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Managed Detection and Response: A Cornerstone of a Multi-Pronged Approach to Security
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The cyber threat landscape is continually evolving, and aided by advanced technology, threats are becoming increasingly more sophisticated. The barrier of entry into cybercrime has become significantly lower in recent years, with artificial intelligence, leaked source code, and Cybercrime-as-a-Service tools enabling even less experienced threat actors to execute damaging attacks.
As the global cost of cybercrime soars, organizations must transform their approach to security to protect their data and systems. Many organizations, especially small and medium-sized businesses (SMBs), face significant challenges in maintaining adequate cybersecurity measures due to resource constraints, evolving threats, and lack of expertise. Limited budgets often prevent SMBs from investing in advanced security tools or employing dedicated cybersecurity staff, leaving them reliant on outdated or insufficient defenses. Additionally, SMBs are prime targets for threat actors, as they often store valuable data but lack the robust defenses of larger enterprises.
While traditional tools like antivirus software and firewalls remain necessary, they are no longer sufficient to defend against advanced persistent threats (APTs) and zero-day exploits. In today’s threat landscape, no single tool or technique can fully secure an organization or individual in today’s complex cyber landscape. To defend against the evolving threat of cyberattacks, organizations should take a multi-pronged approach to cybersecurity, implementing multiple layers of defense mechanisms and strategies to protect digital assets against a variety of cyber threats.
The Value of MDR
A cornerstone of a well-rounded approach to cybersecurity is Managed Detection and Response (MDR), a cybersecurity service that combines advanced threat detection and continuous monitoring delivered by expert teams to protect organizations from evolving cyber threats.
MDR services continuously monitor systems, networks, and endpoints to detect suspicious activity in real- time and identify threats that traditional tools may miss. Unlike other managed security services that focus on prevention, MDR emphasizes active threat hunting and rapid response. By leveraging tools with advanced technologies like artificial intelligence (AI) and machine learning (ML), MDR detects anomalies and potential threats in real-time, enabling the identification of subtle indicators of compromise that traditional methods might miss.
A crucial aspect of MDR is its ability to reduce “dwell time”—the duration between when a breach occurs and when it is detected. By catching breaches early, MDR can help minimize the financial and operational damage caused by cyber incidents. Explore Arete’s Managed Detection and Response solution that combines cutting-edge technology, frontline insights, and deep security expertise to provide fully managed, 24/7/365 endpoint protection.
Economic Benefits of Managed Detection and Response
Small and medium-sized businesses, in particular, benefit from MDR by gaining access to enterprise-grade security without the need for an extensive, in-house team. The subscription-based model democratizes advanced cybersecurity, making it more accessible and scalable for organizations of all sizes. In addition to direct financial savings, MDR also aids in compliance management. With regulatory frameworks becoming stricter, organizations face hefty fines for data breaches or non-compliance. MDR services often include compliance monitoring and reporting, helping businesses stay aligned with regulations and avoid costly penalties.
The Technology-Human Balance in MDR
MDR is built on cutting-edge technology, but its true value lies in the combination of advanced tools with human expertise. Behavioral analytics and cloud-native architectures form the backbone of MDR’s technical capabilities, allowing for rapid identification of suspicious activities and scalable threat intelligence. However, it’s the collaboration between these technologies and skilled security analysts that makes MDR truly effective.
Automated tools can detect patterns, but human analysts bring context and insight, recognizing complex threats such as social engineering attacks, which exploit human behavior rather than technical vulnerabilities.
For an example of how MDR services work in real-world scenarios, check out this Client Success Story, which showcases the effectiveness of managed services in mitigating cyber threats.
Why Arete?
Arete combines cutting-edge technology, frontline insights, and deep security expertise to provide fully managed, 24/7/365 endpoint protection. We handle monitoring, review, and response to alleviate the constraints faced by your staff and enable your team to concentrate on your business.
Powered by real-time actionable intelligence from over 9,000 engagements, our MDR solution brings peace of mind by empowering your organization with data-driven detection tools to spot threats earlier. Arete’s solution is powered by knowledge and expertise from the frontlines of incident response. We also have long-standing partnerships with many insurance carriers and provide recommendations aligned with insurance policy requirements.
To provide enhanced detection, Arete provides our clients with access to Custom Detections and Blocking. Our experts reverse engineer malware to create a powerful threat detection tool that transforms knowledge and experience into actionable intelligence and enhances endpoint detection and response tools with hundreds of custom threat detection rules that act autonomously in seconds.
At Arete, we help organizations of all sizes implement an MDR solution that provides real-time threat detection and response, ensuring that your business is not only secure but also prepared for future challenges. MDR offers the expert protection you need to navigate today’s threat landscape with confidence.
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Arete's 2025 Annual Crimeware Report
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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



