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Anti-virus or AI driven Endpoint Protection?

Arete Analysis

Arete investigates a lot of ransomware attacks. In fact, 90% of our business is helping organizations big and small, recover from and investigate ransomware attacks. Variants like Maze, Sodinokibi, WastedLocker, Ryuk, Conti, Dopplepaymer, Dharma and countless others are extremely active every day of every week. Whether they are hacking into an organization and deploying their ransomware or they are responding to emails to negotiate the release of decryption keys, these groups will continue to operate with the main focus of disrupting businesses by encrypting files, stealing data and waiting to receive payment for decryption keys.

One of the common themes across our client organizations is their reliance on anti-virus (“AV”). When discussing the initial facts of a ransomware infection and learning about their environment, I usually ask “Do you use AV and what is the name?” All the clients respond with “yes, we use AV” and the software used are across the board. Bitdefender, Windows Defender, Sophos, McAfee, Symantec, TrendMicro, and Webroot are among the common responses; and they all offer ransomware protection.

The products themselves are great. They stop a large majority of malware. They have been pioneers in the computer security industry. They have built networks and distribution systems for virus definition updates. They have even built out response teams to gather intelligence from client’s networks who have suffered a breach in order to make their products better to aid other customers. There have been countless tests of their products and rankings from non-lab environments up to Gartner reports. Even TechRadar’s recent article “Do I really need antivirus for Windows 10?” highlights the need for AV and lists some great recommendations. I do encourage you to read the article, but the summary of it is “Yes. You need AV”. In fact, your organization needs more than just AV, it needs a true endpoint protection that leverages Artificial Intelligence (“AI”) as well as real time updates to its rule sets (notice how I did not state virus definitions? More on that later).

As a computer security aficionado, incident responder, trusted advisor, and empathetic human, it pains me to find out these reputable products repeatedly fail protecting large and small networks from malicious activities performed by these threat actors. Organization after organization purchase these licenses, deploy the product then at some point in the future become a victim of a cyber-attack. Simply purchasing AV software and deploying it, is no longer good enough.

The intent of this article is to demonstrate where traditional AV capabilities fall short based on the Tactics, Techniques, and Procedures (“TTP”) used by the threat actors. Again, the AV products I mentioned earlier are great products. There is nothing wrong with their ability to detect malware and prevent it. If those products are in use, then implementing compensating controls can enhance detection of unauthorized access and minimize the success of an attack.

Traditional AV and EDR Defined

For the purposes of this article, I am going to draw a vast difference between “traditional AV” and Endpoint Detection and Response (“EDR”) software. I have generalized the functionality to not specifically compare product by product, rather I intend to compare the category of traditional AV to EDR tools.

  • Traditional AV – Definition based or signature scanning that searches for a known-known. Meaning, if the malware is known by the security community, the product should identify it. Some of the products may also have passive endpoint behavioral monitoring.

  • EDR software – Some developers are calling their products Next Generation AV. EDR tools offer traditional AV scanning, AI detection, active EDR monitoring, and restoration.

    • AI detection – the EDR agent will monitor the system and examine the calls or events specific processes make on the system or across the network. The agent then analyzes these events and if the events are determined to be malicious, the processes are stopped.

    • Active EDR monitoring – These EDR agents can be monitored by a Security Operations Center (“SOC”) for additional support, triage, threat hunting and quicker response to threats including centralized logging of activity for historical analysis or forensics, near instant detection, and immediate containment.

    • Tamperproof agent – The agent on the endpoint cannot be uninstalled by an administrator account. Rather, uninstall must be initiated from the central software console.

    • Restoration – Some EDR solutions leverage windows volume shadow service to create a snapshot of the system and if a threat is detected, roll the system back to a clean state all the while retaining vital forensic evidence from the event.

Right from the start, the EDR tools offer three critical components as compared to traditional AV: AI detection, active EDR monitoring, and tamperproof agents. These components align well with protection computers any time and anywhere.

Attack Flow

The threat actors, in a large majority of ransomware attacks, follow a very similar attack sequence across variants and across matters:

  1. Identify a target or victim – usually by scanning for misconfigured system, phishing email, or watering-holeweb attack

  2. Exploit target – Gain access to the target system.

  3. Reconnaissance – Examine the target system ß this is THE critical step.

  4. Escalate privileges – Obtain administrator credentials for the system or the domain.

  5. Establish persistence – Create a backdoor to allow re-entry into the network.

  6. Lateral movement – Identify additional systems on the network such as domain controllers or backups.

  7. Data exfiltration – Package up and steal data for additional extortion.

  8. Deploy ransomware – Encrypt files and wait for contact from the victim.

The attack flow listed above has been simplified from other theories that exist in the cybersecurity community. This flow is intended to simply depict the sequence of steps the attack follows across each attack. I’ve purposefully highlighted step 3 Reconnaissance to examine it further against the TTPs of these threat actors.

Threat Actor TTPS

Once a threat actor gains access to the target system, there is a wealth of information the threat actor can gather from that single system. Information about the domain name, previously logged on users, privilege level of the logged-on account, running applications, and available hosts within the network. This information is easily obtained by running a few commands which are resident on any Windows system.

The most important piece of information they can obtain after gaining access is about the security software on the system and the privilege level of the account.

  1. Privilege level of the account will determine how the attack can disable or modify security software to prevent the detection of their attacker tool package they may intend to copy to the system. Privilege level will also determine what additional system resources they would have access to as that user.

  2. Security software installed on the system will give perspective to the threat actor on the organization’s approach to security as well as determine ways to disable the software from scanning and alerting.

During many investigations, Arete Incident Responders have observed threat actors gaining access to systems, then returning days or weeks later with customized batch scripts or PowerShell scripts designed to disable AV and backup products from functioning correctly.

Examples of scripts and tactics recovered from investigations:

  • Batch script to unload the virus definitions from Microsoft Defender. Once the definitions were unloaded, the AV scanning engine would be useless because it would not know what to look for. This is creative as it does not disable the running service that may cause an alert that the Defender service stopped on a system. Instead, the threat actor chose to unload the definitions in hopes that those events are not monitored by a log aggregator.

  • Batch script to disable Symantec Endpoint Protection (“SEP”). The threat actor had already gained access to the system with escalated privileged, aka Administrator account. They ran the script to disable the SEP services. The victims’ environment was not configured to alert when the SEP services were disabled.

  • Batch script to white list specific folders. The TA essentially used the white listing or exclusion functionality against the AV product. Once executed, the script added a specific folder to be excluded from AV scanning then used that folder to stage their tools.

  • Dumping of browser cached credentials to obtain usernames, passwords, and logon URLs for centrally managed AV products. Once the threat actor gained access to the central console, they disabled AV scanning for all the available hosts.

In each of these scenarios above, the actions performed were not through malware. Rather, the threat actor had interactive access to the system and was able to a variety of methods to disable AV prior to downloading their tools, living-off-the-land (“LOTL”) and ultimately ransomware payloads. The AV did not even have a chance to detect the malware because it was disabled prior to the malware reaching the system.

EDR enhanced protection

Arete Incident Responders respond to incidents with a large toolkit of cybersecurity products. The tool of choice to investigate, contain, and eradicate ransomware threats for Arete IR is SentinelOne. Once deployed, the agent cannot be uninstalled by a typical administrator account. Additionally, access to the central console is limited, invite only, and multi-factor authentication is used.

Understanding the actions, the threat actors perform during their reconnaissance phase, traditional AV products have a high chance of missing those actions. Whereas a next generation endpoint protection tool like SentinelOne would inhibit the threat actor’s ability to successfully recon the environment.

  • Scripts to unload definitions: SentinelOne would detect any attempts to modify the agent causing an alert within the central console as well as blocking the process from continuing.

  • Scripts to whitelist or exclude directories: Exclusion of directories from scanning can only be modified via the console interface. The endpoint itself cannot modify the exclusion list.

  • Dumping of cached credentials from the browser: Detection of these tools are commonly identified as Potentially Unwanted Application or Program (PUA/P). SentinelOne would detect these and prevent them from executing.

  • Scripts to disable the SentinelOne agent would fail. The agent itself can only be uninstalled by initiating uninstall from the console or by using a pass phrase obtained from the central console. The pass phrase is uniquely generated for each endpoint.

In addition to the power of the tamper proof agent from SentinelOne, the attempts of modifying or abnormal activity by the user account would be detected by the AI scanning engine which would create an alert. The alert could then be triaged quickly to identify unauthorized access and, by using a new feature not previously discussed, SentinelOne could isolate the system from the network.

Network isolation, as it pertains to SentinelOne, allows the incident responder to disable network connectivity for that endpoint except for connection to the console. This would remove the threat actor from accessing that system and allow the incident response team to continue their investigation.

Summary

The observations made by Arete Incident Responders has identified threat actors are aware of the environment they penetrate. Instead of just blindly copying their tools to the compromised systems, the threat actors are looking for installed security software to minimize alerts by disabling or bypassing the security software. The commercially, widely, and easily available AV products have limitations with being tamperproof and can be removed by the threat actors because of the escalated privileges they have obtained. Organizations should move either implement compensating controls for traditional AV solutions to detect any changes to the software or implement an ERD solution like SentinelOne to inhibit and prevent future success from these threat actors.

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Red alert symbols and warning icons spreading across a digital network, representing firewall compromise and widespread cyber intrusion.
Red alert symbols and warning icons spreading across a digital network, representing firewall compromise and widespread cyber intrusion.

Article

FortiGate Exploits Enable Network Breaches and Credential Theft

A recent security report indicates that threat actors are actively exploiting FortiGate Next-Generation Firewall (NGFW) appliances as initial access vectors to compromise enterprise networks. The activity leverages recently disclosed vulnerabilities or weak credentials to gain unauthorized access and extract configuration files, which often contain sensitive information, including service account credentials and detailed network topology data. 

Analysis of these incidents shows significant variation in attacker dwell time, ranging from immediate lateral movement to delays of up to two months post-compromise. Since these appliances often integrate with authentication systems such as Active Directory and Lightweight Directory Access Protocol (LDAP), their compromise can grant attackers extensive access, substantially increasing the risk of widespread network intrusion and data exposure. 

What’s Notable and Unique 

  • The activity involves the exploitation of recently disclosed security vulnerabilities, including CVE-2025-59718, CVE-2025-59719, and CVE-2026-24858, or weak credentials, allowing attackers to gain administrative access, extract configuration files, and obtain service account credentials and network topology information. 


  • In one observed incident, attackers created a FortiGate admin account with unrestricted firewall rules and maintained access over time, consistent with initial access broker activity. After a couple of months, threat actors extracted and decrypted LDAP credentials to compromise Active Directory. 

  • In another case, attackers moved from FortiGate access to deploying remote access tools, including Pulseway and MeshAgent, while also utilizing cloud infrastructure such as Google Cloud Storage and Amazon Web Services (AWS). 

Analyst Comments 

Arete has identified multiple instances of Fortinet device exploitation for initial access, involving various threat actors, with the Qilin ransomware group notably leveraging Fortinet device exploits. Given their integration with systems like Active Directory, NGFW appliances remain high-value targets for both state-aligned and financially motivated actors. In parallel, Arete has observed recent dark web activity involving leaked FortiGate VPN access, further highlighting the expanding risk landscape. This aligns with the recent reporting from Amazon Threat Intelligence, which identified large-scale compromises of FortiGate devices driven by exposed management ports and weak authentication, rather than vulnerability exploitation. Overall, these developments underscore the increasing focus on network edge devices as entry points, reinforcing the need for organizations to strengthen authentication, restrict external exposure, and address fundamental security gaps to mitigate the risk of widespread compromise. 

Sources 

FortiGate Edge Intrusions | Stolen Service Accounts Lead to Rogue Workstations and Deep AD Compromise

Article

Vulnerability Discovered in Anthropic’s Claude Code

Security researchers discovered two critical vulnerabilities in Anthropic's agentic AI coding tool, Claude Code. The vulnerabilities, tracked as CVE-2025-59536 and CVE-2026-21852, allowed attackers to achieve remote code execution and to compromise a victim's API credentials. The vulnerabilities exploit maliciously crafted repository configurations to circumvent control mechanisms. It should be noted that Anthropic worked closely with the security researchers throughout the process, and the bugs were patched before the research was published. 

What’s Notable and Unique 

  • The configuration files .claude/settings.json and .mcp.json were repurposed to execute malicious commands. Because the configurations could be applied immediately upon starting Claude Code, the commands ran before the user could deny permissions via a dialogue prompt, or they bypassed the authentication prompt altogether. 


  • .claude/settings.json also defines the endpoint for all Claude Code API communications. By replacing the default localhost URL with a URL they own, an attacker could redirect traffic to infrastructure they control. Critically, the authentication traffic generated upon starting Claude Code included the user's full Anthropic API key in plain text and was sent before the user could interact with the trust dialogue. 


  • Restrictive permissions on sensitive files could be bypassed by simply prompting Claude Code to create a copy of the file's contents, which did not inherit the original file's permissions. A threat actor using a stolen API key could gain complete read and write access to all files within a workspace. 

Analyst Comments 

The vulnerabilities and attack paths detailed in the research illustrate the double-edged nature of AI tools. The speed, scale, and convenience characteristics that make AI tools attractive to developer teams also benefit threat actors who use them for nefarious purposes. Defenders should expect adversaries to continue seeking ways to exploit configurations and orchestration logic to increase the impact of their attacks. Organizations planning to implement AI development tools should prioritize AI supply-chain hygiene and CI/CD hardening practices. 

Sources 

  • Caught in the Hook: RCE and API Token Exfiltration Through Claude Code Project Files | CVE-2025-59536 | CVE-2026-21852

Article

Ransomware Trends & Data Insights: February 2026

After a slight lull in January, Akira and Qilin returned to dominating ransomware activity in February, collectively accounting for almost half of all engagements that month. The rest of the threat landscape remained relatively diverse, with a mix of persistent threats like INC and PLAY, older groups like Cl0p and LockBit, and newer groups like BravoX and Payouts King. Given current trends, the first quarter of 2026 will likely remain relatively predictable, with the top groups from the second half of 2025 continuing to operate at fairly consistent levels month to month.

Figure 1. Activity from the top 5 threat groups in February 2026

Throughout the month of February, analysts at Arete identified several trends behind the threat actors perpetrating cybercrime activities: 

  • In February, Arete observed Qilin actively targeting WatchGuard Firebox devices, especially those vulnerable to CVE-2025-14733, to gain initial access to victim environments. CVE-2025-14733 is a critical vulnerability in WatchGuard Fireware OS that allows a remote, unauthenticated threat actor to execute arbitrary code. In addition to upgrading WatchGuard devices to the latest Firebox OS version, which patches the bug, administrators are urged to rotate all shared secrets on affected devices that may have been compromised and may be used in future campaigns.


  • Reports from February suggest that threat actors are increasingly exploring AI-enabled tools and services to scale malicious activities, demonstrating how generative AI is being integrated into both espionage and financially motivated threat operations. The Google Threat Intelligence Group indicated that state-backed threat actors are leveraging Google’s Gemini AI as a force multiplier to support all stages of the cyberattack lifecycle, from reconnaissance to post-compromise operations. Separate reporting from Amazon Threat Intelligence identified a threat actor leveraging commercially available generative AI services to conduct a large-scale campaign against FortiGate firewalls, gaining access through weak or reused credentials protected only by single-factor authentication.


  • The Interlock ransomware group recently introduced a custom process-termination utility called “Hotta Killer,” designed to disable endpoint detection and response solutions during active intrusions. This tool exploits a zero-day vulnerability (CVE-2025-61155) in a gaming anti-cheat driver, marking a significant adaptation in the group’s operations against security tools like FortiEDR. Arete is actively monitoring this activity, which highlights the growing trend of Bring Your Own Vulnerable Driver (BYOVD) attacks, in which threat actors exploit legitimate, signed drivers to bypass and disable endpoint security controls.

Sources

  • Arete Internal