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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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Article

Phishing-as-a-Service Evolves with Venom

“Whaling” has taken on a new meaning with a highly targeted phishing campaign active from November 2025 through March 2026, aimed exclusively at senior executives from more than 20 industries. The campaign, dubbed VENOM, is a phishing-as-a-service (PhaaS) platform that combines advanced evasion capabilities with immediate persistence of targeted executives. The initial phish impersonates an internal SharePoint document notification and uses embedded QR codes to convince victims to shift to unmanaged mobile devices to bypass corporate security controls. VENOM aims to establish persistence immediately by either registering a new MFA device or retaining long-lived refresh tokens, allowing threat actors to maintain access even after password resets or other base-level remediation efforts. 

What’s Notable and Unique

  •  This campaign is unique in its targeted nature of the PhaaS platform rather than broad, sweeping attempts. The threat actors behind VENOM create convincing phishing emails that impersonate SharePoint activity using the victim’s own domain, company name, and even fabricated email threads. These convincing social engineering tactics, combined with the specific targeting of executives, make this an effective capability for cybercriminals.

  •  VENOM operates as a closed-access system, with full adversarial support, but has no public visibility on the dark web or from security researchers. The service likely operates on an invite-only basis, unlike most PhaaS platforms, which typically seek to have as many paying customers as possible. This, among other items such as the sophisticated evasion techniques, indicates a higher degree of sophistication than most other PhaaS offerings.

  • Either through MFA enrollment or Microsoft Device Code abuse, the threat actor forces the victim to aid them in establishing persistence early in the attack lifecycle. These tactics result in either valid tokens or an additional MFA login method controlled by the threat actor, meaning typical password resets alone are not effective against this technique. Administrators would be required to explicitly revoke sessions and token grants to mitigate the threat actors’ persistence.

Analyst Comments

Oftentimes, MFA is viewed as a one-stop shop to cybersecurity, but tactics such as this show how threat actors can bypass MFA, or worse, use it to establish persistence. Ultimately, this campaign highlights how modern attacks increasingly abuse legitimate authentication workflows rather than attempting to defeat them outright. Defenses that rely solely on MFA without other security posturing, such as continuous session monitoring, token revocation, and identity logging, can leave organizations vulnerable. As attackers shift toward token theft and device trust abuse, incident response and identity security strategies must evolve accordingly.

Sources

  • Meet VENOM: The PhaaS Platform That Neutralizes MFA

Article

Threat Actors Continue to Leverage BYOVD Technique

Multiple ransomware operations have recently been observed leveraging the Bring Your Own Vulnerable Driver (BYOVD) technique to disable endpoint security controls prior to ransomware deployment. Notably, the Qilin ransomware group commonly leverages a malicious msimg32.dll file loaded via DLL side-loading, along with vulnerable drivers including rwdrv.sys and hlpdrv.sys, to gain kernel-level access and disable security processes. Similarly, Warlock ransomware has been observed exploiting the vulnerable NSecKrnl.sys driver to bypass security controls. The use of BYOVD has also been observed across ransomware campaigns associated with Akira, INC, Medusa, and other threat actors. 

What’s Notable and Unique 

  • The Qilin ransomware group employs a sophisticated multi-stage infection chain, leveraging DLL side-loading (msimg32.dll) to execute malicious payloads directly in memory and evade traditional file-based detection. In DLL side-loading, a threat actor tricks a program into loading a malicious dynamic link library. The malware escalates privileges and uses signed but vulnerable drivers (rwdrv.sys and hlpdrv.sys) to bypass security controls, access system memory, and systematically disable endpoint defenses by terminating security processes and disabling monitoring callbacks at the kernel level. 

  • Akira ransomware operators have also exploited the rwdrv.sys and hlpdrv.sys drivers. Additionally, Arete has observed threat actors leveraging multiple other drivers, including the vulnerable TrueSight.sys, to bypass security controls. 

  • Meanwhile, Warlock ransomware operators disguised malicious activity by renaming rclone.exe to TrendSecurity.exe to appear legitimate. The file functioned as a loader, exploiting the vulnerable NSecKrnl.sys driver to disable security processes, while Group Policy Objects (GPOs) were leveraged to systematically disable security controls across the environment. 

Analyst Comments 

The BYOVD technique, employed by multiple known ransomware operators, reflects a broader shift toward pre-encryption defense evasion, including suppression of Windows telemetry, removal of monitoring callbacks, and abuse of legitimately signed but vulnerable drivers. This technique enables threat actors to evade detection, maintain persistence for extended periods, and maximize the operational impact of ransomware deployment across compromised environments. Organizations should implement strict driver control policies, such as Microsoft’s Vulnerable Driver Blocklist and application control mechanisms. Additionally, enforcing least privilege access, enabling multi-factor authentication (MFA), maintaining up-to-date patching, and continuously monitoring for anomalous driver and kernel-level activity can further reduce the risk of such attacks. 

Sources 

  • Qilin EDR killer infection chain

  • Web Shells, Tunnels, and Ransomware: Dissecting a Warlock Attack 

Article

Ransomware Trends & Data Insights: March 2026

The threat landscape in March had a much more even distribution of threat groups than has been observed since the first half of 2025. Although Akira, Qilin, Play, and INC remained among the most active groups, Arete observed 21 unique ransomware and extortion groups in March, compared to only 15 in February. Akira and Qilin’s activity also declined from the previous month; in February, the two groups were responsible for almost half of all ransomware incidents, but in March they only comprised a little more than a quarter of all activity. Arete also observed activity from several emerging groups in the past month, including BravoX, NightSpire, Payouts King, and Securotrop.

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

Analysts at Arete identified several trends behind the threat actors perpetrating cybercrime activities:

  • In March, threat actors actively exploited FortiGate Next-Generation Firewall appliances as initial access vectors to compromise enterprise networks. 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. Arete also observed Fortinet device exploitation involving various threat groups, with the Qilin ransomware group notably leveraging Fortinet device exploits.


  • Phishing campaigns leveraging OAuth redirection and a resurgence of Microsoft Teams–based social engineering were also observed in March. In one campaign, attackers sent emails disguised as Microsoft Teams recordings or Microsoft 365 alerts, redirecting victims through legitimate OAuth endpoints to attacker-controlled pages hosting malicious ZIP payloads. A separate campaign has been ongoing since last year, in which attackers flood users’ inboxes with spam and impersonate IT support personnel to trick victims into initiating remote support sessions via tools like Quick Assist.


  • Arete recently released its 2025 Annual Crimeware Report. Leveraging data and intelligence collected during ransomware and extortion incident response engagements, this report highlights notable trends and shifts in the threat landscape throughout 2025, including Akira’s unusually high activity levels in the second half of 2025, evolving social engineering techniques, and trends in ransom demands and impacted industries.

Sources

  • Arete Internal

Report

Arete's 2025 Annual Crimeware Report

Harness Arete’s unique data and expertise on extortion and ransomware to inform your response to the evolving threat landscape.