses in comparison. Many types of fraud are classified as felonies, versus scams which are typically charged as misdemeanors.

Another way to look at it is from a banks’ perspective. Financial institutions differentiate the two as such: scams are theft of funds with your permission or knowledge, while fraud is financial theft without your permission or knowledge.

Figure 1: Example of a dark web site offering a combination of Fraud and Scams (Source: Tor)

To make things even more confusing, oftentimes, a threat actor may start out with a simple scam, that then progresses to fraud. For example, an email phishing scam may allow a threat actor to access enough personally identifiable information (PII) to file a false tax return on the victims behalf, which is tax fraud. According to the New Zealand CERT, “a scam becomes fraud when a scammer gets someone’s personal or financial details and uses them for their own gain, or receives money from their target under false pretences.”

Figure 2: Example of a romance scam that does not cross over into fraud because the victim willingly gave the threat actor their money (Source: DarkOwl Vision)

Examples of Fraud

Invoice Fraud – Compromised business email account is used to send falsified invoices for services and goods that were never rendered.

Insurance Fraud Receiving medical care using someone else’s insurance card.

General Financial Fraud – Unauthorized use of credit card for purchases.

Account Takeover (ATO) – Criminal accesses victim’s financial bank accounts to steal or move money illegally.

Identity Theft – Unauthorized use of someone’s identity to open credit cards or get a mortgage.

“Safe Account” Fraud  Victim is lured into moving money into a ‘safe account’ after fraudster convinces victim there has been ‘suspicious activity’ on the account. Fraudster asks for financial details and then performs the transfer – which is why it is fraud and not a simple scam. 

Tax Fraud Impersonating someone to get a tax refund you’re not entitled to.

Figure 3: Example of a tutorial on the dark web for committing Tax Fraud (Source: DarkOwl Vision)

Examples of Scams

Phishing Scams – Emails and texts to get people to click on a link to enter PII. (Read our analysis of a year’s worth of phishing emails here.)

Investment Scams – Fake investment schemes (‘boiler room’) and non-existing charities.

Counterfeit Scams – For example, you order an expensive Rolex watch online, but instead received a cheap knockoff. 

Prize/Lottery Scams – A phishing email may claim “you’ve won all this money… but you need to pay fees and taxes up front,” and then the prize or promised reward is never delivered.

419 or “Generic” Scams – One of the most common 419 scams is sometime referred to as the “Nigerian Prince Scam”.

Invoice Scams These are typically pitched with a high sense of urgency demanding payment for goods or services never provided.

Social Media Scams – Romance Scams fall under this category. These scams involve using social deception designed for financial gain, but because the victim willingly hands over the money, it’s not tagged as fraud. 

Occupation Scams – Money mule schemes advertised as legitimate job opportunities.

Inflation Scams – False government programs advertised as legitimate ‘financial relief’ for energy costs or pandemic relied, for example.

Debt Elimination Scams – Promise to consolidate or remove debt in exchange for upfront fee that is stolen and no services provided.

Figure 4: Advertisements for a variety of tools threat actors can use to scam victims, pre-built including spoofed webpages (Source: DarkOwl Vision)

Tips for Spotting the Difference

When trying to decide if something should be categorized as a scam or fraud, differentiating the criminal’s intentions and the means of financial or illicit gain is a good starting point. A question to ask is, is this threat actor a fraudster or a scammer – or both? Also, what was the level of the victim’s involvement in the crime? Remember that not all fraudsters are scammers, and not all scammers are social engineers.


Financial fraud and scams are a time-consuming investigative area for many a local law-enforcement and federal/international cybercrime units. To learn how DarkOwl can help support fraud and scam investigations, contact us here.

Password Hygiene and Awareness: Trends from the Darknet

May 05, 2023

In honor of this week’s World Password Day, we took a look at how different password trends have evolved over the past year. In doing so we found that many people are still making common password mistakes, such as using their favorite year or using highly popular (and crackable) strings of characters like “123456”. Read on for a breakdown of these trends, as well as some additional insights from our data science team.

Passwords on the Darknet

Credentials are one of the most sought after and frequently exchanged digital goods in the darknet economy. In many cases, large quantities of compromised accounts will be combined and reshared across multiple darknet and deep web forums, including dark web adjacent platforms such as Telegram. Criminals leverage this data in a variety of ways. For example, some may use a credential cracking or “stuffing” tool to cross reference emails with other password lists – or use common password conventions to guess the password – and verify an active email and password combo. In the gravest of cases, when active corporate accounts are discovered, they can be used to gain initial access into a company’s network and allow the intruder to commit a crime such as ransomware.

Credential lists also sometimes appear with an email + hashed password combination. However, this is less common and is considered moderately less risky as it requires the threat actor to go through the process of unencrypting the password to make use of it.

Changes in Password Volumes in DarkOwl Vision

Overall, we saw a 16% increase in the total number of email addresses in our darknet data. In 2022, we detected 8,680,000,000, which has since risen to 10,069,116,483 total compromised emails. Though this does include some that did not have associated passwords, an exposed email still poses a degree of risk.

Of the exposed emails in our dataset, over 50% of them appeared with an associated password. The total number of email and password combos detected currently is 5,681,306,514 – up from 5,460,000,000 last year.

Alarmingly, the number of plain text passwords with an associated email jumped by over a fifth in the last year. We detected 5,160,309,835 with plain text passwords as compared to last year’s 4,285,451,030.

Overall, the number of emails with associated hashed passwords remained fairly consistent. 2022 analysis indicated 518,566,724 hashed password and email combos, which has only risen slightly to 520,996,679 this year.

Password Lengths

Of the plain text passwords we analyzed, 8 characters is by far the most common password length. We expect to see that number shift in coming years as companies implement more rigorous password policies including multi-factor authentication (MFA).

Password Strengths

A positive trend of note is that over the past year, we saw an increase in the total number of “strong” passwords. Per industry standards, “strong” passwords are defined as containing special characters, digits, lowercase, uppercase, and length greater than 8 characters. Overall, we detected 643,498,941 passwords that are considered “strong” – up from 637,000,000 last year.

On the flip side, we saw a decrease in the number of passwords using digits by nearly 10%. Using digits, as well as special characters is highly recommended as a method of defending against password crackers. Unless an 8-character password includes numbers and symbols, the password can be potentially brute forced.

Common Patterns Persist

Perhaps out of laziness, a common trend that we see consistently with passwords is the use of strings of digits or characters that can be easily made on a keyboard. This unfortunately appears to be a persistent trend, with the number of people using “123456” or “123456789” increasing across the board.

While less popular that number strings, other keyboard patterns “qwerty” remain a popular choice of password. In fact, the number of passwords containing or comprised of “qwerty” jumped by 10% this year.

Perhaps most egregiously, we saw a massive jump in the amount of exposed email addresses who’s associated password was literally “password”.

Using Your Date of Birth or Anniversary as a Password is Still a Bad Idea

A relatively sizable portion of the passwords we analyzed contained a year date, such as “darkowl1990”. Interestingly, we found 102368238 passwords with that followed a yyyy-mm-dd format, and 13223 with passwords with yyyy/mm/dd. While this is positive in that it utilizes special characters, the prevalence of users who incorporate a date into their password means that threat actors will leverage this to attempt to brute force accounts.

The most popular year detected in our data is 1990, with 14,518,056 containing that year. Years between 1990 and 1999 remain the most popular, which is consistent with last year’s analysis.

Hashed Passwords

In cryptography, hashing involves using a mathematical algorithm to map data of any size into a bit string of a fixed size. In password hashing, a ‘hash’ consists of a unique digital fingerprint (of a fixed size) corresponding to the original plaintext password which cannot be reversed. There are several different types of ‘hashing algorithms’ available for encrypting passwords.

The most common hash in DarkOwl’s darknet collection is MD5, followed by SHA-1. While this is consistent with last year, we did not see an increase in hashes of this type, as one might expect to happen as more data is collected over time. On the other hand, over the past year we saw a massive jump in SHA-256 and SHA512 hashes from 2022. This suggests that these types of hashes are becoming more popular and we should expect to see this number grow in the coming years.

According to reporting, 51% of people use the same password for their work and personal accounts. To see if our data is consistent with that account, our data team conducted an analysis to estimate the number of “shared passwords” between work and personal accounts. To do this, our data team partitioned the data into two categories: commercial email providers (gmail, yahoo, etc.) and companies (DarkOwl, Apple, Microsoft, etc.). Then, we looked for the number of accounts that had the same username between company and commercial emails, such as [email protected] vs. [email protected]

Once detected, we looked for the number that shared the same username and the same password. In doing so we found that 45% of matched accounts re-used the same password. This is likely an under-estimation due to variations in naming conventions across email accounts, but supports the notion that using the same password for multiple accounts is a highly common practice. Overall, we detected 35,085,849 instances of linked email addresses that appeared with the same password.


In addition to being able to search all collected darknet data for exposed credentials, DarkOwl extracts entities such as IP addresses, credit card numbers, bank identification numbers, and cryptocurrency addresses. This enables an organization to search specifically for relevant entities, such as server IP addresses and email addresses on the same darknet forum. Learn more about Entity API.

Another RSA Conference in the Books: DarkOwl RSA Recap

May 05, 2023

RSA Conference in San Francisco, this year held April 24-27, is one of biggest and most anticipated cybersecurity events of the year, and for DarkOwl specifically, that is no exception. The DarkOwl team plans and plans and looks forward to RSA each year; to see friendly and new faces alike, hear the latest trends, news and innovations in cybersecurity, share our latest product updates and offerings, and of course have some fun around San Francisco. The team was happy to have a booth on the show floor, host a customer dinner on Tuesday night and have a private meeting space around the corner from Moscone Center to hold one-to-one meetings with prospects, partners and clients.

“Stronger Together”

The RSA Conference slogan, “Where the World Talks Security” is the perfect quick elevator pitch for what happens each year at RSA – thousands of security professionals from around the globe gather together to hear and discuss new and leading perspectives, innovation and best practices. The most memorable RSA moments can be found on their website here.

The theme of RSA this year was “Stronger Together.” The cybersecurity space is often very competitive, with so many amazing products and solutions in the space, this is inevitable. However, given the geopolitical landscape, the ever-growing increase in digital reliance and increases in cybercriminal activity and creativity, trust and learning from eachother is more important that ever. The opportunity to meet end-users, thought leaders and security teams face to face and build relationships helps combat this perceived sense of competition – we are all in this together.

DarkOwl Highlights

Representing the DarkOwl team, we had several executive team members, sales reps, customer success managers, and analysts present manning the booth and holding private one-to-one meetings. Of note, DarkOwl Co-Founder and CEO, Mark Turnage, Co-Founder and CFO, Russell Cohen, and CBO, Alison Halland, all noted that this was the busiest RSA in DarkOwl’s history in terms of quality meetings and conversations being set up prior to the show. Hoping follow up is just as successful! Sales Representatives, Chris Brown and Magnus Svärd were happy to report a very busy show floor, finally feeling like RSAC is “back to normal.”

The DarkOwl team remained busy over the three days manning the booth, meeting new prospects and showcasing our industry leading darknet platform, Vision UI, which allows users to search and monitor the most comprehensive darknet dataset. With many current clients present, the DarkOwl team was able to spend time understanding how we can best optimize and elevate our current partnerships and how we can continue to provide the most value as their darknet data provider, focusing on continuing to build up our customer relationships, building trust, and working together!

In anticipation of RSA, our product and data teams were hard at work getting new features and new product ready to launch and showcase in time for the show, and the team was happy to share some of these highlights at the booth:

  • A new monitoring product—DarkSonar—which is designed to be predictive of cyberattacks. In an analysis of over 250 companies that suffered from cyberattacks, their DarkSonar signal was elevated nearly 75% of the time months prior to the attack.
  • A new darknet threat actor lexicon and database, covering almost 1,000 known threat actors, and providing information for these actors; and
  • A new feature on VisionUI that allows searching and tracking Telegram users by username across over 2,000 channels.

RSA provided the perfect environment to not only gather feedback from current customers and partners on their current products but also garner feedback on recently launched features and DarkSonar in particular. We are happy to report lots of positive feedback and are excited to have those follow up conversations!

DarkSonar 101

With cyberattacks increasingly on the rise, organizations need better intelligence to safeguard themselves, employees and customers from incidents such as data breaches and ransomware attacks. This rise in illicit cyber activity only increases the need to protect against and determine the likelihood of these attacks.

Research shows that most cyber incidents stem from a threat actor gaining initial access through a compromised set of credentials. Many of these attacks result in substantial costs including an organizations’ time and money, as well as long term effects such as loss of reputation— not to mention the potential effects on their clients and their employees.

DarkSonar is a relative risk rating that considers the nature, extent and severity of credential leakage on the darknet to provide a company with a signal that acts as a measurement for a company’s exposure.

DarkSonar enables companies to model risk, understand their weaknesses and anticipate potential cyber incidents. In turn, organizations are able to take mitigating actions to protect themselves from loss of data, profits, and brand reputation.

To learn more about DarkSonar, check out our datasheet.


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Threat Intelligence RoundUp: April

May 01, 2023

Our analyst team shares a few articles each week in our email newsletter which goes every Thursday. Make sure to register! This blog highlights those articles in order of what was the most popular in our newsletter – what our readers found the most intriguing. Stay tuned for a recap every month. We hope sharing these resources and news articles emphasizes the importance of cybersecurity and sheds light on the latest in threat intelligence.

1. Stolen, cloned and sold: Inside the digital black market for SNAP benefits – The Baltimore Banner

In this months-long research investigation, learn how and why cybercriminals are trafficking benefits online. This article dives into the fact that benefits theft has been increasing nationwide, focusing on food assistance programs and cybercriminals trafficking welfare benefits on the darknet across multiple marketplaces. Read full article.

2. iPhones hacked via invisible calendar invites to drop QuaDream spyware – BleepingComputer

An Israeli-based company QuaDream have available a spyware able to compromise iPhones using “a zero-click exploit named ENDOFDAYS.” Citizen Lab has said the attacks were “backdated and invisible iCloud calendar invites.” This particular exploit is able to run without the user’s knowledge because when calendar invites with dates from the past are received by an iPhone they are automatically added to the calendar. The victims have not been names publicly but are known to be high-profile individuals. Sophisticated detection-evasion techniques include self-deletion. Read more.

3. Kodi discloses data breach after forum database for sale online – BleepingComputer

The Kodi Foundation has announced that that they suffered a data breach after their MyBB forum database was stolen. Hackers were able to access and steal the forum database using old credentials from a staff member and logged into the Admin console. The database contains information about public forum posts, private messages between users, as well as credentials. Kodi has advised all users to think of their passwords as being compromised. They have shared the stolen emails with Have I Been Pwnd. Read more.

4. Blind Eagle Cyber Espionage Group Strikes Again: New Attack Chain Uncovered – The Hacker News

Cyber threat actor, Blind Eagle, also referred to as APT-C-36, has been linked to multi-stage attack chain which leads to NjRAT remote access trojan on compromised systems. Blind Eagle is thought to be a Spanish-speaking group and is targeting mainly private and public entities in Colombia, but also expanding to Ecuador, Chile, and Spain. Read full article.

5. IRS-authorized eFile.com tax return software caught serving JS malware – Bleeping Computer

EFile.com is an IRS authorized software used for filing tax returns. Security researchers have found malicious JavaScript malware in the e-file. This security concern is limited to eFile.com and does not affect the IRS’ e-file Infrastructure. The JavaScript malware being used is popper.js. The file from the site does not have the malware anymore. The first signs the site was being attacked came on March 17th with an SSL error. Security researchers observed an update.js file connected to the attack given by an Amazon AWS endpoint. A script analyzed by The Bleeping Computer shows the malware was a backdoor allowing for remote access by threat actors. Read here.

6. Iranian Hackers Launch Sophisticated Attacks Targeting Israel with PowerLess Backdoor – The Hacker News

APT35, an Iranian nation-state threat actor, who has been active since at least 2011, has been associated with a new wave of phishing attacks targeting Israel. To attack their victims, APT35 usually leverages fake social media personas, spear-phishing techniques, and N-day vulnerabilities. Read more.


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